More flexibility available to help borrowers avoid foreclosure

On Dec. 8, Fannie Mae announced it was giving mortgage servicers more flexibility and more loss mitigation options to minimize foreclosures. The changes will allow servicers to act earlier to avoid potential delinquencies. The changes affect mortgages in mortgage backed securities (MBSs) and mortgages held by Fannie Mae in portfolio.

The changes "build on and complement" the Streamlined Loan Modification Program (SLMP) that takes effect on December 15, 2008, and is described elsewhere in this week's Washington Report. Highlights of the changes include:

Authority for servicers to apply loss mitigation tools for borrowers facing reasonably foreseeable, imminent default, so they don't have to wait until they are late making payments.

A new Early Workout program that allows servicers to pre-negotiate a loan modification that takes effect and becomes permanent after the borrower successfully completes a trial period.

Clarification that a loan can remain in a pool even if it is 24 months delinquent, if there is ongoing activity to address the problem.

Elimination of the requirement that a loan must proceed to foreclosure after a specified period of delinquency.

Fannie Mae has also announced a new Single Family Master Trust Agreement that will allow servicers, for new MBSs, to remove a loan that is 30 days delinquent from the MBS to modify the loan.

Freddie Mac guidelines also permit servicers to address problems faced by borrowers who are at risk of imminent default. It is not known whether Freddie is considering enhancing this policy to complement the SLMP.

Source: Ohio Association of Realtors

New York Times "It May Be Time to Think About Buying a House"

In The New York Times article "It May Be Time to Think About Buying a House" written December 6th, the author warns potential first-time homebuyers not to miss this golden opportunity. Housing prices are down and although the bottom of the market can only be seen in hindsight there are many reasons why now is the time to buy. If you want a new home, many builders are running specials right now that probably won't last until the busier spring market. The $7500 tax credit available to anyone who hasn't owned a home in the last 3 years ends in April. Interest rates have actually come down more since the time this article was written and are now below 5% for a 30 year fixed rate conventional loan. Of course you'll also have the freedom of customizing your home without first consulting your landlord!

sold!

I just sold 886 White Willow Lane! Thank you to my seller, Timberly, for giving me the opportunity to sell it, and welcome to the neighborhood, Patricia!

Columbus: 7th best city to conduct business

CNN named Columbus the 7th best city to conduct business. Here is an excerpt from the article:

'This state capital is one of two cities new to the top 10 this year, rising from 14th place a year ago with a 26-point gain.

The home of Ohio State University, Limited Brands (LTD) and Big Lots Inc. (BIG) also benefited from a broader survey of small-business figures. The city moved up 10 slots in that category.

And the addition of two financial firms, Diamond Hill Investment Group (DHIL) and ProCentury Corp. (PROS), to the Russell 2000 index helped Columbus surge 11 spots in that category.

The region has managed to avoid the Rust Belt troubles that hit other Ohio cities like Cleveland, said Steve Mangum, the interim dean of Ohio State's business school. Columbus has built an entire economy around the university -- the country's biggest by enrollment -- using its research and educational might to fuel various types of industry.

The university also is a cornerstone of Columbus residents' down time, bringing art and culture to the region, as well, of course, as the beloved Buckeyes football team.

Locals like the intimate nature of the city.
"It has a small-town feel to it, but it's the [30th] largest city in the country," Mangum said. "There's something about the spirit of this place."'

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renovation lending

Have you ever seen a house you really like, one that needs some work but has great potential? Some people feel like they would have to pass up an opportunity like this just because they don't have the money to invest in the repairs. Have no fear, there is a solution! FHA offers two products a full 203k and a streamline 203k. If the house just needs a few upgrades like new carpet, new appliances, or a remodeled bathroom, the streamline 203k is probably the right product for you. You can receive a loan for up to 110% of the after improved value of the house, with up to $35,000 in repair funds and can receive up to 50% of the repair funds within 10-14 days after closing, before the work even begins! There is no minimum amount to borrow and the process of getting the money is very easy. Keep in mind though, that you can't make structural changes with this loan. If you need to make structural changes you'll need a full 203k loan. This loan program is a little more paperwork-intensive, but definitely worth it. You'll line up your contractors and estimates before closing, then the mortgage company will send payments to these contractors out of your loan money. Now there's no reason to pass up a fixer-upper!