Are you a Homeowner in Nothern Virginia with No Equity or Not enough to sell your present home?
Have you looked for Options and become frustrated with the answers?
If you have a home with No Equity or Not enough to sell and pay real estate selling fees in Northern Virginia you are not alone. Underwater homes are still a problem for some homeowners especially those who purchased from 2005-2008. Here is a recent article in Time Magazine in this very subject
If you answer Yes to any of the below situations this Blog Post is for you!
Do yo any of these situations sound like yours?
* You have had income drop over the past eight years.
* You have a transfer opportunity but cannot rent or sell now what?
* You are facing a life challenge separation, divorce but no equity
* Your children have flown the nest and home are now too big
* Your spouse or significant other has passed away
* You family is growing and you need a larger home
* You inherited a home but it is underwater what do you do?
* You have no equity and are thinking of short selling or let it go to foreclosure
* You have a Government Clearance so you can't short selling or foreclose so you are wiping our your savings to keep up after any of the changes above!
Pre downturn none of these issues would have prevented you from RENTING your home. Renting your home had always been a fallback position for homeowners pre-downturn. It typically was fairly easy for the homeowner to move and rent until the equity position bounced back enough to sell. The rental income would offset their present house payment so you could move forward with a new purchase of a smaller home or one in a location. Or even rent yourself till you decide what was best for you.
In the height of the financial crisis the FannieMae guideline on Conversion of Principle Residence quietly changed and this single change prevented people from having the right to rent their home and buy forward unless they had 30% equity! This put a choke hold on the market and forced many a homeowner in my opinion to lose their homes to foreclosure,short sale or even bankruptcy as it was their only option.
Well Good News is here quietly on June 30th 2015 Fannie Mae made a change that was not published in any grand way and many a loan officer even missed the announcement since it was just as the July 4th holiday was kicking in!
Here is the actual language of the change
Conversion of Principal Residence Requirements No Longer Apply
This policy, imposed during the height of the financial crisis, was intended to be temporary in nature. The purpose of this policy has been to ensure that borrowers have adequate capacity and financial reserves to successfully manage multiple properties. It requires manual application by lenders for loan casefiles submitted to Desktop Underwriter® (DU®). Because there are other policies now in place that adequately address credit history, rental income, and financial reserves, Fannie Mae is eliminating the requirements specifically associated with the conversion of a principal residence to a second home or investment property. Lenders should follow the standard rental income and financial reserve requirements when the borrower converts his or her current principal residence to an investment property.
What does this mean to you?
It means even if you have no equity you can move and buy another home that fits your needs and lifestyle and get on with your life!
Give me a call and Let's Talk about your situation and I think you may be
pleasantly surprised at your options! Just this week I have worked with two families who were told over the last year they could not buy or sell and they are on their way to getting their Dream Home.
Or call me at 703-801-9367
You have heard the saying "It's not what you know but who you know." now you know me Patty Blackwelder and I am just a phone call away.
Call or Text Me at 703-801-9367 and Let's Talk