This came in from a mortgage broker who I have worked with in the past:
Just a reminder if you are working with a first time home buyer or someone planning to use FHA for their loan; the costs for the mortgage insurance premium will be increasing in 26 more days.
Take advantage of the lower costs now by ordering your FHA case number before April 5th.
FHA loans have been the most competitive options for low down loans (only 3.5%), poor to average credit borrowers, and for condominium purchases with less than 20% down.
After April 5th, they will not be as competitive.
If you have a client that fits into one of these options and have questions, feel free to call or email.
Cheers,
Mike Echery
Wednesday, March 24, 2010
Tuesday, March 16, 2010
7.3% of Boulder and Longmont Mortgages "Underwater"
While we're in nowhere near the situation of Nevada, where 70% of properties are worth less than their loan amounts, about 7.3% of Boulder and Longmont real estate mortgages are "underwater," according to a report by First American CoreLogic and an article in the Boulder County Business Report. Negative equity is at 23.5 percent in the Denver/Aurora/Broomfield metro area, and at 8.9 percent in the Fort Collins/Loveland metro area, the study said. Colorado's negative equity figure stands at 20.2 percent.
A negative equity situation becomes problematic when a homeowner needs to sell because of relocation job loss, or other hardship. Options include a short sale, foreclosure or bringing cash to closing.
A negative equity situation becomes problematic when a homeowner needs to sell because of relocation job loss, or other hardship. Options include a short sale, foreclosure or bringing cash to closing.
New Construction Down, Renovations Steady in Boulder Valley
The value of building permits for new construction fell by 58% in Boulder and Broomfield Counties in 2009, even though the number of permits fell only 3%, according to "Building permit values fall 40 percent in Boulder Valley" in the Boulder County Business Report. This supports the logic that in tough times, people stay put and renovate or add on, instead of moving into a new home or office.
Wednesday, March 3, 2010
Avoiding Foreclosure - Part IV of series
The perfect storm of adjustable mortgages, declining home sales, and job loss have led to a rise in foreclosures. Short sales and foreclosures now represent 30% of all real estate sales in the country. But just because you're falling behind in your mortgage payments, you do have alternatives.
The consequences of foreclosure on homeowners are terrible -- loss of home and equity, damage to credit (lowers score 200 points or more and stays on report for seven years), and the less tangible emotional toll. Neighbors suffer as well, through lowered property values and vacant properties, which can attract vandals and squatters.
Even though the fear of foreclosure can be paralyzing, the worst thing that you can do is nothing. Thankfully, there are an increasing number of resources and new government efforts to support homeowners at risk (see resource list at bottom of post). Your first step should to contact a housing counselor, financial adviser and/or attorney. Explain your situation ask for advice on how to proceed. Depending on a number of factors, including your income and assets, the value of your house, and your loan terms, they may advise one of the following options:
Some homeowners have had success contacting their mortgage company's workout department, negotiating a change in the terms of their loan so that their payments are affordable. You may need to write what is known as a "hardship letter," describing the reasons you are no longer able to afford payments and suggesting a solution. Some common "hardships" include:
Remember that lenders want to avoid foreclosure almost as much as homeowners do because they lose $50,000 per foreclosure, on average.
Help is out there and it's free. Beware of foreclosure rescue scams that charge a fee to negotiate with lenders. Get started on your path to avoiding foreclosure with one of the resources here:
The consequences of foreclosure on homeowners are terrible -- loss of home and equity, damage to credit (lowers score 200 points or more and stays on report for seven years), and the less tangible emotional toll. Neighbors suffer as well, through lowered property values and vacant properties, which can attract vandals and squatters.
Even though the fear of foreclosure can be paralyzing, the worst thing that you can do is nothing. Thankfully, there are an increasing number of resources and new government efforts to support homeowners at risk (see resource list at bottom of post). Your first step should to contact a housing counselor, financial adviser and/or attorney. Explain your situation ask for advice on how to proceed. Depending on a number of factors, including your income and assets, the value of your house, and your loan terms, they may advise one of the following options:
- Refinance
- Lender workout
- Sell your home (bringing cash to closing if necessary)
- Short sale
- Deed in lieu of foreclosure
- Bankruptcy
Some homeowners have had success contacting their mortgage company's workout department, negotiating a change in the terms of their loan so that their payments are affordable. You may need to write what is known as a "hardship letter," describing the reasons you are no longer able to afford payments and suggesting a solution. Some common "hardships" include:
- Income loss or reduction
- Death of homeowner or spouse
- Forced relocation
- Medical bills
- Payment increase (i.e. adjustable rate)
- Business failure
- Incarceration
Remember that lenders want to avoid foreclosure almost as much as homeowners do because they lose $50,000 per foreclosure, on average.
Help is out there and it's free. Beware of foreclosure rescue scams that charge a fee to negotiate with lenders. Get started on your path to avoiding foreclosure with one of the resources here:
Colorado Foreclosure HOTLINE Boulder County Housing Counseling Offices http://www.bouldercounty.org/hhs/housingcounseling.htm Phone: 720-564-2279 Email: hcinfo@bouldercounty.org Locations: · Boulder: 2525 13th Street #204, Boulder 80304 · Longmont: 385 Kimbark Street, Longmont 80501 The Making Home Affordable Program Hope Now (An Alliance of Lenders Helping Homeowners) How to Write a Hardship Letter http://www.afscanhelp.com/hardship-1.cfm |
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