Helpful Refi Info

In order to help educate homeowners about possible HARP refinance options, the Federal Housing Finance Agency (FHFA) has announced a new program that is designed to get owner eligible under HARP better informed about their refinance options. In order to be eligible under HARP, the owner's loan "must be owned 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 current loan-to-value ratio must be greater than 80 percent, and 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." While to date over 2.8 million homeowners have successfully refi'd under HARP, FHFA says there are still a fair number of owners who are unaware of their options, or who, for a variety of other reasons, have not yet availed themselves of the program. This new program is designed to help such owners take advantage of the program. So, if you and your current loan fit the above parameters, call FHFA for more information and you may be able to save yourself a good deal of money, as well as your home! As always, Good Luck.

Eminent Domain Suit Dismissed

As previously noted here, the city of Richmond, CA has decided to use eminent domain as a way to force lenders to, in effect, renegotiate mortgages already existing. If the lenders refused, the city would use the power of eminent domain to seize the loans and reset them at lower rates so the owners could remain in their homes. A number of lenders filed suit to block the plan by injunction. However, in the past few days a judge has dismissed the suit. HOWEVER< contrary to what supporters of the plan claim, the judge didn't dismiss on the merits of the suit. Rather, he dismissed because he felt that the events cited in the suit by the lenders had yet to come to pass, and thus, as future events that might or might not ever occur, were not presently actionable. However, I can guarantee you haven't heard the last of this issue.

Eminent Domain for Mortgages: Part 2

You may recall that a few weeks ago I reported that the city of Richmond, CA is considering using eminent domain to cure problems where homes are 'under water' in regards to their mortgages. Yesterday, the city council voted, 4-3, to proceed with the program. The idea is that if a lender wouldn't negotiate a modification to the loan on a particular property, the city would the use eminent domain to take over the mortgage and negotiate a lower rate and payments for it with another lender. Understandably, this has the lenders up in arms, and both Wells Fargo and Deutsche Bank have filed suit seeking a preliminary injunction to stop it. Meanwhile, even the city's vote is of questionable effect in terms of beginning the plan's operation. This is because in situations where city funds are involved, a majority of at least 5 votes is required, so the Council's vote yesterday is short. Opponents in Richmond are leery of the plan for fear of expensive lawsuits against the city from the lenders affected. Stay tuned--this may prove to be very interesting.