Awareness and Help for Problems that Originated Out of the Housing Crisis
Foreclosure code is still being applied to mortgage credit of many who have had a short sale, modification, sometimes a deed in lieu and even when none of the latter experiences exist. The common thread when the foreclosure code exists is that mortgage delinquency exceeded 120 days. A foreclosure code results in a seven year wait for a new conventional mortgage rather than the four year wait required after a short sale or deed in lieu, or a one year wait required after a modification.
A new service located at www.ForeclosureCreditFix.com (ph#1-866-702-4551) was originated to assist those that have had a past short sale, deed in lieu or modification to find out if their credit is coded as a foreclosure… before they purchase again. This service was needed to assist clients with a past short sale, deed in lieu or modification before a contract is signed. WHY? The foreclosure code is not visible on a credit report and is not found until a conventional loan for affected borrowers is run through the Fannie Mae and Freddie Mac automated underwriting systems… Which is often mid-contract.
On a conventional mortgage, there is a workaround for the foreclosure code in Fannie Mae. Freddie Mac programs have grown in popularity due to unique underwriting criteria, but there is no workaround for the foreclosure code. This is causing denials that result in loss of Freddie Mac market share, a switch to Fannie Mae or FHA loans or portfolio conventional loans at higher interest rates with greater down payment, and in many cases, a loss of contract because sellers can’t wait.
Homeowners who have negative equity but are trying to “stay put” awaiting equity to return are locked out of the refinance market if they have a portfolio (non-Fannie Mae/non-Freddie Mac) conventional first mortgage over 95% loan to value or that is combined with a home equity line of credit (HELOC) where the combined loan to value exceeds 95%. Many HELOC’s are interest only and a huge number of them are now resetting to full principal and interest payments with balances spread over the remaining time frame of the initial loan! For HELOC’s that contribute to the negative equity, there is no refinance, and this can also cancel the ability for the homeowner to get a refinance of their first mortgage. A modification is the only option provided by lenders when negative equity exists, and mortgage delinquency and proof of hardship is most often required.
Inventory Myth Busting: Why is Home Inventory So Low?When it Comes to Explaining Low Inventory Some Theories Are Better Than Others By Ralph McLaughlin | Jul 26, 2017
Chicago Foreclosure Activity: Defaults Approach New LowBy Gary Lucido, July 20, 2017 at 9:05 am on Chicagonow.com ATTOM Data Solutions/ RealtyTrac released their Midyear 2017
HUD Housing Counselors Continue Assisting Negative Equity HomeownersHousing counselors continue to assist negative equity homeowners who need help staying put in homes while working on initiative to
Study Finds Gen X Homeowners Lacking in EquityWritten by Phil Hall, as seen on National Mortgage Professional News, July 18, 2017 While many people are ready to tuck the housing
HUD’s Carson Warns of Senior Housing CrisisWritten by Phil Hall, as seen on National Mortgage Professional News, July 18, 2017 According to an Orlando Sentinel report, Dr. Carson raised
Housing Counselors Hone Skills for Service That Will Assist Those with Past Short Sale, Deed-in-Lieu or Modification Where Credit Shows Up as ForeclosureBy Pam Marron | National Mortgage Professional Magazine |July 2017 Step One… Loan Originators and Realtors need to ask ALL
Americans Who Can’t Afford Their Homes Up 146 Percent“In the wake of the financial crisis, so much capacity was taken offline,” Swonk told NBC News. “Much of the
Dodd-Frank: Trump says roll-back, consumers map fight backKevin McCoy and Roger Yu , USA TODAY Published 7:02 a.m. ET June 14, 2017 | Newly announced Trump administration plans
Underwater homes on the decline nationwide – but that’s not the whole storyHomeNews by Ryan Smith, 08 May 2017 There were nearly 5.5 million seriously underwater properties in the US during the
Pre-purchase help coming from HUD approved housing counselors to assist clients who still have credit issues with a past short sale or modificationBy Pamela Marron | National Mortgage Professional Magazine | May 2017 HUD approved housing counselors are being trained to provide
Morning Briefing: HELOC owners face sharp payment increases in 2017by Steve Randall Challenging times are ahead for thousands of homeowners with HELOCs as their lines of credit reset with
Drill Down on Short Sale and Modification CreditBy Pam Marron | National Mortgage Professional Magazine | April 2017 Recently, a joint effort of the mortgage and the