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New Financing Available Just 1 Year After Short Sale

23 February 2013  
Financing available for those who had a short sale, just 1 year later?

Good morning! It's a pretty, but chilly day here in Prescott, Arizona. Hello, I'm Gary Edelbrock, and I thought I'd share some new info from Mortgage expert Dan Shaw with you about loans and more.

Financing Available Just 1 Year After Short Sale

Hello Snow! We have about a quarter inch here in Prescott this morning. Well some interesting and curious news this week from both Fannie Mae and Freddie Mac. Also new changes in Short Sales. We introduced a new product this week that will allow financing with just a 1 year wait after a Short Sale! So, if you were waiting for 2 years, give me a call. I will help you with the financing to get into a new home. Also remember we still have 100% rural lending for many areas in Yavapai County.

Fannie and Freddie announced this week that they will begin allowing borrowers who are underwater on their mortgage but have continued making their payments, to walk away. It looks as though they will use a deed-in-lieu. I find this interesting as some of you long term readers of my market update might remember my proposal to the then "housing authorities" panel, which included several Congressional members and Senators, in Washington DC back in 2007. Back then I met with these politicians and suggested evaluating ability to pay and using a deed-in-lieu to stabilize neighborhood and market values. So my immediate thought is, "why now"? In the sunlight of a seemingly recovering housing market, why would this program be instituted?

You also might ask why two federally insured lenders, who combined owe in the neighborhood of $190 Billion dollars to the US taxpayers, would want to take on more debt? Unfortunately I think the answer to that question might be more dubious than one would suspect (which is often the case of anything done in Washington DC).

My suspicion is simple…..they know something we don't about rates. So let's set this up……If these credit worthy people are let out of their mortgages, they become qualified buyers. Even if rates go up people still buy homes. So if you loaned someone money at 4% and you can get them to change homes and loan them money at 8 or 9%? It almost seems like the perfect storm. And some of you may be old enough to remember the 18% rates of the 80's under Jimmy Carter. Affordable homes, albeit higher rates? I have yet to run the math, but it might be a business savvy trade off. Just a theory.

And remember these were the two giants that were selling off blocks of houses to be converted into rentals just last year. I guess time will tell, but ask yourself this question…might Fannie and Freddie might have some inside information seeing an end to these low rates and, are they wanting qualified buyers back out into the market so they can lend money at the forth coming higher interest? Here is the link to the article in Bloomberg: Fannie To Allow Walkaways by On-Time Borrowers: Mortgages I hope all realtors have a great week of selling, and should you have any questions on loans, I am always here for you and my customers.

danshawDan Shaw " a distinguishable difference in service" 
CELL 928.710.9146 
SECURE FAX 888.857.7674 
6929 E Greenway Parkway, Suite 100, Scottsdale AZ 85254 
Licensed Mortgage Banker BKBR-0116708 NMLS 181393

www.castlecookemortgage.com

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Gary Edelbrock

Gary Edelbrock

Kim Horn Realty
(928)-778-0442 Home/Cell
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