We've got breaking news for Pinellas home owners. Yesterday, as reported by Reuters and just a handful of others, President Bush signed into law HR 3221 - The Housing and Economic Recovery Act of 2008, and it's got a little something for a huge number of Tampa Bay home owners, including refinancing options, help for seniors and veterans, and a huge break for first-time buyers of Pinellas real estate.
You've probably heard a lot of debate about this housing bailout bill because it's partially designed to help troubled homeowners - and some people that aren't having trouble making the payments on their Dunedin homes feel like this is an unfair handout. So, all judgement and debate aside, I am just going to stick to the facts.
What's In it For Me? The Lowdown on HR 3221
Renegotiate My Mortgage: Some Palm Harbor home owners will be able to cancel their existing mortgages and get new fixed-rate 30-year loans! The loan would be no more than 90% of what their property is worth today. You're eligible if you obtained your loan before January 1, 2008, if it's for your primary residence, you are able to verify your income, and, as of March 1, 2008, your total monthly housing payment must be at least 31% of your total household income. By the way, if you need help determining what your home is worth today, give us a call at 727-366-0324 or contact us here and we'd be glad to assist.
A couple of caveats: 1) Just because you 'qualify' with the restrictions above, your lender doesn't have to agree to renegotiate. Talking to a professional Realtor experienced in negotiating Pinellas foreclosures and short sales is a great first step. 2) You will have to pay a 1.5% annual fee on the balance when you pay your annual taxes and you'll only be able to keep 50% of the equity at best when you sell. Nonetheless, this is the best option you probably have if you're facing a Pinellas foreclosure.
I'm a would-be First Time Pinellas Homebuyer: You're eligible for up to a $7,500 tax credit! Hallelujah, there is such a thing as FREE money! Contact us for details or check out the scoop by Ron Lieber of the NY times. Although the story was posted before the bill passed - it covers all of the bases.
I'm a Veteran and/or a Senior: Lenders will have to wait 9 months instead of 3 to begin foreclosure proceedings on returning veterans from active duty, and seniors seeking
reverse mortgages will get several breaks - the most notable of which is that they won't be charged more than $6,000 maximum in fees (a significant savings for most seeking this option).
Jumbo Loans: Fannie Mae and Freddie Mac can buy loans up to 115% of the median Pinellas home price. If you need a Jumbo loan for your Dunedin home purchase and would like to talk to a professional mortgage banker or broker about your options in more detail, contact us.
As with all good things, these options will come to an end effective December 31, 2010.
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