Buy and bail is the result of buying a new home with the intention of bailing on the old. It is considered mortgage fraud. A Borrower must have 30% equity AND two years of rental income history to use market rents on their current property.
Without a doubt, this is, and probably will be the most personal video I have or will make. I had an epiphany of sorts at the Mortgage Success Source Mastery Business Plan when I saw and met Jeffrey Gitomer.
I made this video mainly so his presentation would stay fresh in my head and to help me strive to have the best year ever. My hopes are that you get the same motivation to have a great year, whatever year, month, or day it is on the calendar.
If you like this video please share, click the like button, etc. and thank you so much for watching!
Friday President Barack Obama signed a bill that reinstates the recently expired higher loan limits that were in effect for FHA and VA loans through December 31, 2013 but does not provide this extension to Freddie Mac and Fannie Mae.
According to the article on Mortgage News Daily, “The new legislation also sets an annual fee for loans guaranteed by Freddie Mac and Fannie Mae. This fee is in the amount of 15 basis points on the outstanding principal balance of the loan and is “independent of any guarantee fees upfront on ongoing, charged to the borrower, and the premium loan fee shall not be affected by changes in guarantee fees.” The fee, according to the bill, is expected to achieve an annual income of $300 million in revenue which “shall be used to pay for costs associated with maintaining loan limits established under this section. “
This is great news for homebuyers who are refinancing or purchasing a home with FHA financing! Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.
The House of Representatives today voted to restore higher loan limits to $729,750!! This is great news considering that the high limits returned to $625,500 in October.
Here is a brief excerpt of an article published today at Bloomberg.com: “For all of the objections from Republican lawmakers and interest groups, the measure survived congressional negotiations on the strength of last month’s Senate vote in favor of an amendment to boost limits for FHA loans and those purchased by Fannie Mae and Freddie Mac. The increase for Fannie Mae and Freddie Mac loans was dropped during the talks, and today’s vote leaves the FHA increase needing only a Senate vote and President Barack Obama’s signature to become law.
Lawmakers who back higher limits say withdrawing federal support could undermine a housing market that has struggled to recover from the 2008 credit crisis. The limits automatically returned to $625,500 in October, spurring lawmakers and housing lobbyists to press for a return to the higher level.”
Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.
THE Home Affordable Refinance Program has been “re stringed”
HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.
It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.
While regulations won’t be finalized until November 15th the changes to “Harp 2” include -
•Removing the 125 percent loan-to-value.
•Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.
•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs
•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines
•Extending availability of the program through the end of 2013
These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE’s, Fannie or Freddie prior to July 2009. Thus it will impact only a small percentage of underwater borrowers.
Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.
To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .
The program is set to come out November 15th 2011.
The Buzzz - Watch It | The Buzzz | January 14, 2012 | 
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