Sacramento Real Estate
Seems Sacramento County is getting a whopping 820 million dollars out of a $25 billion settlement with the banks that screwed the ?American Dream.? When you think about the fact the banks made a profit of over 45 billion dollars last year, this is a drop in the bucket for settling on foreclosed & struggling homeowners. But, it?s a start?
RULES For Foreclosed Homeowers to Receive Money:
Oh, and by the way this settlement will not include all distressed, foreclosed CA homeowners. ?Your loan had to be with one of the big 5 banks below or serviced by them AND the foreclosure MUST have been between January 1, 2008 and December 31, 2011
This settlement is a result of the illegal robo signings fraud and pulling the rug out from under homeowners who thought they were in the process of working out short sales and loan mods with the banks. ?And those who lost their homes to foreclosure will get a couple $2,000. Yippee.
What an insult?lose a home get $2,000. Sounds fair to me, how about you? ?I guess those checks will be going out within the next 120 days (if they can find those folks)! ?That brings up an interesting question?HOW ARE THE BANKS GOING TO FIND OUT WHO THE FORECLOSED HOMEOWNERS WERE THAT THEY ILLEGALLY FORECLOSED ON? ?mmmmm
We will start seeing banks foreclose on homes now, since they had this lawsuit looming over their heads regarding the robo signings, now the coast is clear to start foreclosing on those homeowners who have not been paying their house payments and living in the house for over a year.
The U.S. Government bailed the banks out and now sued the banks. Does anyone begin to even understand that type of logic? Well, this is just one law suit, now the investors will have their turn at the banks and servicers for the way the loans were bundled and sold off. ?Wonder what amount the investors will settle on?
It is said it will take about 6 months to implement what Citigroup, JPMorgan Chase, Bank of America and Ally Financial (who use to be GMAC) will be able to do for the homeowners out there in Sacramento that are struggling to pay their house payment. Now, remember there are always rules to everything and this is no exception. ?Here are today?s rules?
Rules for Distressed Homeowners Who Are Looking to Refinance:
- Your loan MUST be either owned or serviced by one of the 5 big banks that are part of this settlement
- Your MUST be current on your mortgage payment and NOT have been delinquent during the past year
- You MUST owe more than the home is worth (that shouldn?t be a problem)
- Your current mortgage loan MUST have an interest rate of 5.25% or greater
- FHA, VA loans are NOT eligible to be refinanced
- No bankruptcy or foreclosure in the last 2 years
Rules for Mortgage Reduction:
You MUST owe more on your mortgage than the current value of the home (that shouldn?t be a problem)
You MUST have missed one of your loan payments or you are about to miss one
The rules at the moment stipulate there will be money to help lower the mortgage debt and for loan modification.
The homeowner cannot have missed any payments if they want to refinance, the loan amount cannot exceed the conforming limit for the area you live in, it has to be your personal residence and your credit score cannot be lower than 580. ?However, the loan cannot be a loan guaranteed by Fannie or Freddie Mac. ?Want to know if your loan is Fannie or Freddie backed? ?Check out these sites:
Those are the rules as of today and always subject to change, of course.
Apparently, this settlement is effective over a 3 year period. ?Let?s see how long the banks take to start implementing yet another set of rules when it has taken years for them to implement the short sale system we have had for several years now. It?s my understanding the banks must prove they are working with the homeowner or suffer the consequences of the wrath of the Attorney General. I wonder if they?re worried?
Big 5 Banks and their Contact Information:
The STRONG and WILLFUL will SUCCEED!
Call your bank if it?s one of the big 5 and make sure they know, YOU know?good luck! ?Struggling homeowners, expect long delays on the phone, paperwork not received from you by the banks and bank officials telling you conflicting information?this is par for the course. ?Even though the bank settlement says, ?the banks will contact you,? ?if any of the above information applies to you, you should contact the bank (in my humble opinion).
In the meantime, the struggling homeowner will be waiting for all this to happen, hoping for some relief?I just hope this isn?t a set-up where we end up seeing the banks foreclose on a homeowner who thinks they are waiting for a reduction in their mortgage or a loan modification. ?That would be a repeat performance of the same.
I see a lot holes in this system and after the years working with banks doing short sales, I don?t think this will be an easy one for them to implement. Hope I?m wrong.
Sacramento Short Sale
Now, if you don?t qualify for a mortgage reduction or loan modification give me a call or email and let?s get your home listed as a short sale before the banks own another part of the ?American Dream? through foreclosing on your home.
Some other Articles & Videos to Help:
Sound Advice When Upside Down on Home Mortgage
Does It Matter Who The Short Sale Agent Is?
Get Your Short Sale Now BEFORE Law Leaves You At Risk
Source: http://www.sacramentorealestatevoice.com/more-help-for-struggling-sacramento-homeowners/
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