Modification is Not for Every Borrower according to a Treasury Adviser

Two questions borrowers frequently ask us,

“How did my neighbor get into HAMP (and/or get a loan modification) but I can’t?
“Do I have to be delinquent to get a workout plan?”

The best answers typically are:

The secret Black Box recipe may not mix well with your situation (read more here on this) because your loan may be [...]

FHA pumps up the commission for brokers

The US Department of Housing and Urban Development (HUD) removed the 1% origination fee cap on loans insured by the Federal Housing Agency (FHA), according a mortgagee letter sent out this week.
HUD made the change to remain consistent with the Real Estate Settlement Procedures Act (RESPA), which will require mortgage lenders to disclose to borrowers a [...]

FHA loans are available to Short Sellers!

One of the fears that homeowner have is whether they will be able to secure a new loan to purchase a home in the future after short selling the current one.  The answer is yes.  In fact, the Department of Housing and Urban Development (HUD) released a letter to lenders regarding borrower eligibility for a [...]

Bank of America wants to collect twice on Short Sales?

Wow.  You can’t make this stuff up!
About two months ago we helped a family, whose house was in Porter, Texas, short sale their home.  A key component of a successful short sale is protecting the homeowner and their REALTOR from the mortgage company because while these companies can be sneaky and unethical they are also [...]

FHA train wreck in progress. 465,000 in default.

No one likes their product or service called crap but that is exactly what Robert Toll, CEO of Toll Brothers called the FHA program at a New York home builders conference.
He also went as far as calling it a “definite train wreck,” noting that a “flag will go up in the next couple of months” [...]

FHA is broke & 17% of borrowers defaulting

Go figure.  FHA borrowers are defaulting at a 30% faster rate than non-FHA borrowers.  Shocking!
Since the FHA only requires a 3.5% down payment and the seller can chip in 3-6%, home buyers can move into a home for…drum roll please… all together now… Zip, Nada, Zero!   Not much skin in the game huh?
The FHA is [...]

Back Again From Whence We Have Come

Lending money to borrowers without the ability to repay with no-money down created the home crisis; is our government leading us right back in the same direction?