Read the whole story here: http://freddiemac.mediaroom.com/index.php?s=12329&item=127954

I think this is going to be a hot summer for real estate.

Read the whole article here: Stunned Home Buyers Find the Bidding Wars Are Back .

• Relaxed eligibility guidelines in order to make the program more accessible to those who need it most.
• Elimination of the 125% loan-to-value cap
• Relaxed credit score and income requirements
• Relaxed occupancy requirements allowing borrowers to refinance their second home or investment property

Hopefully the new changes will make a difference. If you are underwater and need to sell or refinance, give me a call.

Jesse Rivera
Fairplay Realty
503-683-2508

Enough Said.

Trial loan modifications are being canceled at an increasing rate

Lenders are canceling trial loan modifications at an alarming rate. In fact, the number continues to rise so much that Citigroup has canceled the program altogether.

Citigroup, along with B of A had also been offering principal reductions to try to help home owners in trouble, but that program also seems to be offered at a reduced rate as this housing problem continues to plague, not just the U.S., but the world. Stock markets around the world have been in dive mode – the DOW dropped below 10,000 again today. The reason most often cited is the housing problem here in the U.S. which is not only not improving, but seems to be getting worse. People are not buying – while banks are sitting on cash, and tightening lending guidelines at the same time. The rationale, of course, is the fear of more bad loans.

The government advises home owners who have either been denied a modification, or have had trial modifications canceled mid-stream to keep trying other alternatives before seeking either a short sale, or letting the property go to foreclosure.

Continue reading on Examiner.com Trial loan modifications are being canceled at an increasing rate – Portland Real Estate | Examiner.com

This answer is by Matt Bukovy, Sr. Mortgage Consultant at Wintrust Mortgage

To qualify for an FHA LOAN after a Short Sale: You must either wait 3 YEARS from the date sale closed and transferred to new owner. There is (theoretically) no waiting period if the borrower had no late payments on ANY mortgage or consumer debt within the 12 month period preceding the short sale AND they are not taking advantage of declining market conditions, but … seriously … that’s exceedingly unlikely.

For CONVENTIONAL LOANS, it’s more complicated:
7 years from date sale closed and transferred to new owner or transferred back to bank for new loans with less than 10% down payment.
4 years from date sale closed and transferred to new owner or transferred back to bank for new loans with 10% down payment.
2 years from date sale closed and transferred to new owner or transferred back to bank for new loans with 20% down payment.
2 years from date sale closed and transferred to new owner or transferred back to bank for new loans with 10% down payment and acceptable extenuating circumstances.

As far as acceptable extenuating circumstances are concerned, they need to be documentable and verifiable nonrecurring events that are beyond the borrower’s control and cause a sudden, drastic and prolonged reduction in income. Death of a wage earner and catastrophic illnesses would count, divorce would not (since that is within the borrower’s control.)

So, as a rule of thumb, since it seems unlikely that someone with a 10 or 20% down payment would be ALLOWED to short-sell, most of the time, it’s going to be three years before you can get an FHA loan, and 7 years to get a conventional one.

There is no clear answer for this question, because each situation is different. There can be little effect and and there can be a dramatic change in scores from beginning to end. Things that can effect how your credit is changed are: How the bank records the sale; How many late payments did you have, if any; did you fall behind on your HOA and did they place a judgement on you. And that is just the short list.

You may want to consider talking to your tax adviser, your lawyer and your real estate professional before move forward with a short sale.

Founder of “for sale by owner” site calls in broker to get the job done

Mr. Sambrotto apparently spent six months trying to sell his fancy digs himself before turning to a broker. Jesse Buckler, the broker that Sambrotto hired, increased the price and managed to attract multiple offers before selling the apartment for $2.15 million, $150,000 more than the asking price.

Read more…

“$150,000 more than the asking price.” I think that answers that question.