FANTASTIC BUYER NEWS:
FHA is continuing its commitment to fully evaluate borrowers who have
experienced periods of financial difficulty due to extenuating circumstances.
As a result of the recent recession many borrowers who experienced
unemployment or other severe reductions in income, were unable to make their monthly mortgage payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers’ credit has
been negatively affected. FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
To that end, FHA is allowing for the consideration of borrowers who have experienced an Economic Event and can document that:
certain credit impairments were the result of a Loss of Employment or
a significant loss of Household Income beyond the borrower’s control;
the borrower has demonstrated full recovery from the event; and,
the borrower has completed housing counseling.
Borrowers that may be otherwise ineligible for an FHA-insured mortgage due to FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and
short sales, as well as delinquencies and/or indications of derogatory credit, including collections and judgments, may be eligible for an FHA-insured mortgage if the borrower
can document that the delinquencies and/or indications of derogatory credit are the result of an Economic Event as defined in this ML,
has completed satisfactory Housing Counseling, as described in this ML, and
meets all other HUD requirements.
An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.
The Onset of an Economic Event is the month of Loss of Employment/Income.
Recovery from an Economic Event is the re-establishment of
Satisfactory Credit (as defined on page 5 of this ML) for a minimum
of twelve (12) months.
The term borrower includes borrowers and co-borrower.
Borrower Household Income means the gross income of the borrower and all Household Members, as defined below, for purposes of assessing loss of income. The gross income of each Household Member must be computed in accordance with FHA income requirements.
Note: Household Member, for the purpose of this ML, means an
individual residing at the borrower’s primary residence at the time of
the Economic Event and who was a co-borrower on the borrower’s
Watch here for further updates!!
Seller News: There are many naysayers declaring that the housing market is still challenged. Young adults are burdened with too much student debt. Interest rate increases are killing demand. Home ownership is no longer seen as part of the American Dream. We just want to let these naysayers know three things: 13,918 houses sold yesterday, 13,918 will sell today and 13,918 will sell tomorrow. 13,918!
That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales had increased 15.2% over the year before. According to the report, annualized sales now stand at 5.08 million. Divide that number by 365 (days in a year) and we can see that, on average, almost 14,000 homes sell every day.
We realize that these numbers are below the record for homes sold in 2006. We also know that we may not see those numbers again for a long time (and that is probably a good thing). But to say that the current real estate market is challenged is totally inaccurate. We have about 14,000 pieces of evidence to prove that.
So, if you are ready to sell and get the best opportunity for profit we have seen in years, please call us today at 951.231.8439. We hope to have the opportunity to earn your business.