Ann Arbor Real Estate Talk

This came to my attention when Realtor Magazine posted this article on Pregnant woman being denied loans.

Then my friend Erica Ramus posted about it on Active Rain, but not at the mortgage application but near the end of the loan approval process.

Thankfully HUD announced they were going after the banks that were doing this in their weekly update:

HUD Secretary Shaun Donovan said, “Lenders have every right to ascertain the incomes of families to determine whether they are eligible for a mortgage loan but they have no right to use a pregnancy or a short-term disability as a cause to deny that family a mortgage they would otherwise qualify for. Having a child should be a time for a family to celebrate and must not be a cause for unfair lending practices.”

If this happens to you, please get up and walk away. We have good local Ann Arbor Area lenders who would not discriminate against pregnant or or “hope to be” pregnant woman.

You can also contact: Brian Sullivan, HUD
(202) 708-0685

Flickr photo credit

A new program released by the Obama Administration is targeted toward the 5 hardest hit states for home loan assistance.

The Homeowner Assistance Program is geared toward unemployed people, those with high medical bills, or significant reduction in income.

The first of these home loan rescue programs to be implemented is in Michigan, by the Michigan State Housing Development Authority (MSHDA). Michigan’s Helping Hardest Hit Homeowners plan is structured to provide the following assistance:

• Help with mortgage payments for homeowners currently on unemployment,
• Catching homeowners up on missed mortgage payments due to unemployment or medical crisis, and
• Federal matching dollars to assist homeowners with principal reductions on homes they can no longer afford due to reduced income (underemployment).

The only glitch is the loan servicer does not have to participate. My guess some will, most won’t but if your situation is one of the above, call your loan servicer, then contact MSHDA to see if you will qualify for the assistance.  $54.5 Million has been allocated for Michigan.

The Home Loan Assistance Program goal is to help prevent homeowners from loosing their homes to foreclosure due to loss of income, job or high medical expenses.

Ann Arbor Area buyers…the home buyer tax credit has been extended until Sept 30th, 2010.

The Senate voted yesterday on a Bill very similar to the House bill to extend the deadline for closing on a home that was under contract on or before April 30th.

It will now go to the President to be signed.

A big sigh of relief was heard all over the United States as many home buyers were not able to get the homes  closed due to the “short sales”, lender’s with too many files, backlog of appraisals, and flood insurance running out. The National Association broke the stat’s down by states and Michigan has 6470 home buyers in that position.

***This is a closing date bill being extended not another stimulus bill.***

Some of our buyers woke up to good news this morning.

Military Members Benefit from Tax Credit  Extension.

The $8,000 tax credit created a lot of buzz for real estate this year.  Millions of families received the credit and thousands waited anxiously to know if there would be an extension of the deadline.  

Unfortunately, there was no extension for the average citizen.  However, members of the military, Foreign Service and intelligence community returning home to Michigan in 2010 will be happy to know that the deadline was moved to April 30, 2011.  That ís one extra year to make those home ownership dreams come true.

Of course, service men and women more than deserve the additional time to find a home due to their special schedules and circumstances.  

Besides the mortgages general rules and perks of the credit, there are a couple of other exclusive benefits for qualified service members.

1.   Qualified service members who have to move from a tax credit home due to leaving for duty are exempt from having to pay back the tax credit also known as the ìrecaptureî rule.

2   Military members spouses are also eligible for the tax credit.  The spouse does not have to be serving overseas with their husband or wife to qualify for the credit.

3    April 30, 2011 is the deadline for signing a contract on a home.  The final sale does not have to be made until June 30, 2011.

4    This does not really come with the credit, but I should mention the ever-growing popularity of the VA loan.  Speak with a mortgage counselor today to find out further info about the VA mortgage program.

General rules and modifications on the credit include:

1  A serviceman or woman must have served abroad for 90 days between January 1, 2009 and April 30, 2010 to qualify for the credit.  A person who was not able to complete his or her duties during those dates due to medical reason may still be able to receive the credit.

2   Income requirements were modified. Now, a single-person buyer is allowed a salary up to $125,000.  For a married couple, the limit is $225,000.  Allowances might be made for some above the annual income.

3    The home purchased must be less than $800,000.

So once again, the real estate market will benefit from the numerous military members and their families achieving their goals of home ownership next year. A great and admirable group of consumers.

For more information on the extension, visit the IRS website.

****This is a guest blog by James Kelly who works for VA Mortgage Center.com, proudly serving American military families as the nation’s premier VA lender.***

Ann Arbor Area buyers and sellers, do you think the Tax Credit should be extended for the closing date?

The Missy Caulk Team was incredibly busy the whole month of April with buyers who put homes under contract to get in on the $8000.00 First Time Home Buyer Credit and the $6500.00 credit for move up buyers.

Now it is time to get those homes closed by the June 30th deadline and people are panicking because of appraisal issues or they chose to work with lenders who haven’t been able to get the job done.  To say nothing of a few short sales (10) that have been under contract for 4 or more months.

NOTE: THIS IS NOT AN EXTENSION OF THE CREDIT, only an extension of the closing date to September 30th, 2010.

Today the Wall Street Journal wrote on post on how FRAUD could enter the picture IF agents back dated the contracts. This is a complete NO, NO.

Any Realtor who does this should lose their Real Estate License in a heartbeat.

Since the Amendment to the Bill has already passed the House and the Senate has wide support it will probably pass…but who knows.  I am in favor of the closing date being extended with a paper trail to show the home was really under contract and not backdated.

The National Association of Realtors is in support of the extension.

“NAR estimates the number of home buyers who have qualified for the tax credit and met the contract deadline of April 30, but who would not be able to close their transaction by the June 30 deadline, could go as high as 180,000. Realtors® have reported as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.”

What say you?

If you live in the Ann Arbor Area, here are some new rules concerning buying a home if you have been subject to selling your home as a short sale.

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

• take advantage of declining market conditions, and

• purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers are considered eligible for a new FHA-insured mortgage if :

• they were current on their mortgage and other installment debts at the
time of the short sale of their previously owned property, and
• the proceeds from the short sale serve as payment in full.

Borrowers in default on their mortgage at the time of the short sale (or pre-
foreclosure sale) are not eligible for a new FHA-insured mortgage for three
years from the date of the pre-foreclosure sale.  Lenders may make exceptions
to this rule under certain circumstances.

If  you have lost your job, transferred for job opportunities, or have a medical condition DO NOT WAIT to call a Realtor before you are late on your payments. There are more opportunities available if you deal with the situation up front.

Call me for a confidential discussion.