March 16, 2009 marks the fourth day of "Save the Dream" at the Carolina Coliseum. This event was organized by the Neighborhood Assistance Corporation of America (NACA) as an attempt to minimize the number of home foreclosures in metropolitan Columbia, SC.
For some....."It was just a blessing..." Before attending the event, one homeowner was looking at making payments on a 12.3% Adjustable Rate Mortgage. After meeting with NA
CA mortgage counselors, this homeowner was able to obtain a fixed-rate mortgage and reduce their mortgage payment by 40%.
Unfortunately, there are many others throughout this country that were not able to attend this event or obtain a loan modification.
If you are one of those homeowners, let me give you some advice.
DON'T THROW IN THE TOWEL!
You do not want a foreclosure on your credit history. It could have a devastating impact on your credit, job searches and future ability to make purchases. From a mortgage lending perspective, here are the current Fannie Mae Guidelines.
If you have a foreclosure on your credit, you are DISQUALIFIED for any Fannie Mae lending products for FIVE (5) YEARS!
For the sixth and seventh year after your foreclosure, you must have a minimum credit score of 685 and will be required to make a 10% down payment. Therefore, if you wanted to buy the average $145,000 home in Columbia SC, you would be required to make a $14,500 down payment.
Please Note ---- That $14,500 is a down payment. That amount would not include any mortgage lending and attorney closing costs.
For those of you attempting to prevent this situation from occurring in your life, you should consider SHORT SALE NEGOTIATIONS. By completing a short sale, Americans could have the opportunity to regroup after two years and make another attempt at the American Dream.
Do you and your home qualify for short sales negotiations? For more information, please feel free to give me a call at (803) 960-5231.
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