Looks as though the pendulum is starting to swing back to the middle.
When was the last time you saw mortgage availability actually expanding - this is very BIG NEWS!
In related news Housing Starts Jumped in April
Fannie Mae’s Keys to RecoveryTM initiatives are geared toward providing liquidity, stability, and affordability to the housing and mortgage markets for the long term, and include steps to keep struggling borrowers in their homes, assist prospective homebuyers with home purchases, and stabilize communities impacted by the mortgage market downturn.
The initiatives include:
1) a new refinancing option for Fannie Mae “underwater” borrowers that will allow for refinancing up to 120% of a property’s current value;
2) a renewal and expansion of the company’s partnership with the state Housing Finance Agencies (HFAs) to provide $10 billion in financing for qualified, first-time homebuyers;
3) in partnership with Self-Help Credit Union, a new initiative that allows families in hard-hit communities to reside in foreclosed properties on a rent-to-own basis; and
4) pricing for new jumbo-conforming loans that will be flat to conforming for portfolio asset acquisition through the end of the year.
Refinancing “Underwater” Borrowers
With home prices declining in many areas of the country and lending standards tightening as a result of the ongoing turmoil in the housing finance system, many borrowers find themselves with mortgages that exceed the value of their homes and are locked out of refinancing into safer loans that would allow them to sustain their mortgage payments.
In order to assist borrowers whose home equity is “underwater,” reduce foreclosures and support sustained homeownership, Fannie Mae will purchase refinanced loans the company owns for up to 120% of the current property value provided the borrower is current with their mortgage payments.
HFA Investment
HFAs exist to provide affordable homeownership and rental housing opportunities within their states. The majority of HFA single-family business is for first-time homebuyers who have received borrower counseling and down payment and/or closing cost assistance from the government.
Fannie Mae has maintained a long-term agreement with the National Council of State Housing Agencies (NCSHA) to purchase loans generated by the HFAs. The company is renewing and expanding its agreement with NCHSA to purchase up to $10 billion in HFA loans by the end of 2009. In addition, the company will provide preferred pricing on HFA business to lower borrower costs for first-time homebuyers.
Neighborhood Stabilization
In order to minimize the neighborhood impact of foreclosed properties, Fannie Mae will support an initiative with Self-Help Credit Union in partnership with local non-profits to purchase Fannie Mae-owned, foreclosed homes in hard-hit neighborhoods. The nonprofits would acquire and rehab the properties, and then sell them to qualified borrowers or enter into a customized lease-purchase agreement. The initiative will be geared toward borrowers who have the income to qualify for the home purchase, but need additional time to improve creditworthiness. Participants choosing the rent-to-own option would be granted up to five years to qualify for the mortgage and receive extensive credit counseling during the lease period.
Jumbo-Conforming Loans
Following passage of the Economic Stimulus Act of 2008, Fannie Mae is temporarily able to purchase loans greater than the conventional-conforming loan limit of $417,000.
In certain high cost-areas as designated by HUD, the company is able to purchase jumbo-conforming loans up to $729,750 in the continental U.S. The company is now accepting deliveries of 15-year and 30-year fixed-rate (FRM), and certain adjustable-rate
(ARM), jumbo-conforming mortgages. In order to bolster liquidity in the jumbo-conforming market and help reduce rates for jumbo-conforming mortgages in high-cost areas, the company will now:
HomeStay
The company’s Keys to RecoveryTM efforts build on Fannie Mae’s HomeStayTM initiative announced last year.
The company is working with lenders, loan servicing companies and policymakers to respond to the housing and mortgage market crisis with a goal to minimize the impact on families and communities by preventing foreclosures, supporting counseling efforts, and providing market stability.
Through HomeStayTM, since the beginning of 2007, the company has:
For professional help with any of these initiatives please request assistance here
IT’S NOT JUST FILLING UP THE TANK WHERE YOU’RE SEEING PRICE INCREASES…IT’S WHEN FILLING UP YOUR BELLY AS WELL! THAT’S RIGHT, FOOD AND DRINK PRICES ARE ON THE RISE IN A BIG WAY. CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR SOME MONEY-SAVING TIPS!
Great Article in the Wall Street Journal by CYRIL MOULLE-BERTEAUX.
I don’t think we are there yet but it is time to buy if you can get it for the right price.
One thing is for sure…it is a great time for first time homebuyers - especially with the use of down-payment assitance programs (DPAs)
It amazing me at how many people look at investment opportunities and don’t even take TAXES, INFLATION and DEBT into consideration. Those alone can make or break a deal!
This months P4P newsletter discusses those things and…
Buy-Sell Agreements
Indentity Theft
Creating an “Inheritance Portfolio”
The Soda Game
1. THINK - Owning a prosperity mind-set will overcome poverty. Don’t think from scarcity.
2. SEE - Having a macro-economic point of view, where you can see how each one of your economic decisions affects all the others increases prosperity. Don’t see micro.
3. MEASURE - Awareness and measurement of opportunity costs enables their recovery. Ignoring them loses money.
4. CASH FLOW - The true measure of prosperity is cash-flow. Don’t focus on net worth.
5. CONTROL - Those with the gold make the rules. Don’t lose control of your money.
6. MOVEMENT - The velocity of money is the movement of dollars through assets. Don’t just accumulate money where it is not moving.
7. MULTIPLY - Multiplying money means one dollar does many jobs. Don’t disable your dollars by having each dollar perform only one or two jobs.
Here is a great success article in the May 08 issue of Best Life Magazine on recognizing the differences between the sexes.
thx Carlos
Above is one of the greatest moments in olympic gymnastics!
The US women were on the verge of an historic win in the team competition in Atlanta. Then the unthinkable happened: Dominique Moceanu, the youngest member of the team, fell on both of her vaults in the last event of the day.
With just a slim lead over the Russian team, it was essential that Kerri Strug, the final American gymnast to perform, nail her vault. But Strug fell too, injuring her ankle in the process. With just one more shot, Strug ignored her injury and ran down for another attempt, sticking her vault before crumpling to the floor in pain.
In doing so, she assured the American team its first Olympic team gold, and instantly became one of the most recognizable faces of the 1996 Games.
Tony Robbins tells this story when he talks about team, commitment, and raising your standards.
As we are developing our new elite team we talk of these things often.
I think about what worked well in the past, what didn’t and how to avoid the same mistakes.
It mainly came down to who you hire and who you don’t fire that makes up the dynamic.
We talk about demanding more than anyone else can!
We talk about pushing beyond limits!
We talk about not just being good but being OUTSTANDING!
We talk about following the system (rituals) and being coachable!
We talk about thinking BIG, work ethic and seeing the job through with tenacity and heart!
We talk about being a professional!
I hope that one day our team can be as strong and harmonic as the 1996 USA Team!
Are you inspired? Do you have the mental control to get up like Kerri?
Based on recent market activity and the rising property taxes across the country, there’s a chance you may be in the group of people paying too much. In fact, homeowners in declining markets are receiving solicitations from companies that charge up to $250 to help lower property taxes. But with the steps below, you can work with your local County Assessor to lower property taxes for free…and save yourself the $250!
The good news: it’s easy.
#1 Contact your local tax assessor’s office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Here is San Diego
#2 Ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don’t be surprised if the assessed value is lower than what you think the market value for your home is–many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is… because an assessment that is less than market value still might be too high.
#3 If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one–just call me for a referral to a great appraiser. You can also visit the local assessor’s office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. They will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors.
Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.
More good news…
According to the National Taxpayers Union, about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home. Please feel free to contact me for more information on this money-saving tip.
If you would like us to handle the process hassle free for you for a fee of $250 click here
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