With the unfortunate circumstances of foreclosures, home prices took a nosedive and left lenders with a huge inventory of homes. Some in pristine condition and many that became an eyesore, just waiting for anyone to take it off their hands. Those eyesores are available for sale at bottom dollar pricing.
You’re probably familiar with many of the acronyms including REO’s that banks are holding title to. These are homes that were foreclosed and were not sold at auction. These REOs are sitting there on the banks books waiting for the right owner at an unbelievable price.
Many of us have been looking at homes without real vision and seeing the potential the home may have. You can walk through a home where the appliances have been removed and copper pipes pulled out or perhaps even the walls have holes; but don’t turn and run just yet because a 203K Rehab loan could repair and upgrade all of that.
First of all, don’t let all the guidelines and paperwork scare you because there are some steps to take in order to secure a 203K Rehab loan; but they’re simple steps;
• Identify the property you’re interested in
• List specifically what must be done to the property and what you “want” to be done
• Give the items on your list an approximate estimate for the work to be done (get a contractor to provide some estimates and other general help)
• Submit the offer with your list
• After the offer is accepted contact a licensed contractor for an itemized estimate
• An FHA appraisal will be done and it will outline what absolutely must be done
• Revise and fine tune what will be done and we’ll make a final FHA worksheet
• One closing and we are done!
The 203K Rehab loan is designed to allow homebuyers to purchase and rehab a home with a small down payment on a house and use their leverage to roll costs into the loan and still personalize with repairs and upgrades right from the start. It’s like starting off with a shell and customizing it. This rehab loan is definitely not for the homebuyer looking to move-in quickly, since any construction takes time to plan and complete. This is for the homebuyer that has a long-range plan.
Think of how much money is saved when you can get a deal on a home and then customize it to your liking.
And just because a home is labeled as a foreclosure doesn’t mean it’s gutted from the inside out. Many of these homes are in perfectly good shape with minor needs for repair. Here is a solution for finding your dream home and improving upon what you have.
Everyone assumes bankruptcy automatically means you bid farewell to credit and that’s not necessarily true; you can get approved for a mortgage after going through a bankruptcy but there will be conditions you need to meet.
First of all, anyone that files for bankruptcy needs to have a plan to restore their credit. This is a tool for you to restart your financial future yet many people let this opportunity slip away.
Yes, bankruptcy is damaging to your credit however, lenders look at this as a clean slate and you are really in a better position than most individuals because you can build up a new reputation. Keep in mind, there are many reasons people file for bankruptcy and creditors take this into consideration.
Bankruptcy often reduces credit scores by 100 to 150 points and if you have filed a Chapter 7, it will normally takes2 or 3 years to attain scores required to qualify for a new mortgage.
If you have filed a Chapter 13, you will not qualify for a mortgage until you fulfill all your scheduled payments; the newest bankruptcy laws prohibit debtors from obtaining credit during the payment phase, unless you can get court approval.
Individuals who file mortgage bankruptcy to stop foreclosure and later lose their property might not qualify for another home loan for at least 5 years. Foreclosed homeowners should consider investigating alternative finance options such as if a seller will carry or lease purchase option agreements.
There are government lending programs such as FHA that have more lenient credit guidelines to help you qualify for a mortgage, even with a prior bankruptcy. If you have a steady job with solid income and have been working to pay off debts lenders will definitely look at the “new you” as a reliable potential homeowner.
You can also use your current home, as well as other assets to use as equity to convince a lender that you should qualify; and always remember, the less money you want to borrow, the less risk you are to a lender so choose a moderately priced home to start with.
The real lesson here is that bankruptcy should not be taken lightly; you must be absolutely sure that it is the best option for you because your credit will take a few dings and you will have to work to show that you are once again credit worthy.
The success rates for the HAMP modifications have been extremely low and the program was best labeled a failure. While there are a few reasons for this disappointment Many servicers have improperly denied homeowners HAMP eligible loan modifications due to improper evaluation procedures, poorly trained employees or due to faulty data; but homeowners who’ve been rejected will now be able to question the validity of these denials.
A new HAMP appeals process will help borrowers understand why they were rejected for the program. This new test falls under the Dodd Frank Wall Street Reform and Consumer Protection Act. Here are some highlights to this new process;
• The HAMP appeals process gives you an opportunity to see what information was used to determine that you were ineligible for the HAMP program.
• Servicers must reveal up to 33 test factors on some mortgages.
• Borrowers have 30 days to dispute the accuracy of the disclosed data
As of Feb 1st, if you are not approved for a trial HAMP modification plan or a permanent HAMP loan modification, your servicer (this does not include Freddie Mac or Fannie Mae backed mortgages) is required to send you a Non-Approval Notice which explains the reason you were not approved and provide you with an opportunity to submit evidence that the information used in the evaluation was inaccurate.
These notices are required to disclose up to 33 key data factors as to why a homeowner has been rejected for the HAMP program. And once the appeal process has been started, the lender is required to provide reasons and justifications within very specific time frames.
Under the Dodd Frank Wall Street Reform and Consumer Protection Act, servicers are also required to supply guidance to you such as how to communicate with the servicer if you wish to dispute the reasons for the non-approval determination and where you can send your evidence.
But is the transparency just more hype because it looks more like a blessing in disguise. Won’t this add a heavy load to servicers who are already under water with mounds of paperwork? Borrowers cannot test the HAMP model’s accuracy, and they will never be able to test their servicers’ assumptions. Although borrowers now have an appeals process, the last word still lies with the servicer; there is no third party to settle any dispute.
Soon homeowners’ will be able to evaluate whether their situation might pass the HAMP test; the US Treasury is setting up a website for consumers to run their own practice HAMP tests.
This should give you a better outlook as to where you stand and how the servicer might view your paperwork.
About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. For more information please forward your request to communityinfo@comcast.net
Servicing: Port St. Lucie, Palm City, Jensen Beach, Stuart, Vero Beach, Hutchinson Island, Fort Pierce, Palm Beach, Jacksonville, Jacksonville Beach, Ponte Vedra Beach, Palm Coast, Neptune Beach, Amelia Island, Atlantic Beach, Fernandina Beach, Saint Johns, Saint Augustine, Daytona Beach, Fleming Island and New York real estate.
View thousands of listings www.Northeast-Florida-Relocation.com or www.BoldRealEstateGroup.com or www.NewYork-Florida-RealEstate.com
Like this:
Like Loading...
Tags: 55 Plus Community, 55+ community, agente de bienes raices, Atlantic Beach Real Estate, Belize, Best Home Deal, Bold Real Estate Group, Buying A Home, Cascades Port St. Lucie, Flagler Beach Real Estate, Florida Home, Florida Real Estate, Home Buying, homes, Jacksonville Homes, Jensen Beach Homes, Listado De Casa, Millie Gil, Moving, Neptune Beach Real Estate, New Community, New York Real Estate, Real Estate, Real Estate Articles, Real Estate Listings, Relocating, St. Lucie Homes, Stuart Real Estate, Tradition Homes, Tradition Port St. Lucie, Uncategorized, Venta De Casa
Recent Comments