The Treasury Department recently released a report, which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines:
Mortgage must have originated on or before January 1, 2009.
Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties.
Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).
Home may not be vacant or condemned.
Borrowers in bankruptcy are not automatically excluded from consideration.
Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.
First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:
1 Unit: $729,750
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400
Foreclosure actions are suspended during the trial period or while borrowers are considered for alternative foreclosure prevention options. If homeowners fail to qualify, foreclosure proceedings may resume.
No minimum or maximum LTV ratio for eligibility purposes.
Loans are eligible for only one loan modification under the program.
Subordinate liens (such as second mortgages or home equity loans or lines of credit) are not included in the Front-End DTI calculation, but they are included in the Back-End DTI calculation.
Servicers should follow any existing express contractual restrictions with respect to solicitation of borrowers for modifications.
Applicants will be accepted into the program until December 31, 2012 (the program expiration date), but incentive payments will continue up to five years after the date of entry into the Home Affordable
Modification Program. Monitoring will continue through the life of the program. Keep in mind that these eligibility requirements are simply government guidelines. Consult a loan modification specialist who works with lenders on a daily basis to review your situation and determine whether you are likely to qualify. Top priority is to submit a loan application to determine whether you qualify.
Sunday, March 22, 2009
New Construction Grant!!!
It is a $6000 Grant on all New Construction homes:
-It will be limited to the first 1,600 people who apply and qualify!
-Only applies to 30 yr fixed mortgages. Meaning no arms, or interest only. Not like those really exist anymore anyway.:)
-An individual can not make more than $75,000 a year or combined income with significant other of $150,000.
-Home has to be new construction, defined as a home that has never been lived in. There are many homes in the Salt Lake valley that have been for sale for 2 years but never been lived in so they would also qualify for the Grant.
The important part that everyone should be aware of is the total amount is $10 million. Once the money is gone, its gone. First come first serve basis. So you need to act fast. If you are buying a new construction home in Utah right now you need to get on the list right away. The money is going to be available immediately. We can get you on the list so you will receive your free $6000 New Construction Grant for your new home. I am so proud of the State legislature for this idea. This is a great way to help the consumer
-It will be limited to the first 1,600 people who apply and qualify!
-Only applies to 30 yr fixed mortgages. Meaning no arms, or interest only. Not like those really exist anymore anyway.:)
-An individual can not make more than $75,000 a year or combined income with significant other of $150,000.
-Home has to be new construction, defined as a home that has never been lived in. There are many homes in the Salt Lake valley that have been for sale for 2 years but never been lived in so they would also qualify for the Grant.
The important part that everyone should be aware of is the total amount is $10 million. Once the money is gone, its gone. First come first serve basis. So you need to act fast. If you are buying a new construction home in Utah right now you need to get on the list right away. The money is going to be available immediately. We can get you on the list so you will receive your free $6000 New Construction Grant for your new home. I am so proud of the State legislature for this idea. This is a great way to help the consumer
Tuesday, March 3, 2009
There are so many hot housing and mortgage issues being added into the legislative hopper in Washington every week that it makes your head spin. Last week the Obama administration proposed the first significant cutback in years for the mortgage interest deduction. In his budget outline, the president called for limiting current deductions, including the mortgage interest writeoff for upper-income households. The plan would cap deductions at a 28 percent tax rate, even if the taxpayer is paying taxes at a 35 percent marginal rate.
To illustrate: Say you spend $8,000 a year on mortgage interest. At a 35 percent marginal bracket, you currently can write off $2,800. Under the Obama proposal -- even though you pay federal taxes at a 35 percent rate, your mortgage deductions would be restricted to a 28 percent bracket write off -- $2,240.
That's a one-fifth reduction, but would only be imposed on households with income of $250,000 a year and up. Now, you may not be directly affected by this revenue-raising concept. But keep this in mind: There's the real possibility that this would be just the first step in a longer-range campaign to limit the mortgage interest writeoff for home owners in general. Asked by Realty Times for comment, Lawrence Yun, chief economist for the National Association of Realtors, said any limitation on mortgage deductions in the higher-cost segments of the market inevitably would have negative impacts on property values in every segment. “This will hurt not just the top two percent (of owners),” he said, “but the 75 million home owners” in the middle and lower-income brackets as well.
Still another major housing issue generating heat: Do you qualify for the Obama administration's refinancing program for certain home owners -- roughly four to five million borrowers with mortgages owned by Fannie Mae or Freddie Mac, whose property values have declined to the point where they can't refinance? Or are you effectively locked out because you have a jumbo loan, you live in a high-cost area, or your mortgage didn't otherwise fit into Fannie's or Freddie's conventional purchase menu?
If you're one of the lucky ones who qualify, you might soon receive a new loan with a fixed rate in the low five percent range, even if you have negative equity. But if you took out a jumbo or an “Alt-A” nonconforming mortgage to buy your house, the president's plan -- at least in its current version -- offers you no relief.
Sincerely:
TedDee Payne
The Payne Real Estate Team
Prudential Utah Real Estate
Associate Broker, Salt Lake Board of Realtors Hall of Fame MBA,CRP,CRS,CSP,GRI,ABR,ePro
801 860-2468(cell)*866 706-1961(toll free)Thepayneteam.net
To illustrate: Say you spend $8,000 a year on mortgage interest. At a 35 percent marginal bracket, you currently can write off $2,800. Under the Obama proposal -- even though you pay federal taxes at a 35 percent rate, your mortgage deductions would be restricted to a 28 percent bracket write off -- $2,240.
That's a one-fifth reduction, but would only be imposed on households with income of $250,000 a year and up. Now, you may not be directly affected by this revenue-raising concept. But keep this in mind: There's the real possibility that this would be just the first step in a longer-range campaign to limit the mortgage interest writeoff for home owners in general. Asked by Realty Times for comment, Lawrence Yun, chief economist for the National Association of Realtors, said any limitation on mortgage deductions in the higher-cost segments of the market inevitably would have negative impacts on property values in every segment. “This will hurt not just the top two percent (of owners),” he said, “but the 75 million home owners” in the middle and lower-income brackets as well.
Still another major housing issue generating heat: Do you qualify for the Obama administration's refinancing program for certain home owners -- roughly four to five million borrowers with mortgages owned by Fannie Mae or Freddie Mac, whose property values have declined to the point where they can't refinance? Or are you effectively locked out because you have a jumbo loan, you live in a high-cost area, or your mortgage didn't otherwise fit into Fannie's or Freddie's conventional purchase menu?
If you're one of the lucky ones who qualify, you might soon receive a new loan with a fixed rate in the low five percent range, even if you have negative equity. But if you took out a jumbo or an “Alt-A” nonconforming mortgage to buy your house, the president's plan -- at least in its current version -- offers you no relief.
Sincerely:
TedDee Payne
The Payne Real Estate Team
Prudential Utah Real Estate
Associate Broker, Salt Lake Board of Realtors Hall of Fame MBA,CRP,CRS,CSP,GRI,ABR,ePro
801 860-2468(cell)*866 706-1961(toll free)Thepayneteam.net
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