by Chris Adams on March 5, 2012
As many of you are aware, on February 15, 2012, Freddie Mac reinforced its requirement that servicers waive deficiency liability for their companies and Freddie Mac for short sales that close in accordance with Freddie Mac guidelines.
This is another strong argument against strategic default. If your loan is a Freddie loan it makes no sense to gamble on a law suit when a short sale will waive liability. Also remember a lender does not have to do a trustee’s sale in Arizona. If you are in default and your loan does not qualify as purchase money loan the lender can sue.
A short sale of a Freddie Mac loan puts you in the position to buy sooner and now waives deficiency liability. Given these compelling factors, the question is not whether or not to strategic default – the question is why would anyone with a Freddie Mac loan strategic default?
Guest Author
Brown & Memmott Law, PLLC
by Chris Adams on January 16, 2012
If you have gone through or are considering going through a foreclosure, short sale, or bankruptcy, NOW is the time to start getting your credit back in order. Although it seems like a long time away, there are steps to take in preparation for your next home.
Buy Home After Bankruptcy (Chapter 7)
How long will you have to wait on buying a home after filing for Chapter 7? It depends on the loan type and other factors, with ranges between 2-years and 4-years from the discharge date.
- Fannie Mae: 4 years from Discharge Date
- FHA: 2 years from Discharge Date
- VA: 2 years from Discharge Date
- USDA Rural: 3 years from Discharge Date
Buy Home After Bankruptcy (Chapter 13)
How long will you have to wait on buying a home after filing for Chapter 13? It ranges between 1-year and 4-years depending on the loan type.
- Fannie Mae: 2 years from Discharge Date (4 years from Dismissal)
- FHA: 1 year of the payout must elapse & payment performance must be satisfactory. Buyer must receive permission from the court to enter into a mortgage.
- VA: 1 year of the payout must elapse & payment performance must be satisfactory. Buyer must receive permission from the court to enter into a mortgage.
- USDA Rural: 1 year from completion
Buy Home After Foreclosure
How long will you have to wait on buying a home after a foreclosure on your previous home? It depends on the loan type and ranges between 2-years and 7-years from the Trust Deed date.
- Fannie Mae: 7 years from Trust Deed date
- FHA: 3 years from Trust Deed date
- VA: 2 years from Trust Deed date
- USDA Rural: 3 years from Trust Deed date
Buy Home After Short Sale
How long will you have to wait on buying a home after a short sale on your previous house? It depends on the loan type and other factors, with ranges between 0-days and 7-years.
- Fannie Mae (w/ a max of 80% LTV): 2 years
- Fannie Mae (w/ a max of 90% LTV): 4 years
- Fannie Mae (w/ max LTV): 7 years
- FHA: 3 years from completion date (can re-enter market if short sale is sold with NO mortgage delinquencies)
- VA: 2 years from Trust Deed date (can immediately re-enter market if short sale is sold with NO mortgage delinquencies)
- USDA Rural: 3 years from completion date
Guest author: Jon Tobias of the Tobias Team @ Nova Home Loans.
by Michelle Trimmell on October 24, 2011
In an effort to encourage sellers to short sale their homes rather than let them go to foreclosure, in September the Arizona Department of Housing (AZDH) began accepting applications for a new program where they will offer $4,500 to sellers and 3% of the purchase price to buyers for help with closing costs on homes in short sale. The new program is in response to lackluster participation in the existing program aimed at helping struggling homeowners modify the principal balance on their current loan.
The AZDH offers various programs to try and help struggling homeowners keep their homes as well. Under the unemployment mortgage aid program, unemployed Arizona homeowners can receive temporary payment assistance for up to 24 months while they seek employment. Additionally, those who qualify can apply for the aforementioned Principal Reduction Program.
The Principal Reduction Program provides a loan modification utilizing principal reduction of up to $50,000 with a matching contribution from participating lenders to reduce the mortgage payment to 31% of the homeowner’s monthly income. Participants must meet certain requirements, including eligible hardship, property type, loan balance, income level, and other conditions.
While this could be good news for struggling homeowners, the largest servicers and lenders are not required to accept any terms issued by the AZDH and have only agreed to 6 modifications in the state to date.
Still for those who qualify, these programs could help homeowners save their homes from foreclosure as well as salvage their credit. Worth looking into at http://www.housingaz.com/.
