Bank of America’s new program….“Mortgage to Lease”
Last month, Bank of America announced a pilot program that will provide some distressed property homeowners with a new foreclosure alternative. This new “Mortgage to Lease” program will allow homeowners facing foreclosure to remain in their homes by converting from home ownership to rental.
In this program, participating homeowners will transfer their home titles to Bank of America for forgiveness of all outstanding mortgage debt. Then Bank of America will lease the home to the former homeowner for up to three years at a rental price less than their mortgage payments, making payments affordable. After the three-year rental period, Bank of America will sell the acquired houses to investors.
For now, the “Mortgage to Lease” program will only affect 1,000 specifically selected Bank of America customers in Arizona, Nevada, and New York. During this initial phase, Bank of America will explore customer, community, and investor reactions and assess the feasibility and practicality of expanding the program.
In order to qualify, the homeowner must meet the following criteria:
- Have a Bank of America loan without junior liens
- Be delinquent 60 days on their mortgage payments
- Be “underwater” on their mortgage
- Must have exhausted other foreclosure alternatives
- Foreclosure must be eminent
- And the homeowner must be occupying the home
Because this program has received national media attention, you may receive questions from homeowners about it. If you do, you can simply explain that this program is tiny and for now will affect less than one-tenth of one percent of all the homeowners with a problem. Remember, Bank of America will be hand-selecting and notifying homeowners for the initial launch.
HOME ENERGY REBATES & INCENTIVES
Marin County Offers $600 for Home Energy Assessments!
A $600 rebate is available to Marin homeowners for getting a home energy efficiency assessment with a participating contractor through the Energy Upgrade California program.
Visit www.co.marin.ca.us/energyupgrade to learn more or call 415-473-4197.
The HARP 2.0 refinance program is available starting today, Monday March 19, 2012…
The HARP 2.0 refinance program is available starting today, Monday March 19, 2012 and is expected to bring mortgage relief to homeowners who are current on their home mortgage, but have been unable to refinance because of their negative equity status.
The full implementation of the revamped HARP 2.0 program, which was announced by President Obama in October 2011, has taken five months to come into play. The HARP 2.0 refinance program was available on a manual basis for a homeowner’s current servicer, the series of changes that the computerized version of the program is undergoing will increase the volume and speed of applications processed.
To be eligible for a HARP 2.0 refinance program, you can either use this HARP eligibility calculator with detailed eligibility explanations or follow the general guidelines below:
1. Your loan must be owned or guaranteed by Fannie Mae or Freddie Mac. If you are unsure if you have a Fannie or Freddie loan, you can check both Fannie Mae and Freddie Mac’s websites or you can call their toll-free number for confirmation.
• Fannie Mae: http://www.fanniemae.com/loanlookup/ 1-800-7FANNIE (8 am to 8 pm ET)
• Freddie Mac: https://ww3.freddiemac.com/corporate/ 1-800-FREDDIE (8 am to 8 pm ET)
2. You must have closed your current loan on or before May 31, 2009.
3. You must not have made a late payment within the past six months and have had no more than one late payment within the past 12 months.
4. Your loan must fall under the current conforming loan limits. If you are unsure, you can find out here: http://themortgagereports.com/loan-limits/
If you mete the general guidelines, what’s next?
Contact your current loan servicer to see if you are eligible to see if your loan qualifies for the HARP 2.0 refinance program. Then ask them if they can assist you in applying for the program.
*Caveat: just like traditional refinancing…shop around and compare, fees, rates and lender service levels.
HARP Program specific contact information for major mortgage servicers with whom you already have a mortgage through (not for new loans or shopping for a new servicer):
Bank of America: 1-800-846-2222
Wells Fargo: 1-877-937-9357
Chase: 1-800-848-9136
Citi: 1-800-283-7918
US Bank: 1-866-932-0462
Foreclosures fall, but there’s a ‘rising tide’ ahead…
The number of homes entering foreclosure dropped in February, but a new up-turn may soon be on its way.
The reason? The $26 billion settlement between 5 major banks and state attorneys general over past foreclosure practices.
(Source: CNN Money)
After More Than a Month, $25B Settlement Filed in Court
State and federal officials and five of the largest servicers –Bank of America, J.P. Morgan Chase, Wells Fargo, Citigroup, and Ally Financial – settled on February 9, outlining an agreement to address faulty practices in the mortgage industry and to deal with issues regarding wrongful foreclosures.
$20 billion in relief will help homeowners through principal reduction and refinancing for underwater homes, principal forbearance for unemployed borrowers, short sales assistance, and additional benefits for service members.
(Source: DSNews)
Bank of America offers principal reductions in amounts exceeding $100,000
Some Bank of America borrowers may be in for principal reductions in amounts exceeding $100,000, according to the latest developments in the settlement the bank and four other large servicers made with state and federal regulators. While the other four servicers in the national settlement are being required to diminish principal so underwater borrowers have loan-to-value ratios of 120 percent or less, BofA will be reducing principal for about 200,000 homeowners to fall in line with current market values.
(Source: DSNews)
Top 10 Short Sale Myths Debunked!
Myth #1: The homeowner must fall behind on mortgage payments in order to qualify for a short sale.
Debunked: Years ago this may have been true, but not in 2012.
• A financial hardship must exist, such as the ARM (Adjustable Rate Mortgage) increasing in monthly payments.
• Loss of job or income.
• Health or medical issues.
• Extraordinary loss in home value (which may be considered a hardship).
Note: Agents should not advise a homeowner to miss a mortgage payment.
Myth #2: Banks would rather foreclose on a property than approve a short sale.
Debunked: Many still believe this myth to be true, but more accurately, banks would prefer not to foreclose on a property due to the $50-70k it may cost the bank per transaction. Banks lose less money on a short sale than on a foreclosure.
Wells Fargo pays employee incentives for mortgage workouts…
Wells Fargo ($30.96 0%) installed an incentive program that pays its single-point-of-contact employees more if they reach some sort of workout in lieu of foreclosure.
Mortgage servicers must install single points of contact for borrowers on the verge of foreclosure, based on federal regulator consent orders signed in 2011, new Home Affordable Modification Program guidelines and the servicing standards set as part of the attorneys general settlement in February.
For more information click here.
Buying or Selling a home in Marin County…you might need a resale inspection report!
The following information about resale inspection program fees and reports is provided by city and town governments in Marin County. If available, links to Web sites are provided below. Otherwise, please see the notes below concerning city/town information about the programs.
City of Belvedere (415) 435-3838 Report: Application for resale inspection available after required sewer lateral video is completed. Call City of Belvedere for instructions and an application for residential building records report. Dowload the Form Fee: $150 and is based on a final building inspection fee.
City of Corte Madera (415) 927-5050 Report: not posted on website yet – contact City of Corte Madera – For building permit application go to: Dowload the Form Fee: $130 + $55 each unit in excess of 2 — see fee schedule at Dowload the Form
Town of Fairfax (415) 453-1584 Report: Dowload the Form Fee: $400 single family residence + $75/each additional dwelling
City of Larkspur (415) 927-5110 Report: form not on website – city recommends come in to fill out form and pay the fee at their offices at 400 Magnolia Avenue, Larkspur. Fee: $130
City of Mill Valley (415) 388-4033 Report: form not on website – city recommends fax form and pay fee to schedule inspection. Call City of Mill Valley to receive an inspection request form. Must pay the fee before an inspection can be scheduled. Fee: $225
City of Novato (415) 897-4311 Report: Dowload the Form Fee: $274.00 each dwelling unit +$37.00 each additional unit on same property
Town of Ross (415) 453-1453
Town of San Anselmo (415) 258-4600 Report: For information, click here. Dowload the Form Fee: $203
City of San Rafael (415) 485-3070 Report and Fees: Dowload the Form
City of Sausalito (415) 289-4100 Report: not available on web site – pick up original form from City of Sausalito, 420 Litho St., Sausalito. Fee: $100 for Open/Close Report from City of Sausalito
Town of Tiburon (415) 435-7373 Report: Required NCR report from Town of Tiburon Fee: $150 + $75 any second unit after.
(Source: Marin Association of Realtors)
What will you rent it for? Zillow will guess…
Branching out from home valuation “Zestimates,” Zillow.com is now generating estimated monthly rents for about 90 million homes or apartments — whether they’re actually available for rent or not.
Like the automated home valuations that helped Zillow become one of the most popular real estate sites on the Internet, “Rent Zestimates” depend in part on the physical attributes of homes gleaned from public records, such as the number of bedrooms and square footage. To read more…
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