CitiBank Following New HAFA Guidelines Posted: 16 Feb 2010 11:25 AM PST Starting April 5th the new Treasury Department HAFA Guidelines will be in force. Agents, this is…as Martha would say…a VERY GOOD THING. Understand, these are guidelines…NOT laws. In other words, lenders can choose to participate. When we broke the news about the new HAFA Guidelines late last year we knew that all the rules would chnage with regards to short sales. Bottom line, 2010 IS the year of the short sales. Listen to the FREE REPLAY of the 90 minute HREU CDPD Short Sale Secrets teleconference we provided. Agents, you must learn the new ways to list and sell short sales. Everything is about the change…and…change for the better. Listen now to the replay. Citi joins virtually every major lender in following the new guidelines… From DNSNews.com As one of the nation’s largest mortgage servicers, CitiMortgage is still contending with a deluge of foreclosures that just doesn’t seem to be abating, despite stepped up mitigation efforts and government relief programs. On Thursday, the company announced a new pilot initiative that will allow distressed CitiMortgage borrowers to avoid foreclosure and remain in their homes for six months if they agree to sign over their property deeds to the lender. Translation: CITI is actually adding their own twist to the HAFA Guidelines. They are allowing folks to live in their previous owned homes for up to 180 days IF they give the deed back to the bank. Sometimes called a ‘friendly foreclosure’…legally called a Deed in Lieu of Foreclosure. In addition, Citi will provide relocation assistance to help borrowers transition to another residence at the end of the program. This expanded deed-in-lieu-of-foreclosure program is being piloted in Texas, Florida, Illinois, Michigan, New Jersey, and Ohio, beginning February 12. Please note: These states all have what is called…a redemption period. After a foreclosure the homeowner has up to 12 months to BUY THE HOME BACK. In these states the laws offer more protection to the homeowner thus making it more difficult for banks to actually take possession of the home. So, lets get real here…banks are just trying to save themselves the time and legal costs. “At CitiMortgage, we’re committed to finding every solution possible to help families facing foreclosure. However, the reality is that not every homeowner has the financial ability to remain in their home,” said Sanjiv Das, CEO of CitiMortgage. “The goal of the program is to help homeowners make a smooth transition into the next chapter of their lives.” Translation: a foreclosure costs on average…$50,000. So, if the banks can be Mr. Nice Guy and help homeowners “make a smooth transition” they will save themselves a ton of cash. In exchange for the deed on their property, CitiMortgage will allow borrowers to stay in their homes for up to six months without making mortgage payments under its new Foreclosure Alternatives Program. At the conclusion of the grace period, the company will provide a minimum of $1,000 to help the borrower move. Citi will also provide relocation counseling by trained professionals and will cover certain monthly property expenses if the bank determines the borrower can no longer afford them. Payment of utilities costs will be the responsibility of the borrower. Other costs incurred by the borrower, such as homeowner’s association and escrow fees, will be determined on a case-by-case basis considering the borrower’s specific financial circumstances, the company said. As part of the agreement, borrowers must maintain the property in its current condition and agree to bi-monthly meetings with Citi’s relocation professionals. According to CNN, Citi will also forgive any difference between the value of the home at time of repossession and what the borrower owes – once the deed goes back to the lender, the borrowers walk away free and clear. Das told CNN that he knows of no other big servicer with a program like Citi is implementing. “This is a deed in lieu on steroids,” he said.
Citi explained that before a borrower enters the Foreclosure Alternatives Program, they must first be evaluated for a permanent mortgage modification. For those who do not qualify for a modification or another solution, CitiMortgage says it will explore the possibility of a short sale, and if that’s not feasible, then the borrower may be considered for the deed-in-lieu program.
OR…using the new HAFA Guidelines….a borrower can jump immediately to the DIL or the Short Sale.
In order to be eligible, homeowners must hold first mortgages with a clear title owned by CitiMortgage, occupy the property, and be at least 90 days delinquent on their mortgage payments.
As it evaluates the progress of the pilot program, CitiMortgage said it will assess whether or not to expand the program to other parts of the United States. The initial pilot is expected to help as many as 1,000 families.
While CitiMortgage has done deeds-in-lieu and short sales in the past, the company says it is increasingly looking to them as alternatives to foreclosures.
“We hope others in our industry will join us in helping distressed borrowers across the country,” said Das.
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Filed under: Real Estate, Market Conditions, For Sale, For Rent/Lease, Open Houses, Announcements, Events, Technology, Industry, Point2, Product Reviews, Seller Information, Community Information, FHA LOANS, FORECLOSURES, LOAN MODIFICATIONS, RENTERS, lake of the ozarks
Attachment(s):
RISMEDIA, November 25, 2009—U.S. house prices rose modestly in the third quarter of 2009 according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI, calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, was 0.2% higher on a seasonally adjusted basis in the third quarter than in the second quarter of 2009. Over the past year, seasonally adjusted prices fell 3.8% from the third quarter of 2008 to the third quarter of 2009.
FHFA’s seasonally adjusted monthly index for September 2009 was unchanged from August. The monthly change for the July-to-August period was revised to -0.5%, from an initial estimate of -0.3%. “These data provide some evidence of short-term stabilization in housing prices, a likely result of the many ongoing efforts to stabilize markets,” said DeMarco. “Given the headwinds facing markets across the country, including high unemployment rates and continued high levels of delinquency and foreclosures, the longer-term view remains uncertain.”
While the national, purchase-only house price index fell 3.8% from the third quarter of 2008 to the third quarter of 2009, prices of other goods and services fell 2.8%. Accordingly, the inflation-adjusted price of houses fell approximately 1.0% over the latest year.
Unlike the FHFA purchase-only index, FHFA’s all-transactions house price index, which includes data from mortgages used for both home purchases and refinancings, fell over the latest quarter. The index declined 2.4% in the latest quarter and 4.1% over the four-quarter period.
Additional findings include:
-Of the nine Census Divisions, the Mountain and Pacific Divisions, both in the Western U.S., experienced the most significant price movements in the latest quarter. Prices fell 1.4% in the Mountain Division, while prices increased 1.9% in the Pacific Division.
-Seasonally adjusted, purchase-only indexes indicate that prices rose in the latest quarter in 19 states and Washington, D.C. Prices rose over the latest four quarters in only seven states.
-The purchase-only index for California rose 2.1% between the second and third quarters of this year.
-Of the purchase-only indexes for the 25 most-populated metropolitan areas in the U.S., four-quarter price declines were greatest in the Phoenix-Mesa-Scottsdale, AZ Metropolitan Statistical Area. In that area, prices declined 22.0% between the third quarters of 2008 and 2009. Prices held up best in the Denver-Aurora-Broomfield, CO Metropolitan Area, where prices rose 3.3% over that period.
For more information, visit www.fhfa.gov.
Read more:
http://rismedia.com/2009-11-24/house-prices-increase-slightly-in-third-quarter-2009-first-quarterly-increase-since-second-quarter-2007/#ixzz0XtdltbNj
Please be advised that there are some potentially big changes on the horizon with FHA mortgages. Please click on the link to the article below for more information:
http://www.washingtonpost.com/wp-dyn/content/article/2009/11/19/AR2009111904742.html
A quick summary of possible options being considered:
- Raising Down Payment requirements to 5% or possibly as high as 10%
- Increasing the Up Front Mortgage Insurance and/or monthly mortgage insurance (which will drive up monthly payments)
- Raising credit score requirements…meaning fewer people will qualify
- Creating credit score tiers, similar to what Fannie Mae and Freddie Mac have done. That means the lower a home buyer’s credit score, the higher their rate will be
- And last but not least, decreasing the allowable seller concessions from 6% to as little as 2%. While true “closing costs” seldom ever come close to 6%, the cost of odd-days interest, escrow reserves, a one-year homeowners insurance policy, appraisal and inspections will often drive up the overall settlement costs to well over 3% and quite often up near 6%. That would mean buyers would need to have even more money available to pay for settlement costs in addition to higher down payment requirements
I just wanted you to be aware of the possible changes. These more stringent requirements combined with the April 30, 2010 end to the homebuyers tax credit are even more reason to tell your homebuyers to act within the next few months if they wish to purchase a home!
http://go-to.realtor.org/r/TP4QF6/L92V0/1L4UJ/0IJPM/640S9/HK/h
VISIT THIS SITE FOR A GREAT INFO CHART .. HAPPY HOUSE HUNTING.
)Â The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010). 2)Â Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more. 3)Â The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days. 4)Â The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return. 5)Â Cost of the home may not exceed $800,000 to be eligible. 6)Â For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return. 7)Â Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date. 8)Â The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April. In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then.
To qualify, current homeowners must have lived in their primary residence for five continuous years.
Senators have not agreed on how the tentative deal would come up for a vote, but sources from both parties said they are considering adding the housing credit to a bill that would extend unemployment benefits.
House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill
LAKE OZARK, Osage Beach - Announcing a price reduction on FLYNN, a 1,318 sq. ft., 2 bath, 3 bdrm single story. Now 
MLS® $197,500 - .
Property information
| Fannie Mae Announces National REO Rental Policy |
 |
| Renters in Fannie Mae-Owned Foreclosed Properties
Eligible to Stay in Their Homes
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) IN JANUARY announced the establishment of a new National Real Estate Owned (REO) Rental Policy that will allow qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The company currently has an eviction suspension in place through the end of January which will allow for the new policy to be fully operationalized prior to the suspension concluding.
"Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing," said Michael Williams, chief operating officer of Fannie Mae. "This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause, and help bring a measure of stability to communities impacted by high foreclosure rates."
The new policy applies to renters occupying foreclosed properties at the time Fannie Mae acquires the property. Renters occupying any type of single-family property will be eligible including residents of two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code requirements for a rental property.
While the company markets the properties for sale, Fannie Mae will manage the properties through a real estate broker or a property management company. The company will not require security deposits to be posted in connection with this program.
Renters in the foreclosed properties will be asked to pay market rate rent under the new leases. Rates may be determined by reviewing local comparable rents, conducting a neighborhood survey, or through other relevant indicators. Rates will also be subject to any legal rent control restrictions. The company will review each instance where the market rate may require a tenant to pay additional rent and will work to reach an equitable resolution.
On behalf of the company, property managers are contacting renters in Fannie Mae-owned foreclosed properties to notify them of their options.
For more information, please review the policy FAQs at fanniemae.com.
|
There has been a dramatic spike in FORECLOSURE and LOAN MOD SCAMs.
Mortgage Loan Modification Scams: Typically what is happening is that troubled homeowners are paying $1000…$2000…$3000 UP FRONT and receiving no services. Whats worse, many of these LOAN MOD scammers are collecting the fees and never doing anything to try to help the homeowner. If you are doing loan mods the ethical and honest way you know that you NEVER charge upfront fees. If you are in one of the hand full of states that requires any sort of ‘license’ or ’state approved process’ you must comply.
Mortgage Rescue Scams. This type of thing has gone of for years. Here is the typical scenario: Homeowner is late 90 days+ on their mortgage. They have equity. A mortgage rescue scammer offers to ’save their mortgage. The scammer makes it so the homeowner signs the deed over. Next, the scammer has the seller pay THEM their mortgage payment. Additionally, the homeowner agrees to sign a lease on their former home (remember they signed over their deed). The homeowners is led to believe that the scammer will bring the mortgage current and then make the payments for the homeowners over an agreed period of time. Homeowner is told that they can ‘buy’ the house back from the scammer. What really happens is that the scammer never makes a payment. Keeps the lease payments…and then (when there is equity) throws the now renter out of the house. The house is sold and the scammer keeps the former owners equity. There are many forms of this scam but, thats the basic format.
Here is the news report:
The U.S. Treasury has announced a new effort to crack down on criminals who prey on people seeking help with their mortgage problems.
On Monday, Treasury Secretary Timothy Geithner reported that government agencies had recently identified dozens of suspicious companies that were running suspicious ads about mortgage foreclosure rescue services.
According to Geithner, the Treasury’s Financial Crimes Enforcement Network has already produced a number of recent leads that are helping law enforcement agencies stop foreclosure scams or further investigate suspicious companies.
Geithner also noted that the Obama administration’s Making Home Affordable program is an important part of its economic stimulus effort, which makes foreclosure fraud an even higher law enforcement priority.
“American homeowners desperately need the relief this program offers, but the very last thing they need is to be taken advantage of as they try to hold on to their homes,” said Geithner.
A report by ABC News said that the FBI is currently investigating about 2,100 mortgage fraud cases, a 400-percent increase from 2004.
The scams typically target homeowners with damaged credit scores who are willing to pay upfront fees to people who claim they can resolve their mortgage problems. Unfortunately, many of these people end up with worse consumer credit in the long run.
The S&P/Case-Shiller home-price index, a closely watched gauge of U.S. home prices, continued to post record declines in January.
In the 20-city index, no area experienced year-over-year price gains, the tenth straight month that has happened. Further, none of the cities managed to avoid month-to-month declines for the fourth month in a row.
Phoenix, Las Vegas and San Francisco continued to lead year-over-year decliners, with drops over 30%. Minneapolis continued to have large month-to-month drops, while the rate of decline accelerated in Chicago and Tampa.
Dallas, Denver, Cleveland, Boston, Charlotte and New York managed to avoid double-digit year-over-year declines. However, all of the 20 metro areas are in double digit declines from their peaks, with nine posting declines of greater than 30% and five of those (Las Vegas, Miami, Phoenix, San Francisco and San Diego) in excess of 40%.
“The large inventory overhang will continue to weigh on prices for some months yet. They could fall another 10%,” said Paul Dales, U.S. economist at Capital Economics. “Nevertheless, the more recent rise in mortgage applications and the rebound in home sales has made us hopeful that the rate of decline in house prices will soon moderate.”
Below, see data from the 20 metro areas Case-Shiller tracks, sortable by name, level, and year-over-year change — just click the column headers to re-sort.
(About the numbers: The Case Shiller indices have a base value of 100 in January 2000. So a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the metro market.)
Home Prices, by Metro Area
|
| Atlanta | 109.44 | -3.20% | -14.30% |
| Boston | 150.73 | -1.50% | -7.30% |
| Charlotte | 120.91 | -1.20% | -8.20% |
| Chicago | 130.8 | -4.60% | -16.40% |
| Cleveland | 102.89 | -2.20% | -5.20% |
| Dallas | 112.75 | -2.40% | -4.90% |
| Denver | 122.33 | -2.70% | -5.10% |
| Detroit | 77.56 | -4.20% | -22.60% |
| Las Vegas | 125.64 | -4.40% | -32.50% |
| Los Angeles | 166.54 | -2.80% | -25.80% |
| Miami | 159.04 | -3.60% | -29.40% |
| Minneapolis | 120.18 | -4.70% | -20.40% |
| New York | 181.28 | -1.20% | -9.60% |
| Phoenix | 117.11 | -5.50% | -35.00% |
| Portland | 153.8 | -3.00% | -14.00% |
| San Diego | 148.25 | -2.60% | -24.90% |
| San Francisco | 124.33 | -4.40% | -32.40% |
| Seattle | 154.37 | -3.60% | -15.00% |
| Tampa | 149.21 | -4.40% | -23.30% |
| Washington | 171.97 | -2.00% | -19.30% |
Source: Standard & Poor’s and FiservData
FOR A LIMITED TIME WE AT LAKE OF THE OZARKS REAL ESTATE HAVE A LOW BROKER FEE OF 5%.
FULL SERVICE, NO UP FRONT FEES. THIS INCLUDES LISTINGS IN BOTH ST LOUIS AND LAKE OZARKS MLS'S, ACCESS TO MLS USING AN IDX SITE FOR THE SELLER, FULL COLOR PHOTOS AND ADVERTISING, SIGN AND KEY BOX, WE ALSO ANSWER OUR PHONES 24-7 MONDAY - SUNDAY.
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Defaults on home mortgages insured by the Federal Housing Administration in February increased from a year earlier.
A spokesman for the FHA said 7.5% of FHA loans were “seriously delinquent” at the end of February, up from 6.2% a year earlier. Seriously delinquent includes loans that are 90 days or more overdue, in the foreclosure process or in bankruptcy.
Since the collapse of the subprime mortgage market in 2007, most home loans for people who can’t afford a sizable down payment are flowing to the FHA. The agency, which is part of the U.S. Department of Housing and Urban Development, insures mortgage lenders against the risk of defaults on home mortgages that meet its standards. FHA-insured loans are available on loans with down payments as small as 3.5% of the home’s value.
The FHA’s share of the U.S. mortgage market soared to nearly a third of loans originated in last year’s fourth quarter from about 2% in 2006 as a whole, according to Inside Mortgage Finance, a trade publication. That is increasing the risk to taxpayers if the FHA’s reserves prove inadequate to cover default losses.
As of January, the cities with the highest FHA default rates in December were Punta Gorda, Fla., at 18%; Detroit, 15.6%; Flint, Mich., 15.1%; Fort Myers-Cape Coral, Fla., 15%, and Elkhart-Goshen, Ind., 12.1%, according to a HUD report.
Foreclosed FHA homes owned by HUD totaled 39,687 in January, up 22% from a year earlier.
Sales of previously owned U.S. homes rose at their fastest pace in nearly six years in February, data showed on Monday, offering some hope to an economy battling a 15-month recession.
The National Association of Realtors (NAR) said sales rebounded 5.1 percent in February to a 4.72 million-unit annual rate, notching their largest gain since July 2003, but about 45 percent of these were foreclosure or short-sale transactions.
Clearly, the agents who are making the money in this market are the agents who know how to list and sell Shortsales…and REO Listing Agents. 45% of all transactions last month were Shortsales and REO sales. Agents learn how to easily list and sell shortsales.
This was above market expectations for a drop to a 4.45 million-unit pace after January’s 4.49 million rate. Compared to the same period last year, February sales were down 4.6 percent, the NAR said.
U.S. stocks, already rallying after the U.S. government released details of a plan to clean out toxic assets from banks’ balance sheets, extended gains on the housing data.
The housing market is at the core of the economic and financial meltdown and stabilizing it is seen as a key ingredient for the recovery from a recession that started in December 2007.
“Because entry level buyers are shopping for bargains, distressed sales accounted for 40-45 percent of transactions in February,” said NAR chief economist Lawrence Yun. “Distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the median price.”
THE COST TO A HOME OWNER IS 0, NOTHING.. THE LIEN HOLDER (BANK) BECOMES THE SELLER AND THE FEES ARE PAID BY THE LIEN HOLDER WHICH MEANS THAT THE BROKER FEE IS NOT PAID BY THE HOME OWNER. SO YOU CAN STILL AFFORD TO SELL IF YOU ARE IN FORECLOSURE, JUST DO IT IN TIME SO AS TO AVOID THE FORECLOSURE SALE DATE.. (WE CAN USUALLY STOP THE SALE )
THINGS YOU WILL NEED FOR A SHORT SALE THAT THE AGENT WILL ASK YOU FOR.
HARDSHIP LETTER (I WILL HELP YOU WRITE IF YOU NEED AN IDEA)
W-2'S, BANK STATEMENTS, PAY STUBS, TAX RETURNS.
YOU MUST ONLY USE AN AGENT THAT IS SHORT SALE CERTIFIED LIKE LAKE OF THE OZARKS REAL ESTATE LLC.
IT WILL COST YOU NOTHING AND IT WILL EFFECT YOUR CREDIT LESS THAN WHAT A FORECLOSURE WILL DO .