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Danielle Ervin's Blog

By Danielle Ervin | Agent in 91709
  • New FHA Guidelines: Purchase 1-year after "Economic Event"

    Posted Under: Home Buying in Chino Hills, Home Selling in Chino Hills, Foreclosure in Chino Hills  |  August 21, 2013 12:14 PM  |  965 views  |  No comments

    New FHA guidelines coming:

    Purchase only 1 year after “Economic Event”

    Read the full article HERE

    Late last week, The Department of Housing and Urban Development on Thursday unveiled a new set of guidelines under the FHA program specifically geared toward homeowners and prospective homeowners adversely impacted by the Great Recession.  The “Back to Work” program, as it’s called, doesn’t constitute a free pass for those who would otherwise be unable to qualify for financing, but it does reopen the housing market to a great many borrowers who would otherwise have been waiting for 3-7 years to tick off the clock–depending on their initial credit issue–before being able to qualify for a mortgage.  In FHA’s words:

    “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.”

    The program will require prospective borrowers to thoroughly document the nature of the “Economic Event,” that it resulted in derogatory credit, and that there has been a satisfactory recovery from the Event per the new guidelines.

    Lenders will consider the Economic Event to have caused the derogatory credit if:

    • The prospective borrowers had satisfactory credit prior to the event onset
    • The prospective borrowers’ derogatory credit occurred after the onset of the event
    • The prospective borrowers have reestablished satisfactory credit for at least 12 months since the the end of the event

    Lenders will consider borrowers to have reestablished satisfactory credit if:

    • The borrower has no late housing or installment debt payments for the past 12 months
    • Open mortgage accounts are current and have been paid on time for the past 12 months
    • Borrowers have adhered to the agreement of any open modification plan for the past 12 months
    • Complete a course of Housing Counseling in person, via telephone, via internet, or other methods approved by HUD (who provides a list of Counseling agencies).

    For the purposes of this program, an “Economic Event” is defined as “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.”  Lenders will verify the reduction in income or loss of employment with at least one of the following:

    • A written termination notice
    • Other publicly available documentation of the business closure
    • Documentation of the receipt of Unemployment Income

    Additionally, lenders have to verify a 20 percent loss of income due to the Economic Event by documenting borrowers’ income prior to the event.  This requirement can be satisfied either with a written “Verification of Employment” form with income details provided by the employer or signed tax returns (or W-2s).

    Let us help you make sense of these new guidelines as they become available!

    Contact us today!

    The Ervin Group

    EG Footer

  • Zombie house?

    Posted Under: Home Selling in Orange County, Foreclosure in Orange County, Property Q&A in Orange County  |  May 14, 2013 8:21 AM  |  778 views  |  No comments

    Have you heard of a Zombie house before? The house that never left the resposibility of the home owner...... or Zombie Foreclosure. Here is how it can be defined;

    Bankforeclosuresales.com explains the term on their website:

    “A zombie foreclosure or zombie home is a property that the homeowner has abandoned and assumed the home has become the property of the lender. Essentially what happens is the homeowner leaves the property after receiving a notice of sale from the lender, and then the home is left empty until the bank acquires the property. This acquisition can take longer than desired and during the period in which the home is not yet owned by the bank, technically the homeowner is still responsible for the property.

    Sometimes the homeowner thought the property was foreclosed upon and therefore became the property of the bank. However, they occasionally find out (often years later and without notification) that the bank never took possession of the property and instead the homeowner (who thought they were no longer attached to the home) is notified that they are still responsible for the property legally.”

    This situation is occurring in many markets right. The impact of the resolution of this situation is still to be determined.

    If you need help with your mortgage or negotiating with your bank to stop foreclosure please let our team know. We have a 100% track record of negotiating with banks and helping our clients through short sales. Let us help you!

    At your service,

    Danielle Ervin
    Danielle@ErvinGroupRealEstate.com

  • News Release: FHFA Extends HARP to 2015

    Posted Under: Home Selling in Chino Hills, Financing in Chino Hills, Foreclosure in Chino Hills  |  April 25, 2013 10:59 AM  |  744 views  |  1 comment
    Even with the rising prices in our local real estate market some homeowners are still upside down and need help. We are here for you! Our team has a 100% track record with getting a short sale approved and CLOSED. Contact us anytime for a confidential consultation.

    News Release: FHFA Extends HARP to 2015

    http://www.fhfa.gov/webfiles/25112/HARPextensionPRFINAL41113.pdf

    Washington, DC – The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.
    “More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”
    In addition, FHFA will soon launch a nationwide campaign to inform homeowners about HARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends. HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.
    To be eligible for a HARP refinance homeowners must meet the following criteria:

    • The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
    • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
    • The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
    • The current loan-to-value (LTV) ratio must be greater than 80 percent.
    • The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.

    If you need a referral to contact regrading your loan, or

    If you’re interested in other options, including a no cost short sale

    Danielle Ervin
    Danielle@ErvinGroupRealEstate.com

  • Lurking in the shadows?

    Posted Under: Home Buying in Chino Hills, Home Selling in Chino Hills, Foreclosure in Chino Hills  |  January 26, 2013 10:47 AM  |  227 views  |  No comments

     
    What is lurking in this optimistic real estate market? Does the rising prices seem almost to good to be true? Not ready to take a sigh of relief?

    If you are like me you still hear the rumors of Shadow Inventory that the banks are holding onto.


    Lets start by
    being clear about what shadow inventory is. These are homes that the bank has already foreclosed on, but which, for no apparent reason, aren’t listed in the MLS as a marketable property. The implication is that banks are holding foreclosed properties back from the market to restrict supply and prop up prices. This threat of looming shadow inventory scares some people into believing a deluge of homes is still about to hit the market. This actually seemed like a distinct possibility a year ago when the banks were clearly holding more inventory than they were listing.

    BUT that is no longer the case. In the past year, they have resold far more than they’ve taken back, eliminating any possibility that a shadow remains. They have sold them to third party investment firms, other banks, to auction companies, to grass-root companies that promise to fix up the homes and market as lease to own properties.... and on and on.

    Some have now redefined shadow inventory to include properties that "should" be foreclosed on. This may continue to misguided consumers of a deluge of REO listings any moment now.

    Most bank contacts I have are working diligently to secure partners to help them short sale their currently troubled mortgages. They've confirmed that their REO inventory just doesn't exist anymore. All but a few banks have told me this... some still have the inventory but I don't know the impact it will truly have on the market since our local inventory of homes for sale is SO low.

    There is still good deals out there and you should work with a real estate partner you trust!

    We hope you'll call The Ervin Group for all of your real estate needs.

    Kindly
    Danielle Ervin
    Danielle@ErvinGroupRealEstate.com

  • Buying a home after a short sale

    Posted Under: Home Buying in Orange County, Home Selling in Orange County, Foreclosure in Orange County  |  November 8, 2012 4:02 PM  |  343 views  |  1 comment

    Its a common misconception that if you short sell your home that you will not be able to purchase a new home for more than a year. For many, this rule applies. However, there are exceptions.

    If your home is underwater and you are current on your payments you might benefit from this exception. When you short sell a home you have to prove hardship to the bank- thus explaining to them why you cannot continue to live in that home or afford to make payments. Many people are directed to begin missing payments on their home loan. This strategy will affect your credit negatively and should only be done if necessary. If you can continue to make payments but your home is too far from your work or you need to move for another “hardship” reason, you might be able to purchase immediatley after the sale using FHA financing.

    Here is an example: Say you live in Apple Valley, you purchased in 2006 and are up side down on the mortgage. You are current on payments but just accepted a job in Long Beach. You have a very good chance in proving your case to the bank that this is a hardship (commute too long). This should allow you to list your home for sale, then purchase another right after that one sells. There are select times that banks will allow small relocation allowances for you even when you short sell.

    What if you purchased a home and are upside down and just want to move across town into a bigger home? That will not qualify. You cannot use this strategy to simply take advantage of market conditions.

    So, what happens to your credit? The majority of sellers whom are directed to miss payments suffer the worst credit issues. Missing payments will put your account into default. If you simply keep current on payments and short sell, it will mark it with less negative verbiage, like “not paid as agreed.” If your credit is average to good going into this situation this verbiage might not affect it enough to impact your interest rate. Above all, your credit will improve over time.

    This little known strategy is writtien in the FHA loan documentation, its not a trick or maneuver around rules.

    Above all, anytime you sell your home you need professional direction, especially in this situation. Do not attempt this on your own, call us for help!


    Danielle Ervin
    danielle@ErvinGroupRealEstate.com
    714-747-4663

  • New laws coming in 2013 for landlords

    Posted Under: Foreclosure in California, Rental Basics in California, Investment Properties in California  |  October 1, 2012 11:32 AM  |  919 views  |  No comments

    New laws coming in 2013 that effect landlords. I hope you find these helpful notice. If you have a question on these or any other rental/lease questions please don't hesitate to contact me!


    Tenant Entitled to a 90-Day Notice to Terminate After Foreclosure: Effective January 1, 2013, a month-to-month tenant in possession of a rental housing unit at the time the property is foreclosed must be given a 90-day written notice to terminate under California law. For a fixed-term residential lease, the tenant can generally remain until the end of the lease term, and all rights and obligations under the lease shall survive foreclosure, including the tenant’s obligation to pay rent. However, the landlord can give a 90-day written notice to terminate a fixed-term lease after foreclosure under any of the following four circumstances: (1) the purchaser or successor-in-interest will occupy the property as a primary residence; (2) the tenant is the borrower or the borrower’s child, spouse, or parent; (3) the lease was not the result of an arms’ length transaction; or (4) the lease requires rent that is substantially below fair market rent (except if under rent control or government subsidy). The purchaser or successor-in-interest bears the burden of proving that one of the four exceptions has been met. This law does not apply if a borrower stays in the property as a tenant, subtenant, or occupant, or if the property is subject to just cause rent control. This law will expire on December 31, 2019. This new California law is similar, but not identical, to the 90-day termination notice requirement under the federal Protecting Tenants at Foreclosure Act (12 U.S.C. § 5201, et seq.) (as extended by the Dodd-Frank Wall Street Reform and Consumer Protection Act), which is set to expire on December 31, 2014. Assembly Bill 2610.


    Landlord May Dispose Abandoned Personal Property Less Than $700: Commencing January 1, 2013, the total resale value of personal property left behind by a tenant after termination of a tenancy that the landlord must sell at a public auction (rather than dispose of or retain for his or her own use), has been increased from $300 to $700, if certain procedures are followed. This law, however, also prohibits a landlord from assessing any storage cost if the tenant reclaims personal property within 2 days of vacating the premises. The statutory notices of Right to Reclaim Abandoned Property have been revised to reflect these changes. Furthermore, a landlord’s notices of termination of tenancy and pre-move out inspection must contain specified language that former tenants may reclaim abandoned personal property left on the premises, subject to certain conditions. Assembly Bill 2303.



    Landlord Must Disclose Notice of Default to Prospective Tenants: Starting January 1, 2013, every landlord who offers for rent a residential property containing one-to-four units must disclose in writing to any prospective tenant the receipt of a notice of default that has not been rescinded. This disclosure must be made before executing a lease agreement. If a landlord violates this law, the tenant can elect to void the lease and recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed. The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. A property manager will not be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant. This law will expire on January 1, 2018. Senate Bill 1191.

    It is truly a great time to buy investment properties! If you'd like to find out how and options to purchase, please contact us today.

    At your service,

    Danielle Ervin
    The Ervin Group
    www.ErvinGroupRealEstate.com
  • New Short Sale Guidelines beginning November 1st

    Posted Under: Home Buying in Chino Hills, Home Selling in Chino Hills, Foreclosure in Chino Hills  |  August 29, 2012 10:25 AM  |  280 views  |  No comments

    Ervin GroupNew Short Sale Guidelines from Fannie Mae and Freddie Mac

    foreclosure-exit-sign1

    http://www.dsnews.com/articles/short-sales-will-find-approval-faster-through-new-guidelines-for-gses-2012-08-21

    The Dsnews.com article above details the new Short Sale guidelines Fannie Mae and Freddie Mac will implement starting on November 1st, 2012. The purpose of these new Short Sale guidelines is to help streamline the process of avoiding foreclosure and stabilizing communities.

    Some highlights of the new Short Sale guidelines include:

    1. Short Sale borrowers who are 90 days or more delinquent and have a credit score lower than 620 will no longer be required to provide documentation for their hardship.
    2. Short Sale relief to those underwater borrowers who need to relocate more than 50 miles for a job
    3. To prevent second lien holders from stalling the short sale process, the GSEs will offer up to $6,000
    4. Enabling servicers to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer
    5. Military personnel who are required to relocate will automatically be eligible for for short sales even if they are current. They also won’t be obligated to contribute funds to pay for the remaining deficiency

    These changes will have a significant impact on borrowers who in past years would not have qualified.

    We have a 100% track record with helping homeowners through short sales!

    We can help YOU navigate through these new guidelines!

    Call us for more info.

    The Ervin Group

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