Mark Daya- Foreclosure Prevention/ Short Sale Specialist

Los Angeles Times

A new statistical analysis, based on a large sample of all mortgage applications approved and denied in recent months, offers valuable benchmakers for anyone thinking about refinancing a home purchase or refinancing an exisiting loan.
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http://www.latimes.com/business/realestate/la-fi-harney-20120415,0,7325165.story

CalHFA has announced it will end its School Facility Fee Down Payment Assistance Program, which has been responsible for providing more than 14,000 grants totaling more than $61 million. Associated with this down payment assistance was more than $3.3 billion in first mortgage loans for people purchasing newly constructed homes throughout California. The program currently has approximately $700,000 left in funds, and CalHFA anticipates the final funds being expended by the end of April.

CalHFA will continue to accept applications for SFF until funds are exhausted. Applications will be accepted on a first come, first served basis.

Applications for home purchase loans dropped by 20 percent in October from September, even though mortgage rates in October held close to their lowest levels of the year.  Compared with one year ago, applications for home purchases were unchanged.

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http://blogs.wsj.com/developments/2011/11/11/applications-for-purchase-mortgages-declined-in-october/?mod=WSJBlog&mod=WSJ_Real Estate_BLOGSDEVELOPMENTSFEED

The state-run program, “Keep Your Home California,” which helps homeowners struggling to pay their mortgages now has broader eligibility guidelines.  Borrowers who did “cash-out” refinances and own multiple properties now are eligible for the program, according to California Housnig Finance Agency officials.

Making sense of the story

• To date, Keep Your Home California has helped approximately 8,000 low- and moderate-income households that are behind on loan payments or close to default.
• There are four parts to the program: Mortgage help for the unemployed, mortgage aid for homeowners with documented financial hardship, relocation help for those in the midst of a short sale or deed-in-lieu of foreclosure, and reduction of principal.
• Homeowners who completed “cash-out” mortgage refinancing now are allowed to take part in the four programs outlined above, and borrowers who own more than one property also can apply for the program.  Previously, these two groups of borrowers were excluded from participation.
• Mortgage aid to unemployed borrowers also has been extended to nine months, instead of six.  Such homeowners can receive up to $3,000 a month.  To qualify, borrowers must be receiving unemployment benefits.
• Additionally, the program has reinstated up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.
• To review qualification guidelines, visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org.

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http://www.signonsandiego.com/news/2011/nov/08/mortgage-aid-open-more-calif-borrowers/

Some borrowers think that because their mortgage application is turned down the first time, they won’t ever be approved.  In reality, some borrowers succeed on the second or third attempt, usually with a different mortgage professional, and often several months later, after they have saved more money for a larger down payment or improved their credit score.

Making sense of the story

• Before reapplying for a mortgage, borrowers are advised to look at the reasons they were initially rejected.
• The Equal Credit Opportunities Act requires lenders to give loan applicants specific reasons in writing within 30 days of their decision.  If it’s based on a problem in the borrower’s credit report, the lender must tell the borrower the name and address of the credit agency that provided the information.
• Talking to the loan officer who denied the application to see how close the borrower was to being approved also can be helpful.  Sometimes the gap is small and could be bridged with a larger down payment or another home appraisal, for example.
• It also may be worthwhile to shop around for other lenders.  Borrowers can work with a mortgage broker or an online network like LendingTree or Zillow’s Mortgage Marketplace.
• A credit union also might be a better bet for some applicants.  Credit union loan committees may permit better deals for longtime members; they might also modify loan terms for borrowers they already know.
• However, first-time buyers may need to scale back their aspirations.  One reason people get turned down for a mortgage is because they try to buy more property than they can afford based on current incomes.
• Applicants also should look at ways to strengthen their financial picture.  If a borrower’s credit is poor, paying down credit-card balances can help to increase a FICO score. 

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http://www.nytimes.com/2011/10/16/realestate/mortgages-what-to-do-after-an-application-is-rejected.html?_r=1&ref=realestate