Alternatives When You Can’t Pay the Mortgage

The Federal Government is geared to offer two options to struggling homeowners: Refinance and Loan Modification

Refinance is offered to qualifying homeowners that are going through hardship in which refinancing their first mortgage at a lower rate allows them to bring down the monthly payments with no costs attached to the refinance.

Modification Options: pays lenders to re-work loan terms and lower monthly payments.

Home Affordable Modification Program, or HAMP, is designed for homeowners who are likely to lose their homes because they can’t keep up with mortgage payments.
Qualification is based: your primary residence with the first mortgage being less than $729,750; which had to be originated on or before Jan1, 2009. Your monthly payment on your first mortgage must be greater than 31% of your monthly gross income. A second mortgage or a line of credit does not count and is not taken into consideration for the ratio. You must demonstrate financial hardship such as a jump in mortgage payment or a drop in income. This program is schedule to expire at the end of 2012.
Process: lower your interest rate, reduce your principal, or extend the term of the loan. Interest rate may be reduced as low as 2%.

Home Affordable Foreclosure Alternatives program, or HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. This program goes into effect on April 5, 2010.
If you need further info email me at: mbracket@hotmail.com

Commercial Retail Real Estate

Even though distress of commercial properties is high, not all-retail real estate is created equal. Unanchored strip centers in regions with high unemployment and deep housing trouble, as well as loans originated in 2006 and 2007, are disproportionately in distress.

Retail centers with loans originated before 2006 are better positioned to lowering rental rates and therefore avoiding a high amount of vacancies and mortgage default.

Unanchored strip centers are experiencing bigger problems than grocery-anchored strip centers and regional malls. These properties have problems carrying smaller vacancy rates and erosion of property income due to vacancy increases with the prolonging economic state.

Look at Anchored strip centers for a solid investment base that will grow as the economy eventually recovers. For information email me at: mbracket@hotmail.com

Financing Changes Makes This The Time To BUY.

In an attempt to clean up the national economic state, new financing regulations and programs are being brought on line at a rate hard to keep up with. Keeping informed will give you the opportunity to capitalize your financial gains. Two new changes to pay attention to are the Miami Dade Housing Financing Authority Bond Program and the upcoming FHA guidelines being consider going into effect during the summer.

Miami Dade Housing Financing Authority highlights:
Interest rate 4.95% with zero points or 4.82% with one discount point, 30 year fixed.
Owner occupied only, does not have to be first time homebuyer.
Mid credit score 600 FHA (620 conforming)
Down Payment assistance $7,500
Homebuyer Education required for all parties on the note/deed
Income limits – family 1-2 $80,880 3 or more $94,360
Sales price for single-family $452,548, property must be located in Miami Dade
Loan must close within 50 days of locking interest rate
Real Estate company transaction fees not allowed

This program will be available through the end of 2010 or until the money runs out. Regarding homebuyer education, go to www.ehousing.cc for a list of “Approved Homebuyer Education Providers”. If you need help in finding a participating lender send me an email to mbracket@hotmail.com. In order to not waist time, I suggest obtaining pre-qualification before searching the available inventory.

New FHA Guidelines Posted in February Effective Early Summer:
New borrowers required minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program.
New borrowers with less than FICO score of 580 will be required at least a 10% down payment.
Reduce allowable seller concessions from 6% to 3%

Financing the Condo Market

Due to the current financing crunch many qualified buyers have been prohibited from picking up a good investment out of the large inventory of today's market. The good news is that on January 7, 2010 Fannie Mae issued a special approval designation which has provided financing opportunities for many of the condominium buildings that up to now have been off limits other than to Cash Buyers. For a full detail list of all the buildings in South Florida you may visit efanniemae.com. If you need assistance in locating one of these properties and a participating lender I may be reached at mbracket@hotmail.com