House Extends Closing Date for Homebuyer Tax Credit!
Homebuyer Tax Credit Update Effective 6/30/2010 - Waiting for the Bill to be signed!
The U.S. House of Representatives has voted to extend the Home buyer Tax Credit.
The National Association of Realtors said that over 180,000 people would lose their Tax Credit if the extension didn't come through, now we have confirmation that the House of Representatives has extended this closing date to September 30th.
According to the National Association of Realtors what tipped the balance was the people who followed the rules and were still going to be caught without the Home Buyer Tax Credit due to the June 30th closing date. These transactions included some 75,000 short sales, or homes being purchased for less than the existing debt on them.
Dust off those April contracts that could not close by the June 30th deadline! All that remains for the Bill to extend the deadline for closing to September 30th, is one signature!
(from earlier post on 06/16/2010)
If you haven't been informed yet, the Homebuyer Tax Credit has almost ended with less than a month left for First Time Home Buyers and Current Homeowners to close their deals and qualify for the Tax Credit. While this opportunity was a great chance to get hefty Tax Credit from the government ($8,000 for First Time Home Buyers and $6,500 for Home Owners buying and moving into another home), it may be a problem for those who applied near the end of April and are still trying close their loans. Right now, those Tax Credits were set to expire for any loans that had not been closed and funded by June 30th of 2010. You had to have a signed Purchase Contract in place by April 30th. As a result, some Purchases are starting to fall apart because they are "In Contract" before April 30th but they are not able to close by the end of this month.
Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."
There is talk of Harry Reid possibly having a proposal which will allow those who have already signed sales contracts, to close and fund by September 30th as an amendment to a Bill already in Congress that would extend jobless benefits for the unemployed through the end of November.
The National Association of Realtors has been pushing very hard for an extension out of an awareness of the difficulty Mortgage Brokers are having with the current deadline of June 30th. Since the entire process of getting a Mortgage now takes a bit longer than it used to, Mortgage and Real Estate Professionals view an extension of the Tax Credit Program as essential.
First-time buyers are eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home can qualify for a credit of up to $6,500.
Alan Greenspan, Former Federal Reserve Chairman on Rates...
Last week, Greenspan wrote an Op-Ed for the Wall Street Journal in which he warns of an inevitable rise in interest rates.
Here is a link to the WSJ's online excerpt for non-subscribers. The second paragraph should be more than enough to tell you that rates will rise and not only that, they MUST rise. To read the entire piece, take advantage of the subscriber link at the end of the excerpt.
So what does this mean to those who want to want to buy or refinance a home?
Rates are not likely to go any lower and home prices are still low. All indicators are pointing to taking action now or missing out! If you are currently in an ARM Loan, you need to refinance now into a fixed rate mortgage. If you are buying and you have been waiting for better rates or better prices, it's time to make a decision!
To get started now, give our professional staff at Valley West Mortgage a call at (888) 931-0007.
Las Vegas Mortgage Rates
I have prepared a brief summary of mortgage rates for the most common loan programs. As you know, rates can vary greatly based on credit scores and loan to value but, for this weekend, the rates below are realistic.
A simple way to know if Refinancing is worthwhile...
The first question to ask yourself is, "How much money can I save each month?" A good general rule of thumb is if you can reduce your payment by $100 or more each month, it is time to look into refinancing. If your current Interest Rate on your FHA Mortgage is 5.50% or higher, you should be calling us right now, before Interest Rates start to rise again!
This is especially true if you currently have an Adjustable Rate Mortgage. You should refinance into a 30 or 15 year fixed loan while rates are still low and before your current FHA ARM Loan starts to adjust! Chances are that you will be able to save money and take away the worry of rising payments!
Refinancing your current FHA Mortgage is an easier process than it is for many Conventional (non-Government) loans. Call our Mortgage Professionals at Valley West Mortgage today and we can help you determine if you should begin the application process. 1-(888) 931-0007
Possible Extension to Homebuyer Tax Credit... Or Not?
Rumors of a Possible Extension of the Homebuyer Tax Credit now appear to be short lived! This Tax Credit may be back on hold as of 06/25/2010. When we know more, we'll post it right away!
(from earlier post on 06/16/2010) If you haven't been informed yet, the Homebuyer Tax Credit has almost ended with less than a month left for First Time Home Buyers and Current Homeowners to close their deals and qualify for the Tax Credit. While this opportunity was a great chance to get hefty Tax Credit from the government ($8,000 for First Time Home Buyers and $6,500 for Home Owners buying and moving into another home), it may be a problem for those who applied near the end of April and are still trying close their loans. Right now, those Tax Credits were set to expire for any loans that had not been closed and funded by June 30th of 2010. You had to have a signed Purchase Contract in place by April 30th. As a result, some Purchases are starting to fall apart because they are "In Contract" before April 30th but they are not able to close by the end of this month.
Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."
There is talk of Harry Reid possibly having a proposal which will allow those who have already signed sales contracts, to close and fund by September 30th as an amendment to a Bill already in Congress that would extend jobless benefits for the unemployed through the end of November.
The National Association of Realtors has been pushing very hard for an extension out of an awareness of the difficulty Mortgage Brokers are having with the current deadline of June 30th. Since the entire process of getting a Mortgage now takes a bit longer than it used to, Mortgage and Real Estate Professionals view an extension of the Tax Credit Program as essential.
First-time buyers were eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home could qualify for a credit of up to $6,500, that may last until September 30th. When we hear of any confirmation on such a proposal, we will be sure to let you know!
Short Sales on the Rise
Short Sales on the Rise
The Definition:
A short sale is an "arrangement" between the current owner of a home and the bank that holds the Mortgage on the home. This arrangement allows the homeowner to sell the home and accept an offer for less than the total amount owed to pay off the Mortgage. This is particularly useful if you are "upside down" on your current Mortgage. If you are in this unfortunate position as are many families in Las Vegas and across the Nation, and your Mortgage is owned by Fannie Mae, then you should contact Valley West Mortgage and let our Mortgage Professionals help you decide if this tool is for you!
You may be able to keep your Home!
Before you decide to do a Short Sale, let us help you to qualify for a Short Refinance. The principle is the same as for a Short Sale, but you get to keep your Home by Refinancing your existing loan down to the Current Market Value. In some cases that we have seen, this has saved Hundreds of Thousands of Dollars off of the amount now owed on the Mortgage while cutting the Monthly Payment in half! You owe it to your family to at least try! If you don't ask, they can't say yes. Give us a call today, you have everything to gain and nothing to lose by trying!
On June 1st of this year, Fannie Mae announced changes and improvements to their Loan Modification Processes. Guidelines were changed which simplified the Short Sale process a little more in favor of distressed homeowners. If you had been turned down by your Fannie Mae Servicer prior to June 1st for a Short Sale Agreement, you should try again under the revised guidelines. One of the changes provides incentive for Realtors to want to help you sell your home. The commission limit that had been placed on Realtor Commissions has been removed and replaced with allowing for "usual and customary" commission fees. Since having a competent Realtor with experience in Short Sales is essential, this change will encourage those professionals back to the marketplace. Another really big improvement is that the Deficiency (the difference between the amount owed and what the bank collects at the short sale) must be Fully Released by your Loan Servicer! They cannot make further attempt to collect the Deficiency from you after the sale is complete. Even if your mortgage is not owned by Fannie Mae you should stay informed on this subject because most other Lenders starting with Freddie Mac will adopt similar guidelines!
Are you having problems which prevent you from paying your mortgage?
Give us a call to find out how we can help you refinance or sell your house for less than you owe.
Give Us a Call: 1-888-931-0007 Las Vegas Residents Call: 1-702-696-9900
Las Vegas Real Estate This Week
While we have said before, that Mortgage Interest Rates are expected to rise in the not to distant future, Rates actually dropped slightly in response to economic news. Typically, when the Stock Market drops, money moves out of Stocks and into the Bond Market. As the Bond market rises, Mortgage Rates tend to go lower. This is helpful information to determine the best time to lock your rate. It is important to have your Credit and Income approved first. In that way, you are ready to lock your rate when these rare opportunities occur.
Remember, other factors also affect both Rates and Home Prices. If you are waiting to possibly save an eighth or quarter of a percent on the rate but home prices are climbing due to supply & demand, you could end up saving on your interest rate but paying more for the home you want to buy. It is important to keep in touch with your Mortgage Professional at Valley West Mortgage. We watch all of these indicators so you don't have to!
New Quality Control Measures from Fannie Mae
In May our big Brother or "Sister", the largest purchaser of home loans, announced a new requirement prior to the funding of a Mortgage. Posted on Mortgage News Daily, May 10th. Fannie Mae introduced a quality control measure which is for the purpose of the safekeeping of the investors against the future home buyer assuming more debt than they can manage and as a preventative measure to prevent possible future defaults.
This quality control measure makes the lender re-verify the borrower's credit history by obtaining a new in-file credit report for loans which are to be underwritten manually and through the underwriting process.
Note: The credit report must be a source other than the original credit reporting agency.
When a lender has this information it allows them to find out if you've tried to take another loan out on the same property, which isn't favorable by any means.
How should you proceed?
Simple, If you are in the housing market it is very necessary not to apply for additional consumer credit without consulting with your mortgage professional first.
Mortgage Loan Modification Vs. Refinance
What is the difference? Which one is right for me?
Loan Modification, or more specifically, Mortgage Modification is a tool that you may be able to use to stay in your home rather than loose it to Foreclosure. It differs from a Refinance in that Modification programs are designed to modify the terms of your existing Mortgage. A Refinance replaces your existing mortgage with an entirely new one. Since 5% of all Adjustable Rate Mortgages are going to "Reset" in the next 10 months, you could be in real trouble if you have one of those ARM loans. Ideally, you want to refinance into a low, Fixed Rate Mortgage before your current mortgage resets and before Rates on Fixed Mortgage Loans start to rise!
The Obama Administration has put forth a government mandate to Lenders called the "Federal Home Affordable Modification Program" or HAMP. Many lenders have their own guidelines under which they would agree to a Modification of your existing Mortgage but the Obama program, HAMP has specific guidelines under which a Lender must allow a Mortgage Modification if you meet the criteria. The Obama Making Home Affordable Program may be available if your loan is owned by Fannie Mae or Freddie Mac. If not, check with your Lender or Loan Servicer to find out what Mortgage Modification programs they might have available.
You can apply to your Lender on your own for a Modification of your Mortgage but, the process can be quite daunting. Just here locally, in Las Vegas, many Loan Modification companies or consultants have popped up in the past two years. While many have been reputable, many have been taking advantage of desperate homeowners by charging high fees in advance and then not providing the service. Some have even collected as many fees as they could and then just disappeared after stringing along as many people as possible while they collect fees from as many "clients" as they can. For this reason, the State of Nevada and many other states have enacted laws requiring any person or company engaging in Loan Modification services, to be licensed and regulated just as Mortgage Brokers and Lenders are currently.
At the end of this post, you will find important links to resources that you can and should use to educate yourself on the Loan Modification Programs that are available to you. It is important to be very well informed and know your rights before you contact one of these Mortgage Modification companies. First and foremost, check to see if your State requires Licensing for Loan Modification Companies or Consultants. Then make sure that the company you choose is licensed!
So which one should I choose?
That depends on your current situation. Generally, if you are current on your mortgage and not owing more than your home is valued at, i.e. "upside down", you should look at Refinancing first. Even if you have had a few late payments in the past two years, you may qualify so don’t tell yourself that you can’t before consulting with our Mortgage Professionals here at Valley West Mortgage. If you are not sure that you are “upside down” or have too many late payments, not enough income or a long enough employment history, etc., we will help you to determine your exact situation so that you can make an informed choice.
Here at Valley West Mortgage, we do not provide Loan Modification services. We don’t charge any fees in advance so it will cost nothing to talk to us and find out which choice makes sense for you. We can provide you with a true picture of your situation so that you will be comfortable in the knowledge that either, you can qualify to refinance and would gain a significant savings in your Monthly Payment by doing so or, you will know that you should seek a competent and trustworthy Loan Modification Specialist who is properly licensed (if required in your State). You may also choose from many non-profit homeowner counseling services in your area. Please check with your States regulatory agency for Mortgages or Real Estate and with your local Better Business Bureau before you sign a contract or pay a fee to any Loan Modification Consultant or Company!
To find out more about how Loan Modification Programs work you can go to:
Making Home Affordable: Set up specifically for educating consumers about the HAMP program enacted by the Obama Administration: Making Home Affordable
The Federal government also provides free resources: Call the Homeowner's "HOPE™ Hotline at 1-888-995-HOPE (4673) for information about the Making Home Affordable Program and to speak with a HUD approved housing counselor. Assistance is available in English and Spanish, and other languages by appointment.
HUD.gov is a free website: To find a local counselor in your region: HUD.gov
Lastly, if you are in the State of Nevada, here is a link to check the license status of Mortgage Brokers, Lenders, Modification Companies and Individuals: Nevada Mortgage Lending Division Licensee Data . Most States are now required to have all of their licensed Mortgage Professionals registered through a recently created National Database called the "National Mortgage Licensing System" or NMLS for short.
While the State of Nevada will be one of the last States to join the NMLS System in October of 2010, your State probably already has. Here is a link to the NMLS Consumer Search for Licensees . In their search box, you can enter a Company name or an Individual (first then last name) and any location information. Once the result is displayed, you will be able to filter the results if you got too many John Smiths for example. Then check on the status of the Professional that you are thinking of working with once you are looking at the correct record.
Las Vegas Mortgages
Purchasing a home in Las Vegas
Recently, Las Vegas has been the greatest place to purchase a home if you're thinking of buying a home and staying in it for many years to come. Foreclosures over the last couple of years have dropped prices down to some of the lowest levels since the early-mid 90's. Some are wondering how will 2010 be for the Housing Market?
The short answer is that we are seeing a gradual rise in home values. The largest factor being that the Las Vegas Real Estate market has started to stabilize in the past six months. While the foreclosure rate is still high, it has leveled off. That combined with an uptick in buyers who want to take advantage of the low prices on homes, has helped to stabilize the market. It is clearly a Buyer's Market but, keep an eye on interest rates as there is some indication that they may start to rise by the end of summer.
