Bill Kamboukos

Mortgage Help For Unemployed Borrowers? -

FDIC Has A Plan

The Federal Deposit Insurance Corp has begun to push a plan to help unemployed homeowners at risk of foreclosure to get a temporary break on their mortgage payments.

The FDIC said it is encouraging certain banks to reduce mortgage payments for the unemployed or underemployed for at least six months.

However, initially only a percentage of the unemployed will benefit from this recommended plan because the effort would only apply to a handful of institutions. Specifically, it would affect those that bought failed banks and participate in loss-share agreements with the FDIC. In such deals, the agency covers some of the losses incurred on the assets of the failed banks. Some 53 institutions, mainly regional or community banks have entered into such arrangements since January 2008.

The existing foreclosure-prevention programs, including the president's loan modification plan, generally do not help the jobless because they don't have enough income to sustain even reduced monthly payments. Administration officials have said they are exploring ways to help the unemployed -- including through reduced payments, typically called forbearance plans.

This plan is also in response to the fact that while many servicers have offered forbearance plans in the past, fewer are these days. That's because financial institutions no longer feel that borrowers will be able to land a comparable job within a few months.

Under the FDIC's recommendation, unemployed or underemployed borrowers would have their payments reduced to an affordable level for at least six months. However, unlike a typical forbearance plan, where the arrears would have to be paid back within a year, the FDIC endorses allowing borrowers to catch up over the life of the loan.

Borrowers who cannot afford their payments once they get jobs would be considered for a loan modification program approved by the FDIC, which includes the president's plan. Eligible borrowers could have their monthly payments reduced to 31% of their pre-tax income if doing so would cost less than foreclosing on the home.

In the end the FDIC believes that both modification and forbearance plans could ultimately save the FDIC money if they reduce losses from foreclosure. If and when this plan takes its final shape and moves forward, additional information will be provided.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

Mortgage Help For Unemployed Borrowers? -

FDIC Has A Plan

The Federal Deposit Insurance Corp has begun to push a plan to help unemployed homeowners at risk of foreclosure to get a temporary break on their mortgage payments.

The FDIC said it is encouraging certain banks to reduce mortgage payments for the unemployed or underemployed for at least six months.

However, initially only a percentage of the unemployed will benefit from this recommended plan because the effort would only apply to a handful of institutions. Specifically, it would affect those that bought failed banks and participate in loss-share agreements with the FDIC. In such deals, the agency covers some of the losses incurred on the assets of the failed banks. Some 53 institutions, mainly regional or community banks have entered into such arrangements since January 2008.

The existing foreclosure-prevention programs, including the president's loan modification plan, generally do not help the jobless because they don't have enough income to sustain even reduced monthly payments. Administration officials have said they are exploring ways to help the unemployed -- including through reduced payments, typically called forbearance plans.

This plan is also in response to the fact that while many servicers have offered forbearance plans in the past, fewer are these days. That's because financial institutions no longer feel that borrowers will be able to land a comparable job within a few months.

Under the FDIC's recommendation, unemployed or underemployed borrowers would have their payments reduced to an affordable level for at least six months. However, unlike a typical forbearance plan, where the arrears would have to be paid back within a year, the FDIC endorses allowing borrowers to catch up over the life of the loan.

Borrowers who cannot afford their payments once they get jobs would be considered for a loan modification program approved by the FDIC, which includes the president's plan. Eligible borrowers could have their monthly payments reduced to 31% of their pre-tax income if doing so would cost less than foreclosing on the home.

In the end the FDIC believes that both modification and forbearance plans could ultimately save the FDIC money if they reduce losses from foreclosure. If and when this plan takes its final shape and moves forward, additional information will be provided.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

THE FHA 203K LOAN:

Facts On The FHA Streamline Repair Loan

In the current marketplace, FHA loans represent an increasingly larger and larger portion of the mortgage market. Especially with first time home buyers representing the landscape more and more. Coupled with the fact that many homes are short sales and foreclosures that are not in perfect shape, the FHA 203k is a learn that more and more home buyers are turning to in order to purchase homes. Often times you will even find some of these properties in very good condition. However, other times, the properties will need some work in order to bring them up to an adequate and proper status for the new buyer. For these instances there is one loan that home buyers can turn to that will actually allow them to build the costs of these repairs into the financing of the home purchase. That loan is the FHA 203K or the FHA Streamline Repair loan. Here are the basics you need to know about the program.

Purchase or Refinance

The FHA 203K loan is available for the purchase or refinance of a property and takes into account the purchase price or payoff (in the case of a refinance) and then adds in the cost of repairs to create your new loan balance. The repairs are then completed after the loan closing.

Property Value

The property must be appraised based on what the property will be worth after repairs. This value will then be used for a property value and the loan to value will be based off of the new loan value.

Streamlined

The maximum repair amount allowable is $35,000 with no minimum amount that can be taken for repairs. The funds will be escrowed at closing and released as the work is completed. A general contractor is not needed, but the work must be completed by a licensed professional.

Eligible Improvements

Eligible improvements include: repair/replacements of roofs/gutters, hvac, plumbing, electrical, flooring, painting, appliances, patios, porches, driveways, windows, doors, septic systems and other common repairs.

Ineligible Improvements

Ineligible improvements include: complete remodeling, new construction, structural issues, landscaping. As well any repairs taking longer than three months or not starting within 30 days of closing are ineligible.

These are just some of the basics of the FHA 203K Loan. In today's market this can be a very important loan program for both new buyers and existing home owners. If you have a property that needs minor repairs, this may be the loan for you.

For more information on the FHA 203K loan as well as additional loan programs and current rates, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

$8,000 Home Buyer Tax Credit -

Ending Soon

As we head into the fall, recent housing numbers and anecdotal evidence, suggests that home buying has certainly picked up. One of the reasons for the increase in home sales, outside of lower prices and interest rates, is the $8,000 first time home buyer tax credit. This credit applies to new home buyers (or those who have not owned a home in the past three years) and it comes to an end on Monday November 30, 2009.

What that means, is that in order to take advantage of this credit, your home purchase must close by that date. With most home closings taking between 30 and 45 days in the current market, that means we are getting closer and closer to the deadline to where new home buyers will be certain they will be able to take advantage of this credit.

For those that have interest in purchasing and obtaining the tax credit, now would be the time to act. Especially if you have concerns which may lengthen the process, such as credit or down payment issues that may affect the loan process.

In addition, there is also a negative in the positive that is increased buyers; that is a more difficult time in getting your purchase offer accepted. Home buyers and real estate agents in the current market have reported that multiple offers are common place on almost all bank owned homes in the current market. Meaning that it could take longer until you have your offer accepted, as you may end up having to bid on more than one property.

In addition, other transactions such as short sales, will typically take longer to close as well, as a third party bank must approve the sale.

What this all means is that this is certainly an opportune time to purchase, with the combination of affordability and tax credits in the current market for buyers. However, with the time length from start to finish of purchasing a home in the current market, November 30^th is a lot closer then it may seem. If you are looking to purchase, now may be the time to contact a mortgage broker to begin the prequalification process and real estate agent to begin searching for homes.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

Home Sales On The Rise Again:

Four Months Of Improvement

In just recently released numbers, sales of existing homes rose in July for the fourth consecutive month, lending support to some economists who argue a recovery is near.

The figures indicate that sales of previously owned single-family homes were up 7.2% compared with June and 5% from July 2008, from a report from The National Association of Realtors. This was the largest monthly gain on record for existing-home sales since the National Association of Realtors started tracking these numbers in 1999.

According to Lawrence Yun, the National Association of Realtors chief economist, "The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales."

The numbers indicate that July home sales hit an annualized rate of 5.24 million proprieties, marking the first breach of the 5 million annualized rate mark since last September, when they hit 5.1 million. Since then, they have stayed in a very narrow range, bouncing between January's low of 4.49 million and October's high of 4.94 million.

This performance in July far exceeded expected numbers from many real estate experts that had forecast sales of 5 million.

This is of course positive news for the housing market moving forward. Of course lower home prices, historically low interest rates; the summer buying season and the $8,000 home buyer tax credit are all factors that are helping contribute to increased home sales.

As we move forward there are still many factors to be worked out to lead to a housing recovery and economic recovery, however the four months of rising home sales are certainly positive signs. With the current eight thousand dollar tax credit coming to an end soon, anecdotal evidence suggests that these numbers may continue to stay strong as we approach November 30^th as well. As always we will provide updates as they become available.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com