Greensboro Real Estate

Confused about the many programs to help those who are struggling with their mortgages?  You are not alone!  There are loan modification programs for first mortgages, second mortgages and other programs to help you stay in your home.  But getting help and answers can be a daunting task! 

Now there is one place to get all of the facts.  Check out our new website about Government Program Eligibility.  Managed by Kelly Walters, our Short Sale Specialist, it can give you the answers you need!  Kelly has helped many homeowners facing foreclosure in Greensboro, NC and throughout the Triad.  She is ready to help you too! 

Did you know that borrowers may be immediately eligible for a new FHA loan after a short sale? Knowing the FHA requirements in advance can make a huge difference between purchasing another new home quickly or renting for years.

The first step to determining your eligibility is evaluating your payment history. (Even if you are late on your payments, there are loan options available so please read on!) To be immediately eligible for a new FHA loan:

•1. The short sale must be a result of a financial hardship, not a borrower taking advantage of the current market conditions

•2. The borrower must continue to make payments until short sale has closed. This is good motivation for people to seek help before they start missing payments.

•3. The net proceeds from the sale must meet the minimum allowable by FHA to “settle” the account. (Determined by appraisal of property by an FHA appraiser)

There are also options for borrowers who were in default at the time of short sale. They may be eligible for a new FHA loan in 3 years or less. The lender may make reduce the 3 year waiting period depending on the circumstances of the short sale.

This is one of the many reasons why it is important to talk to a short sale expert if you are experiencing a financial hardship that makes it difficult for you to make payments on your home. As you may know, Kelly Walters on our team is a Certified Distressed Property Expert. She has the education and experience to help guide Short Sale Sellers through this complicated maze. If you are in Greensboro, NC or in the Triad area, please contact her for more information and a copy of the FHA guidelines.

Two new North Carolina laws were passed yesterday to provide some additional protection to homeowners facing foreclosure. 

Beginning June 1, once a homeowner in North Carolina requests a loan modification, all foreclosure actions must be suspended.  Currently, the law allows mortgagors to continue pursuing foreclosures against homeowners who are waiting to have their loans modified. 

The second law requires mortgagors to provide clear and timely communications if a homeowner requests assistance. 

If you are facing foreclosure here in North Carolina, there is help available.  The North Carolina Commissioner of Banks has established a website to offer lots of solutions.  If you are in Greensboro, NC or the Triad, you may also contact Kelly Walters in our office.  She is a Certified Distressed Property Expert and can provide you with loads of information. 

The Mortgage Bankers Association reports some encouraging news in the home mortgage deliquency statistics.  According to their quarterly National Delinquency Survey, 30-day delinquencies fell significantly for the last quarter of 2009.  In fact, they reported the largest drop ever in the 30-day deliquency rates.  Jay Brinkmann, MBA’s chief economist, writes, “The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end (of mortgage delinquencies and foreclosures) may be in sight.” 

Historically, 30-day deliquencies are considered a leading indicator of homes going into foreclosure.  Therefore, we should see fewer homeowners facing foreclosure in the future. 

The Mortgage Bankers Association also reported that a record proportion of homes are in foreclosure or arrears at this time but the drop in short-term deliquencies may indicate that homeowners in trouble may be lessening.   

At Team Leung, we understand that economic hardships can bring troubling times for homeowners.  That is why we have a full-time Short Sale Specialist, Kelly Walters, who has been helping homeowners in Greensboro and throughout the Triad avoid foreclosure, if possible.  Please email Kelly or give her a call at 336-253-5079 if you have any questions about this important topic.

Effective October 31, 2009, Fannie Mae will retire its current HomeSaver Forbearance Plan and replace it with the new Payment Reduction Plan (PRP) to help homeowners avoid foreclosure. Under the terms of the new PRP, mortgage servicers will be allowed to reduce a borrower’s Principal and Interest (P&I) payment by up to 30% for up to 6 months. The goal is to provide the borrower some temporary relief while working with the servicer to find a permanent foreclosure prevention solution. 

To be eligible for this temporary payment reduction, the loan must be owned or guaranteed by Fannie Mae and meet the following minimum requirements:

•        Must be a first lien conventional mortgage at least 6 months old

•        In default or is at risk of imminent default

•        Secured by a 1-4 unit property (owner-occupant, investment, and second homes qualify!)

•        Borrower must show ability to make the reduced payment

•        Property cannot be condemned

•        If in active foreclosure, sale date must be at least 45 days after PRP effective date (no 11^th hour requests for PRP!)

Mortgage servicers will receive an incentive fee for a PRP, but under the new plan they will not receive the incentive until after permanent foreclosure prevention has been successfully completed.

Fannie Mae still instructs its mortgage servicers to evaluate each and every distressed borrower for the Home Affordable Modification Program (permanent payment reduction).

This announcement is just further proof that the banks are willing to work with homeowners to avoid foreclosure! In the Greensboro, NC area, our short sale specialist, Kelly Walters, is working with many homeowners to help them find alternatives to foreclosure.  To find a Certified Distressed Property Expert in your area, check out www.cdpe.com.