Archive for September, 2013

$18 million in mortgage settlement relief for California

Mortgage relief

In the past year and a half, California homeowners have received more than $18 billion worth of help from a national mortgage settlement with major lenders.

The state’s share of the settlement was divided evenly between principal reductions and short sales, and it includes more than $2.8 billion to residents of Alameda, Contra Costa, Santa Clara and San Mateo.

The agreement penalized the lenders for something called “robo-signing” where  bank employees fraudulently signed foreclosure paper work, as well as misconduct in loan servicing, and was limited to loans owned or serviced by those lenders.

The $25 billion national settlement was with the attorneys general of nearly every state, but California Attorney General Kamala Harris negotiated a separate version of this agreement with three different lenders. This increased the amount of help ,which went directly to homeowners. Under California’s agreement, only mortgage help that reduced what homeowners owed could be counted as credit in California’s share of the settlement.

As a result, 84,102 California families received first and second mortgage principal reductions. Bank of America delivered $11.16 billion and  forgave second mortgages in full for over 36,000 California homeowners. JP Morgan Chase $4.07 billion and Wells Fargo $3.2 billion.

Good news or what?

Authored by Forth Hoyt | Discussion: No Comments »

Trying to buy a home? New Ways to Come Up with a Down Payment!

If you are thinking of buying a home, you will need a minimum down payment of about 3.5 percent of the purchase price. You might begin to panic if you don’t know where to begin. But there is no need because I have prepared five ways you can come up with a down payment to seal the deal.

1. Gift Money: yes you can use Gift Money for down payment. Money that was given as a gift from family or documented close relationship can be used towards a down payment. The giftor needs to provide a gift letter and a paper trail for amount they are gifting for the benefit of the buyer. In addition, they will have to provide a bank account showing that they had the ability to gift the money.

2. 401(k)/Retirement Loan for down payment: Typically, borrowed funds for a down payment are not acceptable, but isn’t there an exception to any rule? In this case it’s a 401(k) or an equivalent retirement account or event a current home equity line. All of these are accepted for obtaining a purchase mortgage loan.

3. Sale of a Good: Have you considered selling your recreational vehicle and using the net proceeds from the transaction as your down payment? For instance,  let’s say that you decide to sell your motorcycle for $10,000. You’ll need to provide your mortgage lender with the full bill of sale, the bank statement depositing those funds and matching the bill of sale. As long as you can prove the sale from start to finish, you should have no problem using that money towards your down payment.

4. Trust Funds, Settlement Awards, etc.: If you happen to receive an inheritance, settlement, lottery winning, trust fund disbursement, family buyout, or even a gambling victory, all of these can be used for the down payment as long as the sourcing is fully documented from start to finish.

5. Line of Credit for down payment: Where a down payment lacks,  strength in income can compensate. You can take out a personal loan or a line of credit and deposit the full funds into your bank account. After two months, the funds will be eligible for use in the transaction.

So if you don’t have a down payment for your dream house, you now know where to look!

Authored by Forth Hoyt | Discussion: No Comments »





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