Fannie Mae to Require Lenders Police Delinquent Loans

Kicking Borrowers when They're Already Down?

On June 23, 2010, Fannie Mae announced policy changes designed (1) to encourage borrowers on the brink of foreclosure to work with their lenders, and (2) to penalize borrowers who strategically default on their mortgages. These policy changes were developed in light of the rising number of borrowers choosing to walk away from their mortgages and start over.

Good Faith vs. Bad Faith and Everyone Else
According to Fannie Mae, “borrowers facing hardship who make a good faith effort to resolve their situation with their lender will preserve the option to be considered for a future Fannie Mae loan.” These borrowers can be considered for foreclosure alternatives such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. Borrowers who successfully enter into a foreclosure alternative program with their lender could be eligible to apply for a Fannie Mae-backed loan in as little as 2 years. READ FULL ARTICLE: Fannie Mae to Require Lenders Police Delinquent Loans

Homebuyer Tax Credit

Stimulating the Economy or Fueling False Hope?

Recently CNNMoney.com reported that pending home sales fell a whopping 30% in May, according to the National Association of Realtors. Although experts are shocked by this seemingly large decrease, any decrease should come as no surprise in light of the lapse of the homebuyer tax credit on April 30th. However, to fully understand why home sales suddenly sank, we must understand the true purpose behind the Homebuyer Tax Credit.

Initially, the Homebuyer Tax Credit was passed to stimulate the economy by bribing first-time homebuyers into purchasing the American Dream. A bribe is simply something that serves to induce or influence. In the midst of the mortgage crisis where millions of Americans are losing their homes in foreclosure for various reasons, such as being bribed into no-money down, interest only, adjustable rate, ballooning home loans, that have sucked the life out of so many families READ FULL ARTICLE: Homebuyer Tax Credit: Stimulating the Economy or Fueling False Hope?

Residential Real Estate 101

A Modern Day Breeding Ground for Your Everyday Hustler

The housing boom not only increased the number of first time homebuyers, it created a breeding ground for your "everyday hustler". From your overnight investors to flippers and equity skimmers, all qualify as hustlers. Now that the housing boom is over, the housing burst has revealed the innocent homeowners that fell victim to the everyday hustler. So before you even think about purchasing a home, you need to learn the ins and outs of the everyday hustler.

Flipper
There are two different kinds of flippers. The legal flippers that actually fix up houses and sell the homes at a profit based on the improved value. And then there is the illegal flipper, which you should be wary of. The illegal flipper makes no improvements to the property, but falsifies an appraisal by stating that the subject property is worth far more than the actual value. READ FULL ARTICLE: Residential Real Estate 101: A Modern Day Breeding Ground for Your Everyday Hustler

So You Want to Rent to Own a Home?

WHY PURCHASERS CONDUCT TITLE SEARCHES AND YOU SHOULD TOO

Why Purchasers Conduct Title Searches and You Should Too
With the current state of the economy, many people are opting to rent-to-own a home. Credit issues including bankruptcies and foreclosures, or a lack of sufficient credit history are all reasons to consider renting
before purchasing. Another reason, beyond credit concerns, may be your ambivalence towards purchasing a home in a market where houses are losing value everyday. However, if you are thinking about renting to own, the best advice is to treat your rental as if you were actually purchasing it with cash. READ FULL ARTICLE: So You Want to Rent to Own a Home?

A Review of Various Circumstances Warranting Foreclosure: Knowing when to Walk Away from the American Dream

No responsible person could ever imagine walking away from the American dream. Responsible home owners understand that a home is more than shelter; it is your comfort zone after a long day of work. Your home is your hiding place, when you simply need to be alone. Your home is your family’s staycation when a vacation is not an option. From birthdays to family bar-be-cue’s on the 4th of July, your home is an integral part of your life where memories are formed everyday. And contrary to the popular saying, “home is where the heart is,” our heart is where our home is. But suddenly you wake up one day and realize that owning a home in today’s market is no longer where your heart is. Knowing when to walk away from the American dream is not a decision that responsible Americans take lightly, but it is a decision that many of us are facing. READ FULL ARTICLE: A Review of Various Circumstances Warranting Foreclosure