I received an email from Martin Harris at Regions Bank yesterday with interesting information about Fannie Mae Foreclosures and HomePath financing: 


We are pleased to announce that Regions Bank has been added as a HomePath Mortgage Lender...... if you have a client purchasing a Fannie Mae foreclosure, we're one of the FEW banks in Tennessee that can do provide very special and unique financing whereby there is:

 NO APPRAISAL REQUIRED
NO MORTGAGE INSURANCE
ONLY 3% DOWN IF OWNER OCCUPIED
ONLY 10% DOWN IF INVESTOR PROPERTY (the usual down payment is 20% down)

I posted a request for information on this program yesterday.  After doing a little more research myself I have gotten a few facts.  If you want the full servicing guide, click below.

1.  Borrowers may execute a lease of up to 12 months in conjunction with a DFL.

2.  They are charged market rent, and this rent can't be more than 31% of the borrower's income.

3. The mortgage can't be guaranteed by FHA, VA, etc.

There are other stipulations which you can read by clicking below.  As usual, this does not seem to me to be an easy fix for the problem of keeping people in homes.  It seems, that for one thing, if the borrower can't pay the mortgage, for loss of a job, for instance, do they have income to qualify to pay the rent?

I wish this program success. It seems like a good idea to have borrowers live in the home, keep them up, keep them heated and cooled, and discourage vandalism.  But it does seem like borrowers may have a hard time qualifying for the program.

By the way, see John's interview on this topic on News Channel 5 yesterday. 

We attended the annual conference Nov. 13-16, 2009 in San Diego, CA, and learned a bunch!

One session was on Distressed Sales, Opportunities and Pitfalls for the Buyer.  This was a panel discussion, and the panel member who was the short sale expert was Scott Thompson, Mortgage Resolution Services.

Scott gave a list of 4 questions to ask a listing agent about a short sale listing if you have a potential buyer:

1.  What is the status of your file? (meaning, I think, have you submitted all documenting paperwork for the seller to the bank, and has the bank approved the seller for the short sale?)

2. Do you have more than two liens? (meaning, I think, do you actually know how many liens are out there?)

3. What is your plan to satisfy the lien holders? (meaning, perhaps, do you have a plan?)

4. Do you have any direct experience with the lender involved? (meaning, do you know if they are hard to work with, maybe impossible, or have they been cooperative previously in short sales you have done with them?)

We also learned that if the seller has assets, even assets (like a 401-k) that are not required to be liquidated to pay the mortgage, the bank will probably not approve the short sale.  It is best to get answers to these questions before you put yourself and the buyer through a long, protracted contract which goes no where.

Thank you panel. This was a very good session!

Has anybody used this program?  Or do you know of somebody who has successfully used it? Is there a lot of paperwork involved?

Sarah in Nashville

I remembered seeing an ad for really cheap turkeys at Wal-Mart a couple of weeks ago.  I waited and did not go to buy one, but this week decided I should go ahead and get our Thanksgiving turkey.  We are going to NAR Conference, and when we get back, it will be closer to Thanksgiving and they may be scarce.  I looked in the store and nothing was on sale.  Oh well. I bought a Butterball at regular price.

At the checkout, someone asked the clerk about the ones on sale.  The clerk said that the sale was last week, that people came in and bought by the cart. She said that the limit is now '2' (now that they are all gone :).

It occurred to me.....wouldn't it be wonderful if houses started to move like that?  Buyers feeling so good about their future and their jobs that they couldn't wait to look for a home? And the prices so fair, that home ownership is a good thing, making more sense than renting? 

Those days will return, I have faith.

Sarah in Nashville

My cousin told me the story of being a young girl during World War 2.  Her older brothers were drafted.  She said that she would never forget her Dad's sobs as the youngest was picked up at their home to go off to war one morning before dawn.  Thankfully, both brothers came home safely, even after both been in the Battle of the Bulge.

I remember my generation's war, Vietnam, and several friends who did not come back home.

Every generation of soldiers has protected us, and today's soldiers still make the sacrifice for us. I salute you and I thank you.  May God bless you.

Sarah in Nashville

Seniors living in Nashville Davidson County, TN may be eligible for property tax relief. Certain income groups of those over age 65 can have property taxes stabilized.  It is too late to apply for tax year 2009, but you can look forward to 2010 and apply.



There may be further information at the Donelson Station Center, 108 Donelson Pike; Knowles Senior Citizens Center, 174 Rains Avenue; Madison Station Center, 301 Madison Street and the Northwest Center, 3315 John Mallette Drive, Nashville TN.

Applicants may also contact the city Trustee's office at 615-862-6330 to set up an appointment. Or visit the Trustee's Office at 800 Second Avenue, North, Nashville TN.  

To date, there have been over 7,000 Davidson County residents to qualify for this program.

If you are a senior in our surrounding area who needs help in downsizing or relocating, it would be our pleasure to consult with you about your options.  Give us a call to chat, Sarah at 615-516-5233 or John at 615-945-1838.

Sarah In Nashville