George's Blog

So far I have covered four Federal Programs that were designed to help homeowners in trouble with their mortgage.  As I stated in the last three blogs these programs are usually mentioned as an acronym, which makes it difficult for the average person as well as even those in the Real Estate Industry to know what the program stands for.  These blogs are intended to give a brief, but enough of an explanation of each program that those reading them will be able to have a basic understanding of each program, and be able to remember them.

The first two acronym and program that I covered were HAMP (Home Affordable Modification Program), and HOPE aka H4H (Home for Homeowners),  HARP and HomePath.  Today I will cover FEHLP.

FEHLP (Federal Emergency Homeowner's Loan Program)

FEHLP was a Federal Program funded by the government under HUD, and was administered nationally through the State Housing Authorities.  Here in Connecticut the program was adminstered by the Connecticut Housing Finance Authority (CHFA).  Through this program CHFA provided mortgage assistance to homeowners experiencing a harship or a drop in income of at least 15%.  CHFA was able to utilize these Federal Funds to help eligible homeowners with mortgage assistance loans to pay:

• Mortgages that were in arrearages
• Delinquent taxes
• Homeowners insurance
• Condominium fees
• Foreclosure related legal fees
• Assist with monthly mortgage payments for up to 24 months or $50,000 whichever came first. 
  

The assistance was provided as an interest free forgivable mortgage loan for as long as the homeowner continued to live in the property and pay their mortgage on time.  In order to qualify for this program, the homeowner had to be at least 90 days delinquent on their mortgage. 

The reason that I have been talking about this program in the past tense is because the money has run out and it is no longer available.  This was one of the few programs that I have seen that has actually done what it was intend to do.  I know that several of the homeowners whose mortgages are being serviced by us at McCue Mortgage, were able to recieve help from this program and are now current on their mortgage. 

It is amazing that the Federal Government is so willing to keep on puting money into programs that fail, but is not willing to continue to fund programs like this that actually helped homeowners.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

So far I have covered two Federal Programs that were designed to help homeowners in trouble with their mortgage.  These programs are usually mentioned as an acronym, which makes it difficult for the average person as well as even those in the Real Estate Industry to know what the program stands for. As I have stated before these blogs are not meant to go into in depth explanations of each program, but to give just enough of an explanation that those reading these blogs will be able to have a basic understanding of each program, and be able to remember them.

The first two acronym and program that I covered were HAMP (Home Affordable Modification Program), and HOPE aka H4H (Home for Homeowners).  Today I will cover two more Programs HARP and HomePath.

HARP (Home Affordable Refinance Program)

This program was first announced in 2009, and revised by FHFA in December 2011.  The reason why it had to be revised was because it simply did not come close to doing what it was suppose to the first time, so the Government decided to revise it and give it a second chance.

HARP is suppose to make it possible for a homeowner with a Fannie Mae or Freddie Mac mortgage to be able to refinance into a new Fannie Mae or Freddie Mac mortgage without Loan-To-Value (LTV) restrictions.  Basically this program is for Borrowers who have acceptable credit, and can fully document income and assets, but are under water on their property because of property values going down.  The Lender that originates the new loan has to be the same as the Lender who is presently is servicing the loan.  Loans that originally received an Expanded Approval (EA), are not eligible for this refinance.

The Government is hoping that Lenders will participate in this program even though they are refinancing properties that are worth less than the amount that is being refinanced.  The reason why these Lenders would consider doing that is because they are already on the hook for the loan.  And by lowering the interest rate and monthly payment, they are making it less likely that the homeowner will default, and they have to foreclose

HomePath

HomePath is not an acronym, it is the full name of the program.  HomePath is a program that Fannie Mae has created to try to help sell their Real Estate Owned (REO) properties.  HomePath is Fannie Mae's version of FHA's Streamline 203K.  HomePath Mortgages allow for a Borrower to purchase a Fannie Mae owned property that requires light to moderate renovations.  The loan amount includes both the funds to purchase the property and the funds to renovate it, up to 35% of the completed value, but no more than $35,000. 

Anyone interested in purchasing one of these Fannie Mae properties should visit HomePath.com, which is where Fannie Mae lists their REO properties nationwide.  But keep in mind that their is a reason that Fannie Mae is willing to do this type of loan on these properties, and that is because many of them are in need of some TLC, and would not sell otherwise.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Yesterday I started a series of blogs to provide brief explanations of acronyms for some Federal Programs that we have heard much about, but may not know what the program or acronym stand for.  As I stated yesterday these blogs are not meant to go into in debth explanations of each program, but to give just enough of an explanation that those reading these blogs will be able to have a basic understanding of each program, and be able to remember them.

The first acronym and program was HAMP (Home Affordable Modification Program), and today I will cover HOPE.

HOPE aka H4H (Hope for Homeowners)

Was launced by the Bush Administration, and was a program to refinance homeowners into new affordable loans through FHA through the Economic Recovery Act of 2008.

HOPE was to be offered and originated by current Lenders as a fixed rate payment program for primary residence properties.  Hope was for homeowners that had obtained their mortgage on or before January 1, 2008 who had made at least 6 payments, and the mortgage payment was more than 31% of their Gross (pre-tax) Income.

The new HOPE Mortgage was to:

• Be no more than 90% of the new appraised value, including any financed Upfront Mortgage Insurance Premium.
• The holder(s) of existing mortgage liens had to waive all pre-payment penalties and late payment fees.
• The existing subordinate Lender(s) had to release their outstanding mortgage liens.
• The standard FHA policy regarding Closing Costs applied, and could be paid by:
• The homeowner
• Servicing Lender
• Third Party
• Originatin Lender through premium pricing.
• The homeowner had to agree to share with FHA both the equity that existed at the beginning of the new mortgage, and any future equity.
  

As you can see from the above discription this program was doomed from its inception.  There just was no way that Lenders and homeowners were going to agree to these stipulations.  Hope met with the same faith that many of the Federal Programs met before HOPE and after HOPE.  There was no hope in HOPE.

In the next blog in this series I will cover HARP and Homepath.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Over the next few days I will be giving a brief explanation acronyms for some Federal Programs that we have heard much about, but may not know what the program or acronym stand for.   I will not be going into in debth explanations of each, because the purpose of these blogs is to give just enough of an explanation that those reading them will be able to have a basic understanding of these programs, and be able to remember it. 

The Federal Programs that I will Covering are:

• HAMP
• HOPE
• HOMEPATH (not an acronym)
  
• HARP
• FEHLP
• EMAP

I might not stay with that exact order but these will be the programs that I will be covering.  So lets start off with HAMP.

HAMP (Home Affordable Modification Program)

Came out of the 2009 Homeowner Affordability and Stability Plan which established the Making Home Affordable Program, which is administered
by the U.S. Department of Treasury.  There are two parts to this
program:

• A refinance option and
• A modification option

HAMP is the Federal Modification Program - Servicer administered program for non-HUD Loans.  HAMP:

• Capitalizes arrearages
• Reduces interest rates
• Extends the Payment time frame
• Defers the payment of the principal in order to bring the monthly payment down to 31% of the Borrower's Gross Monthly Income

Before the loan is modified, the Borrower must successfully complete a trial payment period, and MUST:

• Be employed
• Occupy the house as their primary residence
• Have a mortgage payment that is more that 31% of their monthly gross (pre-tax) income.
• Have a financial hardship and are either delinquent or in danger of falling behind.
• Have sufficient, documented income to support the modified payment

In the next blog I will cover HOPE aka H4H.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

If you are a Connecticut Realtor and need to take Continuing Education Class this year, the Middlesex Chamber of Commerce along with the Midd-Shore Real Estate School, will be making several classes available in late March and early April.

• March 20, 9 am to noon - CT Real Estate Agent Fiduciary Duties and Law Updates.
• March 20, 1 pm to 4 pm - Code of Ethics
• March 27, 9 am to noon - Risk Management
• March 27, 1 pm to 4 pm - Ct Real Estate Agent Fiduciary Duties and Law Updates.
• April 5, 6 pm to 9 pm -  Ct Real Estate Agent Fiduciary Duties and Law Updates.

All classes will be held at the Middlesex County Chamber of Commerce, 393 Main Street, Middletown, CT.  Cost for all classes $35. 

There will be limited seating, so make sure that you register early to reserve your spot.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

It Will Be A Repeat Of A New England Patriots/New York Giants Super Bowl.  Well I called it a week ago when I wrote a blog asking the question could we be in for "repeat of another New England Patriots/New York Giants Super Bowl?"  And the is exactly what we will be in for in two weeks.

The New England Patriots played on heck of a game today, but in the end to were very lucky to come away with a 23-20 win.  The Ravens missed a chip shot of a field goal to tie the game and send it into overtime.  As I have said in a couple of my comments today, it does not matter how the Patriots are getting to the Super Bowl, what is important is that they are there.  The last time that the Patriots got to the Super Bowl it was against the New York Giants and the Giants came away with the victory.  If you are a New England Patriots fan it has been a long with, but the wait is finally over.

The Giants/49ers game just finished a few minutes again, and that two was an exciting game.  In this case the game did go into over time with the Giants winning 20-17 on a chip shot of a field goal.  Both teams play an excellent game, and both defenses were outstanding.  I have always questioned Manning's toughness, but today he proved to me that he can take a big hit, and get up ready to play.

I am looking forward to the Super Bowl in two weeks, but hoping for a different outcome than the last time the Patriots and Giants went head to head in the Super Bowl.  Now all that remains to be seen is if the Patriots will take advantage of this opportunity to avenge their previous Super Bowl loss to the Giants?

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

As you can see from the picture above we got or first real snow fall in Connecticut.  We had a couple of minor dusting in the past week, but today we got about 6-7 inches in Middletown.  It was the light fluffy stuff so it was easy to get up, especially with a snow blower.

I am sure this is just the beginning of what is in store for the rest of the winter.  Last year we did not start to get snow until January, and once it started, it just kept on coming.  We got several snow storms last year that left more than 15" at a time.  We got so much snow that it was the first time in the 51 years that I have lived in New England that I had to actually use a roof rake.

The snow storms were coming so close together that the snow on the roofs did not have enough time to melt, and it just kept on accumulating, so much so that many roofs collapsed.  I was very fortunate to not have any damage on my roof, but this year I am not taking any chances.  If the snow starts to accumulate more than a foot on my roof I will be out there with the roof rake.

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Two months ago Connecticut Housing Finance Authority (CHFA) Interest Rates Dropping Once Again to the lowest that they had ever been.  I wrote a blog on November 17, 2011 stating that "Just when you think that interest rates cannot go any lower, the Connecticut Housing Finance Authority (CHFA) proves you wrong."  Back in November the rate had droped to 3.375%.   Well they have proved me wrong again this week by dropping to a new CHFA all time low of 3.25%.  The CHFA rate comes out once per week, and is fixed at that rate from Thursday to Thursday.

For those not familiar with CHFA, it is a 30 year fixed loan for First Time Homebuyers.  Even though CHFA requires a 3.5% downpayment, it lets First Time Homebuyers borrow the 3.5% downpayment along with all the closing costs if the Borrower does not have the funds.

CHFA will further reduce this incredible rate even further if the Borrower is a teacher or veteran by an addition .125%, and by .25% if the property is in one of their designated targeted areas.   That means that the CHFA interest rate until Thursday could actually be as low as 3% if the property is in a targeted area.

This rate is to good of a deal to let it go buy without taking advantage of it.  At this interest rate, and with house prices falling, a Buyer can purchase a bigger and higher price house than they could ever have before.

With Connecticut Housing Finance Authority (CHFA) Interest Rates Dropping Once Again to the lowest that they had ever been. 

*************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Those of us who are in the Real Estate Industry know that waiting to purchase a property can end up being very expensive, even if home prices go further down.   As the title states "Waiting Doesn't Pay", and the chart below, that we have put together at McCue Mortgage, clearly shows that.

This is because if the interest rates start to go up, they will have a much bigger impact on the monthly mortgage payment than the purchase price going down.  Interest Rates are extremely low right now, so even a 1% increase in the interest rate can easily reflect over a $100 increase in the monthly payment.

Most people have a difficult time visualizing this, but when it is put in a chart like the one below, it becomes very easy to see and understand.  I hope that this chart helps you motivate your Buyers to consider purchasing now rather than later.  By waiting they are not only risking a higher monthly payment for a lower price house, but more importantly they may no longer be able to qualify to purchase the property because of the higher monthly payment.

************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Member Breakfast Meeting

Rece Davis
ESPN College Basketball & Football Studio Host
&
SportsCenter Anchor/Reporter

Middlesex County Chamber of Commerce members are in for a real treat at this months Member Breakfast Meeting.  ESPN's Rece Davis will be the host speaker which means that members need to by their tickets soon if you plan on attending.  This is also a great time to invite a guest.

Don't wait to long and be left out.

**************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.