What is an "Underwater" Homeowner To Do?

When a homeowner is considered "underwater," it means their current mortgage balance exceeds their actual property value. Being unable to refinance a home mortgage due to lack of property value has been a major problem for many U.S. homeowners the past few years.

HARP, the federal Home Affordable Refinance Program, offers an option to some homeowners finding themselves in this predicament; however, borrowers who have ANY delinquent payments in the past 12 months are not eligible for the program that can allow refinancing as high as 125 percent the homes value.

Other requirements include Fannie Mae or Freddie Mac being the loan owner before or as of May 31, 2009, the loan has not been refinanced under HARP previously, and the current loan-to-value ratio(LTV) is at least 80 percent. Credit scores and individual lender guidelines are also factors when becoming eligible for this program.

What is your first step in finding out if this program is available to you? See if your mortgage is owned by Fannie Mae or Freddie Mac by clicking on both of these look-up tools:

Fannie Mae Look-up Tool 

Freddie Mac Look-up Tool

                                                              

Home Price Indicator - Your Local Forecast

It is estimated that median home prices will fall 3.6 percent by the end of this June. Interested in finding out where your home market is estimated to be by the end of June, 2012? CNN Money offers a home price indicator tool geared to pull information on 384 different markets. Click on this LINK to find out what you can expect by June, 2012.

Reverse Mortgages - The New Retirement Fad?

Traditionally, a reverse mortgage is where the lender pays money to an elderly homeowner for the duration of them living in the home. The homeowner must be 62 years of age and does not have to have income or very high credit scores to qualify as they are not making any monthly payments while they are occupying the home. Once the home is sold, the loan and any interest accrued is repaid.

New statistics have come out from a MetLife Mature Market Institute and National Council on Aging study showing that the interest in these reverse mortgages has now increased to the younger demogrpahic of baby boomers. In 1990, the average age of reverse mortgage borrowers was 76 while now it has dropped to 73, with 21 percent of people considering the option being from ages 62-64 years old.

Since the FHA has made reverse mortgages available at very reasonable financial standards, this younger demographic has turned to the once "older" option. Some baby boomers are looking into using reverse mortgages as a way to use their home equity for retirement planning but before you consider this option, please consult a mortgage professional. Any questions can be addressed by calling our office at 704.892.5211

Happy St. Patrick's Day!

Aapex Financial Solutions would like to wish you and your families a Happy St. Patrick's Day. Have a safe and fun holiday and click here to learn more about St. Patrick

and what the holiday is all about.

 

Another Large Mortgage Company Gets Hit by the SEC

According to the Huffington Post, three executives from Thornburg Mortgage Inc. have been charged with civil accounting fraud. In the past, Thornburg Mortgage was the second largest independent mortgage company in the US, after Countrywide. The allegations state that the executives conspired to hide terrible conditions and overstate the company's income by more than $400 million during the collapse of the housing market.

The lawsuit was filed this Tuesday in Albuquerque, N.M. The Securities and Exchange Commission is seeking fines and restitution from the three executives and is hoping to ensure they will no longer be able to serve on the board of any public company.

Florida - 14 Year Old Buys Home!

As reported by Chana Joffe-Walt of NPR - Amongst the land of Florida foreclosures, a young teen found an opportunity to capitalize on the bad housing market. Willow Tufano, 14, grew up in Florida with her real estate agent mother. She experienced the housing boom when home prices were skyrocketing and her mother's business was flourishing. Soon there after, the harsh reality of economic downturn hit her surrounding neighborhoods and her mother began working with flippers and investors to continue her business.

What started out as a Craigslist hobby of selling leftover furniture from flipped homes blossomed into the purchase of this 14 year old's first home. A two bedroom home was being auctioned for only $12,000 and Willow jumped on the opportunity. She purchased the home with her mother and now rents it out to a young couple, making her possibly one of the, if not the, youngest landlord in the U.S. She plans to eventually obtain full ownership of the home by having her name alone on the title when she turns 18 years old.

Lowered Fees for Refinances and Compensation for Military Foreclosures

Today, President Obama announced at a news conference that the Federal Housing Administration will be lowering the MIP (mortgage insurance premium) for refinances. The MIP will be lowered from the original 1 percent down to 0.01 percent and the annual fees on FHA loans made prior to June 1, 2009, will be lowered from 1.15 percent down to 0.55 percent.It is estimated that this plan will effect as many as 3 million borrowers and save them an average of $1,000 a year.

In addition, mortgage servicers are to supply members of the military, who faced foreclosure under incorrect circumstances, with compensation in the form of lost equity and interest. Military members who also were denied foreclosure rights will be receiving refunds.

Celebrity Home Selling Spree

It appears that many celebrities are selling their upscale, luxury homes on the market. Will they sell? Tell us what you think. Below are a few key points to recent celebrity homes that went on the market:

Michael Jordan
Chicago-Highland Park
$168 million property
Regulation sized basketball court, 8 acres, 56,000 square feet, outdoor tennis court, guesthouse

Anderson Cooper
NYC-Garment District
$3.75 million penthouse
Multi-room surround sound, 3,100 square feet, landscaped 1,700 square feet deck, limestone bathroom floors

Dick Clark
Malibu, CA
$3.5 million property
Secluded location off Pacific Coast Highway, 22.89 acres, ocean view, built-in buffet and shag carpeting, adobe style