Tag Archives: Underwater

Wisconsin HARP Lender Reports an Improve in Refinances for Underwater Borrowers Compared to the State’s Foreclosures

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Madison, Wisconsin (PRWEB) November 14, 2012

Peoples Property Equity, Inc., a Wisconsin HARP Lender, reports that government’s Property Reasonably priced Refinance Plan (HARP) is gaining momentum and showing a optimistic trend in helping underwater home owners by providing them an alternative to foreclosure.

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According to the most current refinance report by the Federal Housing Finance Agency (FHFA), 11,357 HARP refinances were completed in Wisconsin YTD, and two,163 had been for homeowners who owed far more than 105% on their mortgage compared to their home’s value.

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When compared to a current foreclosure report by CoreLogic, a major provider of information, analytics and enterprise services, the total number of foreclosures in Wisconsin from September 2011 to 2012 is 12,752.

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The 2012 FHFA Refinance Report numbers indicate that prior to the HARP 2. updates rolling out in October 2011, several thousand borrowers who refinanced beneath the HARP System could not have had a good alternative to enhancing their economic situation.

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Increasingly enhancing marketplace conditions and sector and government policy are permitting distressed homeowners to pursue refinancing, loan modifications or brief sales rather than foreclosures,” said Anand Nallathambi, president and CEO of CoreLogic.

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Reduce mortgage payments by way of refinancing can assist underwater borrowers take benefit of record-low interest rates and extend repayment timelines.

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CLICK Here to check HARP eligibility

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John (JR) Katrichis, Branch Manager with Peoples Residence Equity, Inc., believes HARP two. is failing property owners since it isn’t reaching enough certified borrowers and most lenders are taking also long to concern approvals.

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Even though HARP revisions have made a positive effect on Wisconsin’s housing industry, Katrichis insists that even more borrowers need to be eligible to participate in HARP refinancing in order for the program to make a substantial effect on the foreclosure crisis.

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“The government can improve on HARP two. by expanding it to non-agency lenders and removing the Might 31, 2009 origination qualifier,” he mentioned. Other than failure to meet HARP suggestions, Katrichis mentioned that low credit scores are a key obstacle preventing underwater homeowners from taking full benefit of the new federal recommendations for refinancing eligibility.

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Thanks to the new HARP Refinance guidelines, Katrichis has been able to assist even more borrowers steer clear of what they believed was imminent, unavoidable foreclosure. About 75% of my company comes from home owners who have loan-to-value ratios above 125%, he stated. Ive even helped a homeowner with an LTV of 155% effectively take advantage of HARP advantages, he added.

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Unlike the competition, People’s Property Equity, Inc. offers underwater homeowners expedited service that permits them to save time on the refinancing process from start off to finish. “Our underwriters are correct right here in the very same building, so we can get loans authorized and closed faster than other lending companies,” Katrichis said.

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HARP two. Overview

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In fall 2011, The Federal Housing Finance Agency worked with the GSEs to increase access to HARP rewards for responsible borrowers. As a outcome, the following HARP revisions have been created to assist more underwater property owners:

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1) Eliminating specific danger-based costs for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers

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two) Removing the 125 percent LTV ceiling

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3) Waiving specific representations and warranties that lenders commit to in creating loans owned or guaranteed by Fannie Mae and Freddie Mac

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4) Eliminating the require for a new house appraisal where there is a reputable AVM (automated valuation model) estimate supplied by the Enterprises

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five) Extending the end date for HARP till Dec. 31, 2013 for loans initially sold to the Enterprises on or ahead of May possibly 31, 2009.

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CLICK Right here for a Fannie Mae and Freddie Mac loan lookup tool

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Fannie Mae on HARP Mortgage Rates and Refinances

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Housingwire reported that Fannie Mae is optimistic that low mortgage prices and Federal mortgage-backed securities purchases will entice buyers to take benefit of low interest rates.

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Fannie Mae also recommended that low mortgage prices will usher in a wave of refinancing activity, and the GSE predicts that total refinance originations will enhance by 20% this year. Katrichis expects interest prices to remain steady in the next three to six months. “The housing sector is the cornerstone of the economy, but sales continue to outpace equity positions in improvements,” he stated.

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About Peoples Residence Equity, Inc.

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Peoples Property Equity, Inc has emerged as a leader in helping underwater borrowers take benefit of updated House Cost-effective Refinance Program (HARP) guidelines by providing efficient refinancing approval and trusted guidance to property owners impacted by the housing crisis.

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Contact JR. Katrichis at (888) 574-6143 or on the web at http://wisconsin.harpmortgagelender.com/ for much more info about HARP loans in Wisconsin NMLS ID: 208096

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Property owners Consumer Center Fears Millions of Underwater US Property owners Could Owe New IRS Taxes If Obama and Congress Fail To Extend Mortgage Forgiveness Debt Relief Act

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(PRWEB) December 20, 2012

The Homeowners Consumer Center is urging President Obama, and the US Congress to immediately extend the Mortgage Forgiveness Debt Relief Act now, ahead of time to do so comes, and goes. Without having an extension of this law over ten million existing US homeowners, who owe far more on their house than it is worth could get hit with a enormous IRS tax bill, should they do any variety of loan modification, a deed in lieu of foreclosure, a short sale, or anything else that entails a mortgage principal reduction from their mortgage lender in 2013. The Home owners Consumer Center says, “We worry most US property owners are not conscious of the truth that without having an extension of the Mortgage Forgiveness Debt Relief Act by President Obama, and the US Congress, any sort of principal reduction by a bank involving a loan modification, a brief sale, a deed in lieu of foreclosure, or foreclosure will be treated as ordinary earnings by the US IRS. Just as an example if you live in Las Vegas, Los Angeles, Oakland, Miami, Chicago, Cincinnati, Phoenix, Saint Louis, Atlanta, Minneapolis, Memphis, Boston, or any other US city, and town, and your lender, or mortgage loan servicing firm agrees to a mortgage principal reduction as part of a loan modification, or a short sale-the mortgage principal reduction will be treated by the IRS as ordinary revenue by the US IRS. Is this actually what President Obama meant when he mentioned Forward for the duration of his 2012 presidential campaign?” http://HomeownersConsumerCenter.Com

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According to Bloomberg News on November 29th 2012, “The Mortgage Debt Relief Act of 2007 enables borrowers to avoid paying revenue taxes on the amount of principal thats forgiven as part of a loan modification or in the course of a brief sale in which they sell their houses for significantly less than they owe. If the measure expires, home owners would have to count such debt reduction as money they earned.” http://HomeownersConsumerCenter.Com

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The Property owners Consumer Center believes casualties from President Obama, and the US Congress failing to extend the Mortgage Forgiveness Debt Relief Act will incorporate:&#13

The Homeowners Consumer Center says, “What happens if President Obama’s Tax the Rich presidential campaign theme backfires, and the US economy tanks since of elevated taxes on little enterprise owners, or farmers? We think unemployment goes up. We also feel upside down homeowners will be forced to stroll away from their homes in droves. How does a newly unemployed person spend his, or her principal reduction IRS tax bill, if they no longer are employed?” &#13
More US property foreclosures, and far more instability in the US housing markets. &#13
Thousands of real estate agents that specialize in short sales could suddenly be unemployed. What homeowner is going to do a short sale on their below water house if they get taxed on the principal reduction-as ordinary earnings? &#13
Mortgage lenders, banks, mortgage brokers, and law firms that specialize in loan modifications will also be joining the unemployment lines-what homeowner-who owes more on their residence than it is worth would want to do a loan modification, if the principal reduction is taxed as ordinary revenue?

The Property owners Consumer Center says, “What happens to the 22.eight% of all US homeowners, who are upside down on their house mortgage when they all of a sudden understand-if they never stroll away from their houses now-they may well get taxed on any sort of principal reduction in 2013, if they do a loan modification, a brief sale, a deed in lieu, or something involving a principal reduction from their bank? At this moment we are saying if the US Congress, and the Obama Administration do not extend the Mortgage Forgiveness Debt Relief Act-now-its not just rich men and women who could be facing a enormous tax improve in 2013, it could also be almost 25% of our nations homeowners.” http://HomeownersConsumerCenter.Com

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Urging Underwater Property owners To Utilize HARP Extension

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Twin Cities, Minnesota (PRWEB) April 16, 2013

Housing specialist have had eyes on the Federal Housing Finance Agency (FHFA) that manages the Fannie Mae and Freddie Mac applications and their on-going function to support prospective residence buyers obtain a top quality loan, and struggling homeowners to gain a house loan modification. Nowadays the FHFA announced it will extend the Home Cost-effective Refinance Program (HARP) by two years to Dec. 31, 2015.

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“The HARP system extension to 2015 is a promising affirmation of the Fed’s word that it will strive to maintain interest prices low until at least mid-2015. Not only do underwater home owners benefit, banks and servicers have been maximizing the opportunity the HARP system has given them for a refinance boom. Banks prime of the mortgage banking sector, such as Wells Fargo, have produced a sizable profit from promoting loans refinanced below HARP to investors, stated Jenna Thuening, owner of House Destination.

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As of January 2013, HARP had permitted far more than two.two million borrowers to refinance their property loan. The FHFA does not supply any strong numbers as to just how a lot of borrowers it hopes to reach with HARP’s extension. “We are hopeful that a substantial quantity of eligible borrowers will participate in the system going forward,” the press release stated. The FHFA will soon be launching a nationwide campaign to inform consumers of the extension and their options beneath the HARP refinance plan. The program announcement comes in a moment when roughly 10 million home owners owe a lot more than their houses are valued at. The good news is that nationally, and in the increasing Twin Cities, property costs are pulling far more and far more borrowers out from underwater mortgages.

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The typical savings a homeowner gains from a HARP house refinance runs roughly $ 200 a month with an typical rate reduction of 1.75%, which means a $ 2,400 savings per closed property loan per year and $ 74,000 per lifetime (assuming a 30-year mortgage). The possible increase for the U.S. economy carries even higher significance, estimated at up to $ six.five billion ($ two,400 in savings a year per consumer x two.7 million shoppers).

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“An additional exceptional function of HARP is that it is only one of numerous refinancing choices offered to low money home owners to offer you refinancing to property borrowers with tiny to no equity in their residences. Homeowner need to not let past ‘no’s’ discourage them from taking advantage of current low interest rates and other refinancing rewards” urges Jenna.

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Home owners Eligibility For HARP refinance Criteria:&#13

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The residence loan should be owned or assured by Fannie Mae or Freddie Mac&#13

The homeowner’s mortgage should have been sold to Fannie Mae or Freddie Mac on or prior to May possibly 31, 2009&#13

The mortgage cannot have been refinanced below HARP previously unless it is a Fannie Mae home loan that was refinanced beneath HARP from March May possibly, 2009&#13

The existing loan to value (LTV) ratio need to be greater than 80 percent of the home’s value&#13

The applying homeowner must be existing on their monthly property payments with no late mortgage payments in the last six months and no a lot more than 1 late payment in the last 12 months.

“In the past, also a lot of homeowners have discovered the method of applying for a HARP loan refinance cumbersome and confusing, or felt that lender was not communication well with them, believes Thuening. To ease that tension, the FHFA will quickly launch a campaign to give home owners complete details that are clear and easy to adhere to as to how to make use of and qualify for HARP, according to Zillow. The campaign will educate homeowners as to the system specifics, who is eligibility and give underwater homeowners possibilities on how to make use of the plan ahead of it ends.

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Home Destination, a Minneapolis Certified Distressed Property Expert and specialist residential Realtor, helps homeowners figure out if their underwater mortgage can gain a principal reduction and to make a far better informed decisions. We are passionate about assisting Twin City home owners stay in their homes. Call 612-396-7832 and ask Jenna Thuening for support.

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