Charlotte Short Sale Advisors

Are you in need of home loan assistance? Do you have a Bank of America home loan? You may be in luck!

BofA has recently launched a new website dedicated to helping its loan customers no matter what situation they may be in. Whether you think you may miss a payment soon, just missed one home loan payment, missed more than one loan payment or have received a forclosure notice. This easy to navigate website will give you assistance into understanding your situation and where to go from there.

 www.bankofamerica.com/homeloanhelp

To find a real estate agent who will understand what you are going through and can help you through a short sale process or relocating, click here.

Have you thought about looking for an “”easy-fix” for mortgage problems you are experiencing? Don’t sign up for just any program. Due to an increasing amount of scams that take advantage of homeowners, the Federal Trade Commissio FTC has issued regulations protecting consumers against relief fraud. 

Everyone could benefit from learning about these regulations and by downloading this free report you can protect yourself from potentially fraudulent activity.

In an article by Jon Prior published in HousingWire yesterday, of 100 Bank of America mortgages that have reached 60 day delinquency sampled, only 14% qualified for the HAMP program. The following is an excerpt from this article.

“The Home Affordable Modification Program came under fire at the end of February from lawmakers claiming it has caused more harm than good. Even those defending the program say it will not reach as many borrowers as originally thought. The House Financial Services Committee will debate a bill aimed at terminating the program two years before it set to expire.

Through January, participating mortgage servicers permanently modified roughly 600,000 loans, far short of the 3 million to 4 million estimated by the Treasury Department when HAMP launched in March 2009.

BofA monitored the 100 loans as they went through the HAMP waterfall. In the first phase, 28 loans fell out of the program because the bank could not get in touch with the borrower, according to a presentation for investors held Tuesday.

“We conduct extensive outreach activity to these including 110 phone calls and eight customized letters,” BofA Executive Vice President Terry Laughlin said, “in addition to door-knocking in hard hit markets and hundreds of outreach events across the country.”

Of the 72 borrowers that did provide financials to BofA, 52 did not pass the HAMP underwriting guidelines. Roughly half of those that did not pass already had mortgage payments at or below 31% of their monthly income. Another 23% did not have enough monthly income to qualify, and 17% did not submit their hard ship documentation.

Then, of the 20 that made to a trial stage, 14 completed the trial process by making three consecutive mortgage payments under the new terms.”

Full Article

For help with HAMP or HAFA contact Showcase Realty.

The research firm, Capital Economics, has found that housing has never been this undervalued, according to an article by Carrie Bay published in DSNews. The following is an excerpt from the article.

“The continuing depreciation of residential property values at the end of last year has made housing look more undervalued relative to income than ever before, according to analysts at the research firm Capital Economics.

Based on the latest Case-Shiller home price index, Capital Economics’ study shows that in the fourth quarter of 2010, housing was 21 percent undervalued when compared with disposable income per capital.

Looking at data included in the index published by the Federal Housing Finance Agency (FHFA), the firm found that housing in Q4 was 15 percent undervalued as measured against individuals’ disposable income.

Capital Economics says its results illustrate “housing is exceptionally undervalued,” and the gap is getting bigger. In its third quarter 2010 report, the research firm pegged the Case-Shiller index readings as 19 percent undervalued and the FHFA index as 14 percent below what would constitute a balanced housing value in relation to income.

The recent fall back in house prices, coupled with low rates, explains why the initial monthly mortgage payment on a median priced house bought with a 20 percent down payment has fallen to a record low of 13 percent of the median income, Capital Economics pointed out in its report.”

With home prices hitting a new cycle low in 29 states in the fourth quarter of last year housing now appears to be closer to fair value when set against rents.

“Such favorable valuations mean there is plenty of scope for housing to perform well in the medium-term, according to Capital Economics, but over the next year, the firm says the combination of weak demand, high supply, and more forced sales of foreclosed properties will push prices lower.”

With the sharp fall of the mortgage delinquency rate at the end of 2010, there will be fewer homes in the foreclosure pipeline but the increase of defaulted properties still in process means home values will continue to be negatively effected by these distressed properties for a while. In addition to the low prices, mortgage rates have recently been on the decline as well. When you add low mortgage rates into the equation with declining home prices, Capital Economics says, “The incredibly favorable affordability and valuation environment is the housing market’s one big positive.”

Full Article

For information on finding affordable and available homes in the Charlotte Metro and surrounding areas, contact Showcase Realty.

 According to an article by Christina Rexrode for the Charlotte Observer published this morning, Bank of America will no longer be offering reverse mortgages. This controversial option has been seen as something that was marketed toward the elderly as a way to make quick cash. The only borrowers able to take advantage of a reverse mortgage have to be at least 62 years old. 

It can be profitable and the homeowner won’t have to sell their home they may not be able to afford anymore - but because the bank pays the borrower instead of the other way around they end up losing equity in the end. The following is an excerpt from the Charlotte Observer article.

“The loans are often misunderstood. Borrowers do have to repay the bank, just not in cash: When they move or die, the bank sells the house and keeps the money, leaving out any heirs. The loans also carry high upfront fees, and a borrower can almost always get more money by selling the house instead. In general, reverse mortgages let borrowers access only 45 to 75 percent of the equity in their homes. The older the borrower, the bigger the percentage.

Guy Cecala, publisher of Inside Mortgage Finance, said that Bank of America is trying to minimize its exposure to potential lawsuits.

‘You’re dealing with the elderly, you’re talking about taking away their homes when they die,’ Cecala said. ‘That’s a bad set of variables there.’

Francisco, the bank spokesman, said the decision wasn’t related to any ethical qualms about reverse mortgages. The bank has worked with industry groups to put in safeguards to protect consumers, he said, and is ‘fully aware that it’s a very sensitive population.’

The reverse mortgage unit is profitable, he said. But the industry has been making fewer of the loans in the past year.

Various regulatory agencies have been eyeing reverse mortgages. Among other concerns, they wonder if borrowers are being forced to buy other financial products as a condition of getting the loans.”

To read the entire article, click here.

For affordable homes available in the Charlotte Metro and surrounding areas, click here.