Underwater? HARP 2.0 Update-Getting Closer-Stay Tuned

Underwater?
Refinance to a lower monthly payment for qualified borrowers.
No appraisal is required.

HARP 2.0 features unlimited LTV (loan-to-value).  If you're "underwater" and need to lower your payment, it may be your turn to take advantage.

Do you qualify? Here are the program basics: http://mijoymortgage.com/UNDERWATER_HARP_2.0.html.

Previous HARP 2.0 post/update:

http://mijoymortgage55.blogspot.com/2012/01/underwater-whats-up-with-harp-20.html

Please pass this along to anyone you feel might benefit:

FHLMC (Freddie Mac) loaded the HARP 2.0 guidelines to its system this past weekend, FNMA (Fannie Mae) will load theirs the weekend of 3-17.

It will take about 2-3 weeks beyond that (best guess) for investors to put forth their individual programs. We will know as investors roll out their individual programs what we can do for individual borrower scenarios.

If you are in my data base for follow up you will be among the first to know what possibilities there are….updated posts to follow as the program guidelines roll out.

If you need/wish to be added to my database please e-mail me.

It would be a very good idea to get  your loan application ready on my secure site here: https://0990471896.secure-loancenter.com/WebApp/Start.aspx

Those with applications on file will be processed first.

Until next time...

Hold Your Lender Accountable-The Top 5 List

Other lenders don't enjoy my posts very often. They don't want you to know this stuff, or even think about it. They want quiet little consumers busily attending to their daily activities, relying on their loan officer to safely keep watch over what is likely their biggest financial asset. Huh?

More than ever, knowledge is power. It's pretty much a given that in today's world, the wrong mortgage loan can be pretty devastating. Please be careful and please make informed decisions. I'll cover this for you a bit down the line in this post.

There's plenty of regulatory stuff hanging around, enforcing the law for big banks on down the line to Johnny Joe Corner Mortgage, that causes these folks to develop a severe case of the yikes; here comes another mortgage zombie ready to rip off another piece of flesh! Yeah, that's painful and all, but who has empathy for guys that think they're suffering when they're down to only one new beemer and (gasp!) a now ancient 2 year old Audi? Really?

Good thing my car is 8 years old...hey, it still looks and runs great. Do you really care if these people suffer for all of the market issues that have contributed to one of greatest real estate debacles this country has ever seen? While the great majority of folks who do what I do are 100% above-board, and hate this mess as much (or more) than anyone, there are those (there are always going to be "those") who should be put in jail. Enough of that.

This post is for those who seek a good and honest loan; one that does what it's supposed to do. Yes, there are still loans that fit that definition; I do them often.

What should you watch out for? Even though the mortgage loan officer ranks have thinned considerably, believe me when I tell you there are still some mortgage idiots out there. People that have no more business transacting a loan with you than a kindergartner. Anyway, it's time to let you know what to watch out for. Here's the list:

1. Lenders and loan officers that manipulate the APR (Annual Percentage Rate). It's designed for loan cost comparison; it doesn't always work out that way. Here's a commentary that addresses this fun little adventure into APR-land.
2. Loan Officers/Lenders that provide inaccurate cost and/or rate estimates, just to get your business, then provide a different set of numbers when you get to escrow.
3. Lenders requiring you to be pre-approved by them when they own the house you want to buy. The excuse is they want to be sure your chosen lender knows what they are doing....when in fact it's an obvious marketing ploy. Do you really want to do business with lenders that practice organized crime? Tell them to take a hike.
4. Loan officers that are late for appointments, are dis-organized, that interrupt your meeting with phone calls, that provide mis-leading or false information, that provide inaccurate promises based on costs or time lines, that rely on "assistants" to do their job for them while they are out having fun....spending your money.
5. Finally, do some comparing and be careful not to focus too much on introductory on-line stuff, or on  lender fee and rate promises that just sound too good to be true. We all know how that turns out. Find an experienced lender that provides service. Not lip service; real honest to goodness careful attention to detail (the actual loan officer, not their assistant). One that provides advice based on what's best for you, not what's best for their own checkbook.

The simple fact is that all mortgage lenders have essentially the same money sources in these times. The real and true difference is all about the level of service provided. Does your loan officer have access to the modern and necessary tools to get the job done? Are they experienced and can provide real testimonials to the level of service they provide? Does this person transact business the right way? Do you feel that the combination of value and service (real service to meet your needs) passes the test? Are you comfortable with what it feels like?

I really put this post together by request. Many of my clients expressed that the current state of affairs in the mortgage business has left them at a loss as to what to do. Who to trust, what to believe, and simply what is going on and how long will it last? I respectfully submit that no matter what the atmosphere is, if you develop a relationship with a true professional, someone that you can trust, you will be well cared for and will end up with the right loan.

That's it for now. Until next time...

How Many Are Unemployed? Or...Who's On First?

Abbott and Costello
COSTELLO: I want to talk about the unemployment rate in America.
ABBOTT: Good Subject. Terrible times. It's 9%.
COSTELLO: That many people are out of work?
ABBOTT: No, that's 16%.
COSTELLO: You just said 9%.
ABBOTT: 9% Unemployed.
COSTELLO: Right 9% out of work.
ABBOTT: No, that's 16%.
COSTELLO: Okay, so it's 16% unemployed.
ABBOTT: No, that's 9%...
COSTELLO: Wait a minute. Is it 9% or 16%?
ABBOTT: 9% are unemployed. 16% are out of work.
COSTELLO: IF you are out of work you are unemployed.
ABBOTT: No, you can't count the "Out of Work" as the unemployed. You have to look for work to be unemployed.
COSTELLO: BUT THEY ARE OUT OF WORK!
ABBOTT: No, you miss my point.
COSTELLO: What point?
ABBOTT: Someone who doesn't look for work can't be counted with those who look for work. It wouldn't be fair.
COSTELLO: To whom?
ABBOTT: The unemployed.
COSTELLO: But they are ALL out of work.
ABBOTT: No, the unemployed are actively looking for work. Those who are out of work stopped looking. They gave up. And, if you give up, you are no longer in the ranks of the unemployed.
COSTELLO: So if you're off the unemployment rolls that would count as less unemployment?
ABBOTT: Unemployment would go down. Absolutely!
COSTELLO: The unemployment just goes down because you don't look for work?
ABBOTT: Absolutely it goes down. That's how you get to 9%. Otherwise it would be 16%. You don't want to read about 16% unemployment do ya?
COSTELLO: That would be frightening.
ABBOTT: Absolutely.
COSTELLO: Wait, I got a question for you. That means there are two ways to bring down the unemployment number?
ABBOTT: Two ways is correct.
COSTELLO: Unemployment can go down if someone gets a job?
ABBOTT: Correct.
COSTELLO: And unemployment can also go down if you stop looking for a job?
ABBOTT: Bingo.
COSTELLO: So there are two ways to bring unemployment down, and the easier of the two is to just stop looking for work.
ABBOTT: Now you're thinking like an economist.
COSTELLO: I don't even know what the heck I just said!
And now you know why the Administration's employment figures are improving!
Until next time...

$100 Down-50% Discount on Home Price for Law Enforcement, Firefighters/EMS, Teachers

About Good Neighbor Next Door-from HUD
Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works
Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.

How to Participate in Good Neighbor Next Door
Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program.

Get pre-approved! You can contact me here: mitch.wilcox@bankoforegon.net.

HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

The number of properties available is limited and the list of available properties changes weekly.

To learn more, please see our Good Neighbor Sales Frequently Asked Questions!

Still have questions or want to get started on loan pre-approval?  Contact me!

Until next time...