All About Information - Relevant to All at Some Point

Do You Really Know the Rules On Short Sales and Obtaining a Mortgage after a Short Sale

After being the in mortgage industry for over 10 years, one of the many important lessons I have learned is to be careful in your interpretation of lending rules and guidelines. Understanding how a short sale can affect you when obtaining a mortgage after a short sale is one of those rules where you must be careful in your interpretation of the rules.

I recently had a closing with a client who would not have just had that closing had they not also taken the time to speak with me, AFTER they had been told "NO" by another lender.

This particular client had a short sale which had occurred about a year and-a-half prior to being in contact with me.

When the first lender looked at the client's credit report and saw the verbiage that the client's mortgage had been settled for less than the amount owed ( meaning they had a short sale) and since that short sale occured 1.5 years ago, this lender informed the client that they would need to wait a full 3 years after the short sale before they could obtain a loan via FHA financing.

While FHA guidelines do state that under most circumstances, a borrower is not eligible for FHA financing after a short sale, until 3 years from the date of the short sale, there ARE some extenuating circumstances and other factors that WILL allow financing before 3 years.

It is vital that borrowers with a previous short sale insure all the facts are considered before being given an automatic NO and told to wait 3 years. If you are one of these borrowers or if you are an agent working with a borrower with a previous short sale, make sure their lender has considered all the facts and reviewed their case carefully.

I am glad these buyers contacted me and even more glad that we got their home loan closed recently. They literally went from a " No, you can not buy" to a "Yes, we can get that done and close you right away". We were at the closing table within 2 weeks of them going binding on a contract for their new home.

That's one the many reasons I LOVE what I do.

Best wishes and call me if you need professional, knowledgeable and consultative advice.

Kathy Delbridge

Borrowers With Existing FHA Loans Get a Big Refinance Boost - Upfront and Annual MIP Being Reduced

In a press conference dated 3/6/12, President Obama announced that borrowers with existing FHA loans will receive a huge boost, due to the Upfront Fee and the Annual MIP being reduced.

This announcement should help many existing FHA borrowers save more money  on their Streamline Refinance loans, compared to current MIP rates they have been receiving after the Annual  MIP increased in Oct 2010 from .55% to 1.15%.

The new fees are for borrowers whose FHA loans were issued before June 1, 2009. An estimated 2 to 3 million borrowers could take advantage of the savings, which could reduce mortgage payments for the typical FHA borrower by about a thousand dollars a year, according to the administration.

Borrowers who refinance their existing FHA loans will pay an upfront insurance premium equal to 0.1% of the mortgage amount -- $100 for a $100,000 loan -- plus an annual fee of 0.55%.

To read more on this topic, please click on this link:

http://money.cnn.com/2012/03/06/real_estate/obama_mortgages/index.htm?iid=H_BN_News

This is GREAT news for existing borrowers with FHA loans, who have wanted to refinance to today's lower interest rates, but their MIP payment was doubled, so it cut into their refinance savings.

In my opinion, this will be a boost. If you are a homeowner that is able to take advantage of this additional savings, get started while the rates are still low and be sure to apply your savings appropriately.

Make it a GREAT DAY!

Kathy Delbridge

HUD Announces Another INCREASE to Upfront Mortgage Insurance and Annual Mortgage Premium

In a Press Release dated February 27, 2012, HUD announced that they will be increasing the Upfront Mortgage Insurance Premium (UFMIP) and the Annual Mortgage Insurance Premium ( MIP).

Important dates to remember are April 1, 2012 and June 1, 2012, as these are the dates when the changes will take effect.

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

Once both of these are increased, borrowers will see an estimated payment increase as outlined below:

• $175,000 Price        Payment increase of $20 per month
• $250,000 Price        Payment increase of $31 per month
• $350,000 Price        Payment increase of $37 per month

To read more about this press release, go to http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-037

If you are a homebuyer looking to purchase a home and want to insure you save money on your new loan, be sure to act now. Case numbers are not assigned until you have made an application and have a contract on a new home.

Hope you find this information helpful.

Have a GREAT day!

Your Mortgage Specialist, Kathy Delbridge

Is Metro Atlanta Seeing a Median Homes Sales Price Increase?

I received what I felt was an excellent way to start my week and what several people would consider excellent news for the housing market - at least for now.

I  came into the office this morning and found in my inbox that 2 appraisals were delivered over the weekend for 2 of my buyers.

One purchase is in the $130K range in Henry County, while the other is in the  $350K range in Fulton County - Buckhead area.

What was discovered during the appraisal review is that the Median Home Sales Price has increased in both of these areas by 8.6% during the past 12 months.

Could this be an anamoly or is it the start of a trend?

At this point, I am going to absorb and accept it has very good news and look forward to much more good news coming this week!

Have a great week everyone!

Kathy Delbridge

HUD to Make Some Very Important Announcements Soon: Most Important Is Regarding Seller Concessions

In an announcement dated, January 20, 2012, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante announced the latest in a series of steps to protect and strengthen the FHA’s Mutual Mortgage Insurance Fund, while enabling the agency to continue to fulfill its mission to provide access to homeownership for qualified borrowers.

One of the biggest announcments we will see soon is that FHA will propose to reduce the maximum allowable seller concessions from its current level to one more in line with industry norms.

Part of the reasoning is they feel that current level of 6% allowable seller concessions exposes the FHA to excess risk by creating incentives to inflate appraised value.

I tend to disagree that it creates an incentive to inflate appraised values. There have been so many guidelines put in place over the last 2-3 years that, in my opinion,  has eliminated any concern over any inflated values.

While I understand that FHA/HUD need to insure we are able to maintain and keep  FHA financing available for homebuyers, I feel they need to really look at the root cause of loan defaults and solve that problem.

Many homebuyers really could use the assistance of seller paid concessions. If the value is there and it is not an artificially inflated value, I say let the homebuyer get in their new home with the FHA standard 3.5% down payment and keep the additional money it would costs them to cover their settlement charges.

On smaller purchase prices, the maximum allowable seller concessions is needed in most all cases. On a $150,000 purchase price, 3% will not cover ALL closing costs and prepaid items for a borrower.

In our current economy, let's help homebuyers keep those reserves for those unexpected occasions when those funds are really needed.

You can read entire Announcement from FHA by clicking on the following link:

http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-010

If you have any comments you would like to share about this post, feel free to comment.

HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.

The HomePath property buyer must meet the following qualifications to be eligible:

• Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
• The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
• The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
• Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
• Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
• If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

Potential Government Shutdown / Impact to Government Loans - MUST READ!

Implications of Government Shutdown

While we are still hopeful that a shutdown will be avoided (or another continuing resolution passed), it is unlikely that there will be any decision until the last minute.  We understand the President is meeting with Speaker Boehner and Senate Majority Leader Reid at 1:00 p.m. EDT today.  

Below is the latest information we have on the implications at the housing agencies.  However, no final decisions have apparently been made.   We do expect FHA & Ginnie Mae will publish FAQs if the shutdown does occur.  

FHA

We have been advised that FHA Connection will be operational except that you will not be able to perform CAIVRS' checks or obtain insurance endorsements (including lender insurance).  You will also not to be able to pay upfront premiums.  However, we have been told that you will be able to obtain case numbers.  

We recommend that clients ( this is the lender) run CAIVRS' checks immediately on all loans that you want to close in the next week or two in case the shutdown does occur.  A CAIVRS' problem is likely the most immediate impediment to obtaining insurance once the loan the program is reinstated.

Ginnie Mae  

If a shutdown is announced, Ginnie Mae has told us that will publish FAQs and answers on the website to address program operations.  We have been told that functions such as handling of principal and interest payments to investors in pools and "proceeding with pooling as pool or pool packaged are delivered" will continue.  It is unlikely that Ginnie Mae will provide new commitment authority during the shutdown though no final decision has been made.

USDA

USDA has advised us that lenders will be able to close loans for which they had already received a commitment.   However, lenders will not be able to get the Loan Note Guarantees for them until the shutdown is over.

 
During the shutdown, USDA will not issue any new commitments or Loan Note Guarantees for closed loans.  Unlike FHA, USDA will not operate GUS, its automated system,  during any shutdown.

VA

VA has indicated that they will continue business as usual during the shutdown.  We have asked VA if there has been any change.

We will update you on the possible shutdown  as soon as we have new information.

Let's pray we do not get affected by this, but we must be prepared just in case.

TWO Very Important Dates Approaching / Affects FHA Homebuyers and certain VA eligible Military Personnel

There are two very important dates that every FHA Homebuyer must be aware of, as well as certain military personnel seeking homeownership. Here they are:

1. FHA loans will begin to costs more, effective with all FHA Case #'s assigned on or after 4/18/2011.
2. Certain military personnel have up until 4/30/2011 to enter into a binding agreement on a new home to be eligible for the Homebuyer Tax Credit.

If you'd like additional information on the full details on each of these, be sure to read my two previous blog posts prior to these two posts.

I am here to help and LOVE helping new homeowner's purchase their new home!

Enjoy and make it a GREAT day!

Respectfully,

Kathy Delbridge

HUD Announces INCREASE In the Annual Mortgage Insurance Premium

HUD announces in a mortgagee letter dated February 14, 2011 that they would be increasing the annual mortgage insurance premium by 25 bps ( basis points) that is collected on FHA loans.

Who does this affect and what does this really mean?

• It affects existing FHA borrowers who may be refinancing their existing FHA loan via a streamline refinance. It means that this borrower may be lowering their rate, but the amount of mortgage insurance that they pay will be higher. This is especially the case for those borrower's that secured their FHA loan prior to October 4, 2010 ( in this case, the monthly MI will most likely be almost double the previous MI payment)
• It affects homebuyers who wish to secure FHA financing for the purchase of their new home. It means that their FHA loan will be guaranteed a higher payment as of April 2011.

Overall, here's an estimated payment increase from where we are currently, based on the annual premiums as of October 4, 2010.

Purchase Price        EST Payment Increase

$250,000                            $50.00

$200,000                            $40.00

Not that this has any bearing on immediate changes, but here's an example how much higher the mortgage insurance will be after 4/18/2011, compared to where they were Prior to October 4, 2010.

Purchase Price                 EST Payment Increase

$250,000                                    $120.00

$175,000                                    $84.00

These new changes will become effective for all FHA case #'s assigned on or after April 18, 2011.

If you know someone who is looking at purchasing a home and intends to use FHA financing for their financing, make them aware of this.  With rates expected to hit 5.5% this year and this increase as well, there is NO time to delay. Even if the overall payment ends up being $50 more each month, that is $3000 over the next 5 years. That's the average costs to paint your home.

And, if you know someone who has an FHA loan that needs to be refinanced, make them aware of this before these changes occur.

HUD has actually been authorized to increase this premium up another 40 bps ( basis points). That would be almost 3 TIMES the amount of the monthly MI a client paid prior to October 4, 2010.

I am just a phone call away at 678-773-0651 and can always be reached via email at 678-773-0651.

Kathy Delbridge, CMPS®

First Time Homebuyer Tax Credit for Military Personnel and Foreign Service Employees

HUD Announces 2011 FHA Maximum Mortgage Limits

HUD announced new Mortgage Limits  for 2011, on 12/2/10 and the Metro Atlanta area remains unchanged at $346,250.

Most of the remaining counties in GA will be at the floor of $271,050. There are a couple of counties in GA with higher mortgage limits that are closer to $300,000.

To read the HUD Mortgagee Letter in it's entirety, click on the following link:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-40ml.pdf

The following two links will take you to Attachments which will list the maximum mortgage limits in ALL counties within all  50 States.

• http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-40mlatch1.pdf ( Attachment 1 - areas at ceiling and above)
• http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-40mlatch2.pdf ( Attachment 2 - areas between floor and ceiling)

This is goods that several major metropolitan areas still have relatively higher mortgage limits that in previous years.

If you or anyone you know needs assistance with obtaining FHA financing, please do not hesitate to give me a call.

FHA loans remain a valuable financing tool, especially with the added benefits of the assumability of FHA loans. Imagine you are selling your home in 5-7 years and a potential buyer has the option to assume your FHA mortgage at 4.25%, or buy another home down the street ( that does not have FHA financing) and have to go with current interest rates at the time ( assume they are at 5.5%). Which house do you think they will be more favorable to purchase ( assuming both homes are comparable)?

Something to think about.

Have a great day and feel free to post comments or questions to this post.

Kathy Delbridge                                                                          678-773-0651

Do You Have Experience with DRAGON Speech Recognition Software?

I recently noticed a TV advertisement Dragon Speech Recognition Software, and I am looking for comments/reviews from current users.

I have noticed that they have a Home Edition and a Premium Edition.

If you have used either of these, I'd love to hear your feedback. I am very serious about purchasing this, and I am trying to determine if I need to pay the difference for the Premium Edition.

It looks like both of these can save me time and help me be more productive.

Dragon Speech Recognition Home or Premium?

If you are reading this and have not heard of this software, go visit http://www.nuance.com/givedragon/, to learn more.

I look forward to your comments.

Thanks,

Kathy Delbridge

 Save the IBD Bill: Only a few weeks left!

Legislators returned to Washington this week for the beginning of the "Lame Duck" session of the outgoing 111th Congress. A new Congress will convene in 2011 -- there are only a few more weeks left for the current Congress to be in session. If the Bill is not passed by the end of the year, we are back to the drawing board -- a new Congress means that a new Bill must be introduced, new co-sponsors must sign on, and the entire process will begin again.

Please don't let this happen. It takes so little time to support the Bill and help the 1.4 million Americans living with IBD. Five minutes is all it takes to do one of these:

• Write an e-mail to your legislators requesting their support
• Post a "call to action" on your Facebook page or Twitter feed
• Call a loved one and ask them to send a letter or help spread the word
• Send an e-mail to your friends and family letting them know how much this Bill means to you, and what they can do to help.

If you've already done any -- or all -- of the above, we thank you for your support, and ask that you give us just five MORE minutes of your time. Please do what you can! Many voices, working together, will help push this Bill forward at this very critical time.

Take action today!

Need help?

Contact our Information Resource Center: 888.694.8872 or www.ccfa.org. For tips, sharing, and support from other people with Crohn's disease or ulcerative colitis, join our free CCFA Community site.

Our mission

To cure Crohn's disease and ulcerative colitis, and to improve the quality of life of children and adults affected by these diseases.

Thanks to everyone who is supportive of trying to raise awareness and find a cure for Crohn's and Colitis! PLEASE help us by taking a few minutes of your time to do this!

Thanks,

Kathy

Have You Watched the News Lately and Been Frustrated?

I purposely make it a point not watch the morning news, because typically all it does is set a negative tone for my day. Yesterday morning, for whatever reason , I actually watched about 2 minutes of the CBS News Early Show and was once again reminded WHY the media and news can frustrate me with their "not so perfectly delivered" news stories.

Case and Point:

Yesterday morning Rebecca Jarvis was being interviewed on the topic of "Over 50 Years Old - Should You Refinance?" 

I wish you could have seen me when she started spouting out her comments - I literally was about to jump out of my skin with frustration.

I know I should not let a little  'ole news story get me SO frustrated that early in the morning ( remember why I said I don't like the morning news), but I am VERY passionate about insuring the proper message is getting delivered to the public as it relates to mortgage financing, and well, Rebecca ( in my opinion), was NOT delivering the proper message.

Okay, here's  some of the comments/statements that were not exactly factual: My comments are in red italics.

• The interest rate that I client can get will be anywhere between 4 and 6%. It's quite obvious that Rebecca does not actually see a daily rate sheet that you get from secondary marketing from a lender. Why? Because the highest rate on most rate sheets at the current time is 5 or 5.125%
• You Need a 720 Score to refinance. Once again, an incorrect statement. We can actually close a conventional loan with scores as LOW as 620. There of course are factors to consider with that score, but that is the reality.
• Plan on it taking at least 5 years to recoup your closing costs. I can't remember when I last closed a refinance and it took my client longer than 2.5 or 3 years to reach the break-even/recoup period. I make it my goal with consulting with a client to insure they hit the break-even point in that time period, or else the refinance simply  may not really make sense at the present time.
• Watch our for that prepayment penalty, because you could easily have one. And on a $200,000  loan, it could costs you $6000. Whew, this statement is incorrect for SO many reasons. First of all, there basically have not been any prepayment penalties on loans for at least 3-5 years now. And when they are present, they are usually only 1% ( compared to her 3% example).
• If you refinance and are over 50 years old, be prepared to work longer. WOW! What do I say about that comment? Probably better keep it to myself.

Well, I'm sure you get the picture why that 2 minute interview really frustrated the heck out of me. In defense of the interview, 2 minutes really is not that long and there should be a big disclaimer that read, "These statements do not apply to everyone and PLEASE consult with a mortgage professional because mortgage loans are not "one size fits all".

I can only imagine if there was a 50 or 55 year old watching this interview and they have a 5.5% interest rate currently and they plan on retiring in 10 years. Is it possible that person may not considering refinancing ALL because of that interview - I hope not!

Do you have a Passion and have seen or read a news story that frustrated you? If so, I'd love to hear about it. Just post your comments below.

And oh, MAKE IT A GREAT DAY!

Another Reminder About Why I Do What I Do

One of my recent Blog posts was all about why I was raising money for the Crohn's and Colitis Foundation of America.

Not that I need any reminders, but today I received another profound reminder of why it is I am so passionate about raising awareness for Crohn's and Colitis, as well as any form of IBD.

I received a phone call today from Mary Jo, whose 33 year old daughter, Megan,  has been diagnosed with Crohn's since the age of 13. Megan has actually been sick since she was 3 years old and has probably had Crohn's since that time, but her official diagnosis was not until age 13.

Mary Jo called me today because she happened to see an article in the Around Canton Magazine about a fundraiser to support the Crohn's and Colitis Foundation of America.

Within seconds of reading article, she grabbed her phone and called me to find out how she can get tickets to support the fundraiser. She told me her daughter had Crohn's for 20 years and they are always supporting any function that helps raise awareness.

I was instantly excited to know that another person was ready to purchase tickets to support this fundraiser, but I found myself even more interested in hearing about Megan and how her fight with Crohn's was doing.

Unfortunately, her fight against Crohn's has been a severe struggle for her. Megan's fight has resulted in her having to have multiple resections and ultimatlely forcing her to drop out of high school because she was simply too ill to attend. Fortunately, she did eventually get better and has been able to earn her GED.

I could hear the sadness in Mary Jo's voice when we spoke about Megan's condition and my heart goes out to her because I too have a loved one who has suffered from Crohn's for 20 years and I have seen first hand the damage this disease inflicts on a person ( both physically and emotionally).

It's amazing how a common cause can bring people together just over a quick phone call, because I feel like I have gained a new friend and that Megan and my loved one will soon be able to meet and be able to offer support to each other. Ironically, Mary Jo and Megan only live about 20 minutes from my home. We already have plans to get a dinner scheduled early next week.

Thanks to Mary Jo for calling me today and thanks for sharing Megan's story with me.

And, THANKS for reminding me once again why I am so passionate about raising awareness for the Crohn's and Colitis Foundation of America. This is truly a cause I am passionate about and because it is not a "one size fits all" disease, it affects all walks of life, young and old.

I am proud to be a advocate for raising awareness about this cause and will continue to do so until better treatments are found. Due to lack of fundraising, most IBD patients are still receiving medications that were introduced 20 years ago. We simply must have more advancements towards treating this disease, so I plan to consistently "Do What I Do" to help raise awareness and Own my commitment to this cause!

What is your cause that you are passionate about?

Do you own that passion and stay committed to it?

Here are a few IBD fast facts:

• Roughly 1.4 million adults and children have IBD - that's more than teh number who have multiple sclerosis, Parkinson's disease, or leukemia.
• The number of children under the age of 18 diagnosed with IBD has doubled over the past decade.
• Fifty percent of people diagnosed with IBD have no family history of Crohn's disease or ulcerative colitis.
• On average, it takes 3.2 years for IBD patients to receive the correct diagnosis, and most people initially receive at lesat two misdiagnosis.
• People with Crohn's disease and ulcerative colitis are at a higher risk of developing colorectal cancer than the general population. When caught early, colorectal cancer is highly treatable, so regular screening for people with IBD are crucial.

If you've read this blog, thanks for taking the time. Feel free to make comments and feel free to share what it is your passion is.

And, if you'd like to learn more about the fundraiser that prompted Mary Jo's call, go to www.cherokeewcr.org/wintriptoitaly

Make it a GREAT Day!

Kathy Delbridge