Who gets help?
 Details on the foreclosure prevention plan released March 4.
One of the elements clarified was the definition of "at risk" which is pretty broad. You are "at risk" if you:
a) are suffering serious hardships;
b) have experienced declines in income or increase in expenses;
c) are facing an interest rate increase;
d) have high mortgage debt compared to your income;
e) your house is worth less than you owe; or
f) can demonstrate any other reason for being close to default.
In order to participate in the program you must meet the following criteria:
a) obtained mortgage before Jan. 1, 2009;
b) primary mortgage of less than $729,500;
c) must be your primary residence (no investment properties);
d) fully document income by providing tax returns and pay stubs;
e) hardship letter; and
f) go to counseling for anger management (I'm kidding); you must get counseling if your total household debt - including auto loans, credit cards and alimony - totals more than 55% of your income. This is a nice way of saying you are a shopaholic and we won't help you unless you first admit you are a shopaholic.
Other noteworthy features:
a) Program will be in effect until the end of 2012, but you only get one bite at the apple;
b) New interest rate fixed for five years, after which it will increase by 1 percent a year until it reaches either the original rate or the prevailing mortgage rate at the time of the modification, whichever is lower;
c) If rate reductions aren't enough to get payments to 31% of income, a lender can extend the term up to 40 years, or shift part of the principal to the end of the loan at no interest;
d) Holders of second mortgages will receive incentives to cooperate.
Qualifying for the program and getting the best deal are two different things. Getting the best deal requires inexhaustible patience, lots of free time, access to the right person in loss mitigation and most importantly, the correct packaging of the file.
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LOL - Laughs OnLine
"Bottle feeding gone terribly wrong."
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Gold Parties
As yet another sign of the times, apparently gold parties have edged out Tupperware parties as the preferred new blending of social networking and raw capitalism. The fundamental difference between the two types of get-togethers, is that Tupperware parties were intended to attract buyers. Gold parties are intended to attract sellers. So I decided to establish some rules of engagement for this new and unregulated commercial space if you decide to participate.
1. You cannot bring teeth with gold fillings, even if you have taken the time to brush them.
2. You cannot mix gold and Tupperware. In other words, you cannot come to sell your gold and at the end of the transaction try to pitch Tupperware. You must commit to one or the other.
3. At gold parties, the gold is tested for purity. You cannot assault a spouse or any other person if upon testing it turns out your precious bracelet is not really gold.
4. Finally, if you only need the money from one earring, you cannot continue to wear the other earring by itself unless you can demonstrate that you are at least part pirate.
Go forth and prosper.
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Share If You Care
Our goal with this newsletter is simple: Cover every important topic that might help homeowners and investors make more informed decisions concerning real estate. You can help in two ways:
1) Send us any articles or information you come across that might be of interest to other readers
2) Forward this newsletter to anyone and everyone you know that owns or plans to own real estate!
Sincerely,
Kwame J. Granderson
Equinaire
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Free Educational Webinar
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When Should You Walk From Your Property?
Learn About...
1. The cost of reentry
2. Short sale vs. foreclosure
3. Primary vs. investment property
4. Personal considerations
Date: Tuesday, April 7, 2009
Time: 7PM - 8 PM
Register by clicking here
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Quote of the Week
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"When nothing seems to help, I go look at a stonecutter hammering away at his rock, perhaps a hundred times without so much as a crack showing
in it. Yet at the hundred and first blow it will split in two, and I know it was not that blow that did it, but all that had gone before."
-Jacob Riil - 19th century social reformer
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Upcoming Webinars
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Be on the lookout for upcoming webinars on the following subjects:
· 2009 Market Trends
· How do I know when the market has bottomed out?
· The Granderson Composite Index
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Need a Loan Modification?
AmeRestart Can Help
Lender: Downey Savings
Loan Amount: $662,546
Old Int. Rate: 8.25%
Old Payment $3,716 (+ approx. $1,200 negative amortization)
New Int. Rate: 3.0%
New Payment: $2,031 (principle and interest)
(Deferred principle of $208,979 that does not have to be repaid unless
property is sold or refinanced.)
These are real numbers!
Click Here to learn more.
Call 877.619.3258
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Newsletter Archive
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Click here to access our archives.
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