FHA Debuts New Plan for Underwater Owners

The latest government program to help underwater borrowers debuted Tuesday.

Under the plan, the Federal Housing Administration permits lenders to choose which borrowers will participate from among their clientele. The idea is that there are some borrowers banks and investors want to get rid of because they are likely to default anyway.

To qualify, borrowers must be current on their mortgages and owe at least 15 percent more than their home’s current value. Lenders must agree to forgive at least 10 percent of the debt.

The government estimates that between 500,000 and 1.5 million borrowers will be helped, but analysts at Barclays Capital say they doubt whether the program will reach 300,000 borrowers.

Source: Associated Press, Alan Zibel (09/07/2010)

If you need help with your current situation, call us today. We do Short Sales with no fees to the seller. The Canaday Group has over 30 years experience. Don't risk your home with anyone less qualified.

Senate Passes Stimulus Package

This important news comes to us from the California Association of Realtors (C.A.R.):

"On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

C.A.R. and NAR (National Association of Realtors) have long advocated for higher conforming loan limits. The conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians."

Hope everyone is having a lovely President's Day!

Real Estate Seminar

We are looking forward to our seminar tomorrow evening, May 15th. We are headed up the coast to Newport Beach to share information about Buying Real Estate in Today's Market. We've paired up with Countrywide Home Loans and Shelly Cofini with the Cofini Group will be presenting. We will also discuss the new FHA rules, guidelines, and limits and why now is a great time to invest in real estate. Please attend and learn what's going on in the ever changing real estate market. Call our office if you'd like further information.