About Short Sale Coding and the Correction

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Think the Government Might Owe You Money?
Scroll down to the green “HUD/FHA Refunds Info” section of this page to learn more!

Among the most important requirements a prospective home buyer has to meet in order to qualify for a mortgage loan is a satisfactory credit profile; and when a credit report reveals a less than satisfactory profile, it usually means that the prospective home buyer must take steps to find out why. The latest guest post, brought to you by our friends at North Shore advisory, discusses one aspect of how an individual’s credit can be affected negatively and the proposed solution to correct it.

SHORT SALE CODING CORRECTION ON CREDIT WILL TAKE AFFECT NOVEMBER 2013

For some time now, many short sellers were treated the same as homeowners that foreclosed when applying for a mortgage. Due to a credit coding issue that lumped short sellers into the same category as a foreclosure, the waiting period for loan approval was extended substantially. This forced millions to put their dream of participating in homeownership again off to the distant future. With interest rates climbing, and the real estate market improving, the increased future cost for purchasing would seem more of an obstacle down the road.

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But new policy changes could bring more options starting in November. After Sen. Bill Nelson focused on bringing this coding error to the FTC and the Consumer Financial Protection Board, things started to change.

This is the nature of the evolution of this business, says Fannie Mae spokeswoman Keosha Burns. The agency will input the new software into its computer system on Nov. 16. After that, if a short sale is marked as a foreclosure, the new code will allow the loan servicers to bypass it, correct it and move forward with the loan. Short sellers should speak with their bankers about the new options for homeownership, what the qualifications will be, and whether the state of their credit needs improvement.

Great credit brings great opportunity!!” Copyright 2013 • NorthShoreAdvisory.com

North Shore Advisory, Inc. offers credit repair, restoration, monitoring, and education services. We’ve been providing credit education and credit improvement for almost 25 years. For bankers and realtors we can review your clients credit reports and scores to see if we can improve them.

We can help you with your business credit needs as well as any personal credit scores.
Contact Us:
914-524-8300
Email:
info@NorthShoreAdvisory.com

HUD/FHA Refunds Info

You know, not everyone knows this, but if you owned a home and had a FHA mortgage, you might be entitled to money back from the government paid directly to you. It’s not free money (we both know that is a rarity), despite all the claims made by others that you can get free money from the government. No, this is money you would have paid into the FHA mortgage insurance fund via your MIP (Mortgage Insurance Premium) payments if your home was financed with a FHA mortgage.

There is no charge imposed by us for this service, and HUD/FHA certainly does not charge a fee for sending you your own money. We provide the service as an added benefit for your visit to this website, and of course we hope you come back often; but more importantly, we hope your name pops up on the HUD/FHA list of folks who are eligible for a refund. So Click here to check! …Good Luck!

Plan to Reform Mortgage Market Could Affect FHA Negatively

Okay I get it! Fannie Mae & Freddie Mac must cease “business as usual” because of the heavy criticism (some warranted) over the last five to six years as well as their share of blame for the sub-prime meltdown which fueled the mortgage crises and eventual recession; But it seems a little drastic to totally dismantle the two GSEs, both of which deserve a great deal of credit for their part in the robust real estate and growth in the mortgage market during the decade from the mid-nineties to mid-two thousands.
Getting rid of Fannie & Freddie would create much more pressure on the FHA (Federal Housing Administration that insures mortgages), which would be the only mortgage agency that would remain, (except the VA, which is restricted to veterans and their spouses) to deal with the nation’s home financing needs. That, my friends, could create another problem altogether. In the aftermath of a devastating subprime meltdown and crippling recession FHA-insured mortgages increased more than 20% from second quarter 2009 to the same quarter in 2010. Just think of how much more the agency would have to take on in the absence of the two GSEs.

If the private sector doesn’t pick up the slack from winding down the GSEs, then FHA would be the only viable source to meet that increased demand, so the planned reform has to be implemented with extreme care. Read more in this BINYAMIN APPELBAUM NY Times Article; and for a different perspective take a look at this Felix Salmon Seeking Alpha Article. Fannie Mae (1938) & Freddie Mac (1970) have been a huge part of the mortgage industry for a long time so any plan for “winding” them down is a big deal to this author.

Happy New Year! And Wishing You All the Best for Success in 2011.

A message to Prime Mortgages readers:
Thank you for your support. We will continue working to provide the most relevant and useful information about current FHA-insured programs and related topics. Please provide any comments, opinions or preferences which you would like us to be aware of. Thanks and God Bless! 

  Javeton


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humor:
If the government can’t run business, how come businesses always run to the government for a bailout when it runs into trouble? FHA-insured mortgages, government run for 75 years. Lest we forget?