Freddie Mac new Credit requirements

Are you ready to face a tougher Freddie Mac? The new requirements in Freddie Mac’s Bulletin 2010-19 kicked in last week, and mortgage professionals need to bring their 'A' game:

• Be ready to look into every borrower's credit report inquiries made in the previous 120 days — not just the 90 days previously required.
  
• Was the borrower granted additional credit? You need to get verification of the debt and include that debt when you qualify the borrower.
  
• This goes for all loans, not just manually underwritten loans.
• 
  

Lease as an alternative to foreclosure?

Did you know that you may be able to lease your property back from your lender as an alternative to foreclosure?

The Deed-For-Lease™ option is a program from Fannie Mae that allows you to lease your home after you have transferred the title to your property to the mortgage company (commonly called a Deed-in-Lieu of Foreclosure). The lease terms are up to 12 months (with the possibility to extend longer). And the monthly rent is based on the current rental rates for your area—not on your original mortgage payment.

Deed-for-Lease is an alternative to foreclosure and may be an option if:

You are ineligible to refinance or modify your mortgage, you are facing a long-term hardship, you are several months behind on your mortgage payments, you may owe more on your home than it’s worth, you have not been able to sell your home, or you want to remain in your home.

Deed-for-Lease is available for loans owned by Fannie Mae. If you loan is not held by Fannie Mae your lender may have similar programs available.

What are the benefits of a Deed-for-Lease?

Eliminate or reduce your remaining mortgage debt; Resolve your delinquency and avoid foreclosure; Stay in your home and neighborhood (no need to move or relocate); Lease at current market rate rent for up to 12 months with a possible option to extend the term; Pay no security deposit; Assistance for relocation may be available at the end of your lease; Start repairing your credit sooner than if you went through a foreclosure; May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) by executing a Deed-in-Lieu than if you went through foreclosure (at least 7 years).

To explore your options I would recommend contacting a good Real Estate attorney.

Broward Homebuyers Can Get $2000 Tax Credit

The Housing Finance Authority of Broward County has launched a Mortgage Credit Certificate Program to help reduce home loan financing costs for qualified homeowners in Broward County.

The Mortgage Credit Certificate program entitles qualified applicants to a federal income tax credit in an amount of up to $2,000 annually. This enables qualified owners or buyers, who owe federal income taxes, to benefit from a dollar-for-dollar reduction of their tax bills. Additionally, the homeowner will continue to receive the tax credit each year they continue to live in the home financed under the program.

The Mortgage Credit Certificate is not a mortgage; however, it may be used in conjunction with a first mortgage from a participating lender (except a mortgage revenue bond loan.) Borrowers must meet normal mortgage underwriting requirements, which demonstrate credit worthiness, and meet the program's income and home purchase price requirements.

Interested parties should click here to visit the Broward County Housing website or feel free to drop me a line for more info.

New State property laws take effect

There are a couple of new laws property owners should keep in mind as the 2010 property tax season kicks off.

If you've added buildings, additions or other improvements to your property, you can be spared from the standard retroactive taxes that have been charged in the past.

The state Legislature passed a law this year providing relief for homeowners that have added improvements, buildings or other changes to their property. If the homeowner reports the additions to the county property appraiser before Jan. 1, the improvements will only be reflected in their 2011 assessments. Under normal circumstances, once additions are discovered, the homeowners would be responsible for up to three years worth of back taxes for the value of the improvements.

Also, if your home is severely tainted with Chinese drywall, your property should be valued at $0, because of a law passed this year in the state Legislature. If the building is uninhabitable, owners will not have to pay property taxes on it until it is repaired. Homeowners still have to pay taxes on the land the property sits on, and Non Ad-Valorem taxes will also be required. Affected homeowners should provide their county appraiser documentation showing that their homes contain the drywall, which emits sulfur odors and can cause structural damage.

MORTGAGE HELP FOR UNEMPLOYED

HAMP, HAFE and now UP.

UP is the Home Affordable Unemployment Program. It is a new program designed to supplement the Home Affordable Modification Program (HAMP) which provides assistance to unemployed borrowers by granting them a forbearance period which reduces or suspends their monthly mortgage payment.

This program goes into effect on July 1, 2010 for participating HAMP mortgage servicers. It applies to first mortgages taken out prior to 1/1/09 on one to four family units that are the principal residence.