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What the Heck is a Short Pay Refinance?

September 15, 2009

short+Pay+Davis+CA+Real+EstateThere is a new buzzword being used in today’s real estate market, that term is Short Pay Refinance.

Most of you have not heard about this.  It is a new approach were a new lender negotiates on your behalf  with your current lender to pay less than the full amount for the pay off of the existing loan. This is not a loan re-modification. This is a new loan with new terms and lower balance.

This is an amazing concept, basically you get to buy your home again at the current market value.

For more information call Carmen Isais at Keller William’s Realty in Davis : 530.601.1003 or email: carmen@focusondavis.com

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It’s Not a Dream Home If It Keeps You Up At Night.

August 18, 2009

sacramento-davis-short-sale-help

Whether you are facing foreclosure or simply need to reduce your payment, Mortgage Outreach Services can help and there is no out of pocket costs to you.

If you’re a homeowner worried about how to pay your mortgage, we can help you understand what options are available and which is the best fit for you:

Refinance: Getting out of your old loan and into a new one can free you from the instability of an adjustable mortgage by putting you into a low-rate fixed mortgage. Rates are at all-time lows, and loans can be extended to as long as 40 years to keep payments low.

Loan Modification: Having your lender modify your loan can reduce your interest rate and payment. In some cases, a lender will modify your loan to reduce the amount of your mortgage balance.

Short Sale: For homeowners in areas where prices have fallen dramatically, the best option may be a short sale. In a short sale, the lender agrees to accept less than the full amount of the mortgage so the property can be sold at the current market price.

As a borrower and homeowner, you have options.  Start by making a Consultation Request or call Carmen Isais directly at 530.601.1003. Let’s meet… once we have some basic information about your situation, we can work together and help you exercise your options.

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Foreclousure Moratorium and Short Sale Help

August 7, 2009

helpHomeowners facing foreclosure in Yolo County, Solano County, Sacramento County and across California, may get a little relief – again. From the Associated Press:

California imposes 90-day foreclosure moratorium
The Associated Press

SACRAMENTO, Calif.—California is imposing a 90-day moratorium on housing foreclosures under a new law that took effect mid June.
The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

But supporters acknowledge the California Foreclosure Prevention Act won’t stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.
The bill passed in February is similar to the Obama administration’s Making Home Affordable Program that began in March.
Both encourages lenders to cut interest rates or rewrite loans to affordable levels.”

You’ll see that this new law and “attempt” to help ailing homeowners leaves a lot of holes, and many lenders may find themselves exempt from complying. Remember, seek the services of a non-profit homeowner advocacy group to get help, such as:

Another option to foreclosure, and something I will be write more about in days to come, is the short re-finance. As another option, for short sale help, contact Carmen Isais, Real Estate professional with Coldwell Banker at 530.601.1003. Carmen offers short sale consultations for homeowners in Davis, Vacaville, Dixon, Winters, Woodland and the larger Sacramento-Metro area. If you have a home with little or equity

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Considering Foreclosure? Read This First.

November 8, 2008

Written by Carmen Isais

More and more lately the calls I am receiving from would be and past clients has to do with Foreclosure. Anyone who knows me knows that I make an effort to be positive. That being said, more people than I might care to admit are living on the edge of financial chaos. For some of these individuals, property ownership has become a financial burden and they call me with the same question. “What are the alternatives to foreclosure?”

While each case is different, here are my first two usual answers:

Contact the Lender

Before you walk away from your property, have a short sale or decided to return the deed to the bank in lieu of foreclosure, contact the holder of the note (the bank) to see what can be done that is in the best interest of all concerned.

In this market the lenders are more receptive to working out a new payment plan then to have another property on their books. Moreover, what looks good to you in the short term may appear differently when the market does come around and you were wishing you still had that property to sell.

Consider a Short Sale

If you are current on your mortgage and can remain so while your home sells, consider the short sale of your property before jumping ahead to foreclosure or deed-in-lieu of foreclosure.

Why?

Simply put, it makes more financial sense for YOU. Period.

Under the Fannie Mae Announcement 08-16 (released 06/26/2008), short sales or those engaging in pre-foreclosure sales will be cleared to borrow on another home via Fannie Mae in just two years from completion date of the short sale.

This may be painful, but two years is far preferable to the alternative of 5 to 7 years if the home goes to foreclosure and 4 to 7 years if one opts for deed-in-lieu of foreclosure.

One Important Note:

If you are wondering how an Short Sale will effect your credit score as opposed to how a foreclosure will effect it, know that all these alternatives ( foreclosure, short sales, and deeds-in-lieu of foreclosure) are all “not paid as agreed” accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your FICO score.

Contact a Realtor…

… to help you through the process.
… to answer your questions.
… to talk to the bank on your behalf.
… to market and sell your home, NOW, before foreclosure is your only option.

In most cases of foreclosure I have personally seen, one common denominator has been a lack of resources. That is, the homeowners I know who have gone straight into foreclosure were simply not away of what alternatives where available to them. But, you are reading this article, so you don’t have the luxury of claiming ignorance. :)

Seriously…

These are all painful choices, I know.  And it is easy to avoid facing and dealing with an overwhelming situation. But, reaching out immediately can save you years of struggling and financial moratorium. If you or someone you know is facing the possibility of foreclosure, call me today at 530.601.1003 or otherwise contact me, Carmen Isais,  I can help.

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My Mortgage is Adjusting Up Too Much!

August 15, 2008

“My adjustable rate mortgage is adjusting up way too much!”
That’s a complaint Loan Officers are hearing a lot lately. You’re not alone. Different estimates are that between 500 billion and 1 trillion dollars of adjustable rate mortgages (ARMs) are set to adjust by the end of next year.

Some good news – your ARM, as opposed to a fixed rate mortgage, has almost definitely saved you thousands of dollars in interest over the last few years. Congratulations!

If your mortgage rate is adjusting too much then it may be time to look into refinancing your mortgage loan. You can explore the options of refinancing your mortgage into a fixed rate mortgage to stop the loan from ever adjusting over the life of the loan or you can even look into refinancing your mortgage loan into another adjustable rate mortgage. Refinancing your mortgage into another adjustable rate mortgage will provide you with the lowest rate for your situation again and a rate that is fixed for a short term. Either option can provide you with the financing you need and get you away from the home loan that is currently adjusting by leaps and bounds.

For some people, interest rates are going up 3-4% once their adjustable rate mortgage adjusts. This is resulting in a payment increase of anywhere between $100 and $500 a month, possibly more depending on the size of your loan. A good, experienced loan officer can help you sort through your options.

Adjustable Rate Mortgages which are approaching the end of their fixed rate period will continue to adjust upwards so long as market interest rates continue on their upward trend. Many borrowers with adjustable rate mortgages who don’t like the idea of their payments going up are seeking the security of refinancing into a fixed rate mortgage. Don’t wait until you miss a payment to refinance your adjustable rate ARM mortgage. Lock in a low fixed rate today.

Stop the “PAYMENT SHOCK” Blues and look into a Fixed rate until the trend of Adjustable Rates has settled.

Another feature of the adjustable rate loan should be noted: commonly, adjustable rate loans are assumable by a creditworthy buyer. In other words, having an assumable loan might make it easier for you to sell your home in the future; if the buyer wants to take on your existing assumable loan.

The new FHASecure program was created especially to help borrowers whose adjustable rate mortgage payment has gone up and they have fallen behind in payments. If you can establish that the reason for your late payments was the rate increase on your mortgage and you had made the previous 6 months payments on time, an FHA mortgage could be the answer to your problem.

In the current interest rate environment, 30-year fixed rates are just as low as short term ARM rates, and much lower than rates of hybrid mortgages. Hybrid mortgages with a fixed rate period of 2 or 3 years in the beginning then subsequently followed by a 27 or 28 years with adjustable rates often have low rates during the fixed period. However, when the fixed period ends and the adjustable rate period starts, homeowners are in for a much higher rate and bigger monthly payment. Refinance out of such hybrid mortgage before the adjustable rate kicks in is prudent.

If you mortgage is adjusting up too much, consider a fixed rate mortgage refinance before you eat into your savings or miss a mortgage payment.

Remember that your not alone. Many homeowners are facing the same dilema. As your rate rises so does your payment. As your payment rises so does the stress. When purchasing a home it’s important to take these changes into account. If your already in the home then it’s time to look at some financing options. If you have any questions give me a call!

Darin Zabel

530.753.5657

www.lucentloans.com

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