Facing Foreclosure? I Can Help.
Lenders and the federal government, prompted by the deluge of requests for loan modifications and short sales, have overhauled their systems and programs, making avoiding foreclosure much easier than in the past. This is one of the federal government’s most significant financial relief efforts for underwater homeowners which started Nov. 1st. This new Fannie-Freddie program is showing to be different by allowing short sales for owners who are current on their payments but are having a hardship that could force them into default.
How do you qualify? A variety of eligible hardships under the new program include: Job loss or reduction in income; divorce or separation; death of a borrower or another wage earner who helps pay the mortgage; serious illness or disability; employment transfer of 50 miles or greater; natural or man-made disaster; a sudden increase in housing expenses beyond the borrower’s control; a business failure; and “other,” meaning a serious financial issue that isn’t listed here.
A few points to ponder:
Typical short sales, where the lender agrees to accept less than the full amount owed, and the house is sold to a new buyer at a lower price, are associated with long periods of delinquency by the original owner. Homeowners who take part in this new program should be aware that officials at the Federal Housing Finance Agency (the agency that oversees the program) are working on possible solutions with the credit reporting industry, but for now, borrowers who use this new program may be hit with stiff penalties on their FICO credit scores – 150 points or more.
Other things to consider are promissory notes and other “contributions.” In many states where lenders can pursue deficiencies, Fannie and Freddie expect borrowers who have assets to either make upfront cash contributions covering some of the loan balance owed, or sign a promissory note. This would be in exchange for an official waiver of the debt for credit reporting purposes, possibly resulting in a better credit score for the sellers.
Finally, participants should be aware of second-lien challenges. The program sets a $6,000 limit on what second lien holders – banks that have extended equity lines of credit or second mortgages on underwater properties – can collect out of the new short sales. Some banks don’t consider this a sufficient amount and may threaten to thwart sales if they cannot somehow get more out of it.
If you are looking for options including short selling your home to avoid the financial and emotional distress of foreclosure, this and other programs offered may be the answer for you. See the following link for more information. http://government-mortgages.com/fannie-mae-mortgage-programs/fannie-mae-programs If you are thinking of selling your home, we are happy to talk with you and discuss the options. There are so many questions, and we are here to answer them. We will arm you with the knowledge you need to make informed decisions.
Call, email or text us today, and lets get the conversation started. If you would like to know more about your options, visit Short Sale Help