Dallas Real Estate and Short Sale Blog

The Federal Government and five large loan servicers (Bank of America, Chase, Citi, Ally, and Wells Fargo) have reached a settlement over the "robo-signing" of foreclosure documents. The 25 billion dollar settlement provides relief to distressed homeowners and direct payments to states and the federal government.

The Attorneys General on the Executive Committee that negotiated the settlement have created a website at www.nationalmortgagesettlement.com that provides information on the settlement.

Don't be scammed by people offering to assist you with filing a claim for a fee. Filing is easy and free to borrowers.

Below is a link to a video produced by TBWS Daily that covers this in detail.

Your Portion of the $25 Billion Settlement

We will post updates as more information becomes available.

Photo Licensed from iStockPhoto

Originally posted at http://www.thebranchteam.com/wordpress/2012/04/27/25-billion-dollar-national-mortgage-settlement/

The U.S. Congress recently passed a two-month payroll tax cut extension. The $33 billion package is funded by a 10-year increase in the Guaranty Fees that Fannie Mae (Fannie) and Freddie Mac (Freddie) charge lenders to guarantee home loans.

This change is effective for all loans delivered to Fannie and Freddie at the beginning of the second quarter of 2012. For example, the cost of a $200,000 mortgage will go up about $11 per month. Over the life of the loan, these costs are anticipated to be about $4,000.

These changes will also increase the cost of FHA and VA loans. However, the government has not released information as to the timing of these changes.

All lenders — by law — will be adding this increase to their pricing.

Source: Prospect Mortgage

Originally posted at http://www.thebranchteam.com/wordpress/2012/01/20/guaranty-fee-increase/

This is a common question among distressed homeowners we work with. It’s an easy question to ask, but the answer is complicated and constantly changing.

There are many variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or a short sale; however, the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure are:

Short Sale with FHA loan • Can purchase right away with no mortgage default/late payments • 3 year wait if in default or late payments at the closing • Reduced wait if the borrower has re-established good credit and can show more qualifying circumstances *

Short Sale with Fannie Mae Loan • 2 year wait if the borrower puts 20 % down • 4 year wait if the borrower puts between 10% to 20% down • 7 year wait if the borrower puts less than 10% down • 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down *

Short Sale with Freddie Mac Loan • 4 year wait before being able to get a loan • 2 year wait if the borrower can show extenuating circumstances *

Foreclosure with an FHA Loan • 3 year wait before being able to get a loan • Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit *

Foreclosure with a Fannie Mae Loan • 7 year wait from the completed foreclosure sale date • 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period. • 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan • 5 year wait from the completed foreclosure sale date • 3 year wait if the borrower can show extenuating circumstances *

*Qualifying/Extenuating circumstances are not applicable in most situations

This list does not cover all circumstances so always talk with an experienced mortgage professional about your specific situation.

Source: Can I Buy a House after a Short Sale or Foreclosure? << The Branch Team

I was in the office speaking to one of our agents yesterday. He was relating how a client who he had helped to purchase a new home about five years ago had lost the home to foreclosure.

It all started when the home was purchased. The taxes were based on a vacant lot so the lender set up the escrow account to collect the taxes. Typically by the end of the first year, the taxing authority has added an assessment for the dwelling and the homeowners’ escrow account has a shortfall.

This one was worse. Apparently the taxing authority never reassessed the property and caught the mistake four years later. The homeowner was faced with a $16,000 shortfall. They could not pay it, so the lender paid it and set up their escrow account to collect the shortfall and enough to cover the taxes going forward. This added almost $1700 a month raising their payment from $1800 to $3500 a month. Talk about payment shock!

Knowing they could not make those kinds of payments, they rented an apartment and let the home go into foreclosure. This is truly sad since most lenders are willing to work with homeowners in this situation.

I recently worked a deal with Bank of America (I am an NMLS licensed MLO and Texas Law allows me to work on loan modifications), where the bank paid the taxes and allowed the homeowner to repay the bank over 5 years with no interest. I’ve also worked a deal with another lender to pay the taxes and add the balance to the end of the existing note.

If you’re behind on your property taxes, you really need to call your lender or servicer and ask for help. There’s no need to walk away from your home! You can avoid foreclosure...

Source: http://www.thebranchteam.com/wordpress/2011/04/07/my-property-taxes-are-delinquent/