Tuesday, October 21, 2014

Another Mortgage Change

Federal Housing Administration (FHA) plans to reintroduce a rule it put on hiatus during the national housing recovery: After Dec. 31, investors will once again have to own a property for at least 90 days before reselling it at a higher price if they use agency financing.

The government waived the 90-day mandatory ownership period in 2010, and FHA estimates that about 102,000 properties were renovated and resold under the waiver.

However, the 90-day rule was designed to protect consumers from con artists who flipped homes at hyper-inflated prices after completing only surface repairs and doing shoddy construction.

According to FHA, the waiver has "done its job" by stimulating growth and stabilizing prices. But "inherent dangers exist when there are no minimum ownership periods for flippers," according to Harney.

Some investors and lenders hate to see the waiver end.

"The sad part is the majority of these properties were improved and [located] in underserved areas," says First Mortgage President Clem Ziroli Jr. "Having a rehabilitated house available to these borrowers" helped them get previously dilapidated homes that were made safe for occupancy."

Colonial Mortgage Group President Paul Skeens, meanwhile, warned that, as a rehab investor, he will have to ask more money for the homes he renovates and resells.

"FHA seems dead set on reverting to its pre-bust flipping restrictions," says Harney. "Financing will still be available, but selling prices of the end product – rehabbed houses for moderate-income buyers – are almost certain to be higher."

The new standard is slated to take effect after Dec. 31.
Here we go again!!!!!!
Paul Antonelli
Broker / Owner Antonelli Realty
Orlando, FL.

Thursday, October 16, 2014

Many people are now losing their loans . . . . .

In the days before the great times, actually 60 days ago, if the borrower had a short sale over 2 years ago AND has 20% down payment then the borrower is eligible for a new Conventional loan without having to document an extenuating circumstance. Now the new rule is more restrictive and no longer allows borrower’s to obtain financing after 2 years unless an extenuating circumstance can be completely documented (regardless of down payment). In an extenuating circumstance cannot be documented (as defined by Fannie Mae’s rules of what is “extenuating”) then the borrower must now wait 4 years to obtain financing.
The new rule says that the borrower must wait 7 years now after a foreclosure unless they can  document extenuating circumstances.
The Waiting Period for Mortgage Debt Discharged through Bankruptcy is effective immediately. The Waiting Period after a Preforeclosure Sale or Deed-in-Lieu of Foreclosure and Charge Off Accounts – Mortgage Debt changes are effective for mortgage loans with applications dated on and after August 16, 2014
The waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale are being updated to now require a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstances and the loan complies with all requirements specific to a deed-in-lieu of foreclosure or a preforeclosure sale due to extenuating circumstances.
For loan applications taken on or after August 16, 2014, the lender must document that the deed-in-lieu of foreclosure was completed four or more years from the disbursement date of the new loan, or two or more years from the disbursement date of the new loan when the lender confirms that the mortgage loan meets the applicable timeframes and eligibility requirements for a deed-in-lieu of foreclosure due to extenuating circumstances, in order for the loan to be eligible for delivery to Fannie Mae. For loan applications taken before August 16, 2014, the lender must document that the event was completed two or more years from the disbursement date of the new loan, and that the loan complies with all other requirements specific to a deed-in-lieu of foreclosure specified in the Selling Guide in order for the loan to be eligible for delivery to Fannie Mae. If the account was subject to a foreclosure, the foreclosure must have been completed seven or more years from the disbursement date of the new loan.
Waiting Period for Mortgage Debt Discharged through Bankruptcy
The Selling Guide has been updated to indicate that if a mortgage debt has been discharged through bankruptcy, even if a foreclosure action is subsequently completed to reclaim the property in satisfaction of the debt, the borrower is held to the bankruptcy waiting periods and not the foreclosure waiting period. Lenders must obtain documentation to verify that the mortgage debt in question was in fact discharged as part of the bankruptcy.
Waiting Period after a Preforeclosure Sale or Deed-in-Lieu of Foreclosure
The current requirements that apply to waiting periods following a preforeclosure sale (short sale) or deed-in-lieu of foreclosure provide for different waiting periods of 2 years or 4 years and set out different maximum loan-to-value ratios (LTV) for those timeframes. These requirements are being updated to remove the LTV restrictions tied to different waiting periods, and establish a standard 4 year waiting period, with a 2 year waiting period permitted if a borrower has extenuating circumstances.

So, if you have been waiting for a short sale and already have submitted your pre-approval before the Aug change, you should probably have that updated. Many people are now losing their loans due to this current change.

Paul Antonelli
Broker / Owner 
Orlando, FL
www.ThatShortSaleGuy.com                         www.PaulAntonelli.com

Sunday, October 5, 2014

Prepare your properties for fall and winter

The seasons are finally changing and temperatures dropping, say good bye to those dog days of summer. It’s important to remember that your Central Florida home needs some extra attention. Doing seasonal and monthly maintenance will help your home be prepared for the cooler months and save you major costs in the future.

Here are some maintenance items for your home this fall:

·  Check around your windows for air drafts. An easy way to do this is to hold a lighter or candle by the window frame (watch out for the curtains and drapes) and seams and see if the flame moves with the breeze.  Also check the caulk on the exterior frame, which can dry out in the summer – If there are gaps and cracks, it is time to re-caulk.  Here are some caulking tips from the DIY Network.

·  Doors – you can check for drafts the same way, and adjust or replace the door sweep if there are leaks at the bottom of the door.  Inspect the exterior caulking of doors, as well.  
·  Inspect window and lanai screening and repair/replace if necessary.

·  Oil moving parts on your garage door

·  Check for cracks on the cement finish of your exterior walls and seal with a flexible masonry (elastometric) caulk.  Once dried, the caulk can be painted. 

·  Visually inspect your roof from the ground for broken shingles, and check inside the attic for signs of leaks.  On the roof, check your ridge vents – they can come loose in high winds.  Check soffits (around your eaves) to make sure they are clear of debris, and if you have gutters, clear them of debris.

·  Our Florida weather can often be rainy in the summer, so if you have mildew on your soffits, porches or walkways, pressure wash or hire someone to do so.
In addition to those seasonal maintenance tips, here is a list of maintenance that should be performed every month:

·  Check air filters and clean or replace as necessary. Also, vacuum air supply and air return registers to remove dust and lint.

·  Clean garbage disposal blades by grinding ice cubes. You can also freshen the garbage disposal with baking soda and by grinding up citrus fruit rinds.

·  Check for cracks or separations in caulking around sinks, bathtubs, toilets, faucets, countertops and back splashes.  Re-caulk as necessary.

·  Clean or replace the dirty filter in your range hood fan.

·  With the holiday’s right around the corner, the chances of a home fire increase, so make sure to check that your fire extinguishers are fully charged and your smoke detectors are working.

Performing regular home maintenance ensures that your investment will remain beautiful for years to come.