Recently FannieMae announced it would cut the waiting period for a new mortgage after a Deed-in-lieu of Foreclosure to just 2 years! One of the guidelines states the borrower must put 20% down. The new change will go into effect June 30, 2010.
This is great news for those people sucked into the economic slide that affected so many. Sometimes an isolated event can be devastating and if borrowers rebuild their credit, have sufficient down payment and wait the 2 years they can then look to get a mortgage once again.
Vast changes on loans requirements for condo developments have added to home ownership difficults.
Earlier this year FannieMae put out new guidelines for condos. One such was requiring in many cases new insurance called “walls-in” coverage policy (HO-6 policy). Part of HO-6 coverage is the replacement of items such as cabinetry, carpets, improvements to the home beyond the structural items covered by the HOA. The coverage must be at 20% of the appraised value of the condo.
I have this insurance on a condo in Florida and it runs about $750/yr. So that is not small change. If the cost in California runs $35/mo as a local mortgage broker stated that will impact the buyer purchasing power.
If you are looking at buying a condo these new condo lending changes must be known by your Realtor and Mortgage broker or you can hit speed bumps.
I’m just back from the National Association of Realtors Convention in San Diego. There were lots of timely break-out sessions (and others that could put you to sleep- I walked out of one). I could tell the Realtors that showed up were we interested in learning and improving their capabilities. I have personally found that training helped me and the clients I represent tremendously. I decided to take advantage of the class for the newest certification → SFR = Short Sale and Foreclosure Resource Certification. With so many companies springing up, I thought it was time to take the class offered by our National Association of Realtors. Just as I predicted I did get a LOT out of it. One of the newest offerings by FannieMae that just came out was discussed – The Deed for Lease Program. It is to help “minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization. This progream allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months.” Obviously, this would be a possible last resort. For example, the kids could remain in their school and have a stable home to come to. Sure the family has gone through the loss of their home but they do not also need to pull up roots and leave the home and neighborhood as well. It was also comforting to hear the lenders are getting more engaged in the short sale process rather than just foreclosing. With training comes knowledge and with knowledge you can be more causative in life. I like that. Count me in! Have you have training that benefitted yourself and others? By going to the seminars/training you get the in the trenches battles that have taken place so you can strive to avoid them.