You CAN Short Sale Your Home & Buy Now...

New HUD Short Sale Ruling: You CAN Short Sale Your Home And Buy Right Away...
There seems to be a lot of confusion out there about HUD's recent mortgagee letter 09-52 http://bit.ly/mortgagee09-52 which provides guidance for FHA borrowers after a short sale. Basically, the mortgagee letter states that a borrower will be eligible for FHA financing immediately after the completion of a short sale provided that the borrower was current on their mortgage at the time that their short sale occurred. Please read further! The mortgagee letter also states that the borrower will not be eligible if the purpose of the short sale was to "take advantage of market conditions and purchase a similar or superior property within a reasonable commuting distance".

So...what does that mean?

Sadly, HUD will not allow us short sale our house because we are underwater and turn right around and purchase a new one in order to improve our equity position. The "reasonable commuting distance" part is the key. The spirit of this mortgagee letter is to allow the homeowner that has been RELOCATED by his/her company to another metro area to purchase a home in the new metro area after the short sale in the old metro area. Also, there is consideration for a change in family size. For example, an increase in family size that would not be manageable in the current home or empty nesters looking to downsize. Relocation to a different metro area is not required when there is a change in family size.

If you have had to short sale a property and you do not meet the guidelines above, plan on three years before you will eligible to purchase a home with FHA financing.

Please also remember that the bank that provides your FHA financing can add their own guidelines on top of the HUD guidelines. Some FHA lenders may not approve your financing after a short sale even if you meet the HUD requirements because the bank may have an overlay that is specific to that particular institution. If you are considering a short sale of your home with the intention of purchasing a new home right away, please do your homework! Get pre-approved for the new financing first and disclose everything to your loan officer. Always work with a lender that you trust or get a referral for a lender from your family or your Realtor.

Sometimes, a short sale is unavoidable. There are certainly a lot of people that have found themselves in that circumstance. Sometimes, the short sale is a financial strategy. If that's the case, please make sure you are making the most educated decision possible. For more information on short sales, loan modifications, or your mortgage, please contact me directly and I am happy to refer you to an expert that I trust and know will give you the information you need to make the most informed decision as it pertains to your mortgage. Contact Dan Keller at: dan.mortgageadvisor@gmail.com or (425) 350-7136.

New & Revised Home Buyer Tax Credit Extended

The much-anticipated extension & revision to the home buyer tax credit has finally been approved. The Senate's vote yesterday resulted in a 98-0 win and today it was passed in the house. The bill now moves to the President's desk for a final signature which he is expected to sign.

First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year's economic stimulus package. The newly backed program will expand the credit to include existing home owners.

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home. To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.

The National Association of Realtors (NAR), the National Association of Home Builders (NAHB), the National Association of Mortgage Brokers (NAMB) have been lobbying hard for the extension and expansion of the tax credit. NAR claims that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.

The tax credit is also set to be extended for another year for military personnel serving outside of the United States until June 30, 2011.

Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "This is probably the last extension."

But, really? You think so? When April 2011 comes around and the housing market is still not in full recovery mode, will the politicians be able to let this go and actually come to an end, or could it possibly become a more permanent subsidy?

Keep tuned to http://www.mylenderdankeller.blogspot.com/

for more helpful market tips!

Credit Repair Success Story: 80 points In 40 Days!

One of the best relationships that I have made in my career was in 2009 with a credit repair firm that specializes in Legal and Permanent Credit Repair & Restoration. From time to time I have clients come to me wishing they could purchase a home, if only they had better credit. I finally have the solution... National Credit Care has joined my team and partnered with me to assist my clients in rebuilding their credit. We have the ability to remove bankruptcies, foreclosures, collections, liens, and lates.

I have attached an example for you to see. On August 15, 2009 I had a client want to get pre-approved for a home purchase, but due to certain circumstances in her past, her credit score was below 600, and I was unable to approve her at the time. I referred her to speak with Ryan, a week later she paid the $49 join fee, and the $49/monthly fee and in less than 2 months (and less than $200 later) they are buying a home with her credit exceeding 680!!! (all we really needed was 620). Check out the proof... Even a Chapter 13 bankruptcy was removed! (please note that fees are subject to change) See what we had deleted in less than 40 days - http://www.box.net/shared/2cahxlp4xe

For more information on Credit Repair, you can contact me at (425) 350-7136 or dan.mortgageadvisor@gmail.com