: California

HARP is alive and well in Arizona and California

Although many of the homeowners who have called me have been sincere about wanting to stay in their home, some have realized that under their economic situation, the HARP 2.0 Program in Arizona and California will not do enough to lower their payment thus allowing them to keep their home. Some of them have talked about possibly considering a short sale but for the most part, many were thrilled to learn that we could save them anywhere from $150 to $600 off their current mortgage payment.

Yep! No appraisal, no value, little documentation and low closing costs and best of all lower rate meaning lower payment.

What I have learned in the last few weeks:

• No appraisal means no loan to value requirement: Although this is true, some of the large lenders are limiting this requirement. We are not - "sky is the limit"
• Short sales: If a client has had a short sale that is (obviously) not your primary residence, you can refinance under HARP 2.0 so long as you have not had any mortgage lates in the last 6 months and the loan being refinanced is owned by Fannie Mae. Freddie Mac is not eligible under this scenario. **Note: 9 out of 10 lenders do not know this and will tell you "NO!" at the drop of the term "Short Sale".
• Click here for more information about HARP 2.0 refinancing in Arizona and California
  

As if it is not getting harder to qualify for a loan, FHA put the scare in everyone for the last couple of months stating that FHA homeowners in Arizona and California would have to either:

• Pay off all their collections if it amound over $1,000 or;
• Have a payment arrangement with the collection company for a minimum payment history of 3 payments/ months.

The great news is that FHA came out today and stated that they were going to postpone the FHA requirement to "pay off your collection accounts" until they hear more public and industry comments before enforcing the requirement. Either you had enough people in the real estate industry screaming bloody murder or someone at the FHA came to their senses and realized how detrimental this could have been to a "still recovering" economy and housing market.

Lets thank the heavens for some good ole'fashioned common sense.

If there are any questions that are not addressed in this article, please email, text, facebook, twitter, leave a comment below or simply call me to discuss your personal situation or specific questions.

If you find this information to be useful, I ask that you please share this with your family, friends and clients. Please use the social networks to distribute this information.

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Per FHA’s Notice to Lenders issued Friday April 6, 2012, FHA has allowed a delay in implementation of portions of the previous MTG LTR #12-03 (Academy’s Credit Policy Bulletin #12-10 & 12-15) that addresses:

• Handling of Disputed Accounts
• Paying off Collections and Judgments

The new effective date of this section of the MTGE LTR is delayed until July 1, 2012. Revision of the Mortgage Letter #12-03 and the FHA Total Scorecard User Guide will be updated and posted to HUD’s website today, Monday April 9, 2012.

With this extension, any case numbers assigned prior to July 1, 2012 are subject to the previous guidance in effect for the subject topics.

Can I buy a home after a short sale in Arizona or California ?

The answer is yes.

What do you do if had to short sale in your home in Arizona or California?   Often times, most lenders won't even bother listening and shut the door right in your face.  It almost feels like there isn't any hope.  The great news is that at Academy Mortgage in Arizona and California, we do care and we do understand that many families are deserving of that second chance. YOUR EYES ARE NOT DECEIVING YOU!  

I did just say that we can finance you after a short sale with a USDA Home Loan.  How you ask?  See the USDA Short Sale Matrix below for more information on how you can buy a home after a short sale in Arizona or buy a home after a short sale in California:

Short Sale with Late Payments:

• Must wait for a minimum of 12 months from the last late payment
• Short Sale Hardship Letter
• GUS (Automated Underwriting) Approval

Short Sale with No Late Payments:

• Must wait until the short sale appears on your credit report and we can finance immediately thereafter (1-2 months after the short sale)
• Short Sale Hardship Letter
• GUS (Automated Underwriting) Approval

Not only can we close most loans in ten days* but we can also finance families that are willing to purchase a home in an Arizona USDA designated area or California USDA designated area after a short sale. 

For more information on how to buy a home after a short sale, contact Ted Canto or call me directly at 480.650.8602.