loanmodificationsandiego.info

Attention California Homeowners-The Government’s Freddie Mac Relief Refinance Mortgage rules:

The governmenst main objective is to assit borrowers of Freddie Mac guaranteed, insured home loans, to keep their homes affordable and reduce foreclosures by keeping payments affordable. Under Freddie Mac’s Home Affordable Refinance program, known as the Relief Refinance Mortgage, the program may be used to reduce the borrower’s loan interest rate, shorten the loan term repayment period or replace an adjustable-rate mortgage, interest-only mortgage or balloon/reset mortgage with a fixed-rate loan.

How to qualify for the new refinance program, first the borrower must have an existing mortgage that is owned or guaranteed by Freddie Mac. To find out whether Freddie Mac owns or guarantees your loan, call (800) 373-3343, call your loan servicer or search for your loan on Freddie Mac’s Web site at Freddie Mac.org.

You should contact your original lender or loan servicer to apply for this program.

The property may be a vacation/second home if the existing mortgage was originated as a second-home loan or the borrower now occupies the home as a principal residence.

The new Freddie Mac Refinance mortgage can be a 15-, 20- or 30-year, fixed-rate loan or an adjustable-rate mortgage  with an initial term of five, seven or 10 years. The loan must be fully amortizing (i.e., not an interest-only or payment-option loan).

If you have an existing fixed-rate mortgage, than the lender can not refinance with an ” ARM”  Adjustable Rate Mortgage.

The loan, may be a so-called “super-conforming” loan limit within the applicable loan limit for the area.

The property may be an investment property if the existing mortgage was originated as an investment property or the borrower now occupies the home as a principal residence.
 
If the original loan is covered by mortgage insurance, the insurer must agree to transfer the insurance to the new loan.

The new loan cannot be used to make a payment on or pay off a second loan.

Lenders are encouraged to use Freddie Mac’s automated valuation model, or AVM, to estimate the property’s current market value. Borrowers should ask whether a new appraisal will be required.

The borrower may be able to finance transaction costs of up to $2,500.
Borrowers whose monthly payment increases 20 percent or more must provide income and employment documentation and have an acceptable credit score and debt-to-income ratio to demonstrate they can afford the new higher payment.

If your loan does not meet these qualifications and you can not qualify for a typical refinance program,  You may want to consider modifying your home loan with a loan modification San Diego mortgage program.  This will allow you to lower your monthly mortgage payments, lower your current interest rate on your mortgage, or possibly reduce the principal balance of your home loan mortgage.

More information can be obtained at the Freddie Mae web site or at the Home affordable modification webs site.

Publisher- Michael Kench Uncategorized Adjustable Rate Mortgage, Arm Adjustable Rate Mortgage, Avoiding Foreclosure, California Homeowners, Conforming Loan Limit, Existing Mortgage, Fixed Rate Loan, Fixed Rate Mortgage, Foreclosure California, Foreclosure Prevention, Freddie Mac, Home Loans, Initial Term, Interest Only Mortgage, Investment Property, Loan Interest Rate, Loan Modification, Loan Servicer, loan-modification-san-diego, Main Objective, Mortgage Insurance, Mortgage Interest, Mortgage Loans, Mortgage Payments, Payment Option, Principal Residence, Repayment Period, San Diego Ca

Home Affordable Refinance rules:

The program applies only to loans that are owned or guaranteed by Fannie Mae or Freddie Mac.  Refinance with little or no equity.  Do you qualify?

The property must be an owner-occupied detached house, condominium, duplex, triplex or four-unit residential property. (Fannie Mae’s and Freddie Mac’s rules may allow exceptions to this rule.)

The borrower must not have made a loan payment more than 30 days late in the last 12 months or missed a payment if the loan was originated fewer than 12 months ago. (If a borrower who was delinquent or have made a payment more than 30 days late during the prior 12 months may qualify for the Home loan modification San Diego program.)

The new mortgage lien cannot exceed 105 percent of the appraised value of the property.

If the borrower has a second loan, that loan isn’t counted toward the 105 percent limit. The second loan must remain subordinate to the new first mortgage.

The interest rate on the new mortgage will be the current listed market rate.

The borrower may be charged fees, points or other refinancing costs.

The new mortgage home loan cannot have a prepayment penalty or balloon payment tacked on to the end of the loan term.

The borrowers income will have to qualify to afford the new mortgage payments

The existing loan balances will not be reduced and may increase by adding on refinance and escrow fees.

If a borrowers has existing private mortgage insurance, or PMI, will be required to continue that insurance on the new loan.

There will be no PMI or private mortgage insurance on news loans.

A list of participating lenders can be found at the Home Affordable website or you can go to http://homeloanrefinanceonline.info

Documents required for the new home affordable refinance mortgage loan program are as follows.

1. Paycheck stubs, alimony, child support or other income-related documents.

2. Recent income tax return including w-2 statements  for all borrowers.

3. Second and Third loan notes and payment coupons secured by the property.

4. Financial statements-Account numbers, balances and monthly minimum payments on credit cards, student loans, car loans, personal loans and other debts.

5. Mortgage coupon of existing loan

6. Copy of Hazard Insurance declaration page

Important reminder the Home Affordable Refinace program will terminate on June 10, 2010.

Publisher- Michael Kench Uncategorized Alimony Child Support, Balloon Payment, Escrow Fees, Fannie Mae, First Mortgage, Income Tax Return, Info Documents, Listed Market, Loan Balances, Loan Modification, Loan Notes, Loan Term, loan-modification-san-diego, Modification Request, Mortgage Home Loan, Mortgage Lien, Mortgage Loan Program, Mortgage Payments, New Mortgage, Owner Occupant, Paycheck Stubs, Payment Coupons, Prepayment Penalty, Private Mortgage Insurance, San Diego Ca

Loan Modification San Diego Update

Loan modification is becoming more and more common and majority of the borrowers are opting for it to prevent foreclosure. Incidence of loan modification in California is quite high. The factors that can be held responsible for such financial upheavals include recession, unemployment and political pressures on banks to support loan modification instead of foreclosure.

Loan modification San Diego incidence is the highest. And of 10 top cities experiencing highest foreclosure rate in US, California is among them. In Stockton, California maximum number of homes is facing foreclosure. In San Francisco, the incidence is comparatively less. However, there has been an increase by 83% as compared to 2006 and 2007.

The debt-to income ratio is considered

The loan modification program introduced recently aims at helping homeowners to protect their homes from foreclosure. Lenders usually take a couple of factors into consideration before accepting a loan modification request of a borrower. The criteria may differ from one lender to another. Lenders dealing with homeowners opting for loan modification San Diego Ca programs take the DTI or the debt to income ratio into consideration while approving a request. If the debt-to income ratio exceeds 95%, even if loan modification is granted, probability is quite high that the homeowner will not be able to keep up with the mortgage payments since the cash available for making monthly payments is not enough. So, a homeowner in California cannot avail loan modification of the DTI exceeds 95%.

On the contrary, if the debt-to income ratio is below 65%, lenders believe that the homeowner should be in a position to keep up with the payments. And a loan modification is not what the homeowner should be opting for.

Majority of the lenders prefer a debt-to income ratio between 60% and 95% before loan modification is initiated. There are many loan modification companies operating in California and they can help borrowers by negotiating with the lenders so that the homeowners don’t have to lose their homes.

Publisher- Michael Kench mortgage Avail, Borrowers, Contrary, Debt To Income Ratio, Dti, Facing Foreclosure, Foreclosure California, Foreclosure Loan, Lenders, Loan Modification, Maximum Number, Modification Request, Mortgage Payments, Political Pressures, Probability, Recession, San Diego Ca, Stockton California, Top Cities, Unemployment, Upheavals