Steven Keefe

Earlier this month the Federal government unveiled additional mortgage assistance for homeowners at risk of foreclosure. The "Hope for Homeowners" program will refinance mortgages for some borrowers who are having difficulty making their mortgage payments. , but can afford a new loan that will be insured by HUD's FHA.

This program began October 1, 2008 and will go through September 30, 2011. The program is available only to owner occupants and will offer 30 year fixed rate financing only.

The following eligibility requirements will apply:

• The home must be a primary residence, and the homeowner can not own any other residential property, such as second homes or rentals.
• The existing mortgage must have been originated on or before January 1, 2008 and the homeowner must have made at least 6 payments.
• The homeowner must not be able to pay their existing mortgage without assistance.
• As of March 2008 the total monthly mortgage payments due were more than 31 percent of the homeowners monthly gross income.
• The homeowner must certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide false information to obtain their existing mortgage(s).

The following provisions also apply:

• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90% of the new appraised value including any financed upfront mortgage insurance premium.
• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5%.
• The holders of the existing liens must waive all pre-payment penalties and late payment fees.
• The existing 1st Mortgage holder must accept the proceeds of the new loan as full settlement for the outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Closing costs may be:
  1. Financed into the new loan provided the value of the new loan does not exceed 90% of the newly appraised value of the home.
  2. Paid from the borrower.
  3. Paid by the servicing lender or third party.
  4. Paid by the originating lender from premium pricing.
• The homeowner must agree to share with FHA both the equity created at the beginning of the new mortgage and any future appreciation in the value of the home.
• The borrower can not take out a second mortgage for the first 5 years of the loan, except under certain circumstances for emergency repairs.

There may be a certain number of homeowners in our market that may benefit from this program, but it is my feeling that the requirements are stringent and may not be realistic. For further information on this program or if you would like to discuss eligibility, please contact me at my office 909.336.2131 or via email at steve@cbskyridge.com

This week, I have heard from numerouos agents that there are "NO BUYERS" out there. Sooo I decided to do something I haven't done in 15 years. Hold an open house.

I decide to do it, because I wanted to see for myself what the traffic is out there. I showed up at a lakeside condo in Lake Arrowhead Village at 1 today, got my signs out barely and someone wanted to see the unit. It has been a steady flow of folks out looking and interested in Lake Arrowhead Real Estate.

I am glad I spent the time today... it has been a valuable excercise.

I just published a video discussing list to sell ratios and how to use them to measure a real estate firms performance. To watch the video, click on the following link:

http://www.viddler.com/explore/lakearrowhead/videos/4/

Thanks for watching!

Steve Keefe

I have published a few new videos:

To view the video entitled "Banks aren't getting it done" go to:
http://www.viddler.com/explore/lakearrowhead/videos/1/

To View the video on Lake Arrowhead Market comparison and recommendations to sellers go to:
http://www.viddler.com/explore/lakearrowhead/videos/2/

To View the Video on Deed in Lieu vs. Foreclosure:
http://www.viddler.com/explore/lakearrowhead/videos/3/

Thanks for Watching!

The media is projecting that due to market conditions and changes in the mortgage industry, buyers can't get loans. This is not an accurate assessment of what is happening.

It is true that credit guidelines have tightened, but good borrowers... people who should get loans are getting loans with very favorable terms. Because the guidelines have tightened it becomes important for those applying for credit to have an advocate to Sheppard the loan through processing and underwriting to insure a smooth transaction and successful close.

Over the last 30 days, I have been involved in several transactions where the borrower was very strong. In fact in one case I was told by the borrower that they had a "personal banking relationship" with Bank of America. This borrower had been strung out and paperwork requested to death only to find out the day before the scheduled closing that "Due to Market Conditions" Bank of America was unable to make the loan. I immediately requested that the borrower complete a package with Arrowhead Home Loans, our affiliated mortgage brokerage and I personally walked the deal through the process to close the loan and transaction only two weeks late. Yesterday I had a repeat only it was Wells Fargo. I offered to provide the same service and walk the deal through, but the borrower was so fed up with what he had been through that he just blew the deal out.

Bottom line... in today's climate, banks aren't getting it done. When someone applies for a loan with a bank, basically they are getting either an 800 number with someone who really doesn't know what they are doing, or a clerk again who has very little experience. What is needed is a professional... an advocate who will take the necessary steps and package the loan accordingly to insure a successful end result. It is almost as banks haven't told their employees yet that they aren't going to make loans, because the employees are making promises and not delivering on them. No matter what kind of relationship someone has with a bank or perceive they have with their bank it is never going to be as close as the banks relationship with their REGULATORS.

Arrowhead Home Loans, Inc. a mortgage brokerage firm operates as an advocate for its clients. If and when challenges arise in the transaction, our talented loan consultants are there to provide expertise to resolve those challenges. Arrowhead Home Loans, Inc; also provides some of the most competitive rates found in the marketplace. Our past clients come back time and time again and send individuals from their sphere because they realize the value of dealing with professionals who do what they say they are going to do.

If you are applying for a loan, think twice before you go to your current "banking relationship". In this market, they are probably not going to deliver, regardless of how strong you are.

If you are in the middle of a transaction, and it isn't going the way it should, call us, we can get involved and secure the financing for you with the least amount of hassle.

The days where just any loan guy will do are gone....Borrowers need someone who knows what they are doing.