Military Forclosure

I Recently had a Short Sale In Williamsburg, VA When Can I Get a Mortgage Again?

By: Williamsburg Military Insider

The chart below is a great tool to give you a basic guide when you might qualify for a mortgage again, if you have had a Short Sale. With a conversation with Nina Efird of Suntrust bank if you had a VA Compromise Sale, the VA is requiring you to pay back the delinquency if you would like to have full eligibility.

The specific wording on the VA official site includes the following;

“…although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.”

If a VA loan applicant is notified that a debt to the government exists, or was aware of the debt prior to applying for the loan, it’s a very good idea to contact the VA directly to work out the details of repayment before trying to apply for a new VA mortgage.

Another important fact to remember–you may still be able to take advantage of any unused VA loan eligibility. If a borrower did not use the full entitlement on the previous VA mortgage, any remaining entitlement may be allowed.

A borrower’s debt to the government for a compromise claim could be factored into the debt-to-income ratio unless the lender feels the compromise claim debt is too large compared to other financial factors. Such debt might result in the need for a down payment, or a larger down payment than usual–requirements will differ from lender to lender.

 http://www.benefits.va.gov/homeloans/faqelig.asp

I am a REALTOR with Liz Moore & Associates Also; I am part of the Liz Moore & Associates’ Military Team which specializes in homes for sale in James City County, Newport News, Hampton, York County, Poquoson, and Williamsburg, VA as well as surrounding markets. I offer Active Duty friendly support to families relocating to Langley Air Force Base, Ft. Eustis, Yorktown Naval Weapons Station, and Cheatam Annex. When you PCS to Hampton Roads, VA you will find that I understand that when a family member joins the military, the entire family belongs…thank you for serving our Country, and I look forward to serving your real estate needs!

When you are transferring to Langley AFB, Ft. Eustis, Yorktown Naval Weapons Station or Cheatam Annex, if you’re interested in buying a home for sale call 757-651-3763 e-mail me at jenniferhernandez@lizmoore.com

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Administration Enhances Foreclosure-help Program…Does this include VA Loans?

by: Williamsburg Military Insider

The Federal Housing Finance Agency (FHFA), the federal regulator with oversight responsibility for Fannie Mae and Freddie Mac, announced changes Monday to the Home Affordable Refinance Program (HARP) to attract more underwater borrowers who could benefit from refinancing their home mortgages. This is a step in the right direction, to help some Military Families but the majority of Military Families have VA loans which this will not help.

News reports, such as one from ABC News blog, reported that President Obama announced the proposal from a Las Vegas home’s front porch. Nevada has one the highest foreclosure rates in the country.

HARP was launched in 2009 to let troubled homeowners bypass a requirement that they have at least 20% equity in their home to be able to refinance their mortgages at lower rates. However, the program has been, some say, severely under utilized because many cannot qualify for help.

The program enhancements announced yesterday were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants. Program changes include:

  • Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
  • Removing the 125% loan-to-value ceiling for fixed-rate mortgages backed by Fannie and Freddie;
  • Waiving certain representations and warranties made by lenders on loans owned or guaranteed by Fannie Mae and Freddie Mac;
  • Eliminating the need for a new property appraisal where there is a reliable automated valuation model estimate provided; and
  • Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to Fannie and Freddie on or before May 31, 2009.

The FHFA, in a release, said one important element of the changes to HARP is the elimination of certain risk-based fees, which should encourage borrowers to utilize HARP to refinance into shorter-term mortgages.

“Borrowers who owe more on their house than the house is worth will be able to reduce the balance owed much faster if they take advantage of today’s low interest rates by shortening the term of their mortgage,” explained the agency.

Fannie Mae and Freddie Mac plan to issue guidance with operational details about the HARP changes to mortgage lenders and servicers by Nov. 15.

I am a REALTOR with Liz Moore & Associates Also; I am part of the Liz Moore & Associates’ Military Team which specializes in homes for sale in James City County, Newport News, Hampton, York County, Poquoson, and Williamsburg, VA as well as surrounding markets. I offer Active Duty friendly support to families relocating to Langley Air Force Base, Ft. Eustis, Yorktown Naval Weapons Station, and Cheatam Annex. When you PCS to Hampton Roads, VA you will find that I understand that when a family member joins the military, the entire family belongs…thank you for serving our Country, and I look forward to serving your real estate needs!

When you are transferring to Langley AFB, Ft. Eustis, Yorktown Naval Weapons Station or Cheatam Annex, if you’re interested in buying a home for sale call 757-651-3763 or e-mail me at jenniferhernandez@lizmoore.com

Active Duty Underwater near Ft Eustis or Langley AFB: Swim instead of Sink

By: Williamsburg Military Insider

Looking back at our home buying six years ago, people told military families they were crazy if they didn’t buy a home when arriving at a   new duty station on three year orders. But since the housing bubble burst, many military families are forced to make tough decisions when they PCS next.

Negative equity, when a homeowner owes more than the home is worth, is often called an “under water” mortgage.  I came across an interesting statistic in the last quarter of 2010, nearly one-fourth of American homes were under water.

For Military Families in this situation, PCS orders can be terrifying.  If they own a home and can’t sell it at a profit when it’s time to PCS, some families are forced to become long distance landlords. Others face foreclosure.  Most military families don’t have enough money to cover the difference between the price the buyer pays them and the remaining mortgage they owe.  So some families choose to rent out their homes, this can be financially fruitful.

Sometimes the incoming rent doesn’t cover the mortgage or tenants are hard to find and keep.  If the rent doesn’t cover the mortgage, or if you go several months without a tenant, the overall cost can be worse than selling at a loss.  If there are tens of thousands of dollars difference between the home’s appraised value and your remaining mortgage, talk to your lender and look into the government programs to see if you qualify.  Some can decrease the monthly mortgage payment with a loan modification, making renting more viable. Others could cover the difference if you sell for less than your home is worth’s.

Below are some Resources, The worst option is Foreclosure, with long lasting impact on a Service Members credit or even their security Clearance and Career in some branches.

Resources

Information on several Government Programs: Most are best used before you miss a mortgage payment.  If you need to renegotiate a mortgage or consider a short sale you may get help here.

http://www.makinghomeaffordable.gov/pages/default.aspx

VA Compromise Sale: Get information on how to pursue a short on a VA Loan

http://www.vba.va.gov/ro/houston/lgy/compsale.html

Housing Assistance Program:  There are tight guidelines but only

significant help for those who bought before housing prices plunged in 2007.

http://hap.usace.army.mil/homepage.asp

Hampton Roads Active Duty Military: Mortgage Relief offered by Bank of America for Active Duty Military

Bank of America today announced programs for its mortgage customers serving in the United States military, improving key benefits for those on active duty and extending mortgage protections for servicemembers beyond active duty. The newly introduced programs include a principal forgiveness loan modification program for military borrowers behind on their payments when leaving active duty; a reduced 4-percent interest rate on mortgages for customers who are eligible for Servicemembers Civil Relief Act (SCRA) protection; and a mortgage customer service unit dedicated to servicing military customers.

Bank of America’s Military Loan Modification Program goes above and beyond existing programs to assist military customers who are leaving active duty domestically or abroad and are struggling to afford their mortgage payment. The program builds on the government’s Home Affordable Modification Program (HAMP) and provides a waterfall of solutions starting with principal reduction measures to help customers achieve a more affordable mortgage payment as set forth in the HAMP guidelines:

  • First, immediate principal forgiveness to reduce the amounts owed related to their mortgage to as low as 100 percent of the current market value.
  • Then, as needed, a reduction of the interest rate, and subsequent extension of the term of the loan to help customers achieve a more affordable mortgage payment.

 Beginning April 1, 2011, Bank of America will also offer a 4-percent interest rate on mortgages for active duty military personnel while they are under Servicemembers Civil Relief Act (SCRA) protection. This is lower than the 6-percent rate required by SCRA guidelines. The 4-percent rate will be applicable for the duration of the borrowers’ active duty and for 12 months after release.

 Bank of America initially will offer the specialized loan modification program and reduced interest rate to distressed military customers with loans owned and serviced by the bank. The bank is engaged in conversations with investors in other mortgages it services in the interest of expanding these benefits to all the military customers. Participation by those investors is subject to their approval.

 Bank of America previously announced it has established a dedicated customer service team for military customers within its mortgage servicing unit. This unit provides servicemembers who have Bank of America mortgages with a single team to contact for assistance with questions or needs related to the bank’s full range of mortgage options and related SCRA benefits. The unit is staffed by associates with specialized training and detailed knowledge of SCRA policies and guidelines.

 Servicemembers with Bank of America mortgages may reach the dedicated customer service unit at 888.325.5357.