Foreclosures Help Information

Posts Tagged ‘hud’

Hud Foreclosed Save

Question: First time home buyer- what is the nehemiah assistance program? Pros and cons?

Also, I heard it was "pointless" to put down less that 20%... why? Is there a mathematical equation to help figure out exactly what our down payment would save us monthly? Also, are there realtors that specialize in HUD or foreclosed homes? If so how do I find one?

Answer: Nehemiah is a non-profit organization that can grant down payment assistance from the seller for a fee. If the FHA will insure a 97% purchase loan for you, the seller can participate in Nehemiahs program and essentially "gift" the 3% down payment to you even though they are not related to you. This is somewhat unique to the FHA programs.

No real Cons. Assume that the seller's willingness to do this means that they might have otherwise accepted a lower net sales price though. So, if you have the 3% or could get a gift from relatives, you can negotiate a lower sales price.

The real Pro is that if you don't have the 3% the FHA would require and the FHA is the best program for you, the seller is able to facilitate the purchase.

The less you have to put down on the purchase the better. The primary reason is that your home equity really has a return of zero. It is difficult to access and it is at risk if you fall behind on your payments. On the other hand, if you had your 20% invested it should be growing (your home appreciates whether or not you have a mortgage) and it could be used to make the payments on the loan if you had a temporary disruption in your income (job loss, illness, etc.).

Figure the loan costs about $6-7/per month/per thousand and you can calculate the monthly savings that way (roughly) or use any of the 10 million mortgage calculators on the web.

Call a couple of brokers and ask them if the have any agents who specialize in foreclosures.

HUD also may have a link to registered agents in your area through the marketing reps website:

http://www.hud.gov/homes/index.cfm

Check it out and good luck.

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Hud Foreclosed Property

Question: i'm in Dallas Tx and my landlord's property that i'm renting is going to be foreclosed on 12-1 what happens?

The landlord told me the bank was working with him now after being confronted by me he says he's not trying to save the property anymore. I was told HUD helps people in this situation is that true? Who can i call?

Answer: The new foreclosure law requires that the bank let you live out your lease or give you 90 days notice if you do not have one. You must continue to pay him the rent until the day the bank takes possession. After that you pay the rent to the bank.

Here is the new law: http://www.tenantstogether.org/downloads/S.896RenterProtections.pdf

Colorado Springs Real Estate HUD Foreclosure 6696 Flintridge Dr 80918

Foreclosed Va Loans

Question: Forclosure Re-capture Assets?

I live in the state if Va and purchased a townhome to live in. After living there for 1.5 years I rented it out b/c I got married and moved into my wife's townhome. I also refinanced her home into both of our names. We are approx. $40k upside down in each property (ouch!)
My first purchase was an interest only ARM that is soon going to expire. Therefore, to refinance it, I's have to put 20% down b/c it would need to be an investor loan. What implications would there be if I foreclosed on my first home, which is currently being rented out. Most importantly, would the bank be able to come after any money I have saved up? Thanks for your help

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Answer: There are two types of foreclosure methods that a state can have. It can be judicial or nonjudicial. Nonjudicial means that they can advertise it for the statutory period and sell it on the courthouse steps. Virginia is a nonjudicial foreclosure state. Your only problem is if the mortgage company sells it for less than what they are owed, they can come after you for a deficiency judgment for the difference. Also, if you have a second mortgage they could come after you for the full amount of that note if the house sells for less than what you owed on the first and the second. The mortgage company would have to sue to get the deficiency judgment. In most states if you have a judgment you can garnish wages and bank accounts. I don't know the specifics of how much they can go after in Virginia at a time. I would suggest you set down with a local real estate attorney and ask them what happens in your state. Are banks even going after deficiency judgments. Laws may have changed even in the last six months that could benefit you more than yahoo chatter.

Foreclosure does really hit your credit. Unless things change you will not be able to get another mortgage for 4 to 5 years at a decent rate.

Tim Cook

www.timcooklaw.com

Home Loan Horror Story Mortgage Meltdown Foreclosed Home

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