Loan Modification Options for Homeowners in Distress

There is so much happening these days with ways homeowners can try and modify their current homes. Yes, even second homes and investments. Before anyone opts to short sell their home or let it go into foreclosure it is imperative you educate yourself and not put your home and financial future in the hands of someone else without at least knowing the basics. Having someone to help walk you through it and be a professional reference is the second step after education.

Are you familiar with the following programs to modify your home? If not, get educated.
HARP - Home Affordable Refinance Plan
HAFA - Home Affordable Foreclosure Alternatives Program
HAMP - Home Affordable Modification Plan
2MP - Second Lien Holder Modification Plan
UP - Home Affordable Unemployment Plan

Find the Questions and Answers for these programs straight from the Government
http://makinghomeaffordable.gov/borrower-faqs.html#2

Most of these programs were designed for Fannie Mae or Freddie Mac backed loans but there's good news! Now HAFA for the NON-GSE's (Government Sponsored Enterprises) has been released as of August 1, 2010!

What got most of the country in trouble over the past 5 years was the mindset that everyone else is doing it so why not us? "It's easy to jump right in and become an investor and flip homes and make a ton of cash." "I'll just take cash out own my current home and buy 3 more then flip them." "I didn't read the contract because I trusted my lender/real estate agent". Don't repeat the same mistake and lose your home. Owning a home is a big responsibility and a bigger impact on your financial future so don't go in with blinders on.

It's not going to be fun and it's not going to be comfortable. But it's necessary.

Familiarize yourself with the facts and then find a knowledgeable Real Estate Agent or Lender to help guide you the rest of the way. And of course call or email me if you have any further questions or topics you would like me to research for you and post here on my blog.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group - Direct: 702-277-7071
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"

Purchasing a home after a Short Sale September 3, 2010

When will I be able to purchase another home now that I have short sold my other one?

This is a common question these days and for those who sold their homes in a short sale in 2008 or prior are in luck, there are loans for you. Of course it’s not going to be as easy as when you originally got your loan to purchase a home but the option is there and worth taking a look at.

What are the banks going to expect from me when I apply for another home loan?

The consensus from various lenders is that they are going to want you with your prom dress on so to speak. You will need to have your credit in order with no late payments, collections or large outstanding debts. They will want you to have a minimum of a 580 some say but the larger number say 620 or better because now you are a bigger risk. You are most likely going to be asked, “Why did you short sell?” and documentation to back it up.

I got foreclosed on is there any hope for me getting another home loan?

Surprisingly yes there is but you are looking at 4+ years out from the foreclosure date. Expect to be asked, “Why did you walk away from your home?”, “Did you try to modify?”, “Did you try to short sell”. What attempts did you make to keep the mortgage current on your home?”

You should also expect they are going to want strong work history for the past 2 years, stellar credit and reserves in the bank. Oh yes, remember those? Yes reserves in the bank for your mortgage just like investors are being required to do now. They want to be sure you have a backup plan this time.

Now these are all possibilities but in order for you to find out exactly where you stand is align yourself with the right professionals to guide you. A good Real Estate Agent and Lender who will work with you on your credit is the best place to start. Feel free to email or call me with questions or comments. I am a Full Service, Full Time REALTOR® specializing in Listings, Short Sales & Buyer Representation in all areas including New Homes.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group - Direct: 702-277-7071
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"