Home Owner Affordability and Stability Plan and Short Sales

President Obama signed a plan designed to help homeowners stay in their homes and avoid foreclosure. The three main points of the plan are as follows:

1). It will help homeowners refinance to lower their interest rate. The Loan to Value on the loan should be no more that 105%. So let’s assume the house was bought for $500,000 with the 1st Trust Deed as $400,000 and the 2nd Trust Deed is $100,000. If the value of the home dropped to $420,000 – the homeowner still can refinance as it is 105% of the first Trust Deed. If the Value dropped more than $420,000 – the homeowner will not be eligible to refinance. This section of the plan will help about 7-9 million borrowers refinance their homes.

2). The plan will help homeowners modify their loans. All the loans which were bought by FNMA and FDMAC can be modified (in today’s market it is 60% of all the loans). This section of the plan is designed to help approximately 4-5 million borrowers. The bank will modify the loan in the way that the new PITI (Principle+Interest+Taxes+Insurance) will be 38% and the bank and FNMA will split additional 7% of the costs and bring the PITI to 31%. If the loan is not held by any of the mentioned above investors, the borrower should contact their bank directly and try to work out some options. Borrowers should be aware of the many scammers working in the loan modification field. Make sure you hire someone with a license and do not pay any upfront fees for these services. At the end you can do it yourself.

3). This part of the plan is designed to make more than $200 billion available for people who are buying homes for the first time (first-time home buyers). This provides first-time home buyers with new mortgages that are very affordable, have low interest rates and tax credits that will be available to them at the end of the year – $8000 if they purchase a home between 2009-June 2010, and up to $18,000 – if they buy from a developer.

The borrowers who will not be able to qualify for these programs will still be able and encouraged by the banks to do a Short Sale or a Short Pay Off to avoid foreclosure.

This is just short break down of the plan. If you have any questions or need to see if you qualify to any of these programs or for a Short Sale program, you are more than welcome to contact me.

Ihor Pochay
Real Estate Broker/ Short Sale & REO Specialist
Team Pochay Realty
Cell: (562) 334-7393
ihorpochay@hotmail.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com

Ten Reasons to Purchase a Short Sale Property

I’ve put together a list of 10 reasons why Buyers should consider purchasing a Short Sale home in today's market:

1). Great Value: Short Sale properties offer Buyers great prices. On average, these properties are 5%-15% below the market price!
2). Wider Selection: Most of the properties on the market today are Short Sales (65%-80%). In some areas, the percentage is even up to 90%. If Buyers consider Short Sale properties in the current market, they'll actually increase the chance to find the property that will match their needs.
3). Good Condition: The properties sold in Short Sale transactions will be in much better condition than the ones that are sold as REO (real estate sold by banks).
4). Credit of $8,000: If the Buyer purchase a Short Sale home before the end of November 2009, they will receive an $8,000 credit from the government!
5). Tax Relief: Buyers will also be able to deduct all interest, taxes and points from their taxes.
6). Pride of Home Ownership: No further explanation.
7). Reduce REO Inventory: Buyers purchasing Short Sale properties are in fact helping Sellers avoid foreclosure.
8). Negotiations: Buyers will have the ability to negotiate closing fees, home warranty fees and credits for repairs, etc.
9). Quicker Bank Approvals: The time to obtain Short Sale approval has been shortening. Some banks are able to approve Short Sale Approval Letters within 30 days.
10). Advantageous Edge: Banks are very motivated and willing to work with Buyers in order to avoid another foreclosure.

If you have any questions in regards to Short Sale transactions, I can be reached at (562)334-7393.

Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
http://www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay