Borrowers who are current on their home loans may be able to refinance for lower interest rates, even if they are seriously upside down. The Federal Housing Finance Agency (FHFA) announced today that it will broaden the scope of the Home Affordable Refinance Program (HARP) by removing the current 125 percent loan-to-value cap for fixed-rate mortgages backed by Fannie Mae and Freddie Mac. Other program enhancements include, among other things, reducing certain fees, eliminating the need for a new property appraisal if the FHFA has a reliable automated valuation model (AVM) estimate, and extending HARP until the end of 2013. New federal guidelines for the HARP changes should be released to mortgage lenders and servicers by November 15.

The basic eligibility requirements for an enhanced HARP loan are as follows:
Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac. To check whether a borrower has a Fannie Mae or Freddie Mac loan, go to http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx.
Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009).
Current loan-to-value (LTV) ratio must be more than 80%.
Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months.

More information is available from FHFA at http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

Any questions on what the right improvements in your home may be… simply give me a call and I will happily meet with you, make some cost saving suggestions, and introduce you to the professionals that can get it done right, and a great value to you. Talk to you soon…

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

Now the real question is, how will the second lien holders negotiate towards a settlement? You should expect that they will increase their demands to close and make the negotiating process that much more challenging. Your thoughts?

The power may be out.

Check the circuit breakers, fuses and plugs. Ensure that the circuit breakers are not tripped, or the fuses blown. Reset the circuit breakers if needed.

The batteries in the thermostat may need to be replaced.

Check the batteries in the thermostat and replace them if needed.

The thermostat may be set incorrectly.

Ensure that the thermostat is set to the A/C setting, COOL.

The thermostat may be set too high.

Set the thermostat on the air conditioner below room temperature.

The selector switch may be set to FAN ONLY.

Set the selector switch to circulate. Seal any leaks where the housing meets the window.

The outdoor temperature may be too cool.

The outside temperature must be over 70° in order for the air conditioner to work to capacity. Set the thermostat to COOL first thing in the morning to maintain the temperature throughout the day.

There may be obstructions or debris in the ductwork blocking the flow of air.

Clear the ducts and the unit of any debris or obstructions for proper air flow.

The registers may be closed.

Open the register(s) to let air flow into the room(s).

If these solutions don’t solve your problem or you still need help, feel good knowing that I have a great referral for you. All you have to do is take out your cell phone, look up my number and give me a call so you can get the help you need from some you can trust, like me. Have a great day and make sure you share this with your friends and family.

Information provided by Carroll Property Inspections.

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