Fannie Mae Cuts the MARKET SHARE by Refusing to Pay Closing Costs….. REALLY?

You will find Fannie Mae Servicing Guide Announcement SVC – 2012-19 in  the PDF Attachment below which supports this statement.    On page 6, you will see  under the sub heading Unacceptable Short  Sale Transaction Costs, and I quote “buyers discount points or mortgage loan origination costs.”

This means that if your shopping for a new home and the loan is held by Fannie Mae , you can not ask for the Traditional closing costs credit even if you exceed the asking price of the home.   This will cut the NUMBER of people who can buy the home.    At least to me this lacks some logic.   Do we and when I say “WE”  I mean the Tax Payers who still control “Fannie Mae and Freddie  Mac”, want to limit the number of people who can buy a home before it goes into foreclosure?    The old saying that “Common Sense is not that common” just keeps rushing into my mind.    Who did the math on this and compared the facts that FHA and Fannie Mae policy should be in alignment.   What is even more odd is,  Fannie Mae will  allow for this type of closing cost credit on the loans they still invest in everyday in the  marketplace.   Really!   I just called a Bank and confirmed that this is still the policy.

The complexity of short sales transactions is growing.  Dealing with professionals that know where the rules are and how to apply them is very important to achieve success. You don’t want to spend a few months waiting to  find out  Fannie Mae will not allow for Traditional closing cost consideration, as is standard in a FHA Transaction.  Will this rule change?  I sure hope so!  Realtors talking about this rule impact will / could change it.   Fannie can you hear us?

CLICK ON THE LINK BELOW TO GO TO THE RULES IN PDF

Servicing Guide Announcement SVC – 2012- 19

George Kenner Broker Associate – Keller Williams Realty – Ca. Lic. Number 01229951

619-723-5715 – g.kenner@yahoo.com

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Realtors Speak out on Election Day…. CAR. Calls for Removal of Demarco at FHFA and George says Tell him about The Bush Tax Forgiveness Law… Do we Get an Extension or NOT?

First let me share a news release with you.  This is from the California Association of Realtors, whoever planned this to be let this go on Election Day…. BRAVO!

C.A.R. calls for change of leadership at FHFA

LOS ANGELES (Nov. 5) – The following is a statement by the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) on last week’s announced REO bulk sale transaction between Fannie Mae, the Federal Housing Finance Agency (FHFA) and Colony Capital:

“Fannie Mae and FHFA’s decision to move forward with the REO bulk sale in California amounts to another gift to Wall Street at the expense of taxpayers,” said C.A.R. President LeFrancis Arnold.  “The deal, which calls for the sale of more than 400 foreclosed homes in Los Angeles and the Inland Empire, not only hurts taxpayers and prospective home buyers, but will also delay a full recovery in the housing market.”

“The implementation of this ill-conceived program highlights the failure of FHFA to appropriately address this issue despite C.A.R. and others outlining alternatives,” said Arnold.  “The botched execution of the REO bulk sales, and Home Affordable Foreclosure Alternatives (HAFA) and Home Affordable Refinance Program (HARP) under FHFA’s oversight and leadership has demonstrated a lack of understanding of the housing market.  Given these and other missteps, C.A.R. believes it is time for a change in leadership at the FHFA.”

C.A.R. opposes bulk sales in California because the state is experiencing a severe shortage of available housing, which will negatively impact the state’s housing market.  The median home price in the Inland Empire is up 15 percent from $172,000 in February 2012 to $198,270 in September, and unsold inventory is down from 5.3 months to 3.8 months during the same period.  The median home price in Los Angeles has risen 37 percent from $272,920 in February 2012 to $373,020 in September, and inventory is down from 5.7 months to 3.7 months.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Now to George’s Video Address.

George Kenner, Broker Associate –  Keller Williams Realty – Chula Vista / Eastlake 

2060 Otay Lake Road, Suite 200 – Chula Vista, Ca. 91915

619-723-5714 – g.kenner@yahoo.com

SHORT SALE WARS – Or just a Great Idea- FHA SHORT SALES , Are they logicial?

In this video George shares what could be a “Catch 22” in the FHA Short Sale Rules.   The timeline (rule)  to remove an “IRS” Tax Lien may not be long enough to obtain the approval.  The IRS takes some time and has some rules to remove the lien that are not in sync.  Without an approval Buyers do not fully commit to the loan process to and get and  Appraisal.   The IRS makes it necessary to provide proof there is no equity in the transaction before they will remove the lien.    Is there a way to fix this?    FHA requires an appraisal be done to prove the lack of equity and a title report to prove the transaction can close but sharing the Lien information and getting a speedy release, well that is what this video is all about.   Will a Government Employee hear the logic and make a small change in the system that will create a saving benefit and save the FHA insurance pool, and thus the taxpayers  millions.   Will this change make it easier for people to transition out of their homes when they have to leave?   Watch the video and see how you feel!  Do you know some one who may be able to fix this, and get the well deserved credit?   Share this video with them!   George wants nothing for this idea, the benefit to his client to finish this short sale, and make a more comfortable move will be more than enough.

Update –  No Word from the Government –  But the Bank worked with the Problem!  See the Video Below for Detail

George Kenner, Broker Associate  Keller Williams Realty,  Lic. 01229951

2060 Otay Lakes Road, Chula Vista, Ca. 91915  * 619-723-5714 * G.kenner@yahoo.com