Real Estate Blog - SOMETIMES YOU JUST HAVE TO SCRATCH YOUR HEAD AND WONDER IF YOU'VE LOST YOUR MIND.

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SOMETIMES YOU JUST HAVE TO SCRATCH YOUR HEAD AND WONDER IF YOU'VE LOST YOUR MIND.

SOMETIMES YOU JUST HAVE TO SCRATCH YOUR HEAD AND WONDER IF YOU'VE LOST YOUR MIND.

DU Version 7.1 September Update Implements DU Refi Plus^TM LTVs to 125 Percent
This release enables refinancing of existing Fannie Mae loans to LTV ratios over 105 percent and up to 125 percent through DU Refi Plus per Announcement 09-26, Updates to Home Affordable Refinance. This release also includes updates for DU Refi Plus loan casefiles with LTVs greater than 105 percent; updates to 2009 Area Median Income (AMI) limits for each geographic area for (emphasis added) . . . . . MORE. . . .

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 09/21/2009 11:53 AM

Comments (14)

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14 Comments on SOMETIMES YOU JUST HAVE TO SCRATCH YOUR HEAD AND WONDER IF YOU'VE LOST YOUR MIND.

SEP

Lenn - The question isn't if you've lost your mind, but who has lost theirs.

John. Isn't it the truth. The government through the mouthpieces keep saying that buyers shouldn't be allowed to finance "more than they can afford".

GEEZ. Even before the mortgage meltdown, most lenders wouldn't refi to 125%. Yet, with DU programmed to approve it, GEEZ.

There is lots of this going around. The reason I say I don't depend on the government to have learned any lessons on mortgage affordability the last few years. It is up to us to support and preserve homownership in whatever manner we can. Kate

I can only hope that this allows at least a small percentage of current homeowners who are facing an adjustment to their loans to stay in their homes rather that short sale or foreclose. I don't think it will cure the problem but homeowners that have proven themselves to be credit worthy and have the desire to stay in their home should have some options at this point since loan modifications are proving an unlikely alternative!

I do agree, however, that this is one of the reasons we are in the mess we are in now due to people over borrowing on their homes in the past. It's like putting a band aid on an severed leg and hoping it will stop the bleeding!

Who knows what the solution is at this point?

Ok, I think I get it -- a tool to help underwater borrowers refinance into a better loan product, and hopefully avoid foreclosure or short sale. I assume with no cash out - I hope with no cash out.

ahhh - I've tried to run with several DU REFI plus' - they just haven't made sense for most people as once the LTV is 100+ the pricing gets ugly in comparison. And forget it if you have MI on your current loan. I pray to God for the FHA refi with high LTV's

Lenn

May be were not suppose to understand it, it is from Washington.

Good luck and success.

Lou Ludwig

Lenn- The problem with Washington is that so few of them have ever run a real business and some have never had a real job either! What the heck is going on? Of course, it is all at tax payers expense. Katerina

Lenn,

You got me confused. 105% to 125% LTV? I guess I am really missing something here.

Hi Lenn, As I was reading this, having been gone on a fabulous vacation, I thought I slipped into a time warp and in fact had been gone for years. I had no idea what this was and figured if read down further, I would get it. WOW, you are so right. Who is writing this stuff ?

SEP

Lenn, is it possible that they are using these to re-finance upside down home owners and helping them to stay in their homes? In that case, it's not so bad.

Lenn, I have decided that I may well quit trying to make sense out of what comes out of Washington.

The things that "stimulus" money has been spent on even here on in my little rural just don't makes sense.

I know that's another topic.

It sure does speak to senseless things that are going on that do not accomplish what we were told they were designed to accomplish.. .

I feel a post coming on.

William, On vacation? I'll have to slip over to your blog and see if you've posted about it.

Gabe, Interesting question.

125% loans? in my opinion that is just reaffirming bad debt.

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