Fred's FHA Mortgage and Conventional Real Estate Loan Blog

You are welcome, it truely was my honor to serve

Thu, 12 Nov 2009 13:37:15 -0600

Yesterday was Veteran’s Day and a number of people thanked me for my service and that made me feel very special. I was in the U. S. Air Force from 1966 to 1978 and spent time on Guam during operation ARC LIGHT and BULLET SHOT during my first enlistment, on temporary duty with the 4133 Bomb Wing (Provisional). The wing was flying sorties from Guam with B-52s over Vietnam. No, I wasn’t an air crew member, I flew a typewriter and a camera. I was editor of the base newspaper. I was back on Guam on permanent (well as permanent as the military gets) assignment in 1973 and helped with the processing of refugees when Saigon fell in 1975. We took in 121,000 refugees in a 10 day period as people fled from Vietnam in almost anything that would fly. The first ones came off of the commercial airliners with so much gold they could hardly walk. The last ones were stuffed so tightly into C-130s that they couldn’t sit down. Later, the boat people started arriving. It was a heart wrenching thing to watch as people fled their homes to keep from being killed. During those years, when I traveled, I didn’t do it in uniform, there was too much chance of being spit upon or derided. The military was the target for protesters and demonstrations. It wasn’t until much later that we were finally accepted for who we were and not what was being done. That is why I am so pleased that there are people today working to make sure the members of our armed forces are recognized and praised for what they are doing. The following clip was forwarded through Facebook by one of my friends. I hope you will take the time to watch the whole thing.

There are a number of very good videos out that say the same thing and I want to thank the people that have taken the time to do this for our military. There are a number of people from my era that are still suffering and maybe, just maybe, this will help them too. It is hard to come back to your home and have people turn their back on you. I don’t want that to happen to our military today. So in response to those yesterday, I just want to say: You are welcome, it really was my honor to serve.

Million Dollar Stimulus Challenge for Eugene/Springfield

Sun, 30 Aug 2009 16:38:10 -0500

The mortgage bank that I work for, Alpine Mortgage Planning, has issued a challenge to the Eugene/Springfield area to bring in a Million Dollars ($1,000,000) in First Time Home Buyer Tax Credits as part of the Stimulus package. You can check out the challenge here.

All of this means that the loan advisors teaming with their Realtor partners will be working to bring the dream of homeownership to at least 125 first time home buyers between now and November 30, 2009, the date the tax credit expires.

Check out the http://www.alpinemilliondollarstimuluschallenge.com/ website for information about upcoming seminars for new home buyers. Down Payment Assistance programs will also be addressed during the seminars, helping prospective home owners get the money together for the down payment.

If you have any questions about the seminars, or to start the process, give me a call at 541-342-7576/541-221-3455 Cell or e-mail me.

Do you know who is writing that website you are reading?

Wed, 17 Jun 2009 16:17:44 -0500

Interestingly, while doing some web surfing trying to find out who my competition is in the blog-o-sphere, I wasn't entirely pleased with who was out there. I wanted to know who else was writing about the place I call home and who was writing about lending, mortgages and loans. It is interesting what I found. Like this site, for example. Neighborhood Expert Online is a place where you can come and find someone that is actually in your Neighborhood to help you with whatever you need. Granted, the availability is kind of limited right now, but it is a fairly new site and as such, will take some time for the various neighborhoods to be represented in the various fields. Right now, I want to focus on the Eugene/Springfield Oregon Neighborhood.

Who are these guys?

As an veteran searcher, I use Google a lot to search to see who is writing what about my area and my field. By doing that, I found the this blog called roost. It is an interesting blog and has some good information about Eugene but I have no idea who writes it or where they are or if they really know about the Eugene/Springfield Market. There is no information on the home page about who the blog is done by. On my blog sites, I am very firm about who and where I am.

Now you know who this is

A different site talks about 48 hours in Eugene. Now, Nancy D. Brown is the writer of this and she is obviously a good travel writer. She also has her name and contact information on her website. I think she is a pretty good writer too and appears to really like traveling.

Excellent Local Information

Then there is this article about planting more trees in Eugene. This is obviously by and about Eugene. Again, a nice piece that has the right local information attached. This is what I like to see when I am looking for local information. Take a look at this local information that I posted on my website. Again, plenty of acknowledgement as to who and where I am on the site.

Local Expertise

Now, how about my field of expertise? When I posted about First Time Homebuyers, you know who I am and how to get in touch with me. It isn’t a website designed to gather names so that they can be sold. That is so much different that this site, that says it is information for Oregon, but is actually another of the “contact” gather sites. Fill out the form and someone will contact you. that someone has probably purchased your name and will probably be one of several that will call, none of them necessarily knowing anything about the local area.

I believe you should chose to work with someone local to your area that knows the area. Otherwise you are taking your chances with one of the “no name” contact gather sites. Personally, I prefer to work with people that know what they are doing and know my area.

Technorati Tags: eugene,springfield,oregon,tourism,local expert,neighborhood

Blog Posting Like an Expert without learning HTML

Sun, 31 May 2009 13:25:16 -0500

Window Live Writer

Now I am sure that the experience bloggers out there already know about this or else they are very comfortable writing in HTML. However, since I think HTML is a little harder to learn than Klingon and just a bit easier than Romulan, I found this a very helpful product. It is called Windows Live Writer and you can write with it using just normal word time action and not worry about the extra HTML code that Word seems to throw into a post just for grins.

Download and Use

You can download Writer here and it is really easy to use. You can add hyperlinks like I am doing, you can ad photos and you can add maps and tables like this one. So far, I have tied Writer to my three blogs, Eugene Loan Guy, FHA Loans Oregon and No Money Down OR WA CA. The absolute nice thing about this is with the other multi user platforms, I can copy my HTML code from my blog and paste it right into the create blog form, like I am doing with this on Active Rain. Unfortunately, as you can see, it doesn't work on A/R. Must be some code stripper in A/R's program that makes it not work, but take a look at what I did on wannanetwork with the same post. Of course, I don’t even have to do that with Positive Real Estate Professionals, because it automatically picks up my new posts and transfers them right into my Blog post on PREP. That is a super benefit.

Easy Code – No Training

I can use the same HTML code and move it into my other multi user platform, MyFHAMortgageBlog and make any necessary changes once it is posted. What a great way to get around HTML and get the maximum SEO at the same time. So, if you haven’t tried Windows Live Writer and you are not proficient in HTML, I suggest you give it a try. I have used some of the editing possibilities with Writer on this post, just to show you what can be done. As you can see, you can align left, center, justify or align right. Pictures are easy too, including this sepia tone.

About the author: Fred Chamberlin is a Senior Mortgage Consultant with Alpine Mortgage Planning, Eugene OR and the author of three blogs, Eugene Loan Guy, FHA Loans Oregon and No Money Down OR WA CA. He is also a contributing member of Positive Real Estate Professionals and My FHA Mortgage Blog.

A very ducky banker/loan officer in Spokane

Fri, 29 May 2009 13:48:58 -0500

For those that think loan officers and bankers are just hard hearted meanies that just want your money, take a look at this video about a bank loan officer in Spokane Washington helping a whole family find safety in an unsafe world.

Via Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates):

It is unclear in this news story whether his title is 'Banker' or 'Loan Officer'... but really, who cares? It's just one of those nice 'breather' stories that reminds us all that life is alright.

The morale of the story ... Take a break to help others every now and again... you never know, it might even turn out to be a 'marketing moment'.

See the story here

First Time Home Buyer $8,000 Tax Credit to be Available for "additional" Down Payment

Fri, 29 May 2009 10:25:24 -0500

I recently posted that Secretary of HUD, Shaun Donovan, had announced that FHA was going to allow the $8,000 Tax Credit to be used as down payment, or "monetized" and got a lot of flack from the "experts" in the field that it had been withdrawn and that there was no way this was going to happen. At the time, I knew that the announcement was premature, but knowing what I believed was going on behind the scenes, was pretty certain that this actually would come about.

Today, a new "Mortgagee Letter" from HUD was published that announces the same program and gives some of the guidelines. Granted, the ability to use the money is still a bit of planning away, but this proves that the program will be in existance and that HUD really does want to see people have acces to this money for their down payment. Now, spread the word. By the time your clients find their home, have everything in place to buy it, the program will have the kinks worked out.....at least I hope it will. Unfortunately, being the government doing the job on this, they seem to have made it very strange. It appears that the buyer will still have to come up with the 3.5% down and use the tax credit for closing costs or additonal down payment. Stand by for details as all of this works out>

About the author: Fred Chamberlin is a Senior Mortgage Consultant with Alpine Mortgage Planning, Eugene OR and the author of three blogs, Eugene Loan Guy, FHA Loans Oregon and No Money Down OR WA CA. He is also a contributing member of Positive Real Estate Professionals and My FHA Mortgage Blog.

Are Short Sales a salvation or a curse for the Seller?

Thu, 28 May 2009 13:48:44 -0500

Short Sales, Foreclosures, Deed in Lieu of Foreclosure, is there a difference when talking about credit? According to my credit expert from First American Credco, the answer is no. Please take a minute to look over my post about the effects each will have on your credit and ability to purchase a home in the future. Current home owners that are contemplating a short sale should get some legal advice first.

I hope you will find information that is valuable when deciding the way to go in a bad situation. It is my opinion that Realtors can help their prospective clients by knowing these answers too. Feel free to contact me at 541-342-7576/541-221-3455 Cell with any questions, or e-mail me at eugeneloanguy@gmail.com. I can also recommend my outside blog posts anytime your need specific information about FHA Loans or USDA and VA loans.

New three part series for chosing the perfect FHA Mortgage Loan Officer

Mon, 25 May 2009 01:15:45 -0500

Thanks everyone that stopped by one of my three websites to see my new header branding me across platforms. Now, I would like to invite you to visit FHA Loans Oregon and take a look at my three part series in how to chose a loan officer. I think you should find it interesting and give you some material to use when referring your clients to the loan officer that will help them through the rigors of an FHA loan.

Not everyone is a perfect loan officer, and I can guarantee that I am not perfect, but I do guarantee that I am always trying to keep my knowledge current, I have never rested on my experience. Please take a look and feel free to leave me a comment. Since Positive Real Estate Professionals automatically posts to there from my websites, you can read it there also. I am hoping that everyone is having a wonderful Memorial Day weekend. Just remember the reason for this holiday to for the rememberance and honor to our Armed Services and our fallen heros.

Eugene Loan Guy Gets New Blog Heading

Tue, 19 May 2009 23:00:38 -0500

Eugene Loan Guy, my outside blog, has a new heading and I have decided to make all of my outside blogs, Eugene Loan Guy, FHA Loans Oregon and No Money Down OR/WA/CA, similar in appearance with the same heading. For those of you familiar with Oregon, you might recognize the picture in the heading below as being the Three Sisters, located between Bend and Eugene.

I think that having this new heading that is so specific to my area is a great addition to my web presence. I have to thank my webmaster(s), Danny Thornton and Rich Dansereau of RandDArt, took this wonderful picture and transformed it into the heading. I will continue to use the fantastic heading that Marti designed for me here on A/R, but I wanted to make sure that my branding was consistent.

I will eventually use the same blog heading for my posting on Positive Real Estate Professionals. That will give me brand recognition wherever I am posting. I have to also comment on the great things that Danny did with my blogs as far as blog rating. The changes and adjustments for SEO and blog rating has really made a huge difference in the number of visits and business coming from my websites.

It is amazing what can happen when you know the details that bring more searches to you blogsite. Since Eugene Loan Guy has only be in existence for about six months and the other two for just over 3 months, Alexa ratings of under a million are unheard of and mine was just over 200,000 last month for Eugene Loan Guy. Admittedly, it is worse this month (345,969), but that has to do with not making my consistent postings. Please note, Alexa ratings are better low than high.

$8000 Tax Credit Used as Down Payment for FTHB

Tue, 12 May 2009 17:13:54 -0500

The biggest problem that most first time home buyers have is coming up with the down payment. I have posted several times in the past various ways to get the down payment together, but it has still been out of the reach of some people. Now, that could change. The First Time Home Buyer Tax Credit is going to be available for the down payment on FHA loans in the near future, according the the Secretary of HUD.

Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment. According to Secretary Donovan, the FHA's approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. For the first time, eligible home buyers will be able to access the funds immediately at the closing table.

Needless to say, there are no procedures in place at this moment to take care of the “bridge” loan, but this should be done in a fairly short fashion since HUD wants this to be the new way of doing things. My suggestion is that those that qualify for the First Time Home Buyer Tax Credit on an FHA loan start looking for a home now. The procedures should be in effect by the time the purchase is ready to close…..at least I hope that is the case. This should be a boon to the Real Estate purchase market and start using up some of the excess inventory. That may also mean rising home prices in a short period of time.

What makes a real website vs. a lead getter?

Tue, 05 May 2009 17:02:30 -0500

FHA Loans, VA Loans, USDA Loans, Conventional Loans, Eugene, Springfield, Oregon, Lane County, $8000 First Time Home Buyer Tax Credit and mortgages. All of these are search terms used to find what you are looking for on the internet. They will give you a list of websites set up to answer questions and direct you to a place to start your loan application process. However, the thing that upsets me is that many of those websites are only mining customers to be sold in lists to people like me….like me, not me.

One of the things about my website that is different than a lot of the ones found in a search is that it gives you information about me. My name is on my website. My phone number is on my website. My e-mail address is on my website. My website is used to give my readers information and, if they think I am the best person to help them, get them in touch with me for the purpose of putting a loan application together. It really irritates me when I go to a website and find all kinds of information but nothing about who did it. No company name, no individual name, no phone number and no email address, just a form to fill out for more information.

Another thing that makes me a bit upset is when I go to one of those websites and I see a blog posting that is one that I wrote. Now, they are good enough (most of the time) to provide a link to the original posting, but it is driving traffic to their website to read information that I wrote. Interesting conundrum, isn’t it?

So, if you want a real person that is in a real place that makes real loans to real customers, give me a try. I am a mortgage professional and I look forward to meeting my customers either in person, by phone or on the internet, but meet we will. I am available for consultation on almost any loan product in Oregon, Washington or California. Government loans (FHA, VA, USDA) are my specialties, but I am competent is conventional loans also. Visit me on my website, http://eugeneloanguy.com and see if you know it is me.

Actual use of the Making Home Affordable Program

Tue, 21 Apr 2009 16:43:56 -0500

So, what do we do when attempting to refinance a property and all of a sudden the value of the property comes in significantly lower than we expected???? Case in point, I am doing a rate and term refinance for a previous customer that purchased their home two years ago (during the height of real estate values for about $400,000. To accomplish an 80% refinance, I only need it to come in at $325,000 but the actual value comes in at $315,000, a huge drop in value and a loan to value of over 82%. So, what do I do? I go to a Fannie Mae DU Plus. This is all part of the Making Homes Affordable Program through Fannie Mae and Freddie Mac.

This program allows me to finance a rate and term for my clients at greater than 80% loan to value with no mortgage insurance. And, because they have excellent credit scores, there is no adjustment to the rate. A definite win-win situation. They get a lower rate with no mortgage insurance and I get to keep them happy.

Now, before everyone jumps up and says, “That is for me!” there are a few conditions. First of all, it has to be a Fannie Mae owned loan. You can find out if yours is here:

http://loanlookup.fanniemae.com/loanlookup/. Next, if there is currently mortgage insurance on your loan, it is probable that only the current servicer will be able to do the refinance. I know for a fact, that I can’t.

But, what if it is Freddie Mac owned? Basically, those loans have to go back to the current servicer. Now, if you have a Freddie Mac loan that is serviced by Wells Fargo, then I can help you with it, but it will be originated through Wells Fargo. Personally, I think I will get you a better deal if you go though me rather that direct to Wells Fargo, but that is my opinion, check it out for yourself.There is a definite possibility that we can also work with other servicing companies on Freddie Mac loans, but will have to check on each one individually. To find out if your loan is owed by Freddie Mac, check here: www.freddiemac.com/mymortgage.

The product is also available for investment property, which means you can get a lower rate on that rental also. You do need to be current on the mortgage and if you have a second, they will need to subordinate to get this product. So, after finding out if you have either a Fannie Mae or Freddie Mac loan, give me a call and let’s see what we can do to put you into better financial position. Every loan application is different. We are not in a cookie cutter business, let me tailor make your new loan.

Change in USDA Income Limits Finally in Place

Fri, 17 Apr 2009 14:14:28 -0500

The USDA Single Family Housing Guaranteed Program (long name) or SFHGP (short name), undergoes a change on Monday. This has been some time in the works but is finally firm. The maximum income limits to qualify for the program has changed from individual family member stepped program from 1 through 8 to a 1-4 and 5-8 family basis. This is the Rural Guaranteed program that provides 100% financing to people that income qualify for purchases outside of the urban growth boundaries of most metropolitan areas. In Lane County, that means almost anywhere outside of Eugene/Springfield.

The income limits, as of Monday, for Lane County are: $70,750 for a family up to 4 and $93,400 for a family of 5-8. 8% of the 4 person limit is added for each household member over 8. Additionally, all income for all members of the household is counted when determining the household income. There are some adjustments available and individual income calculations can be done here. To find out if a particular property is in or out of the urban growth boundary, you can check it here.

This map shows the area of Lane County (dark shading) that is not eligible for the program.

Please note: Existing manufactured homes are not eligible for this program. It is possible, but very difficult to place a new manufactured home on a property as part of this program. Mostly, the USDA program works most efficiently with a site built or "stick" built home.

One of the best aspects of this program is that it offers 100% financing (no money down) and no mortgage insurance. That makes homes a lot more affordable for those that don't have a lot of ready cash but can afford to make their house payment every month. Credit requirements are also quite liberal while rates are very competitive.

So, where can you purchase a home that qualifies for the USDA program? How about Creswell, Cottage Grove, Veneta, Junction City, Oakridge, Westfir, Swiss Home, Florence, Harrisburg, Halsey, and even some Springfield and Eugene addresses? The property currently listed at 8440 Thurston Rd, Springfield, comes back as eligible for this program. You can check out rural property addresses here. If you want more information about this program, please call or e-mail me.

How safe are you with an owner carry contract?

Sun, 05 Apr 2009 13:18:50 -0500

I am not an attorney and I don't even play one on TV, however, I have concerns that there are people doing things that can get them in trouble. Not only will it get them in trouble, but it could have detrimental effects on other people too. This is the sale of a home on an owner carried contract when there is a mortgage on the property. My concern is twofold, first has to do with the legality of doing it in the first place. My second has to do with protection for both the buyer and the seller. I am hearing of this happening with people that owe more than they can sell their house for currently on the seller side, and buyer's that can't qualify (for whatever reason) or think they can't qualify for a loan on the buyer side.

First, the legality:

Standard Trust Deeds in Oregon have the following wording, "18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is to transfer of title by Borrower at a future date to a purchaser.

"If all or any part of the Property or any Interest in the Property is sold or transferred (or ... is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument...."

This is what is known as a "due on sale" clause. What it means is that if you sell your home, even on an owner carried contract, the underlying loan is due and payable and the lender can demand full payment. In the case of an owner carry contract where the purchaser has paid a deposit of $10,000 and the lender calls the note due and the $10,000 is already spent, it looks like everyone is going to be a loser, doesn't it?

Second, protection:

Let's take a fictitious example. Let's say I am selling you my home for $200,000 and in today's market it is worth $200,000 and I owe $200,000 but I can't afford to sell it on the market because of the commissions and closing costs. We enter into a contract where you give me $10,000 up front and make payments every month that doesn't quite cover what my payment is. After 6 months of paying each month, I decide I can't afford to put out the additional money each month. What are your options? At the same time, after 6 months, you decide to quit making your payments, what are my options? Think about what happens if I owe more than I am selling it to you for. What are the possible ramifications?

There are numerable scenarios where this can go wrong and only one where it can go right. If you are holding a contract for sale on your home, are you aware of how long it takes to get possession of the home if I stop making my payments? If you are buying my home, and I stop making the underlying payments, what can you do about it?

Don't be taken advantage of on either side of the equation. There is another way to do this that doesn't bring in the "due on sale" clause and that is a lease purchase agreement. There are also hazards with this a lot like the protection issues above. I just want to make everyone aware of the difficulties of selling a home when not using traditional means. A lease option may be the ideal way to go about handling your problem, however I strongly suggest you don't go with an owner carry contract if you have underlying financing on a standard trust deed. First time home buyers should be aware that they can be taken advantage of in this type of scenario. The first thing you should do as a first time home buyer, is find out what you can qualify for and if you actually will qualify for a loan. That is where you need to contact a mortgage professional like me. You can always reach me through either my office, 541-342-7576 or my e-mail eugeneloanguy@gmail.com.

10 Really Good Reasons to be a First Time Home Buyer!

Tue, 24 Mar 2009 17:07:02 -0500

Since most First Time Home Buyers are FHA borrowers I posted the answer to what the reasons are in my blog http://FHALoansORegon.com. This information can also be very valuable to anyone considering a VA loan that is a First Time Home Buyer and especially for someone looking to buy using the USDA Rural Guarantee since they have to be a First Time Home Buyer.

I have been asked, why should I become a home owner? I have been renting for 5 years and am perfectly happy with my situation. The short answer to that is, “maybe you shouldn’t.” Not everyone should buy a home and a lot of First Time Home Buyers were sold homes that they shouldn’t have bought because the financing was too easy. That had an effect on where we are today. However, that being said, there are a lot of great reasons to become a First Time Home Buyer in today’s more restrictive lending environment. Stealing a bit of David Letterman’s shtick, here are my top ten reasons to become a First Time Home Buyer in today’s Oregon real estate market. Click over to my blog.

FHA Changes Maximum Loan To Value on Cash Out Refinances

Mon, 16 Mar 2009 19:56:12 -0500

FHA is changing the rules on “cash out” refinances on April 1, and no, it isn’t an April Fools Joke!. Up until then, we have been able to make loans to borrowers that qualified for FHA loans up to 95% loan to value for a cash out. A cash out refinance is when you get more money than is owed on your first mortgage and the closing costs to take the loan. Anything over that amount is considered “cash out” and will be limited to 85% loan to value on any loans registered with FHA after March 31.

If you would like the whole story, please follow this link to my blog and read all about it. There are other changes that are taking place at the same time. To be honest, these changes make sense in a falling value environment.

Obama Plan ............... New Refinancing Program.

Wed, 11 Mar 2009 19:47:47 -0500

This is a second in a two part series by George. I think it is a very good read and something that covers a lot of details about the new refinance plan for those that are underwater on their current mortgage.

Via George Souto (McCue Mortgage Co.) FHA, CHFA, VA Mortgages:

Yesterday I wrote the first of two parts on the Homeowner Affordability & Stability plan that was released by the Obama administration on Wed March 4th. Which contained two major parts they hoped would have an impact on assisting homeowners with troubled mortgage. The first part of the plan which I blogged about yesterday is a modification program that Servicers will offer to borrowers with high debt-to-income ratios or who are at risk of foreclosure. The second part of the plan which I am blogging about today, a refinance program for existing Fannie Mae or Freddie Mac loans.

As I stated yesterday our Executive Vice President at McCue Mortgage, Kim Neilson and others are still assessing the details of the Homeowner Affordability & Stability plan to determine our next steps, but in the mean time we are trying to provide a summary of its major points so that it might help other to better understandable it. So here we go:

The second part of the plan is a refinance program for existing Fannie Mae or Freddie Mac loans. Fannie Mae is offering two different programs:

The Refi Plus Program that requires the servicer of the loan to be the originating lender.

The DU Refi Plus Program (DU is the Automated Underwriting System for Fannie Mae) that allows any lender using DU to originate the loan as long as the existing loan is a Fannie Mae loan.

Freddie Mac requires the servicer of the loan to be the originating lender. Some specifics of the program are:

Existing mortgage must currently be a Fannie or Freddie loan.

Existing loan may not be considered ineligible (must get an Approved/Eligible from DU). Ineligible loans include existing mortgage loans that received a DU Expanded approval (EA).

Maximum LTV for 1-2 unit properties is 105% and require an appraisal.

Maximum LTV for 3-4 unit properties is 80% and also require an appraisal.

No maximum CLTV.

Existing mortgage must be current and have acceptable mortgage payment history. No minimum FICO score is required although borrower must meet bankruptcy and foreclosure requirements. In addition, borrower must demonstrate credit worthiness.

Rate and term refinance only (No Cash Out) - purchase money seconds MAY Not be included.

Loan level price adjustments (points) will apply (determined by credit score on credit report)

MI required (same coverage factor of existing loan) for mortgage loans that had original LTV’s greater than 80%.

DU Refi Plus must receive Approve/Eligible and will not be available until April 4. Income and employment verification is required.

Refi Plus is a manual underwrite and requires verbal verification of employment. Lender must determine that the borrower has a reasonable ability to repay the mortgage based on current information provided by borrower.

There it is in a nut shell. I actually have higher expectations for this part of the plan then I do for the Loan Modification part. This part of the plan stands a chance to actually help those who have good credit and have little to no equity in their property. But I do not see it doing anything for those who are in areas that property values have taken a noticeable hit, and 105% LTV is not going to do anything for them. Also this does offer a second option to FHA which will allow a borrower to go to a 96.5% LTV on a No Cash Out Refi.

While I think that this plan might actually help a few people, but it will be a source of false hope for many more. As I ended my last post, the purpose for providing this information is so that those who read it may have a better understanding of the "Homeowner Affordability & Stability Plan", and help them come to their own conclusion.

******************************************************************************************************************

Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Obama Plan ............... New Loan Modification Program

Wed, 11 Mar 2009 19:43:39 -0500

I think the George may have hit this program right on the nose. I hope that it helps people but the chances are not as good as the government may lead many to believe. The big thing is, and always has been, participation of the servicers.

Via George Souto (McCue Mortgage Co.) FHA, CHFA, VA Mortgages:

The Homeowner Affordability & Stability plan was released by the Obama administration on Wed March 4th. There were two major parts of this plan that affect the Mortgage Industry. The first part of the plan is a modification program that Servicers will offer to borrowers with high debt-to-income ratios or who are at risk of foreclosure. The second part of the plan is a refinance program for existing Fannie Mae or Freddie Mac loans.

While our Executive Vice President at McCue Mortgage, Kim Neilson and others are still assessing the details of the Fannie Mae/Freddie Mac plan to determine our next steps, they have summarized it to a point that would make it more understandable to rest of us, and I will sharing this in two blogs.

The first part of the plan that as I stated above is the modification program that Servicers will offer to borrowers with high debt-to-income ratios or who are at risk of foreclosure, which states that:

Existing mortgage must currently be a Fannie Mae or Freddie Mac loan.

The mortgage loan is delinquent, or is expected to go into default soon.

Borrowers must occupy property as primary residence

Borrowers must provide hardship documentation.

Borrowers must provide income documentation and evidence the monthly mortgage payment (housing ratio) is greater than 31%

If the housing ratio is more than 31%, the Servicer will modify the terms of the loan, to reduce the housing ratio to 31% by:

Lowering the interest rate, but the minimum rate (floor) is 2%. The adjusted rate will be in effect for the first 5 years following modification, and then will increase by a 1% annually until it reaches the original rate.

Extending the term up to 40 years.

Provide principal forbearance which will later be paid back in the form of a balloon payment that will be due upon the earliest of the following:

Sale of property

Payoff of the loan

Maturity of the loan.

Servicers will receive compensation of $1000 or $500 for each completed modification.

A borrower whose monthly payment is reduced by six percent or more and make on time payments will receive $1000 principal reduction for up to five years.

I will end this post by stating that while I am sharing this information about the provisions that are contained in the Homeowner Affordability & Stability plan that became effective March 4th., that it does not mean that I am in favor of this, or believe that it will help us get out of this mess that we are in, because I don't believe that. I think that this plan just like all the others before it will help very few if any, and is more smoke and mirrors then anything else. But I have provided this information so that those of you reading this can have a better understanding of it, and help you come to your own conclusion.

I will cover the second part of the plan that I stated above "refinance program for existing Fannie Mae or Freddie Mac loans" in my next post.

******************************************************************************************************

Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Foreclosure Scams and How to Prevent Them

Sun, 08 Mar 2009 21:20:06 -0500

There is a huge amount of talk about foreclosure right now, not just with the media but with almost any conversation that is about Real Estate. The issue of what foreclosures are doing to the market place as far as bringing values down, the problem that this company is having and laying off employees and what will happen to their housing budget, the cousin, uncle or sister that is about to lose their home, all of these are current topics of conversation. One of the nastiest parts of this process it the increase in the number of scammers that come out of the woodwork in times like this. There are good and valuable services being provided by "for profit" companies, but there are also scammers out there. Please review this, my latest post on EugeneLoanGuy, with information from the Federal Reserve Bank on how to prevent foreclosure scams.

Foreclosure Rescue Program Could Be A Scam

Author: fchamberlin // Category: Adjustable Rate Mortgage, Bank Owned properties, Eugene Homes for Sale, Eugene Oregon, Foreclosures, Local Information, lane county, refinance

Tomorrow is the last day of National Consumer Protection Week and the Federal Reserve Board has compiled some items to protect consumers from becoming victims of foreclosure avoidance scams. Reports of mortgage foreclosure scams are on the rise. Knowing what to watch for and where to turn for help is vital for families who are struggling to remain in their homes. It's important for consumers to know that housing counselors and other resources are available at no or low cost to assist homeowners who have fallen behind on their mortgage payments. One note before we get into the following information, the best and safest way to avoid foreclosure is to make your payments on time.

Solicitors of foreclosure schemes reach out to potential victims by a variety of means using the Internet, the telephone, and direct mailings. Some solicitors go door-to-door or approach homeowners at events related to home preservation. The information the Federal Reserve is providing, which is part of its "5 Tips" series, is intended to give consumers the basic information they need to recognize and avoid foreclosure avoidance scams. Consumers are urged to check the credentials of counselors and to avoid working with someone who collects a fee before providing any services or accepts payment only by cashier's check or wire transfer. Consumers should not pay for a service without knowing exactly what they are buying.

"Saving a home from foreclosure requires fast and informed action but the solution doesn't have to be costly," said Federal Reserve Governor Elizabeth A Duke. "It shouldn't hurt to get help." Avoiding foreclosure cannot be guaranteed-regardless of the circumstances. Working with a legitimate counselor can increase the chances of keeping a home, but consumers should be wary of people who tell them it's a sure thing. Details of the transaction, along with any promises, should be provided up front and in writing.

The tips to follow from the Federal Reserve Board will help consumers select a reputable counselor and avoid fraudulent foreclosure scams.

1. Work only with a nonprofit, HUD-approved counselor.

If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development's list of approved agencies. Visit HUD's website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors--by mail, phone, or in person--make sure the counseling agency is HUD-approved before you do business with them.

2. Don't pay an arm and a leg.

You should not have to pay hundreds--or thousands--of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier's check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

3. Be wary of "guarantees."

A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home--but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

4. Know what you are signing--and be sure you sign it.

Don't let a counselor pressure you to sign paperwork you haven't had a chance to read through carefully or that you don't understand. Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

5. If it sounds too good to be true, it probably is.

If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission's webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies; which you can find on the Federal Citizen Information Center's Consumer Action Website.

Protection of your rights in a foreclosure procedure is very important. Make sure you make use of the programs and organizations that are available to help you. The Oregon Department of Insurance and Finance also has some very good information on their website about things you can do to avoid foreclosure. Here is a link to their PDF pamphlet about how to avoid foreclosure.

$100 Down Program on HUD Foreclosure - Deschutes County

Fri, 06 Mar 2009 16:52:42 -0600

Do you want to buy a home with just a $100 down payment? HUD allows some of the homes that they have foreclosed to be purchase with an FHA loan with only a $100 down payment. Most HUD owned homes in Oregon, Washington, Idaho and Alaska are eligible for this program. This is a great way for a first time home buyer to get into a home with very little down and take advantage of the $8,000 first time home buyer tax credit too. Here is a list of the current Deschutes County foreclosures, according to the HUD website:

DESCHUTES

Case #	Property Address	Price	List Date	Bed/Bath	Bid Deadline	Priority
431-297591 View Map	55934 WOOD DUCK DR BEND DESCHUTES, OR 97707 View Property Details	$92,000 BEST OFFER	02/13/2009	3/2	Daily	ALL BIDDERS
431-404135 View Map	16285 BLACKTAIL LN BEND DESCHUTES, OR 97707 View Property Details	$93,000	02/20/2009	3/2	Daily	ALL BIDDERS
431-417759 View Map	55870 SWAN RD BEND DESCHUTES, OR 97707 View Property Details	$95,000	02/13/2009	3/2	Daily	ALL BIDDERS
431-430758 View Map	65221 73RD ST BEND DESCHUTES, OR 97701 View Property Details	$160,000	02/20/2009	3/2	Daily	ALL BIDDERS
431-415400 View Map	2725 SW 24TH ST REDMOND DESCHUTES, OR 97756 View Property Details	$128,000 SIGNIFICANT PRICE REDUCTION	11/28/2008	4/2	Daily	ALL BIDDERS

To make an offer on a HUD home, you must use a Realtor® that is approved to work with HUD. If you check the list for Deschutes County, one that comes to the forefront is Thesa Chambers, S & S Pense Investments. You can reach Thesa at 541-536-0117 or through her e-mail, thesa@centraloregonbuzz.com. These loans are for owner occupied properties only to qualify for the $100 down payment program. You also must use an FHA approved lender, like me. This program will work for manufactured homes, but there are some special considerations.

There are some good deals to be made, give me a call and let's get you qualified for the purchase. Some of the properties are in need of repair, and there are two ways to do that, one is an FHA 203b with up to $5,000 in an escrow account for repairs (there are requirements for this to work) or an FHA 203k Streamline where you can do repairs after closing up to $35,000, but the 203k does not work with $100 down. (Since several of the foreclosures are manufactured homes, please note the following: The 203k Streamline will not work with a manufactured home unless the foundation and tie downs are already installed. The 203b will work, but has some additional requirements.) HUD wants to help first time homebuyers get into their homes. They are doing their part. Let's get you started today. You can check out their page for new listings here. This is the main page so you first need to select state. Overall, I don't think we have a lot of foreclosures in Oregon, do you?

Wordless Wednesday - Elmira Oregon Intertribal Pow Wow

Wed, 04 Mar 2009 12:32:12 -0600

Wordless Wednesday - First Signs of Spring

Tue, 03 Mar 2009 23:02:24 -0600

Get your cameras out

Tue, 03 Mar 2009 21:41:52 -0600

Come by the site and see my latest pictures. I think you will enjoy what Danny and Rich have done.

Via Danny Thornton (Taylor, Bean, & Whitaker):

Ok, for all of you picture buffs that love the Wordless Wednesdays and Speechless Sundays, we have a treat for you. Some of you might have read the post from Rich Dansereau or maybe the one from me about our newest multi-user platform to date, but if you have not, then let me tell you the news.

You See

Has Now Become

And We Are Just Dying

For YOU To Join US Today.

For those who are unfamilar, this is the latest of our multi-user platforms. It is designed for an outlet for those that love to post pictures for fun and show off your camera skills. Swing by and see if it might be a site for you.

Breaking News - New FHA Loan Limit - Lane County - $343,750

Wed, 25 Feb 2009 16:09:53 -0600

Hud has raised the FHA loan limit for Lane County. There was no announcement or release that I am aware of. The new loan limit is the same as the temporary loan limit in place prior to Jan. 1 or $343,750. This is an increase of $72,700 over the minimum FHA loan limit that was in place for Lane County. This is a tremendous change in limit at a time that should be beneficial for moving some of the higher priced foreclosures off of the listing rolls. Combine the higher loan limit with an FHA 203k Streamline and the Energy Efficient Mortgage and you have an excellent vehicle for purchasing a foreclosure. Check out the entire post here.

JP Morgan Halts Foreclosures for Three Weeks - Waiting for Modification Rules

Fri, 13 Feb 2009 13:50:42 -0600

Breaking news!

"JPMorgan halts new mortgage foreclosures. Will not put new mortgages into foreclosure for 3 weeks. Believes 3 weeks adequate for Treasury to announce a new mortgage modification plan." Mortgage Market Guide.

It looks to me like JPMorgage-Chase figures that there will be changes coming shortly in relation to working out mortgage modification problems. It has been a hit or miss situation on modifications in the past. There have been some companies that would would with the borrower if they needed a modification and others that preferred to let the foreclosure happen. Changes and guidelines from the government could help this situation. President Obama has announced they are working on something to help the homeowners that are current on their mortgage also.