Housing Assistance Fair

Weld Housing Assistance Fair and Forum

Come to this free and confidential event!

Professionals will be available on a one-on-one basis to answer your questions and offer advice about:

loan modifications
loss mitigation
short sales
refinancing
foreclosure options
services supporting adults and families

 Workshops
• How to Speak with Your Mortgage Company
• Options When Facing Foreclosure

For attendees meeting with a housing counselor or bank representative please bring:

1. Current Pay Stubs (within the last 30 days)
   
2. 2008 and 2009 Income Tax Returns
   
3. 3 Months of Bank Statements
   
4. Household Expense Budget
   
5. Copy of Closing Documents
   
6. Most Recent Property-Insurance and
   
7. Mortgage Statements
   

For more information Please call United Way of Weld County 970-353-4300

 

Saturday, June 19, 2010

9:00 a.m. to 1:00 p.m.

 

Southwest Weld County

Services Complex

4209 WCR 24 1/2

Longmont, Colorado

 

Facing foreclosure?

Dial 2-1-1, (800) 559-5590,

or (877) 601-4673

 

Participants and Co-Sponsors:

Office of US Senator Mark Udall Office of US Senator Michael Bennet Office of US Congresswoman Betsy Markey Weld County Public Trustee Colorado Division of Housing Colorado Foreclosure Hotline United Way of Weld County 2-1-1Consumer Credit Counseling Service Weld County Chase Homeownership Center Federal Housing Hotline Building Healthy Marriages Colorado Civil Rights Division Wells Fargo GMAC Faith Community Service Fund/Bridges of Hope

There are options if you are behind on your mortgage…

It may seem that your options are becoming more difficult and

less encouraging.

 

Regrettably, more than 70% of homeowners in

foreclosure proceeded without visible assistance. If you’re unsure

about how to come up with this month’s mortgage, what options

do you have? What about next month?

 

As a Certified Distressed Property Expert, I understand there are options available, and in my

experience, the worst thing to do is nothing. I’ve sat down with

homeowners at their kitchen tables and worked together to find

the best solution.

 

The first step is to get the right information to help you AVOID

FORECLOSURE. To help, I’ve prepared a free report just for you at:

http://www.northerncoloradoshortsale.com/Foreclosure-Solutions.aspx

 

With this report you can easily explore the options that may be

available to you. The website also provides answers to some of

your most difficult questions about your home and today’s market.

I’m here to help.

1 in 10 Homeowners is facing foreclosure.

The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in

the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

©2009 Distressed Property Institute, LLC, All Rights Reserved

Provided to you by

SHANNAN ZITNEY

www.NorthernColoradoShortSale.com/

SHANNAN ZITNEY

RE/MAX Action Brokers Centerra

1685 Rocky Mountain Avenue, Loveland, CO 80537

(970) 689-2721 | szitney@remax.net

Each office independently staffed, owned and operated.

Bank of America may put mortgage payments on hold if you are unemployed…

Bank of America says it is considering giving unemployed homeowners nine months of no mortgage payments while they search for a new job.

If during the nine-month forbearance period, the customer is successful in finding employment, Bank of America would structure a mortgage loan modification based on the borrower’s new income.

Customers who enter the program must be willing to relinquish the home through a deed-in-lieu arrangement if they haven’t found new employment during the nine-month timeframe, and would be given a minimum of $2,000 to help with the transition.

The North Carolina-based bank stressed that the proposal must be approved by regulators before it can be implemented, but market observers are calling it a positive step in the fight against foreclosure.

A Bank of America spokesperson told DSNews.com, “Sustained recessionary impacts and their affect on the unemployed, in particular, demand we consider creative solutions above and beyond what is currently available to put these customers in the best possible position to sustain homeownership. We continue to evolve our home retention programs to meet the changing needs of our customers and to reflect the insights we are gaining through our experience in assisting our customers.”

 

Article from: http://www.dsnews.com

Lenders Looking at Options….

After years of talking about “preserving homeownership,” the mortgage servicing industry has a new buzzword: finding a “graceful exit” for seriously delinquent homeowners who do not qualify for loan modifications.

To move these borrowers out of their homes with a minimum of delay, friction or embarrassment, Fannie Mae and Freddie Mac are telling servicers to increase the use of alternatives to foreclosure such as short sales and deeds-in-lieu.

“Some people just are unwilling or unable to be helped,” Eric Schuppenhauer, a Fannie senior vice president, said Wednesday at a Mortgage Bankers Association servicing conference in San Diego. “They now must go to some form of liquidation and hopefully a graceful exit from the home.”

Foreclosure timetables “got a little crazy last year,” he said, as servicers held off on filing default notices or taking title to properties while offering borrowers a chance to rework loan terms through the government’s Home Affordable Modification Program.

Ingrid Beckles, Freddie’s senior vice president of default asset management, told the conference there is greater “recognition that we need to come to some closure on the decisioning process.”

More than 30% of the seriously delinquent loans held by Freddie are backed by vacant homes, she said. Many states have courts clogged with foreclosure filings.

“We’re standing in line in Florida,” Beckles said.

MBA Asks for a ‘Bridge’ Loan
None of this is to say the industry has given up on keeping borrowers in their homes — or on getting more government assistance in that endeavor.

The MBA unveiled a proposal Tuesday to have the Treasury Department lend money to servicers so they can grant forbearances to homeowners who have involuntarily lost their jobs. Such borrowers could get their payments reduced for as long as two years (though their situations would be periodically re-evaluated). The MBA called the plan a “bridge to Hamp”: borrowers would be considered for the loan-mod program once they found new jobs or when the forbearance period ended.

During that period servicers would need to advance principal and interest to mortgage investors, taxes to municipalities and premiums to insurers. That’s where the Treasury financing would come in. “There are hundreds of smaller servicers who won’t have the cash or capital to make pass-throughs over a prolonged period,” said John Courson, the MBA’s president. The size of the proposed facility is yet to be determined.

Can such a plan fly given the public rage over government assistance to the financial industry and to delinquent homeowners? “This is not a bailout,” Courson said. “This is a loan” that servicers would repay with interest. And while “strategic defaulters” who walk away from their homes are raising hackles, “I don’t sense any pushback to trying to help the unemployed.”

John Denney, the MBA’s associate vice president of public policy, said the Treasury had not yet committed to the proposal.

— John Parres, the first vice president of customer service and collections at OneWest Bank FSB, at the conference, on dealing with distressed homeowners. OneWest, built from the ashes of IndyMac, has recently outperformed most other servicers in this rough-and-tumble business.

 

Please contact me if you need help and have questions about the foreclosure, short sale or forbearance process. My direct number is 970-689-2721. You can also email me at zitney@msn.com.

 

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New Credit Card Rules

Joe Raedle/Getty Images

 February 21, 2010 from NPR http://www.npr.org/templates/story/story.php?storyId=123909483&sc=fb&cc=fp

Credit card holders, listen up: On Monday, new federal regulations will take effect, changing the relationship between you and your card issuer.

The changes are part of the Credit Card Act of 2009, signed into law last May. Congress approved the legislation to end what consumer groups have called unfair and deceptive business practices. But critics say the heavier regulations will make credit cards more costly for everyone.

The primary focus of the law is to eliminate unexpected fees and interest-rate hikes. Many consumers had complained to lawmakers and regulators about credit card issuers retroactively imposing interest-rate hikes on existing balances. In other words, a customer would borrow money under one set of terms — only to get an ugly surprise when the bank suddenly pushed up the interest rate.

Studies estimate that by eliminating unexpected rate hikes and fees, the law could save consumers about $10 billion a year.

But critics say tougher rules will make credit more costly for good customers. If card issuers are barred from imposing retroactive rate hikes on existing balances, then they may try to make up the difference elsewhere. So, for example, consumers may see the return of annual fees on credit cards.

Years ago, credit card issuers routinely charged annual fees. But since the 1990s, most have eliminated them. Now, they may come back. Or there could be inactivity fees imposed on customers who don’t use their card very often.

Here are some of the key provisions:

— Interest Rates: Card issuers cannot increase interest rates during the first year on new accounts. In most cases, retroactive rate increases are prohibited.

— Payments and Billing: The issuer has to set the payment-due deadline on the same day each month.

— Fees: Consumers cannot be charged extra fees for making payments online, by phone or by mail.

— Disclosures: Issuers must notify card holders of significant changes to their account terms at least 45 days before the changes take effect. If the consumer objects to the changes, he or she can close the account, or “opt out.”

— Young People: Consumers younger than 21 need an adult co-signer to open a credit card. In addition, the card issuers cannot entice students to sign up by offering free pizzas or other gifts within 1,000 feet of a college campus.

Some Options If You Can No Longer Make Your House Payment….

The current U.S. housing market and national financial crisis has caused untold stress and heartache for many American families. Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to Northern Colorado area residents for foreclosure are many. Following is a brief explanation of these solutions, including their benefits and drawbacks:

Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

• Benefit: Does not require the mortgage company or lender’s approval.
  
• Drawback: Requires that a homeowner be able to pay all back payments, fines and fees.
  

Forbearance or Repayment Plan
A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

• Benefit: Allows the homeowner to make back payments over time.
  
• Drawback: Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed. Some mortgage companies will require a homeowner to ‘qualify’ for forbearance.
  

Mortgage Modification
A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

• Benefit: Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan
  
• Drawback: Requires that a homeowner ‘qualify’ for the new payment and will often require full documentation. Lender has to be actively pursuing modifications.
  

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.

• Benefit: Allows homeowner to keep property indefinitely.
  
• Drawback: The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenance.
  

Deed in Lieu of Foreclosure
Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.

• Benefit: Many times in a successful deed in lieu, the lender will forego their right to a deficiency judgment.
  
• Drawback: Requires that a homeowner vacate the property, and a deed in lieu may be reported to credit bureaus as a foreclosure.
  

Bankruptcy

Many have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.

• Benefit: Does not require lender approval.
  
• Drawback: If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall—not stop—the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.
  

Refinance

If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

• Benefit: In some cases, this will lower payments.
  
• Drawback: In today’s market, a refinance will almost always raise mortgage payments, and is an expensive process.
  

Servicemembers Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

• Benefit: If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
  
• Drawback: Must be active military to qualify.
  

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

• Benefit: Allows homeowner to avoid foreclosure and harvest some of their equity.
  
• Drawback: In many cases today, homeowners do not have sufficient equity to sell their property without negotiating a short sale (see next solution).
  

Short Sale
If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.

• Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).
  
• Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way.
  

This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call me today for a free confidential evaluation of your (or someone you know) individual situation, property value, and possible options. I am always here to help!

Thank you, Shannan Zitney 970-689-2721 or www.NorthernColoradoShortSale.com
zitney@msn.com

 

How to get the Home Buyer Tax Credit

You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here’s what you have to do to get your benefit:

 

• Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
  
•  Decide whether to: 
  
  • apply the credit to your 2009 tax return, filed on or before April 15, 2010;
    
  •  file an amended 2009 return; or, 
    
  • apply the credit on your 2010 return, filed on or before April 15, 2011.
    
• Attach documentation of purchase to your return.
  

 

Documentation of Purchase

Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.

 

When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to:

•  Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
  
•  File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
  
•  Claim the credit on their 2010 tax returns.
  

 

Applying the Credit to Your 2009 Taxes

You will need to do three things to claim the credit on your 2009 tax return:

1. Fill out Form 5405 to determine the amount of your available credit;
   
2. Apply the credit when you file your 2009 tax return or file an amended return;
   
3. Attach documentation of purchase to your return or amended return.
   

 

http://www.realtor.org/home_buyers_and_sellers/extended_home_buyer_tax_credit_how_to

Home Buyer Tax Credit Basics

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
  

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
  

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

1. The price of the home.
   
2. The buyer’s income.
   

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may

receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

REALTOR® Magazine-Daily News-Fourth Quarter Home Sales Surge 13.9%

A little bit of good news goes a long way……  If you would like a snapshot of your neighborhood and recent home sales, visit my website!

via REALTOR® Magazine-Daily News-Fourth Quarter Home Sales Surge 13.9%.

5 Reasons Why Refinancing Many Be a Good Option Now

RISMEDIA, February 4, 2010—

 

Mortgage experts from Bills.com, one of the leading resources for free, objective and expert money advice, advised that consumers considering a home refinance should begin the process now. Further, the company reported that the most frequently asked question of its Ask Bill expert advice center concerned home refinancing rates and recommendations.

“Market conditions have aligned to make this a perfect environment for home refinancing,” said Ethan Ewing, president of Bills.com. “Low rates and compelling opportunities to refinance into shorter term loans have arrived at the same time as large consumer demand.”

 

Ask Bill is a free service that allows consumers to ask any money question of human experts and receive personalized advice to their inquiries. One of the most frequently asked questions of 2009 concerned interest rates for home refinancing.

 

This high level of interest on behalf of consumers corresponds to favorable market conditions for refinancing. Specifically, these factors include:

 

1. Interest rates continue to hover around all-time lows, making it sensible for anyone carrying a higher rate interest loan to consider refinancing. With some exceptions, a 1/2-point to a 1-point drop in rate will generally make refinancing worthwhile.
   

    

2. Low fixed interest rates make converting from an adjustable rate loan into a fixed 15- or 30-year loan a smart move. Even if the adjustable payment is currently lower than a fixed rate payment, when rates rise again the monthly payment on an adjustable rate loan will quickly leapfrog a fixed rate loan.
   

    

3. The current difference between fixed 15-year and 30-year interest rates is significant, making refinancing into a shorter-term loan a compelling opportunity. This can save hundreds of thousands of dollars over the life of a loan and shorten the time to payoff with sometimes only a slight increase in monthly payment.
   

 

1. FHA efficiency mortgages provide consumers with an opportunity to refinance into a loan that will help pay for home efficiency improvements. These loans are meant to provide consumers with a way to make energy efficient improvements to their home as part of an origination or refinancing. This is a great way for homeowners to cost-effectively lower their utility bills through basic home repairs.
   

    

2. Those homeowners whose equity situation has steadily deteriorated, leaving them with little, no or negative equity in their homes, should ask their lender or broker for help. Most have some flexibility with government programs aimed at reducing rates for homeowners in weak equity positions.
   

 

“This interest rate environment provides opportunities for those trying to escape high interest rates as well as those making savvy long-term financial decisions,” continued Ewing. “Anyone considering a home refinance should move quickly to lock in rates now.”

 

I f you have questions about refinancing your loan or suggestions on who to call to start the process, just let me know! szitney@remax.net or 970-689-2721.

 

For more information, visit www.bills.com.