WAKE UP FROM THE AMERICAN NIGHTMARE

WAKE UP FROM THE AMERICAN NIGHTMARE Effective October 1, 2008, a housing bill was passed to help both troubled borrowers and lenders. At-risk borrowers whose loans originated between January 2005 and June 2007 may be eligible to refinance their unaffordable mortgages into low-cost, fixed-rate loans insured by the Federal Housing Administration (FHA). Whether current or in default, at least 31% of the borrower's monthly income must be tied to paying the mortgage debt. Other requirements come in to play that have to do with the total debt owed and any secondary financing. Borrowers may get information from their current lender or an FHA-approved lender (found on the website for the Department of Housing and Urban Development). Each loan will be considered for underwriting after a new appraisal is performed and income and credit history is again documented and verified. Be aware that there are many requirements for approval that, once secured, include many additional terms, such as insurance premiums and profit sharing on appreciation. If you sell or refinance within a one-year period, you must pay the FHA 100% of your profits. That percentage drops 10% each additional year, down to 50% after five years. Keep in mind, however, that savings can still be substantial on these lower interest, fixed-rate loans, which will never readjust like subprime mortgages can every six months. Homeownership can again be the American dream, not a nightmare. Larry has over 15 years of experience in Bank Repos and Short Sales and non foreclosed real estate, my clients include General Electric Mortgage, Home Savings, Associates Finance, Transamerica. Current clients include Bank of America, Ocwen Financial Corporation, Countrywide and Keystone Asset Management to name a few. Larry is President of Weichman Associates located in Costa Mesa California. He has sold real estate since 1976 and is a 3rd generation Real Estate Broker. Larry has closed escrow on over 1,000 properties; from townhomes to commercial buildings. Please be sure to visit us on the Internet at http://TeamWeichman.com, http://OCHomeTracker.com or http://OCRepoBroker.com or you can call me at 714-241-4532