Financial Freedom

2012-02-13T10:15:00.001-05:00

Christian Pak
Managing Partner
Homeland Financial
Phone: (404) 939-0502
Fax: (678) 638-1215
License: 162627
cpak@homelandmtg.com
www.christianpak.com

February 2012


	January 2012
	December 2011
	November 2011
	October 2011
	September 2011
	August 2011

What's Labor Got to Do with It? The Impact of the Job Market on the Housing Market Being unemployed, under-employed, or afraid of losing a job is never easy. One of the first things many people do in these situations is batten down the hatches and minimize their spending. Certainly, the last thing on their minds is making a major purchase like a house. It's just not a commitment that most people are willing to make when they lack confidence in their financial stability. Keep Reading »

Take Heart Fight Heart Disease and Live Longer and Healthier On Friday, February 3, 2012, thousands of people across the country joined together at companies and organizations as part of National Wear Red Day. The event is designed to help raise awareness and fight heart disease. But it's important to remember that the concerns over heart disease aren't limited to one day. Keep Reading »

Healthy Eating in 2012 A Few Ideas for Getting Started By Kirk Leins The holidays have come and gone, and we are well on our way into a brand new year. I realize that I've just stated the obvious. I also realize that you're probably wondering how it relates to the subject of food. For me at least, the first part of the new year means attempting to cleanse my body after two crazy months marked by decadent eating. Keep Reading »

Build a Bigger Net By David Ackert, Founder, Practice Boomers I smiled when I saw Frank's email pop up in my inbox. The subject line read ''lunch.'' It had been roughly three months since he and I had seen each other, and he was building his net. Read on to learn why this is crucial to your personal and professional success. Keep Reading »

New Rules for Light Bulbs Mean Lower Electric Bills As federal energy provisions kick in, it means the end for inefficient light bulbs. By Pat Mertz Esswein, Kiplinger.com Chalk it up to progress, pollution control and energy security. In January, as more provisions of the Energy Independence and Security Act of 2007 kick in, Thomas Edison's brilliant invention, the incandescent light bulb, had to shape up or ship out. The old-style bulb is targeted for obsolescence because it converts just 10% of the electricity it uses into light and radiates the rest as heat. Keep Reading »

Pet Insurance Health Plans for Fido and Fluffy Do you think of your pets as members of your family? Considering their propensity for affection and devotion, it's rather hard to feel otherwise. So, it's safe to say that you want the best for your animals, with the hope of ensuring their well-being for as long as you possibly can. Did you know that health insurance might be the key to making that happen? Keep Reading »

HARP 2.0 Refinance program

2012-02-08T11:42:00.000-05:00

HARP 2 Refinance Program is Available
See If You Can Benefit

HARP 2.0 as it is being called will allow refinancing to more homeowners who are underwater. This program is a revision to the current Home Affordable Refinance Program (HARP).

So what does this mean?

This means that if your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

Following are some particulars of the program:

1. No LTV (loan to value) limitations. This means that no matter how upside down you are, you can still refinance.

2. Cannot have any late payments to mortgage in the past 6 months and no more than 1 30-day late in the past 12 months.

3. If you currently have PMI (private mortgage insurance), you can still qualify and transfer the MI to the new loan.

These are the main rules but additional guidelines could apply based on each individual borrower’s qualifications. Please contact me for additional information and start the refinance process to lower your mortgage payment.

Your Independent Foreclosure Review

2012-01-24T11:45:00.000-05:00

The following information was compiled and copied from the the Office of the Comptroller of the Currency (OCC) website: http://www.occ.gov.

Your Independent Foreclosure Review:

As part of a consent order with federal bank regulators, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS) (independent bureaus of the U.S. Department of the Treasury), and the Board of Governors of the Federal Reserve System, fourteen mortgage servicers and their affiliates are identifying customers who were part of a foreclosure action on their primary residence during the period of January 1, 2009 to December 31, 2010.

The Independent Foreclosure Review is providing homeowners the opportunity to request an independent review of their foreclosure process. If the review finds that financial injury occurred as a result of errors, misrepresentations or other deficiencies in the servicer’s foreclosure process, the customer may receive compensation or other remedy.

Borrowers may also visit www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with the form and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET). Requests for review must be received by April 30, 2012.

Watch out for scams - there is only one Independent Foreclosure Review. Beware of anyone who asks you to pay a fee for any foreclosure review service, such as completing the Request for Review Form.

For additional information, visit the following links:

OCC website announcement
Independent Foreclosure Review info website

Homestead Exemption and Property Tax help

2012-01-18T13:11:00.000-05:00

Homestead Exemption and Property Tax help:

Following are very important homestead exemption and property valuation assessment dispute information. I hope that the information I provide is useful. I am proving links to homestead exemption info per county. Most of Metro Atlanta counties are listed. Some web links may be broken due to county website updates. Please contact me and I will help you track down the proper websites and updated links.

What is homestead and what is needed to apply?

Homestead is a property tax reduction program, intended to keep taxes lower on owner-occupied homes.

In order to receive homestead exemption, you must present proof of ownership, complete a homestead application and provide the social security number of all owners. You must be listed as the owner on county tax records.

Who qualifies?

Those who own and occupy the property as their primary residence as of January 1 of the year for which application is made.

When should you apply?

You must apply by April 1 with most counties (please check with your specific county for particular deadlines) to receive credit on the current year tax bill. Applications received after April 1 will be processed for the following year.

Are there any special homestead exemptions?

Yes, for blind, disabled or paraplegic veterans, senior citizens and some people in military service. If all owners do not occupy the property, a partial homestead exemption may be given.

How often must I file?

Once, unless a form is mailed to you by the Assessor. If you receive an application, it is important that you complete it and return it to the address on the form.

Where can I file?

You should receive an application in the mail by February 1. If you do not receive an application in the mail, contact your county tax commissioner’s office for an application and for any additional questions.

The property valuation assessment dispute starts first with the filing of a “Taxpayer’s Return of Real Property” (PT-50R). Obtain the form, write in your estimated “Fair Market Value” and mail it to your county's tax assessor’s office. Upon reviewing the submitted return, your county's tax assessor’s office will either agree or disagree with your “fair market value”. If they do not accept your stated value, they will issue a “Notice of Change of Assessment”. This notice will inform you of the valuation the county will use to calculate your tax for the current tax year. If you disagree with this value, you will then have the right to appeal. Instructions on how to appeal will be included with the notice. If they accept your valuation, the “Notice of Change of Assessment” will not be issued and taxes will be adjusted based on the fair market value you submitted. Below are the links to the “Taxpayer’s Return of Real Property” by county.

One tip in filling out the Property Tax Return is to search for your tax bill online with the county. The tax bill will contain your Map and parcel ID plus partial legal description of your property. Use this information to complete the Property Tax Return. You do not have to break down your estimated value by “land” and “improvements”. Simply fill out a total estimated value in the “total” section. Remember you must file by March 1. Make sure to mail the return via Certified Mail. Please contact me if you need additional information or clarification. Good luck!

Cobb County:
Property tax Info search: Cobb County Tax Bill Search
Homestead Exemption: Cobb County Homestead Exemption Forms
Real Property Return: Cobb County Real Property Return Forms

Cherokee County:
Property tax Info search: Cherokee County Tax Bill Search
Homestead Exemption: Forms available at county tax commissioner’s office :
2780 Marietta Highway Canton 30114 : 678.493.6400
Real Property Return: Cherokee County Real Property Return Forms

Clayton County:
Property tax Info search: Clayton County Tax Bill Search
Homestead: Clayton County Homestead Exemption Forms
Real Property Return: Clayton County Real Property Return Forms

Dekalb County:
Property tax Info search: Dekalb County Tax Bill Search
Homestead: Dekalb County Homestead Exemption Forms
Real Property Return: Dekalb County Real Property Return Forms

Fulton County:
Property tax Info search: Fulton County Tax Bill Search
Homestead: Fulton County Homestead Exemption Forms
Real Property Return: Fulton County Real Property Return Forms

Forsyth County;
Property tax Info search: Forsyth County Tax Bill Search
Homestead: Forsyth County Homestead Exemption Forms
Real Property Return: Forsyth County Real Property Return Forms

Gwinnett County;
Property tax Info search: Gwinnett County Tax Bill Search
Homestead: Gwinnett County Homestead Exemption Forms
Real Property Return: Gwinnett County Real Property Return Forms

Hall County;
Property tax Info search: Hall County Tax Bill Search
Homestead: Hall County Homestead Exemption Forms
Real Property Return: Hall County Real Property Return Forms

Tax consequences of a short sale

2012-01-05T12:59:00.002-05:00

Did you or someone you know just receive a 1099-C form from their previous mortgage company after a short sale? If you owed more on your house than what you sold it for through a short sale, the excess amount of the loan balance above the sales price may be forgiven by the lender. The forgiven amount is considered cancellation of debt (COD) income for federal income tax purposes. As an example: Your current mortgage balance is $200k. You execute a short sale and sell the house for $150k. You still owe the bank $50k. This $50k may be forgiven by your lender. If it is forgiven, the forgiven amount is considered income for your tax filing purposes. But there is some good news.

The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude the income from the discharge of debt as long as the property sold in the short sale was their primary residence. The act applies to debt forgiven in calendar years 2007 through end of 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). For additional info, please visit the IRS website: Ten facts for Mortgage Debt Forgiveness.

You still have to report the forgiven debt as income on your personal tax return but you must file IRS form 982 to exclude this as part of your income. As always, consult a certified tax professional to seek advise for your particular situation.

A holiday present from the Congress hidden in the Payroll Tax Bill

2011-12-20T10:52:00.000-05:00

In the haste to create an Payroll Tax Cut bill that would allow the passage of funding bill that would keep the government running and protect the payroll tax cut, not too many of us noticed that Title IV of HR 3630 is all about increasing guarantee fees charged by Fannie Mae, Freddie Mac and the FHA for packaging MBS’s to lenders.

IMMAAG thanks a Colorado originator and broker company owner, Don Opeka for his heads up on this quiet little “tax”.

The GSE’s charge an upfront and an on-going guarantee fee for packaging securities. These fees help cover the costs associated with the process and provide some modest amount of “insurance” when pools don’t perform well. The average upfront fees have ranged from 5 basis points (bps) in 2007 to 10 bps in 2010, or about $100 to $200 per $200,000; while the on-gong fees have gone from an average of 17 bps in 2007 to 14 bps in 2010. These guarantee fees are charged to protect the GSEs’ income statement and provide some degree of profit on their MBS activity.

House bill (HR-3630) which was passed to keep the government funded provides for an incremental “minimum” guarantee fee of 10 bps to be added to all MBS’s offered by the GSE’s. It also provides a mandated similar increase in FHA annual guarantee fees of no less than 10 bps on the remaining balances.
A major difference between these new “guarantee” fees and the historic guarantee fees is that the money generated will be deposited directly in the Treasury. It will be part of the general fund and become available only as directed under future appropriations acts. So, the bill may call them guarantee fess, but they guarantee nothing except that homeowners ultimately will bear this new, non-trapnsparent tax increase. And, the only contributor to the funds will be homeowners or prospective homeowners who have mortgages. Yes, the fees are paid by the lenders, but we know that the fees will be covered ultimately by the overall cost of a mortgage. Unlike property taxes which at least are tied to the community, these taxes stay at the Federal level without any specifically designated use.

The mandated minimum 10 bps increase more than doubles the average upfront guarantee fee that already exists and according to the Federal Housing Finance Agency’s 2011 guarantee fee report issue in September 2011 the minor impact of the HARP volume should not require this or any other material increase to maintain the soundness of the guarantee program. The 10 bps is a 71% increase on the 2010 average fee of 14 bps for on-going fees and occurs during a time when the portfolios are getting stronger and performing better.

So, one can only conclude the purpose of this new tax is to find yet a new source of funds, provide no transparency in doing so, make the GSE’s less competitive and give the largest lenders a better chance to portfolio loans and create a private market to replace, not just supplement the GSEs’ liquidity role. That may be a supportable objective, but it seems the appropriations process is not the place to introduce it and the clandestine approach violates the committed to “transparency” we hear so much about.

Reprinted from IMMAAG

2011-12-12T12:53:00.001-05:00

Follow Me On:

Christian Pak
Managing Partner
Homeland Financial
Phone: (404) 939-0502
Fax: (678) 638-1215
License: 162627
cpak@homelandmtg.com
www.christianpak.com

December 2011


	November 2011
	October 2011
	September 2011
	August 2011
	July 2011
	June 2011

Wrapping Up 2011 Two Stories to Watch Heading Into the New Year It's hard to believe that Thanksgiving has come and gone, and the holidays are fast approaching. The new year will be here before we know it, and as you are enjoying this season with your family and friends, it's important to keep an eye on the following stories. They could have a big impact on home loan rates in the year to come. Keep Reading »

Holiday Parties Throwing One May Be Easier Than You Think By Kirk Leins There's no doubt that you've attended plenty of holiday parties in your life, but have you ever thought about hosting one? If so, then you're in luck! This month's issue of 360 Degrees features tips, recipes, and my philosophy for throwing a perfect holiday soiree. Keep Reading »

How to Earn Money by Sharing Information Online By Kathy Kristof, Kiplinger.com Not worried about sharing your shopping habits with strangers? You can make a few bucks by filling out surveys and doing your online shopping through rewards sites. Keep Reading »

The Power of Forgetfulness By Bob Beaudine, author of The Power of WHO There is one unseen "Power" that's kicking our butts in the area of our dreams and goals! It operates below the surface of our conscious awareness but with such profound force that it must be considered one of the Supreme Concealments of all time. What am I talking about? Keep Reading »

Thinking About Hiring a Nanny? Here's the Perfect Checklist to Help In August's issue of YOU Magazine, Blythe Lipman, author of Help! My Baby Came Without Instructions, shared her wonderful checklist for finding the perfect preschool for your baby. This month, she's back by popular demand! Read on to see Blythe's wonderful checklist for choosing the perfect nanny. Keep Reading »

The Sick Sense Tips for Remaining Flu-Free During the Holidays With so much of our attention focused on the holidays, it's easy to lose sight of the "other" winter equinox. Specifically the period between November and March, or what the Centers for Disease Control refer to as flu season. During this time, Americans' chances of contracting the illness will increase by as much as 80%. Upon learning this, the staff here at YOU Magazine felt compelled to help even the playing field. Keep Reading »

Georgia Residential Mortgage Licensee NMLS: 150504 : 162627

HUD Emergency Homeowners' Loan Program (EHLP)

2011-07-14T11:31:00.001-04:00

Act Fast for Mortgage Bail-Out

By Kathy Kristof | Jun 21, 2011
moneywatch.com

Consumer advocates are famous for saying that if an offer seems too good to be true, it is and you should avoid it. Just this once, ignore that advice.
If you’re a homeowner struggling to make mortgage payments because you are unemployed or underemployed, the federal government has just launched a program to help. The Emergency Homeowner Loan Program, or EHLP, will provide zero-interest loans of up to $50,000 to pay your mortgage, property tax and insurance bills for up to two years.
The program will essentially subsidize your mortgage payments, allowing you to pay just 31% of your income or $150, whichever is greater. EHLP will pay the balance. Homeowners can receive this help for up to 24 months, or until they run through the maximum EHLP loan amount of $50,000.

No payments are due on the 5-year term of these loans as long as the borrower continues to meet the program requirements. Better yet, if you do meet all the conditions of the program, your loan will be forgiven in 20% increments each year, essentially turning the loan into grant over five years.

But you’ve got to act fast. Homeowners only have until July 22, 2011 to submit pre-screening applications for this money. There is $1 billion available. When the money is spent, the program is over, says Ruth Susswein, deputy director for national priorities at Consumer Action.
“Because this is being done in such a rush and the offer is so good, it seems like you’re hitting every warning sign that this is a scam,” Susswein said. “But in this rare case, it happens to be true. There is help out there. But you have to act fast to get it.”

The just-launched Emergency Homeowner Loan Program is just the latest in a series of government programs aimed at easing the national housing crisis that left roughly 10% of the nation’s homeowners struggling to make mortgage payments. Where previous programs offered to “modify” loans for those who had been subjected to deceptive predatory loans, help was needed for homeowners who had simply lost jobs and were struggling to make ends meet, Susswein says.

Last year, the government moved to provide about $2 billion in help to homeowners in states that had been hardest hit by unemployment and sliding home prices, including Arizona, California, Florida, Michigan and Nevada. However, homeowners in the states that didn’t qualify for these “hardest-hit” funds were left high and dry. EHLP was designed to fill the gap by providing funds for homeowners in the remaining 32 states, she says.

Who qualifies

To qualify for the EHLP program you must live in one of the 32 states affected by the program and have experienced at least a 15% decline in income due to a job loss or serious illness, leaving you at risk of losing your home.

Those 32 states are: Alaska, Arkansas,Colorado, connecticut, Delaware, Hawaii, Idaho, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, Pennsylvania, Puerto rico, South Dakota, Texas, Utah, Vermont Virginia, Washington, West Virginia, Wisconsin and Wyoming.
If you are at risk of losing your home, but live in a state that doesn’t qualify for EHLP, you may still be able to get help, but it would be through a different program. (More on that below.)

What you should do now

If you are in one the 32 states that qualify for the EHLP program, go to www.findehlp.org or call 855-346-3345. Be patient. The website appears to be overwhelmed, so it’s loading exceptionally slowly. When I called the phone line earlier today, the phone operators were also “helping other customers.”
The best time to get through to the web site may well be in the middle of the night or very early in the morning. (By the way, be careful of typos in the web address. The above link will get you to a site offered by NeighborWorks America. If you mistype the address as “findhelp,” you’ll get a commercial site that is not affiliated with this program.)

If your state is not listed here, it’s likely among the “hardest-hit” states and offers help through the hardest-hit program, which is operated on a state-by-state basis. You can find your state’s hardest-hit program here.
You will need to fill out the relevant applications and gather documents, including recent mortgage statements; a written notice from your employer, showing your termination or cut in pay; a notice from your lender, saying you’re at risk of foreclosure; tax returns for the past two years; citizenship documents (such as a passport or birth certificate); and documentation of current income, such as a pay stub.
Hurry. And good luck.

Extension of the Home Affordable Refinance Program

2011-04-18T09:52:00.000-04:00

Extension of the Home Affordable Refinance Program

On March 11, 2011, the Federal Housing Finance Agency announced two exciting changes to the Home Affordable Refinance Program (HARP). This program is for borrowers who have demonstrated an acceptable payment history on their mortgage, but due to a decline in home prices or where mortgage insurance is not available, have been unable to refinance to obtain a lower payment or move to a more stable mortgage product. Here is a quick re-cap of the changes:

The program has been extended by one year. Lenders can continue to originate HARP loans provided the note date is on or before June 30, 2012.

The program has been expanded, and more loans will now qualify for the program. Previously to be eligible for a HARP loan, the existing loan had to be purchased by Fannie Mae or Freddie Mac prior to March 1, 2009. This date range has now been expanded to include loans purchased by the agencies prior to June 1, 2009.

This means that people who may not have been able to take advantage of a HARP refinance in the past may now be able to do so.

Give me a call if you want to learn more about these changes. I'm always happy to answer any questions you may have!

Welcome!!

2011-02-16T15:48:00.000-05:00

Welcome to my new blog page. I recently moved it from my previous server to provide better access. You can always find my older postings on my Activerain blog site at: http://activerain.com/blogs/christianpak.

Thank you.

FHA annual mortgage insurance premium to increase in April.

2011-02-14T16:48:00.000-05:00

HUD announced today that it will increase the annual mortgage insurance premium by 0.25% on all 30 yr and 15 yr loans. The upfront MIP will remain unchanged at 1.0 percent. The new annual premium will be effective for all loans with case numbers on or after April 18, 2011. Below are examples and the impact of the change. The end result is an increase in overall payment for the borrower.

The full mortgagee letter pertaining to the increase can be found on HUD's website: FHA Mortgagee Letter 11-10.

Homestead Exemption and Property Tax info

2011-02-07T20:37:00.002-05:00

Homestead Exemption and Property Tax help:

What is homestead and what is needed to apply?

Homestead is a property tax reduction program, intended to keep taxes lower on owner-occupied homes.

Who qualifies?

Those who own and occupy the property as their primary residence as of January 1 of the year for which application is made.

When should you apply?

You must apply by March 1 to receive credit on the current year tax bill. Applications received after March 1 will be processed for the following year.

Are there any special homestead exemptions?

Yes, for blind, disabled or paraplegic veterans, senior citizens and some people in military service. If all owners do not occupy the property, a partial homestead exemption may be given.

How often must I file?

Once, unless a form is mailed to you by the Assessor. If you receive an application, it is important that you complete it and return it to the address on the form.

Where can I file?

The property valuation assessment dispute starts first with the filing of a “Taxpayer’s Return of Real Property”. Obtain the form, write in your estimated “Fair Market Value” and mail it to your county's tax assessor’s office. Upon reviewing the submitted return, your county's tax assessor’s office will either agree or disagree with your “fair market value”. If they do not accept your stated value, they will issue a “Notice of Change of Assessment”. This notice will inform you of the valuation the county will use to calculate your tax for the current tax year. If you disagree with this value, you will then have the right to appeal. Instructions on how to appeal will be included with the notice. If they accept your valuation, the “Notice of Change of Assessment” will not be issued and taxes will be adjusted based on the fair market value you submitted. Below are the links to the “Taxpayer’s Return of Real Property” by county.

Cobb County:
Property tax Info search: Cobb County Tax Bill Search
Homestead Exemption: Cobb County Homestead Exemption Forms
Real Property Return: Cobb County Real Property Return Forms

Clayton County:
Property tax Info search: Clayton County Tax Bill Search
Homestead: Clayton County Homestead Exemption Forms
Real Property Return: Clayton County Real Property Return Forms

Dekalb County:
Property tax Info search: Dekalb County Tax Bill Search
Homestead: Dekalb County Homestead Exemption Forms
Real Property Return: Dekalb County Real Property Return Forms

Gwinnett County;
Property tax Info search: Gwinnett County Tax Bill Search
Homestead: Gwinnett County Homestead Exemption Forms
Real Property Return: Gwinnett County Real Property Return Forms

Hall County;
Property tax Info search: Hall County Tax Bill Search
Homestead: Hall County Homestead Exemption Forms
Real Property Return: Forms available at county tax assessor’s office:
300 Henry Ward Way, Suite 203 Gainesville, GA 30501 : 770.531.6720

The 100/0 Principle : The Secret of Great Relationships

2011-02-07T20:27:00.004-05:00

The 100/0 Principle

The Secret of Great Relationships

Brian Tracy once noted that, "80% of life's satisfaction comes from meaningful relationships." If you would like to have better relationships with your spouse, children, co-workers, and clientele, we encourage you to read on, and to adopt the 100/0 Principle.

What would happen if you took full responsibility for a relationship (the 100) and expected nothing in return (the 0)? As the above movie from Simple Truths tells us, "When you take authentic responsibility for a relationship, more often than not the other person quickly chooses to take responsibility as well."

Take a few moments and watch The 100/0 Principle from Simple Truths to learn more about how 100/0 relationships become 100/100 ones. And to see more inspirational movies, visit www.simpletruths.com.

Applying for a home loan after a foreclosure or short sale

2011-02-07T20:26:00.029-05:00

With the current market conditions and the large number of home owners who are facing foreclosure or short sales, this question comes up often, "How long do I have to wait before I can qualify for a mortgage loan after I go through a foreclosure or a short sale?". Fannie Mae, who sets most conventional loan guidelines updated their waiting period guidelines this year. Below is a table showing the various derogatory credit event and the waiting period requirements:

(1) The maximum LTV ratios permitted are the lesser of the LTV ratios in this table or the maximum LTV ratios for the transaction per the Eligibility Matrix.

You can see that the minimum waiting time after a foreclosure is 3 years and for a short sale is 2 years with EXTENUATING CIRCUMSTANCES". So that begs the question, "What is considered Extenuating Circumstances?". Fannie Mae defines it as follows:

"Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations".

So a documented loss of job for an extended period of time would be considered an extenuating circumstance but you quiting a job because you hate your boss (although I can understand and sympathize) would not be considered an extenuating circumstance. The important thing in all this is keeping accurate records and documents regrading your extenuating circumstance. Fannie Mae says:

"If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower’s claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.)".

If you you cannot DOCUMENT your extenuating circumstance, you would have to wait 7 years after a foreclosure or short sale to qualify for a home mortgage loan up to the maximum LTV. For short sales, you can qualify for a new mortgage in a shorter period of time but the maximum LTV is reduced (see chart above).

Also keep in mind that the above guidelines are for conventional loans. FHA has slight different requirements. As of today, FHA has a 3 year wait period. The 3 year wait period can be waived with extenuating circumstances and re-established credit

Financial Freedom

HARP 2.0 Refinance program

Your Independent Foreclosure Review

Watch out for scams - there is only one Independent Foreclosure Review. Beware of anyone who asks you to pay a fee for any foreclosure review service, such as completing the Request for Review Form.

For additional information, visit the following links:

OCC website announcementIndependent Foreclosure Review info website

Homestead Exemption and Property Tax help

Tax consequences of a short sale

A holiday present from the Congress hidden in the Payroll Tax Bill

HUD Emergency Homeowners' Loan Program (EHLP)

Act Fast for Mortgage Bail-Out

Extension of the Home Affordable Refinance Program

Welcome!!

FHA annual mortgage insurance premium to increase in April.

Homestead Exemption and Property Tax info

The 100/0 Principle : The Secret of Great Relationships

Applying for a home loan after a foreclosure or short sale

OCC website announcement
Independent Foreclosure Review info website