Once again the government is set to throw more taxpayer money right out the window in the name of bailing out homeowners facing foreclosure. Quite frankly, such a move no longer shocks us as much as it makes us just want to scream “stop this insanity.”
Here’s why. The government is going to make $3 billion available through a couple of different programs whereby so called hard hit homeowners facing foreclosure will be able to apply for up to $50,000 “deferred payment bridge loans” that are zero percent interest, non-recourse subordinate financing good for 24 months to help them pay for their mortgage principal, interest, mortgage insurance, taxes and hazard insurance payments. So, let’s see if we understand this right. They have no jobs or are facing some form of severe financial hardship and we are supposed to believe that within 24 months things are going to turn completely around and they will then be back on their feet and just fine? Well, if that’s the case, then why the non-recourse stipulation?
Continue Reading Will the Handouts Never End?
Tags: foreclosures, HUD, mortgages
Bankrate has released its annual survey on home closing costs again this week. In Florida, the news was actually better than expected. For 2010, the closing costs on a $200,000 home purchase averaged $3,987, a rise of $381 over last year’s cost of $3,368. And, while still expensive, Florida’s number dropped it from No. 3 on last year’s list to No. 12 this year.
In this type of market, we have all been there; a property under contract appraises for less than the purchase amount and the sale falls apart. Unfortunately, more often than you might think, it is not solely the appraisers fault. Many times the fault lies with the mortgage lender. And, believe it or not, the practice of lenders cutting value off the appraisal has been going on for years. It’s just that during a normal market times, the practice isn’t as noticeable as it is today.
Yesterday, Congress passed the extension of the Homebuyer Tax Credit closing deadline. The extension applies only to transactions that have had contracts in place as of April 30, 2010 and have yet to close. The new closing deadline is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.
In an effort to support stability in the housing market, Fannie Mae is updating its policies regarding the future eligibility of borrowers after they have experienced a Pre-Foreclosure Event – a pre-foreclosure sale or deed-in-lieu of foreclosure. Basically they are adjusting their underwriting guidelines to try and shorten the time it takes for delinquent borrowers to recover mortgage eligibility after losing their homes.
