Help on the Way for Underwater Home Owners

A bill introduced in the Senate aims to remove barriers for underwater home owners looking to refinance. “The Helping Responsible Homeowners Act” would order Fannie Mae and Freddie Mac to waive fees and remove barriers that are keeping underwater borrowers from refinancing to lower mortgage rates.

The bill, authored by Sen. Barbara Boxer, D-Calif., has gained more momentum in Congress after Sen. Johnny Isakson, R-Ga., who ran one of the nation’s largest real estate brokerages, also signed on to sponsor it.

“The time to help struggling home owners is now while interest rates remain at near-historic lows,” Boxer says. “This legislation would help millions of responsible home owners who are making their payments, but are still struggling to make ends meet. By helping these home owners refinance at lower rates, we will put thousands of dollars back in the pockets of families and strengthen our economy.”

Secrets To Getting a Mortgage Even With Bad Credit

Getting a mortgage can be tough these days, even people with near-perfect credit have been rejected for loans. But for some lucky borrowers, things aren't so bad.

At a recent press conference, Federal Reserve Chairman Ben Bernanke said lending standards for mortgages have tightened so considerably that "the bottom third of people who might have qualified for a prime mortgage in terms of, say, FICO scores a few years ago, cannot qualify today."

one-in-four mortgage applicants was denied in 2010, up from about 18% in 2003, according to data from the Federal Financial Institutions Examination Council. And those are just the ones that apply, many discouraged potential borrowers don't even bother to apply anymore.  Yet, there is money to lend.

Most of the major mortgage underwriters have only returned to the more prudent standards of the days before the housing bubble. Now, according to Tuck Bradford, a branch manager with lender Mortgage Master, borrowers usually must meet four criteria in order to get a mortgage backed by Fannie Mae (FNMA, Fortune 500) or Freddie Mac (FMCC, Fortune 500), the two government-run mortgage giants:

• The ability to make a 20% down payment, plus closing costs.
• A good credit score. Borrowers usually need a minimum credit score of 620.
• Enough income to afford payments. The general rule of thumb: no more than 28% of your gross income should go toward housing costs.
• A loan-to-value ratio of 80%. Lenders want the home value to far exceed the mortgage balance because if a borrower defaults, the bank sells the home to recoup the loss.

In today's market, however, even having all four of these factors in place doesn't always guarantee that you will get a loan. But, for every client who gets rejected, there are those who have been much luckier at landing mortgage loans. And typically, they have turned to the Federal Housing Administration (FHA) for help.

Standards for these loans, insured by the FHA and issued by regular mortgage lenders, are flexible and aimed at making mortgage borrowing easier, especially for working-class Americans.
For years, the FHA had no minimum credit score requirement at all. Now though, it requires a minimum of 580 credit score to qualify for a 3.5% down-payment and 500 credit score for a 10% down-payment.

FHA is willing to overlook a blemish on a credit report, even a big one,  if other factors are favorable.
Do you have problem getting a loan, even though you have perfect credit? GO FHA!

Andre Plessis, REALTOR & Financial Educator
Los Angeles, CA
http://www.wealthcreationteam.net/

Are You Owed Money?

According to the National Association of Unclaimed Property Administrators, state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets. (You can search for unclaimed assets at MissingMoney.com .)

If your heirs don't know about these accounts, they won't be able to lay claim to them, and the money could languish. The U.S. Department of Labor estimates that each year tens of thousands of workers fail to claim or roll over $850 million in 401(k) assets. You can track unclaimed pensions, 401(k)s and IRAs at Unclaimed.com.

Facebook Launches Video Chat Feature

Video chatting is coming to Facebook through a deal with Skype, announced Mark Zuckerberg, Facebook’s founder and chief executive, at a news conference Wednesday.

Russell Haskins with Homes & Land Media told Inman News that he sees Facebook video chat feature a powerful tool for real estate professionals in landing new clients and reaching out to younger clients.

"I guarantee you people will be interviewing agents using this new tool, whether [agents] like it or not," Haskins told Inman News. "If you're not ready, they can click on another agent and call [that agent]. I think this is another [tool] separating tech-savvy agents versus those who are timid."

Other real estate pros say they see the value in the video conferencing feature for using with oversea clients or clients relocating from other states too.

To use the video chat tool on Facebook, you’ll soon be able to just click a button on your Facebook chat list or a friend’s profile page to connect. (A plug-in download will be required to make and receive calls.) Facebook’s new video conferencing tool does not allow for group chats and is not available on mobile phones. It currently can be accessed at facebook.com/videocalling, until it officially rolls out in the next few weeks.

Quote

"The best way to predict the future is to create it."
Peter Ferdinand Drucker
1909-2005, Political Economist and Author

Jennifer Aniston Sells Her Beverly Hills House for $37-38 Million

Jennifer Aniston has sold her Beverly Hills estate, which had been listed for $42 million,  for $37 million to $38 million.

Designed by Hal Levitt, the restored 1970 house sits on about an acre. The living space of nearly 10,000 square feet contains two living rooms, two kitchens, a gym, five bedrooms and 71/2 bathrooms. Outdoor amenities include a swimming pool, a spa, ponds, fountains, an alfresco living room, fireplaces and another kitchen.

Aniston, 42, starred this year with Adam Sandler in the comedy "Just Go With It," but she is still best known to TV audiences for her Emmy-winning role on "Friends" (1994-2004).
She bought the property in 2006 for $13.5 million, according to public records.

When you think about it she bought that house atthe high of the market, and made a hefty profit. That's how smart real estate investors are. They know how to purchase real estate, embellish their properties and sell them at a higher profit.

Andre Plessis REALTOR

To find out how to buy and sell real estate correctly, call 1-877-APPLYFREE

New Federal Program Offering Aid To Struggling Homeowners & It Doesn't Need to be Repaid.

For the nearly 4 million homeowners who have fallen behind on their mortgage payments, the federal government is offering a new remedy: free money to catch up on their loans.

The Emergency Homeowners Loan Program is the latest in the federal government's efforts to slow down the flood of foreclosures a necessary step to a full recovery in the housing market, says a Department of Housing and Urban Development official. For people who have lost their jobs, the $1 billion program offers loans of up to $50,000 that don't actually need to be repaid, if applicants meet certain requirements.

Rolled out by HUD and the nonprofit housing advocacy group NeighborWorks America, the program is making loans with far better terms than anything on offer at a local bank. The loans are interest-free. Payments go directly to the lender for a portion of the borrower's monthly mortgage, including missed payments or past due charges. And when the assistance period, which runs for up to two years, ends, 20% of the loan is forgiven with each passing year. In other words, for qualified borrowers who stay in their home for at least five years after the assistance period and who don't fall behind on their mortgage again, this money doesn't have to be paid back.

The program started last week and will take applications through July 22. To be eligible, homeowners must have lost income and be at risk of foreclosure due to involuntary job loss, underemployment or a medical or other economic condition; details on the application process are available online through NeighborWorks America.

Andre Plessis, REALTOR Los Angeles, CA

http://www.wealthcreationteam.net/