I know there is a lot of debate about the stimulus and just who will benefit. Well, in looking at the actual guidelines, there may be plenty of help on the horizon. We are opening new transactions monthly and are tracking to record numbers come 2nd quarter. Most of our business is buyer side and REO based. There is a lot of activity and homes are selling fast and for more than list price! It's a bit like the Wild West and it is a great time to buy. Anyway, I sent this info out to my 250 agents this morning and thought I'd post it here as well. The link below takes you to the Treasury Department outline for the guidelines under the Stimulus Package. Those of you that own property should also look at your own mortgage situation and see if there is anything you can do! There are some basic rules to qualify, along with other guidelines.
- Must be a first position loan on your primary residence
- Loan originated on or before January 1, 2009.
- Must modify between now and December 31, 2012
- Income must be documented
- Must show a financial hardship in making your payments
Generally speaking your mortgage payment could be reduced to 31% of your monthly income. All sources of income must be documented and you must provide tax returns, etc. Banks and servicers will actually be offered incentives to work with homeowners. A few more key points:
- The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.
- Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus "pay for success" fees on still-performing loans of $1,000 per year.
- Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.
- The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.
- The program will include incentives for extinguishing second liens on loans modified under this
Take a look and review the guidelines below and share with all of your friends, family, clients, leads, prospects, etc! Here is the link.
http://www.treas.gov/press/releases/reports/guidelines_summary.pdf
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