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New foreclosure process rules in Illinois Feb 22, 2013 Will Lenders final start to feel the squeeze…???

Posted in Lender News Reports,REO -Lender Owned Properties by Administrator on the February 26th, 2013

New foreclosure process rules in Illinois Feb 22, 2013

foreclosure during 2009 to 2010

Anyone foreclosed on knows the financial tale of woe this sign represents.

Batman comics get a boost today.  New foreclosure process rules in Illinois Feb 22, 2013.  It seems on Feb. 22, the Illinois Supreme Court finally announced some new rules concerning the foreclosure process.  Find more coverage concerning the newest rules in the Chicago Tribune article, “New rules to govern Illinois foreclosures,” and officially in the State Journal-Register found here, “Illinois Supreme Court issues rules on foreclosures.”  Pow!!!  BAM!!!

Hurry up! Foreclosure settlement claims processing is almost over

Posted in Lender News Reports by Administrator on the January 15th, 2013

http://illinoisattorneygeneral.gov/pressroom/2013_01/20130114.html  Refer to this press release regarding 2008-2011 robo signing claims which need to be filed by 1-18-2013 to be able to claim any of the monies recovered from the top 5 lenders processing foreclosures during that time.

 

 

 

FHA Streamline- Lower Interest Rates Spark Refinance Savings

Posted in Credit Notes,Financing- Loss Mitigation,Lender News Reports by Administrator on the October 15th, 2012

FHA Streamline- Lower Interest Rates Spark Refinance Savings

Mortgage rates continue to reach new lows, as FHA streamline refinance is in more demand. Homeowners with higher rate FHA mortgages pre-2009 are beginning to see the savings. Over 3 million FHA borrowers have a 5% or more rate.

You can almost guarantee that refinancing with an FHA streamline will save you money instantly. FHA guarantees it or you won’t be able to close the transaction.  It’s called “Net Tangible Benefit” you either qualify for a benefit by doing the refinance or lenders can’t refinance you. Borrowers with loans that were closed prior to June 1, 2009 would be most likely to see the largest savings – the minimum benefit is 5%. Those Borrower’s also find they are eligible for a reduced upfront mortgage insurance premium of .01%, as compared to the current upfront premium for a new loan which is 1.75%.

FHA’s mortgage insurance premiums also offer a lower premium cost as an added benefit.

FHA does not require an appraisal and therefore doesn’t have a Loan to Value ceiling.  So borrowers with upside down mortgages are more likely to qualify and closing costs are lessened. The only down side is “no cash out.”  It is expected that some Borrower’s could actually lessen their monthly mortgage debts to the point of reducing their loan terms which will eventually lessen the overall interest they pay over time.

FHA intended the streamline refinance program to reward borrowers that have paid their mortgages on time and have maintained their credit standing. It also has the power to help those with lower incomes to refinance due to it’s low documentation requirements.

If you are looking for more information on the FHA streamline refinance, you can email your request to ContactUs@ProfessionalRealtyPartners.com

Low appraisal valuations could turn your loan approval refinance sideways

Posted in Financing- Loss Mitigation,Lender News Reports,Real Estate by Administrator on the October 6th, 2012

Low appraisal valuations could turn your loan approval refinance sideways

appraisal value check

Make sure you know the recent sales in the area and their Square Footage.

My immediate subdivision has been hit hard by foreclosures and short sales. This makes my refinancing risky, especially when the appraisal numbers might not come in.   Accepting the fact that my condo is worth less today than when I bought it; I’m guessing the value of my condo is somewhere around the value of my existing mortgage.  Appraisals are expensive and so is the time a loan officer puts in to bring my refi forward so the best course of action… research!

“You can have everything in line- Credit Scores, Debt vs Income to manage the mortgage payments but low appraisal value is the No. 1 reason why loans are declined.

The most important thing is to have key information like an accurate square footage of the residence called GLA or Gross Living Area.  In Illinois-Cook County GLA is expressed as above ground living space.  In the case of split level houses; some houses, will not include lower level rooms or Square Footage and in others it will be included.  This poses another issue that owners need to be aware of when selling.  If it’s not in your benefit changing SFage on the tax records may not be important until you go to sell your home.

Checking thru your property assessors information will help you ferret inaccurate information that the appraisers use to value property.  The assessors office is the authority used to measure one home against the other.

Information as to what has sold in the last 6 months in your neighborhood is very important because the appraiser is going to go on the list of transactions from the assessors office and Multiple Listing Service.

Errors are common, checking in on the comparables in the area and doing your own research to make sure the comparables used are going to be valid is something you can do to make sure the appraiser used the right comparables.  In city environments a .5 or less radius or in the suburbs up to 3 miles may be used.  By the way, don’t blame the appraiser, blame the stored information.  Using a Realtor can help you to gather the information you’ll need to assure a smoother appraisal process, just ask for a CMA and look for similar units to yours that have recently sold.  You’ll need a minimum of 3 solds and 3 active listings with similar SFage to your home.  If they are high enough to warrant a refinance on your mortgage venture forward and begin the process.

One reason the SFage numbers are skewed and homeowners don’t care is that Property taxes are based on those assessor report cards.  This means if you think you are paying too much- you should be checking those numbers.  In many cases homeowners don’t opt to change the tax records because changing them would mean increased property tax payments.

Thanks to an election year and optimisim that our 2008/2009 low prices are behind us, we may in fact be seeing the 1st glimmer of light and improving pricing.  This means refinancing is becoming more of a possibility and homeowners trying to refi into a lower mortgage payment is becoming more of a reality.  Just make sure you check your surrounding area for values before you spend your money on an appraisal.

ProfessionalRealtyPartners.com

 

PMI removal at 80% loan to value-Homeowners Protection Act

Posted in Credit Notes,Financing- Loss Mitigation,Lender News Reports,Real Estate by Administrator on the September 21st, 2012

PMI removal at 80% loan to value-Homeowners Protection Act

PMI removal is only one of the many laws to be aware of when buying a home.  Most of these laws require the Loan Officer or Lender to take action. Rarely are there laws that allow the borrower to take action and get direct benefit. That is what the Homeowners Protection Act, also known as the PMI Cancellation Act, is for.

The Homeowners Protection Act is all about private mortgage insurance( PMI) and when it can, and when it will, be removed. It’s important to remember about PMI removal that the Homeowners Protection Act does not apply to government loans like FHA, VA or USDA
loans or loans with no PMI.

For conventional loans, PMI applies when the LTV is over 80%. The Homeowners Protection Act says that mortgage insurance cannot remain on loans for the duration. Once a borrower’s principal balance reaches 80% of the original value the borrower can request that the PMI be removed. Most of the time lenders will use the original appraised value of the property, however, they can use the current value if it has gone down or if the borrower pays for the appraisal and did improvements to justify an increase in value. When requesting PMI removal at 80% the lender can say no but when the LTV reaches 78% of the original value the PMI is required to have the PMI removal be automatically done.  Lenders are required to notify the borrower of the details of their PMI at closing, when the LTV reaches 80% and if the PMI has not yet been removed, when the LTV reaches 78%. This way the borrower doesn’t “forget” about their PMI and can have their monthly mortgage payment reduced when their loan to value qualifies.

Remember, when you are working with your loans that are required to have PMI, remember what the Homeowners Protection Act does for you. You will be one of the few borrower’s who know the details of the law and how it can help save money later.

Knowing the laws of the mortgage industry is not only required under the NMLS in order to become a licensed Loan Officer, it also helps realtors to provide a better service to our clients. Real Estate professionals who know about the laws and regulations in their industry tend to have more repeat clients and referrals. Therefore, there’s no better time than the present to get more familiar with the laws and regulations that affect our clients most. With our newsletters, we will continue to assist you in becoming an authority on housing so you have confidence based upon competence!

Read the full ACT here courtesy of the federal reserve at http://www.federalreserve.gov/boarddocs/supmanual/cch/200711/hpa.pdf

PMI removal-opening the door to more informed home ownership

PMI removal-opening the door to more informed home ownership

Wells Fargo is helping move damaged REO properties by donating them to renovaters that will rehab and resell

Posted in Lender News Reports,Welcome by Administrator on the August 16th, 2012

Through the REO program, Wells Fargo donates foreclosed homes to Rebuilding Together affiliates in eight cities. Participating Rebuilding Together Affiliates are in the following cities: Baltimore, Los Angeles, Oakland, Philadelphia, Providence, St. Paul (Twin Cities), Tampa, and Washington, DC.  Our City of Chicago could use a similar program to help blighted areas which were once viable growing areas.

Each Rebuilding Together Affiliate then renovates the donated REO property and works with a real estate agent to sell the home to a buyer that is between 80-120% of the area median income (AMI). As part of the initiative, buyers are also required to complete a Homebuyer Education class and show a certificate of completion before closing.  The buyers also must live in the home; homes cannot be sold to an investor or rapidly resold to capture profits.

Once the home is sold, the proceeds from the sale are returned to the Rebuilding Together affiliate’s operating fund, allowing the organizations to continue to make critical home repairs for homeowners in need.

“We are so grateful to Wells Fargo for helping Rebuilding Together establish the REO program as a way to transform REO properties back toward viable homes in stable communities, while helping low- and moderate-income families obtain safe, healthy and affordable housing,” said Gary A. Officer, President and CEO of Rebuilding Together, “The sale of these properties can provide critical income to support Rebuilding Together Affiliates in their core mission work.”

In 2011, Wells Fargo Housing Foundation programs delivered a record $23.4 million, 697 discounted and 1245 donated properties to support local affordable housing and community revitalization programs.

“Wells Fargo is proud to support the work of Rebuilding Together to help create affordable and sustainable housing opportunities for low-to-moderate income families,” said Kimberly Jackson, head of the Wells Fargo Housing Foundation.

The first home to be sold under the program was in Philadelphia, PA where the affiliate renovated the home in the Greater Northeast neighborhood and sold it to a first time home buyer who is also a police officer candidate.

In Tampa, FL the home donated by Wells Fargo sold within three weeks of it being donated to Rebuilding Together Tampa Bay.

Rebuilding Together Twin Cities also has renovated its first house in Richfield, MN through the program and put it up for sale.  Rebuilding Together- Twin Cities has plans to renovate and sell a total of four homes this fiscal year.

In addition, Wells Fargo has made grants to other Rebuilding Together affiliates (Milwaukee and New Orleans) for the purpose of rehabilitating and/or purchasing REO properties (Roanoke and Sacramento) as part of their asset building strategies and to support the mission of their local organizations.

ABOUT REBUILDING TOGETHER Rebuilding Together believes in a safe and healthy home for every person. Rebuilding Together provides critical repairs to an existing home, addressing both structural issues and those that affect the health of the homeowners. House by house, block by block, we work with our nearly 200 affiliates & 200,000 volunteers, who are skilled tradesperson’s, corporate partners and everyday citizens, to repair homes, to stabilize and revitalize communities. For nearly 25 years, we have seen the benefits when people remain in their homes: lives are improved and communities are revived.

For more information: www.RebuildingTogether.org. You can also follow Rebuilding Together on Twitter @rebldgtogthr or become a fan on Facebook at Facebook.com/RebuildingTogether.

About Wells Fargo Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With approximately 265,000 full-time equivalent team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations.

Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

SOURCE Rebuilding Together

Who are the LIBOR 16 & HSBC lenders- “Terror Supporters”?

Posted in Financing- Loss Mitigation,Lender News Reports by Administrator on the August 1st, 2012

The LIBOR 16 & HSBC Terror Supporters

How encouraging to catch up on the news last night only to discover that, while there are still “no real conspiracies” in the world, however you can never fault greed and human nature.

So, much to my surprise after watching a few episodes of the Daily Show, I find out about HSBC and the LIBOR people (who knew they were actually people?) are both in trouble for some phenomenally insane practices!

The LIBOR Group

For those who do not know, LIBOR is the rate by which money is lent from bank to bank. I thought, as did many, that this was somehow created by a master computer formula based on a Boolean equation in the bowls of the Barclays Banking system.   At the very least it was a bunch of men and women sitting around a conference room behind closed doors discussing what the rate should be based on the worlds economics…

FOR GOODNESS SAKE, It is the rate by which we base our adjustable rate mortgages on in the United States…

Apparently the rate is set by 16 guys in London and you can send them an email and change the rate to help your bank…

Meaning that the actual LIBOR rate is complete CRAP and means JACK-SQUAT!
But, How does this effect homeowners?

I am sure there will be some wise-guy-attorneys who think they will now overturn mortgages that were based on adjustable rates based on the LIBOR for homeowners who are not making any payments. Further though, it will have zero bearing and all of these cases will get tossed out of court on one level or another. It’s a lawyers dream equivalent of clouded titles and robo-signing of documents.  There is a possibility it could be used as an escalation and even possibly used to purchase a property below actual fair market value (which is currently artificially accelerating from the lack of inventory and liquidation of REO’s).

HSBC (Hong Kong and Shanghai Banking Corporation), Terror Cells and Money laundering!

Yes, you read that correctly, HSBC has links to (including but not limited to) Terror Cells and Drug Cartels. They also gave a campaign contribution to Michelle Bachman and that just makes HSBC look bad for supporting a not-so-bright-yet-attractive politician.

I am wondering on the supposed lawyer-fringe thinking on this for homeowners… like:

“My client no longer wants to make payments to HSBC because they have been known to support Terrorists, Drug Cartels, and Michelle Bachman…”

“My client fears that they will be watched by the TSA for supporting terrorists and Cartels”

“My client fears Michelle Bachman may campaign on their door…”

Whatever the case, it was a ‘bar’ set by MANY banks including Chase, Bank of America, and Wells and that was long ago and far away for them. Almost every bank in the United States has allegedly accepted money from questionable sources. I would guarantee that many banks at this very moment have money that comes from ‘blood diamonds’, ‘child labor’ or they have all supported DUMB politicians!

MY GREATEST FEAR IN ALL OF THIS…

Obviously an attorney will try and use these in an attempt to get a homeowner out of payments and they will fail! Far worse, it is the medias perception that will be handed down to homeowners…

Such fallacies as:

“I heard on the news that the president is mad at the LIBOR thing and he is gonna give us our home for FREE”

“My loan is with HSBC and I know someone who got their house for free cause they hired an attorney and sued them for supporting Michelle Bachman”

Whatever!

NONE OF THIS WILL HAVE AN IMPACT ON SHORT SALES! It’s just more influence knocking on the door that homeowners need to know about…

Just make sure you understand the truth behind the headlines and do a Short Sale so you can move on with your lives instead of paying for pie in the sky schemes!