Whether you’ve been foreclosed on, opted for a strategic default, sold your house in a short sale or declared bankruptcy, you’re biggest concern is usually how long you must wait to own a home again.

The following list will help you to determine the lender regulations for your particular situation.

Waiting Period Requirements to Buy a House Again

The waiting periods in order to qualify for a home loan after a foreclosure, deed-in-lieu, short sale and bankruptcy varies both by the government agency purchasing or insuring the loan as well as the dollar amount of the loan.

Federal Housing Administration (FHA)

1. Foreclosure is 3 years
2. Deed-in Lieu is 3 years
3. Short Sale is 3 years
4. Bankruptcy is 2 years

Veterans Administration (VA)

1. Foreclosure is 2 years
2. Deed-in Lieu is 2 years
3. Short Sale is 2 years
4. Bankruptcy is 2 years

Conventional Conforming (FNMA/FHLMC)

1. Foreclosure is 7 years
2. Deed-in-Lieu is 4 years < 80% LTV and 5 years > 80% LTV for primary residences. 7 years for second homes and investment properties regardless of LTV.
3. Short Sales is 2 years < 80% LTV and 5 years > 80% LTV and 7 years > 90% LTV
4. Bankruptcy is 4 years

Conventional Non-Conforming (JUMBO)

1. Foreclosure is 7 years
2. Deed-in-Lieu is 7 years
3. Short Sale is 7 years
4. Bankruptcy is 7 years

If you have questions about how long you have to wait to buy a house again in Long Beach, CA, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

Well, there’s some good news. Effective February 1, 2011, HomePath is enhancing its mortgage and renovation mortgage qualifications.

Based on lender feedback and REO market needs, HomePath will provide these enhancements to improve lenders eligibility for new loans.

What is the Benefit to HomePath Buyers?

Renovation lending is now available on second homes and investment properties and renovation lending is expanded to up to 35% of the as completed value and no more than $35,000. Just remember that renovation eligibility is determined using up to 32% of the as completed value not more than $34,000.

The difference between the values in eligibility and underwriting allows for lending flexibility and unexpected renovations and overruns – this should reduce fallout.

HomePath Mortgage® and HomePath Renovation Mortgage® Enhancements

Improvements to the HomePath Renovation Mortgage include only:

• Allow second home (one-unit up to 90% Loan-to-Value ratio) and investment properties (one-unit up to 85% LTV, two- to four-units up to 75% LTV)
• Expand the maximum renovation component in the loan amount to the lesser of 35% of the as-completed value or $35,000 (currently limited to the lesser of 20% of as-completed value or $30,000)

If you need a HomePath Mortgage only, they will:

• Clarify that, even though an appraisal is not obtained by the lender for HomePath Mortgages, a market-rent schedule from an appraiser is acceptable for determining rent for qualifying purposes in accordance with standard policy (Please read the HomePath Selling Guide Section B3-3.2-07)

For both HomePath Mortgage and HomePath Renovation Mortgage, the company will:

• Waive the investor property loan-level price adjustment (LLPA) for investor purchase transactions that have both an LTV ratio of 70% or lower and a credit score of 740 or higher
• Consider on a case-by-case basis single-loan waivers for investors with more than four financed properties (requests should be submitted by the HomePath lender using the normal single-loan waiver process)

HomePath financing for investors not only expanded to renovation lending but also reduced the pricing for an investor with both an LTV ratio of 70% or lower and a credit score of 740 or higher.

What’s the Difference Between Fannie Mae and HomePath’s New Mortgage Enhancements?

Fannie Mae allows up to four financed properties per investor. With HomePath financing, they will consider above four financed properties on a case by case basis.

If you have questions about the new HomePath Mortgage and HomePath Renovation Mortgage Enhancements in Long Beach, CA, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

What are California’s Real Estate Disclosure Requirements?

The California Civil Code has stringent requirements when it comes to disclosing the facts about a listed property. Homeowners, real estate brokers and any other agents involved in the transaction must adhere to specific laws dealing with environmental hazards, zoning, and facts about the property for sale.

Sellers and agents must disclose any problems, even if the information affects the home’s value or desirability. California requires you to disclose this information in writing. You must also sign and date specific forms, most of which are available to real estate brokers through the California Association of Realtors. And that’s not all. You must be sure your buyer acknowledges receipt of the disclosures by signing and dating the forms as well.

How Do I Disclose Real Estate Information in California?

The Real Estate Transfer Disclosure Statement (TDS) is a form required by California Civil Code. The document requests information and details such as the condition of appliances in the house, significant defects or malfunctions in or around the structure, materials or substances, which may pose an environmental hazard, structural modifications in violation of zoning or building codes and neighborhood noise problems.

What Other Instances Must I Disclose?

The California Residential Purchase Agreement, or offer to purchase, lists the statutory disclosures you must deliver to the buyer. In addition to the TDS, they include, a Natural Hazard Disclosure Statement, which includes earthquake, fault line and flood information in the area of the home; illegal controlled substance contamination notice; notice of special tax assessments, such as supplemental property taxes; and an industrial use and military ordinance location disclosure.

California property sellers must also alert buyers to the availability of a database maintained by law enforcement authorities on the location of registered sex offenders.

How Long Do You Have to Disclose?

Before you list your property, you should disclose any information that could affect the value of your home.  Section 14A of the California Residential Purchase Agreement, or RPA, allows for a certain number of days for the delivery of your disclosures to the buyer–usually seven days from acceptance of the RPA. The buyer usually has 17 days from acceptance to return them to you, signed and dated.

If you fail to follow through with the appropriate California state disclosures, you may face litigation later on.

Should I Get a Property Inspection?

It’s always a good idea to get a property inspection. While it does cost a little more, it will save you time and money in the long run. The results can help you determine what needs repair or replacement and will assist you with preparing any required disclosures.

Where Do I Start My California Real Estate Disclosure?

First, contact your real estate agent. Your agent will know which forms to fill out and what information is required on each document. Also, check with your city planning department for information on disclosures that might affect your sale.

Most California real estate agents are requiring that you complete disclosure forms, before they will list your property on the market.

For more information, visit http://www.dre.ca.gov/pub_disclosures.html

If you have more questions about foreclosures in Long Beach, CA, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

In Q3 housing markets across the nation, including here in Long Beach, CA, experienced an acceleration in property value depreciation. A sure sign that our housing troubles are far from over.

According to Zillow.com, after 51 months of steady decline, the current housing recession is rapidly approaching the Depression-era housing level of 1928-1933, when housing prices dropped almost 26% in 60 months.

Currently, over 23% of U.S. homeowners with a mortgage were underwater on their loans in the third quarter of 2010, meaning they owe more on the home than it is worth. And the forecast for Q4 isn’t much better.

The early signs of home value stabilization that started emerging earlier in 2010 all but disappeared as Q3 came to a close.

Home values fell from Q2 to Q3 in 77% of markets covered in Zillow’s study, including the California metropolitan areas of Los Angeles, San Diego, San Francisco, San Jose, and Ventura, where home values began to drop again after more than a year of increases.

But, while Southern California numbers are at all time lows, our area isn’t nearly at the level of Las Vegas, which leads the country with 80% of single-family mortgages in negative equity.

It’s not just affecting the sunbelt states. In markets that showed signs of stabilization in previous quarters, such as Boston and Denver, also faltered.

Zillow’s index has fallen for 17 consecutive quarters, with market data showing the median home value nationwide has dropped to $179,900.

As home values continue to fall and negative equity holds homeowners hostage, other areas of the economy, such as housing development and employment will continue to struggle.

So how do these homeowners avoid foreclosure or escape the shackles of an underwater mortgage with decreasing home values?

No one is really sure.

Or, quite possibly, the government has another plan.

We just have to wait and see.

If you have more questions about foreclosures in Long Beach, CA, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

As the economy begins it’s slow ascent and house prices continue to fall, most homeowners would rather hold on to their homes than face the stigma associated with a strategic foreclosure. Rumors of Short Sale failure, long wait times and the affect on our credit keep us from making a decision that will save us from the devastation of a foreclosure.

But you may be surprised to know that the number of homeowners deciding to sell their homes even though they can afford to pay their mortgage is growing. Plunging property values are forcing more homeowners to fall behind on payments, and the social stigma attached to foreclosure is steadily eroding as delinquencies start to become commonplace.

Should You Try a Strategic Foreclosure?

If you can still afford your mortgage, but your property value is falling too quickly, you can try a strategic foreclosure. Defaulting should be your last option. If you can pay off a portion of your mortgage and walk away without a foreclosure on your credit, you’ll be much better off in the future.

When you consider a strategic foreclosure before you fall behind in mortgage payments and right after you’ve unsuccessfully applied for a loan modification, you have a longer period of time to prepare your home for sale. If you fear that your situation will worsen over time and you need a foreclosure alternative, and you would like to retain your high credit score, a Short Sale may help you recover faster.

Walking away  from your mortgage or forcing the bank to foreclose will have a definite negative effect on your credit score.

Forget About Guilt. Think of Your Future.

If you forget about the guilt and shame associated with Short Sales and make your decision based on purely financial reasons by considering the current rates of appreciation in your local market and then consider how long it will take to break even on your investment and regain your equity.

The cost of renting for a couple of years, or even the opportunities that exist for homebuyers in the current housing market, if you or a family member are somehow able to immediately purchase another home, could help you rebuild your credit score and get back on your feet more quickly.

Your mortgage is not a moral obligation, it’s a legal document.

How will a Short Sale it affect your credit?

This is the big question. And you can find the answer here.

If you have more questions about Short Sales, contact me today.

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

Why?

Because the main goal of this new initiative is to encourage neighborhood stabilization by giving owner occupants a chance to inspect new listings before investors have a chance to submit purchase offers. Owner occupants are home buyers who plan on living in the home and keeping it as their primary residence.

Through Fannie Mae’s First Look, only offers from owner occupants, and buyers using public funds, will be considered during the first 15 days a property is on the market, and offers from investors will only be considered after the first 15 days have passed. It gives owner occupants and public entities who are committed to the community an early opportunity to purchase one of Fannie Mae’s Real Estate Owned properties.

The basic principles of Fannie Mae’s First Look Initiative are:

1. Reserves the first 15 days of the listings period for owner occupants and buyers using public funds
2. Gives buyers a chance to renegotiate after obtaining an appraisal with the new reserved contract period
3. Designed to work with HUDs Neighborhood Stabilization Program (NSP)
4. Gives a money waiver for public entities and a discount for individuals
5. Allows an extra 15 days to close a property, extending the original 30 days to 45

Over the last few months, this initiative has been rolled out in several states across the nation. Mostly in states hardest hit by recent foreclosures.  By acquiring and rehabilitating homes for resale to home buyers, local governments can stabilize neighborhoods and improve the quality of life for existing residents. This might include acquiring and demolishing structures where repairs aren’t financially feasible, providing the opportunity for future development in the area.

Fannie Mae’s First Look initiative allows local governments to access properties that otherwise would have been lost to third-party investors. It prevents investors from scooping up properties for development or income property opportunities which could continue to have negative effects within the community. Fannie Mae’s First Look process gives families and government assisted buyers the time and easy access they need to gain control of the properties and influence the future of our neighborhoods.

Overall, I think this plan will help make progress toward stabilizing neighborhoods and building stronger communities in this depressed housing market.

Want to see what’s going on in California’s REO industry? Sign-up for my Real-time REO Updates and get our breaking news and videos instantly.

Sincerely,

Mark Shandrow
Real Estate Broker
Shandrow Group
shandrowgroup.com

Though delinquency rates are still increasing, they are slowly decelerating. This deceleration indicates that though rates are still climbing, they are doing so at a lower percentage compared to the previous quarter. If you compare the delinquency rate in the last quarter of 2008 to the first quarter of 2009, you’ll notice an increase of almost 14%, while the second quarter increase was only 11%. Overall, since 2006, mortgage borrower delinquency is up approximately 58% from the yearly average of only 4%.

Does California Have the Highest Rate of Debt per Borrower?

Closing in on the District of Columbia at $359,788, the rate of debt per borrowers for California is $354,510.  And third is Hawaii, trailing with a gap of more than $40,000, at a rate of $312,844 per borrower. These three states represent the highest mortgage rates across the nation, but other states, such as Nevada and Florida, also have high delinquency rates resulting in foreclosures.

And similar to the mortgage delinquency rate, the unemployment rate is still climbing, but the number of job losses per month has decelerated during the last three months. Until unemployment rates improve, delinquency rates and consumer spending will continue to be an issue. Results in the first quarter of 2010 should indicate whether the market is beginning to improve.

When Can We Expect the Mortgage Delinquency Rate to Stabilize?

Forecasts show that these significant fluctuations in the market will continue into 2010. Eventually these numbers should stabilize or show slight increases or decreases depending on the health of the housing market.

While some view the deceleration of mortgage borrower delinquencies as a positive sign, the rates are still rising and expected to peak at record levels. If the housing market cannot consistently demonstrate several months of home value appreciation and the unemployment rate does not  improves, mortgage delinquency will likely continue to rise. Until then, delinquencies in California will result in foreclosures, potentially keeping home values depressed.

Are you worried about an impending foreclosure on your home? Contact me for Short Sale information before it’s too late.

Sincerely,

Mark Shandrow
Real Estate Broker
Shandrow Group
shandrowgroup.com

So, what is the Mortgage Disclosure Improvement Act? Basically, the federal government has put forth a legislation that replaces the 3-day waiting period for initial disclosure with a 7-day waiting period that does not include Sundays or holidays.

Also, before the borrower can close on a transaction, they must receive the initial Good Faith Estimate (GFE), and the initial Truth in Lending (TIL) statements quoting the final Annual Percentage Rate (APR) seven days prior to closing. Lenders cannot collect fees for appraisals, loan applications or other services until the buyer accepts the transaction. If the APR fluctuates by more than 1/8^th (.125%) in increase or decrease before the 7-day period is over, the process must start all over again.

How does the MDIA help home buyers?

1. You have plenty of time to check over the documents and ensure your mortgage rate matches your initial quote. This is especially helpful if you find you are charged more than the original estimate, perhaps because the title company had to do additional research on the sale property. For instance, a closing fee item estimated at $250 could end up costing you $500. With this new rule in place, you have time to find money to cover any difference in your fees.
2. Fluctuations in the APR could let you to lock into a better rate. An annual percentage rate on a mortgage depends on several factors, including the size of the loan, prepaid finance charges, such as origination fee and attorney’s fees, and if you are required to purchase private mortgage insurance. If any of these charges fluctuate beyond 1/8^th of a percentage either way, you can get a new estimate and potentially save money. This means every time the APR increases or decreases beyond the .125% point, the process must stop and begin again giving you another 7 days to accept the new transaction.
3. Additional closing fees are not payable until the transaction is accepted. Within three days of receiving a mortgage-loan application and before any fees are levied — beyond the fee to obtain a creditor report — creditors must provide a solid estimate of mortgage-loan costs. Before July 31^st, banks could collect origination fees, property appraisal and application fees, etc, at any time. You could spend a considerable amount of money with one lender whose loan offer you decided to decline. No fees, other than a credit report fee, can be charged prior to the initial TIL disclosure being provided.

Still confused about how the MDIA will affect you?

If you have any questions, or would like to speak to a trusted lender, contact Shandrow Group, and we’ll do our best to answer your questions or put you in touch with someone who can.

Best,
Your trusted connection to the Southern California foreclosures and short sales markets,

Sincerely,

Mark Shandrow
Real Estate Broker
ShandrowGroup.com