A re-fi option for home owners in trouble

By
Real Estate Agent with JH Realty Partners 6501309180

But do not wait too long!  MSHDA has started their campaign for the "Save the Dream" product.  This is a loan designed to help people who fit the guide lines (income) to re-fi their home. If home owners have a loan ready to balloon out or already has or you just have a high interest rate and struggling to make payments, this loan may be for you. 

I was talking to Stacey Hovanec, a processor for Providence Home Mortgage (I.C.C.F) about this product yesterday.  She informed me they are getting lots of calls but many have waited to late to call.  You can not be late or missed more then 3 mortgage payments.

I had a client call me yesterday about a foreclosure in her neighborhood. An elderly couple had lived in this home for over 25 years!  They have now moved out and the home went back to the bank.  I looked up the home on the MLS and can not see where it was ever listed.  (Maybe they tried FSBO, but no one ever saw signs in yard.  I think some people are afraid to ask for help or are embarrassed.  But don't be!!!! 

By saving your home from going to foreclosure you help more then yourself, you help the neighborhood at large, less foreclosures in the area, the better for resale value down the road.  This is another step you can take to help home sales in the future and another step to changing the market.  You have the power and the resources, use them!

Save your dream, save your credit, save your home.........ask a realtor to help!

Stacey is going to come on today and comment and give more details, Stacey is located in Grand Rapids, Michigan but can help anyone in the State of Michigan.  Do not be shy to ask questions here or call I.C.C.F. and get more details.

Posted by

Michelle Gordon is a Realtor with JH Realty Partners - Ada, Michigan -  With a team of Realtors who's Focus is 1st time home buyers, Relocation, Luxury listings and Commercial Properties in West Michigan.  You may find Michelle on facebook, twitter or linked in and she invites you to join her.

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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
Maybe this post should be sent to the state legislatures here to copy. Thanks for the post
Apr 17, 2008 11:51 PM #1
Rainmaker
111,252
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place
Charlie, you would think there would be more out there to help.  I think Countrywide Home loans have something, but not sure.  However I do think our individual states need to get involved and help.
Apr 17, 2008 11:59 PM #2
Rainmaker
300,425
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
It's sad I am trying to help a client of mine not go into foreclosure or be forced to short sale her house. Advised her to call the lender to work something out and they said so what if you have financial difficults you still have made your payments miss 2 then we will help you. They showed how they are using savings in a matter of 2 more months they will be behind but are trying to do the right thing and get help early. It's very frustrating. 
Apr 18, 2008 12:03 AM #3
Rainmaker
111,252
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place
Heather this is sooooooo true, we have that problem here too!  So you have to risk being foreclosed on and thrown out of your home before the bank will step up to the plate.  In my earlier blog I ask.........do banks need to take some kind of responsibility for irresponsible lending?  If the bank who is holding the loan and provided the risky loan that got the home owners in trouble in the 1st place, I say yes!
Apr 18, 2008 12:08 AM #4
Rainer
16,716
Donna Marie Godfrey
Godfrey Properties - Pottstown, PA
The only problem is if they have lates on the mortgage payments, which is almost a given!
Apr 18, 2008 12:25 AM #5
Rainmaker
111,252
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place
Donna,  I think you can have a couple of lates for this program.  We will see what Stacey has to say when she comes on.
Apr 18, 2008 12:40 AM #6
Rainer
741
Stacey Hovanec
Providence Home Mortgage/ICCF - Grand Rapids, MI

Hello!

This is my first blog here on active rain, exciting!  My name is Stacey and I work for Providence/Inner City Christian Federation.  The MSHDA Save the Dream refinance program has already changed once since the Govenor was here at ICCF to sign the bill into action.  I've posted the latest below.  There was two programs, ARM Assist and Rescue Refinance.  The Rescue program has already been suspended and although originally there was 100LTV requirement, now it is 97LTV with 3% second lien funded by MSHDA so a total of 100 if needed, however, the rate is higher if 100 is used.  The rate on the standard 97 is 6.5% 30 year fixed and if the second lien is needed the rate is 6.875% 30 year fixed.  You do not need to be in an arm to qualify for this program, however, you cannot have been late more than 30 days over 3 times in the past 12 months.  Income limits are $108,000 for a household statewide.  The kicker too is 620 minimum FICO and you have to be current as of application.  Right there it is a bust for most people.  We probably receive over 20 calls total a day and have to refer them for foreclosure prevention.  It will be interesting to see how many people fit into the category.  So far no luck.  There are many more specs with this program, feel free to ask!!  IF only this program allowed 120 LTV we just might get some done!  Ha Ha!  See below for a couple tid bits on what we last received.... :)

Enhancements to ARM Assist Refinance Program

Based on Lender feedback of our ARM Assist program and trying to come up with a more affordable program for refinance clients, we are rolling out an amended program. 

Highlights of changes are;

  • Loan is no longer a 100% first mortgage, but a 97% first and a 3% 2nd.  The 2nd lien is being funded by MSHDA.
  • 2nd lien is a 0% amortization loan, repayable upon sale or refinance by borrowers.
  • P & I calculated on 97% first Lien
  • No adjustments required to LTV for declining value areas.
  • 45% DTI, manual underwrite required

Update on Rescue Refinance program

Due to unexpected difficulties with obtaining affordable Mortgage Insurance quotes, we will be suspending the Rescue Refinance Program.  Our goal is to offer the best possible and most affordable monthly scenario for our homeowners and feel it is in their best interest to continue to pursue more creative options.  Keep posted on future Lender Letters for updates.

Apr 18, 2008 03:19 AM #7
Rainmaker
111,252
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place

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Apr 28, 2008 12:55 AM #8
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Michelle Gordon

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