Banks are gearing up for the government announced foreclosure prevention plan to start towards end of the March.
The two-part plan calls for mortgage servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages even if the homeowner has little or no equity. It also provides thousands of dollars in incentives for servicers to participate.
However, Banks are still updating their systems to process modification and refinancing applications. And they are waiting for clarification on a few points of the plan. This could create delays and long hold times.
It could be weeks before borrowers learn whether they qualify for either program
The nation's four major mortgage servicers - Citigroup, Bank of America, JPMorgan Chase and Wells Fargo are said to be gearing up for the onslaught.
To get latest info on the plan and see if you qualify go to makinghomeaffordable.gov.
Wally Sears, American Enterprise Bank of Florida, (904) 610-9771 wsears@aebmortgage.com
As the number of home sales dwindles and banks tighten underwriting requirements for mortgages, fraud is rising.
Cases of reported mortgage fraud went up 26% from 2007 to 2008, according to the Mortgage Asset Research Institute (MARI). The economic downturn may have created more desperation, causing more people to try committing mortgage fraud. Also lenders are looking more closely at the documents the borrowers are producing there by catching more fraud.
The top states for mortgage fraud are Rhode Island, Florida, Illinois, Georgia, Maryland, New York, Michigan, California, Missouri and Colorado
The most prevalent form of mortgage dishonesty in 2008 was application fraud. The second most prevalent type of fraud was due to misleading tax returns and financial statements. Followed by appraisal fraud.
With mortgage fraud on the rise lenders are taking longer to look over a file in underwriting. This is a factor in the longer turn times many lenders are facing.
Wally Sears
Sr Loan Officer
(904) 610-9771
The FHA 203(K) Streamline mortgage is a great way to purchase a home that needs a little "TLC". This mortgage program is designed to allow homeowners to purchase a home and finance improvements for up to $35,000 into the mortgage.
A short list of the most popular eligible improvements under the FHA 203k streamline guidelines includes:
These things are not everything that is eligible under the 203k program, just the most popular improvements that people use the program for.
Once the loan is approved and closed, the repair funds are held in escrow until payment is made to the contractor. You will have up to 3 months from your closing date to complete the work and no more than 2 payments.
The FHA 203 (K) can not be used for the following:
So if you are looking to buy a home that needs some "TLC" and the repairs can be done for $35K or less this program might work for you. Regular FHA rates & guideline apply. You will need at least 3.5% down payment based on the after improved value. Seller is allowed to pay all the closing cost up to 6% of sales price. At least a 600 credit score is needed.
Wally Sears
American Enterprise Bank of Florida
904-610-9771
In 2007 I have been having success with the Florida Housing Bond program. It is a 1st time home buyer program through the state of Florida. An 8 hour home buying class is required. If you are a teacher, fire fighter, police, military, the rate is currently 5.95% on a 30 yr fixed. The regular rate is 6.76%. 100% financing including closing cost. Income limit is $60,300 yr for one person....the program has other good features. You can even combined it with other government funds. I think its awesome.
Wally Sears, American Enterprise Bank of Florida 904-610-9771 wsears@aebmortgage.com
Wow we just finished our 1st week actively marketing these cool condos. Emory Clements with Remax Advantage is the listing agent and I am the preferred lender. We put our new for sale sign up today. Looks great. Everyone that has come by to see these units says they show great. They are priced $295K and under. Only 12 units. They are small but they are packed with upgrades.I think the location is awesome only 2 blocks to the beach. I live on the same street 4 blocks north.
Wally Sears
American Enterprise Bank of Florida
904-610-9771
We are unique in that we are a small local community bank with national lending capabilities. AEB Mortgages is one of the top online lenders in the country. We compete everyday in the completive world
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
