About 200,000 home buyers can step back and take a breath.
The Senate last week pushed back the closing deadline for first-time buyers hoping to capitalize on the landmark $8,000 tax credit. Originally, buyers had to ink a purchase agreement by April 30 and close on the home by June 30 in order to qualify for the credit. Now, an amendment to a major piece of employment legislation has given buyers an extra three months to close — the new, extended deadline is Sept. 30.
The measure was sponsored by Sen. Harry Reid, D-Nevada, whose home state has been the epicenter of the foreclosure crisis. More than 180,000 home buyers were in jeopardy of missing the initial June 30 deadline, according to estimates from the National Association of Realtors.
The deadline extension also applies to the program’s counterpart, a $6,500 tax credit for existing home buyers.
However, it does not appear to have any bearing on the other major extension already in place — that’s the one for active-duty military who were serving outside the U.S. while the tax credit was in place. Those who served at least 90 days on extended duty have until April 30, 2011, to purchase and until June 30, 2011, to close. There are exceptions for service members who fell short of the 90-day mark because of medical issues.
Military members must also meet the tax credit program’s basic criteria. Qualified borrowers can combine the savings and buying power of a VA loan with the tax credit to create a tremendous one-two punch.
www.themortgagemark.com mwilkins@capitalfmc.com
Monday, June 21, 2010
Flood Insurance?
They never thought of it. Twenty-one families living in a small neighborhood well out of the ordinary flood zone for a tributary leading to the Chattahoochee River in Austell, Georgia, were among the hundreds of homes hit by record flooding in the last several months. Atlanta, Nashville and even parts of Oklahoma have all recently seen homes flooded in areas where no living person can recall having ever seen the waters rise.
Construction siltation, re-routed streams, hard surface coatings like streets and parking lots have all contributed to abnormal flooding in areas previously thought safe. Certainly their home owner’s policy has a flood insurance clause, right?
Unlikely. In fact if you do not specifically obtain flood insurance you don’t have it. Read your policy to be sure. Flood insurance, a separate policy for most home owners, is normally backed by a federal government National Flood Insurance Program. In past times when the Program was about to lapse it was a simple process to pass it through congress and it would be re-authorized. Not so in our times of fundamental change.
“Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history, it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.” -Floodsmart.gov
Senate Democrats and House members as well have included the re-authorization of the NFIP in another massive bill which includes many unwelcomed fundings. During Senate floor debate on today, June 17, Senator David Vitter (R-Louisiana) strongly urged the Senate to remove the authorization of NFIP from the bill and pass it on a stand alone motion. He wished to introduce a single page bill to accomplish just this but was met with strong objection from Michigan Senator Debbie Stabemore (D).
While both senators agreed it should be passed it was left inside the existing bill due to the objections in an effort to get senate Republicans and Independents to vote yes on the larger spending bill.
Meanwhile hundreds, if not thousands of home sales are being delayed at the peril of the home sellers, buyers, attorneys, loan officers, communities and the economy at large. Lenders will not fund loans on properties which are in a Federal Emergency Management Agency (FEMA) designated flood zone without the buyer funded NFIP meaning no loan, no sale.
“Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. However, flood insurance is highly recommended because 25% of all flood claims occur in moderate-to-low risk flood areas. A lender can require flood insurance, even if it is not federally required.” - Floodsmart.gov
Visit http://www.themortgagemark.com/ if you have any questions!
mwilkins@capitalfmc.com
Construction siltation, re-routed streams, hard surface coatings like streets and parking lots have all contributed to abnormal flooding in areas previously thought safe. Certainly their home owner’s policy has a flood insurance clause, right?
Unlikely. In fact if you do not specifically obtain flood insurance you don’t have it. Read your policy to be sure. Flood insurance, a separate policy for most home owners, is normally backed by a federal government National Flood Insurance Program. In past times when the Program was about to lapse it was a simple process to pass it through congress and it would be re-authorized. Not so in our times of fundamental change.
“Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history, it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.” -Floodsmart.gov
Senate Democrats and House members as well have included the re-authorization of the NFIP in another massive bill which includes many unwelcomed fundings. During Senate floor debate on today, June 17, Senator David Vitter (R-Louisiana) strongly urged the Senate to remove the authorization of NFIP from the bill and pass it on a stand alone motion. He wished to introduce a single page bill to accomplish just this but was met with strong objection from Michigan Senator Debbie Stabemore (D).
While both senators agreed it should be passed it was left inside the existing bill due to the objections in an effort to get senate Republicans and Independents to vote yes on the larger spending bill.
Meanwhile hundreds, if not thousands of home sales are being delayed at the peril of the home sellers, buyers, attorneys, loan officers, communities and the economy at large. Lenders will not fund loans on properties which are in a Federal Emergency Management Agency (FEMA) designated flood zone without the buyer funded NFIP meaning no loan, no sale.
“Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. However, flood insurance is highly recommended because 25% of all flood claims occur in moderate-to-low risk flood areas. A lender can require flood insurance, even if it is not federally required.” - Floodsmart.gov
Visit http://www.themortgagemark.com/ if you have any questions!
mwilkins@capitalfmc.com
Friday, June 18, 2010
Senate approves home tax credit extension!!
Senate approves home tax credit extension
By ANDREW TAYLOR (AP) – 1 day ago
WASHINGTON — The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments
Visit http://www.themortgagemark.com/ or email mwilkins@capitalfmc.com with any questions.
By ANDREW TAYLOR (AP) – 1 day ago
WASHINGTON — The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments
Visit http://www.themortgagemark.com/ or email mwilkins@capitalfmc.com with any questions.
Wednesday, June 16, 2010
Homebuyer Tax Credits Closing Deadline Could be Extended
After hearing from the real estate industry that many homebuyers who signed contracts earlier this year in the hopes of receiving the homebuyer tax credits are having trouble closing their transactions, the Senate today voted to extend the deadline for closing until the end of September, according to the South Florida Sun Sentinel.
To qualify for the $8,000 first-time or the $6,500 repeat buyer tax credits, buyers must have signed a contract by the end of April 2010, and originally had to close by the end of June. But the National Association of Realtors reported that 180,000 buyers are in danger of failing to close by that deadline.
The provision that would extend the tax credit will be added to a bill that would extend unemployment benefits, the Sun Sentinel reported, and the entire bill will have to be voted on by both the House and the Senate.
The tax credit has been somewhat controversial, with Zillow’s own Chief Economist Stan Humphries asserting that it didn’t “save our bacon,” but instead stole demand from later this summer.
Contact The Mortgage Mark with any questions at mark@themortgagemark.com or http://www.themortgagemark.com/
To qualify for the $8,000 first-time or the $6,500 repeat buyer tax credits, buyers must have signed a contract by the end of April 2010, and originally had to close by the end of June. But the National Association of Realtors reported that 180,000 buyers are in danger of failing to close by that deadline.
The provision that would extend the tax credit will be added to a bill that would extend unemployment benefits, the Sun Sentinel reported, and the entire bill will have to be voted on by both the House and the Senate.
The tax credit has been somewhat controversial, with Zillow’s own Chief Economist Stan Humphries asserting that it didn’t “save our bacon,” but instead stole demand from later this summer.
Contact The Mortgage Mark with any questions at mark@themortgagemark.com or http://www.themortgagemark.com/
Wednesday, June 9, 2010
Short sale in the last 7 years could mean “you’re out!”
“How long after a short sale can we qualify again?” It is a question often asked and until now the answer, with the exception of lender enhancements to Fannie Mae and Freddie Mac guidelines, has been much unchanged.
With the release of FNMA’s DU 8.1 comes some huge game changers.
“DU will be updated to incorporate the policy changes specified in Announcement SEL-2010-05, Underwriting Borrowers with a Prior Preforeclosure Sale or Deed-in-Lieu of Foreclosure, regarding prior deed-in-lieu of foreclosure actions. If a deed-in-lieu of foreclosure is reported within two years of the credit report date, the loan casefile will receive a Refer with Caution/IV recommendation.”
Translated into common language that means regardless of the amount of down-payment, debt-to-income ratio or credit scores the loan application will not receive the all cherished “Approve/Eligible” from the Fannie Mae automated Desktop Underwriter. Instead these files will all be subjected to manual underwriting and will result in longer underwriting times and closer examination.
For buyers looking to purchase who have normally qualified for FHA home loans after as little as two years the news is much less pleasing. For loans with down payments less than 10% DU will issue the dreaded Ineligible where any applicant has had a short-sale or deed-in-lieu of foreclosure within the last seven, yes 7, years. This effectively removes millions of buyers from the market for another 7 years. Your government hard at work.
Keep in mind these changes are to Fannie Mae’s underwriting engine and guidelines not to FHA or other sources. However with FNMA being the largest purchaser of mortgage securities today it greatly impacts the home sales market.
For home buyers with 10% down but less than 20% down the waiting period will be four years:
DU Version 8.1 will also include the following requirements that will apply to borrowers with prior deed-in-lieu of foreclosure actions that occurred two or more years, but within 7 years from the credit report date.
Loan casefiles submitted to DU with an LTV or CLTV greater than 80 percent where a borrower on the loan casefile has a deed-in-lieu of foreclosure action that was completed two or more years, but within four years from the credit report date will receive an Ineligible recommendation, and therefore ineligible to be submitted for loan approval and purchase.
Loan casefiles submitted to DU with an LTV or CLTV greater than 90 percent where a borrower on the loan casefile has a deed-in-lieu of foreclosure action that was completed four or more years, but within seven years from the credit report date will receive an Ineligible recommendation, and therefore ineligible to be submitted for loan approval and purchase.
This version of DU is implemented on June 19, 2010 and will affect all loans which need DU approval on or after that date. Generally the remainder of the market follows the lead of Fannie Mae in the event their loans may eventually be sold to Fannie.
Contact the Mortgage Mark or Visit http://www.themortgagemark.com/
With the release of FNMA’s DU 8.1 comes some huge game changers.
“DU will be updated to incorporate the policy changes specified in Announcement SEL-2010-05, Underwriting Borrowers with a Prior Preforeclosure Sale or Deed-in-Lieu of Foreclosure, regarding prior deed-in-lieu of foreclosure actions. If a deed-in-lieu of foreclosure is reported within two years of the credit report date, the loan casefile will receive a Refer with Caution/IV recommendation.”
Translated into common language that means regardless of the amount of down-payment, debt-to-income ratio or credit scores the loan application will not receive the all cherished “Approve/Eligible” from the Fannie Mae automated Desktop Underwriter. Instead these files will all be subjected to manual underwriting and will result in longer underwriting times and closer examination.
For buyers looking to purchase who have normally qualified for FHA home loans after as little as two years the news is much less pleasing. For loans with down payments less than 10% DU will issue the dreaded Ineligible where any applicant has had a short-sale or deed-in-lieu of foreclosure within the last seven, yes 7, years. This effectively removes millions of buyers from the market for another 7 years. Your government hard at work.
Keep in mind these changes are to Fannie Mae’s underwriting engine and guidelines not to FHA or other sources. However with FNMA being the largest purchaser of mortgage securities today it greatly impacts the home sales market.
For home buyers with 10% down but less than 20% down the waiting period will be four years:
DU Version 8.1 will also include the following requirements that will apply to borrowers with prior deed-in-lieu of foreclosure actions that occurred two or more years, but within 7 years from the credit report date.
Loan casefiles submitted to DU with an LTV or CLTV greater than 80 percent where a borrower on the loan casefile has a deed-in-lieu of foreclosure action that was completed two or more years, but within four years from the credit report date will receive an Ineligible recommendation, and therefore ineligible to be submitted for loan approval and purchase.
Loan casefiles submitted to DU with an LTV or CLTV greater than 90 percent where a borrower on the loan casefile has a deed-in-lieu of foreclosure action that was completed four or more years, but within seven years from the credit report date will receive an Ineligible recommendation, and therefore ineligible to be submitted for loan approval and purchase.
This version of DU is implemented on June 19, 2010 and will affect all loans which need DU approval on or after that date. Generally the remainder of the market follows the lead of Fannie Mae in the event their loans may eventually be sold to Fannie.
Contact the Mortgage Mark or Visit http://www.themortgagemark.com/
Tuesday, June 8, 2010
Chris Pronger's other jerk moves
Tuesday, June 1, 2010
Chris Pronger's other jerk moves
And then I told Carcillo:
"No, the moustache looks awesome".While the Chicago Blackhawks have staked out a 2-0 lead in the Stanley Cup Finals, all anyone seems to want to talk about today is Chris Pronger. The Flyers' defenceman has been accused of poor sportsmanship after shooting a towel at Chicago's Ben Eager and twice stealing the puck after the final buzzer.
Sadly, this sort of behaviour isn't new for Pronger. In fact, throughout his career he's become notorious for a series of incidents in which his actions were inappropriate, unprofessional, and just downright mean.
Here are some of the most memorable:
•Was suspended during the Stanley Cup Finals after delivering a vicious elbow to the head of Ottawa's Dean McAmmond, outraging fans around the world who were really hoping he'd get Chris Neil instead.
•At 1993 entry draft, rudely stole the spotlight from #1 overall pick Alexandre Daigle by turning out to be like a hundred times better than him.
•Once got bored during the Vancouver Olympics opening ceremonies, wandered to the backstage area, and cross-checked the guy in charge of making sure all the cauldrons were working in the throat.
•Has been known to slack off and go up to two full years without single-handedly dragging a team to the Stanley Cup finals.
•Caused a long delay during a 1998 game when he claimed to suffer a brief cardiac arrest after being hit with a slapshot directly above the heart, as if he has one.
•Demanded a trade out of Edmonton in 2006, selfishly placing the desires of his wife and children above those of a company that had employed him for almost an entire year.
•His hilariously sarcastic press conference performance after game one turned out to be a word-for-word recitation of Bill Hicks' Arizona Bay album.
•Was once suspended eight games for stomping in Ryan Kesler's leg with his skate, which was kind of odd, since it was August and Kesler was napping on a beach at the time.
•When presented with a seven-year contract offer from the Flyers last year, immediately signed it instead of politely saying "Um, maybe you should go back and re-read the CBA".
•Knows full well that Flyers could have swept the Bruins, but convinced teammates to spot them a 3-0 series lead "just to mess with them".
•Once borrowed Riley Cote's copy of Schopenhauer's On the Fourfold Root of the Principle of Sufficient Reason; returned it the next morning all dog-eared.
•Post-loss ritual: cruise interstate looking for families stranded on the side of the highway with flat tire; pull over; slash other three tires; drive away.
•During NBC telecasts of Flyers games, constantly leans over to Pierre McGuire and says "I don't think they can hear you, maybe try speaking louder."
•After every playoff game this year, calls up John Stevens and leaves him a detailed message about how much fun it was.
•You know when you have to get up early the next day but you can't sleep because some idiot's car alarm is going off all night long right below your window? Yeah, that's him.
•Walks around the league like he's better than everyone, when in reality he's only better than 97% of them.
•Immediately demands a trade every time he finds out that Joffrey Lupul has finished unpacking.
•Lead the Anaheim Ducks to a Stanley Cup after being acquired in a deal with the Oilers, which apparently gave GM Brian Burke the idea that trading two first round picks for a star player is a good idea.
•Is often rude and uncooperative with members of the media, even those he is currently sleeping with.
Chris Pronger's other jerk moves
And then I told Carcillo:
"No, the moustache looks awesome".While the Chicago Blackhawks have staked out a 2-0 lead in the Stanley Cup Finals, all anyone seems to want to talk about today is Chris Pronger. The Flyers' defenceman has been accused of poor sportsmanship after shooting a towel at Chicago's Ben Eager and twice stealing the puck after the final buzzer.
Sadly, this sort of behaviour isn't new for Pronger. In fact, throughout his career he's become notorious for a series of incidents in which his actions were inappropriate, unprofessional, and just downright mean.
Here are some of the most memorable:
•Was suspended during the Stanley Cup Finals after delivering a vicious elbow to the head of Ottawa's Dean McAmmond, outraging fans around the world who were really hoping he'd get Chris Neil instead.
•At 1993 entry draft, rudely stole the spotlight from #1 overall pick Alexandre Daigle by turning out to be like a hundred times better than him.
•Once got bored during the Vancouver Olympics opening ceremonies, wandered to the backstage area, and cross-checked the guy in charge of making sure all the cauldrons were working in the throat.
•Has been known to slack off and go up to two full years without single-handedly dragging a team to the Stanley Cup finals.
•Caused a long delay during a 1998 game when he claimed to suffer a brief cardiac arrest after being hit with a slapshot directly above the heart, as if he has one.
•Demanded a trade out of Edmonton in 2006, selfishly placing the desires of his wife and children above those of a company that had employed him for almost an entire year.
•His hilariously sarcastic press conference performance after game one turned out to be a word-for-word recitation of Bill Hicks' Arizona Bay album.
•Was once suspended eight games for stomping in Ryan Kesler's leg with his skate, which was kind of odd, since it was August and Kesler was napping on a beach at the time.
•When presented with a seven-year contract offer from the Flyers last year, immediately signed it instead of politely saying "Um, maybe you should go back and re-read the CBA".
•Knows full well that Flyers could have swept the Bruins, but convinced teammates to spot them a 3-0 series lead "just to mess with them".
•Once borrowed Riley Cote's copy of Schopenhauer's On the Fourfold Root of the Principle of Sufficient Reason; returned it the next morning all dog-eared.
•Post-loss ritual: cruise interstate looking for families stranded on the side of the highway with flat tire; pull over; slash other three tires; drive away.
•During NBC telecasts of Flyers games, constantly leans over to Pierre McGuire and says "I don't think they can hear you, maybe try speaking louder."
•After every playoff game this year, calls up John Stevens and leaves him a detailed message about how much fun it was.
•You know when you have to get up early the next day but you can't sleep because some idiot's car alarm is going off all night long right below your window? Yeah, that's him.
•Walks around the league like he's better than everyone, when in reality he's only better than 97% of them.
•Immediately demands a trade every time he finds out that Joffrey Lupul has finished unpacking.
•Lead the Anaheim Ducks to a Stanley Cup after being acquired in a deal with the Oilers, which apparently gave GM Brian Burke the idea that trading two first round picks for a star player is a good idea.
•Is often rude and uncooperative with members of the media, even those he is currently sleeping with.
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