The best part is that we CAN go over the 20% increase in price! 

The seller will have to show proof of receipts and the required 2^nd appraisal must verify these repairs along with the value.

Here are the requirements for the standard FHA purchase under 90 days seasoning and also below the 20% increase. The requirements for above a 20% increase are below.

• All transactions must be arms-lengths, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• The Seller holds title to the property.
• The transaction is not a simultaneous closing.
• The contract of sale for the purchase of the property is fully executed and dated between Feb.1, 2010 and Feb.1, 2011.
• LLC’s, corporations, or trusts that are serving as sellers were established and are operated in accordance with applicable state and Federal law.
• The LLC’s Operating Agreement or documentation that reflects membership in the LLC must be reviewed to determine the transaction is non-arms length to ensure the borrower is not affiliated with the LLC.
• There is no pattern of previous flipping activity for the subject property, as evidenced by multiple title transfers within a 12-month time frame (chain of title information for the subject property can be found in the appraisal report).
• The property was marketed openly and fairly, via MLS, auction, For Sale by Owner offering, or developer marketing (Not allowed, any sales contracts that refer to an “assignment of contract of sale,” which represents a special arrangement between seller and buyer).

Here are the guidelines when the property is over a 20% increase. It must have a 2^nd appraisal and the seller will be required to pay for it.

Justifies the increase in value by retaining in the loan file a second appraisal which verifies that the seller completed sufficient legitimate renovation, repair, and rehabilitation work on the subject property to substantiate the increase in value or, in case where no work is performed, the appraiser provides appropriate explanation of the increase in property value since the prior title transfer; and

Orders a property inspection and provides the inspection report to the purchaser before closing. The lender may charge the borrower for the inspection. The use of FHA-Approved inspectors or 203(k) consultants is not required. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection from any party other than the lender.

Also, the inspector may not compensate anyone for the referral of the inspection.

Additionally, the inspector may not receive any compensation for referring or recommending contractors to perform any repairs recommended by the inspection. At a minimum, the inspection must include:

i. The property structure, including the foundation, floor, ceiling, walls and roof;  

ii. The exterior, including siding, doors, windows, appurtenant structures such as decks and balconies, walkways and driveways;

iii. The roofing, plumbing systems, electrical systems, heating and air conditioning systems;

iv. All interiors; and

v. All insulation and ventilation systems, as well as fireplaces and solid-fuel-burning appliances.

I know that we have had to turn down many loans due to this seasoning issue but look forward to helping all of our Realtors close some more deals this year.

Please contact me if there is anything I can do to help or if you have any questions or concerns.

 Tim Hart

239-910-5668

thart453@vnadykmortgage.com

You must have a signed contract by April 30th 2010 and closed on your home by June 30th 2010.

Here is the timeline for a typical home buyer in our market so you can be prepared.

Pre-Approval Process: 24 to 48 hours

Shopping for a home and having your contract accepted: 30-60 days

Loan Underwriting and Closing: 30-45 days

As you can tell by our timelines the total process can take well over three months.

If you want to buy a house and need financing the time to start the home buying process is February 1st or even better TODAY.

This gives you enough time to get the home you want and close your loan on time.

With whole country trying to close their loan before the June 30th deadline to take advantage of the amazing tax credit you don’t want to be  stuck in the middle of that log jam!

Let’s get started today! Use our Free Purchasse Assistant to start the pre-approval process.

Click Here to get Pre-Approved!

There are now two different tax credits available for home buyers.

The original tax credit is the First Time Home Buyer Tax Credit and you can receive a tax credit up to 10% of the sales price or $8,000 whichever is less.

Click Here to learn more: First Time Home Buyer Tax Credit

The newest Tax Credit is for Move Up/ Repeat Home Buyers. You can receive up to 10% of the sales price or $6,500, whichever is less.

Click here to learn more: Move up/Repeat Home Buyer Tax Credit  

Hope this helps you make an informed decision and please call me with any questions or concerns.

You can reach me at 239-437-4278 ext 11 or on my cell phone at 239-910-5668.

Good Luck!

Tim Hart

If you have not read the press release from HUD you can read it here: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011

As a direct mortgage lender we will not be able to have this program available until HUD publishes a Mortgagee Letter.

I have also spoken to several of our wholesale lenders and they are all saying the same thing. They are going to wait to see how it all shakes out before they commit to any internal guideline changes.

This guideline change means a large increase in all of our business so I will work very hard to make this available to you and me!

Hopefully as this week rolls on we will have more clarity on the programs that we will have available.

As I get updates I will be sure to forward them directly to you.

Have a great week!!

P.S. It was nice having Realtors call me this weekend and today EXCITED about a guideline change! I haven’t had that happen in about 3 years!!:)

Please remember that it will only fit a handful of our buyers since the majority of our short sales are because people couldn’t afford their house or are selling because of decreased value.

Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of the loan application all mortgage payments were made on time for the most recent 12 months PLUS all installment debts for the same time period were also made within the month due.

However, borrowers are NOT eligible if they pursued a short sale simply to take advantage of declining market conditions therefore they also must meet one of the following conditions:

(1) Borrowers are relocating and establishing residency in an area not within a reasonable commuting distance from the property that was/is being sold on short sale.

(2) Borrowers number of legal dependents increased to the point where the property sold as a short sale no longer met the family’s needs.

(3) Consideration may be given on a case by case basis to an empty-nester needing to scale-down but wants to remain in the same neighborhood.

Hopefully this information helps you or someone you know get qualified for a mortgage!

Let me know if you have any questions or concerns.

Have a great weekend!

We have just heard that Chase retail has suspended accepting USDA/Rural Housing loans in Fort Myers-Lehigh Acres.

Chase plans on accepting USDA loans soon but they are not for sure on the exact date.

But what do you know…….in the meantime, we are still accepting USDA/Rural Housing Loans!!  If you send your USDA buyers to Chase and need your client approved please do not hesitate calling me and we will happily step in to help.

We are still able to close USDA loans while Chase figures out what they are going to do. Please call me with any questions or concerns.

I wanted to pass along this information from our local USDA office in North Fort Myers.

They are now taking 30 days to underwrite a file starting on files from 12/18 on. They were taking 10 to 15 days before today so this is not good news for any USDA buyer.

Hopefully you will be able to prepare your buyers and sellers for this long delay until USDA/Rural Housing can get caught up.

Thanks and have a great New Year!

Here is the e-mail we received today.

From: Roy, Kristine – Royal Palm Beach, FL
To: Prioleau, Angela – Royal Palm Beach, FL
Sent: Mon Dec 28 12:14:11 2009
Subject: 30 Day Email to Lenders

Though we have taken every possible measure to process your Guaranteed Loan request, due to the extensive volume experienced, we will not be able to underwrite your request by December 31, 2009.  The current turn time for underwriting is averaging 30 calendar days from the date of submittal. 

We apologize for any inconvenience that this may have caused. 

Sincerely,

Angela S. Prioleau

Area Director

CNN.com is reporting that foreclosure filings fell by 8% in November, making it the fourth consecutive month of improvement in the housing market.

This is great news for our nation and with it being the 4th month in a row we hope it continues to decrease.

As the housing inventory is lowered you will see prices stabilize and even increase.

This will allow for prices to rise up and will bring the option of building a home back to our market.

Remember when people built homes??

It seems like a long time ago for SW Florida Real Estate but it will happen once the current inventory has run out.

With the First Time Home Buyers tax credit being extended and the super low real estate prices we truly expect 2010 to be a great year for us and the real estate buyer in Lee County!

Here is the entire article from CNN.com: http://money.cnn.com/2009/12/10/real_estate/Novermber_foreclosure_report/index.htm

If you are in the market to buy a home this is great news for you!

The Home buyer Tax Credit is set to expire 12/1/2009 and has been extended to June 30^th 2010.

There have been a couple of important revisions to the current bill that may be very important to you.

Here are a couple of highlights for you to review:

• You have to enter into a contract by April 30^th 2010 and close by June 30^th 2010 to be eligible for the credit.

• First Time Home Buyers will still receive a credit for 10% of the purchase price up to $8,000. This credit can be applied to your 2008 or 2009 tax returns with an amended tax return.

• Current Home Owners are eligible for a $6,500 tax credit if you have owned and lived in your home for the five out of the last eight years and are making an upgrade to a newer or larger house.

• Learn more about the tax credit by clicking here: http://www.hartmortgageservices.com/navPage.html?targetPage=http://www.federalhousingtaxcredit.com/glance.php

Even if you currently own a home you can take advantage of this Tax Credit along with record low interest rates and rock bottom Florida real estate prices!

If you would like to take advantage of this buying opportunity please use or Free Purchase Assistant to get pre-approved today!

Click Here:  http://www.hartmortgageservices.com/forms/purchaseAssistant.html 

Please contact us if you have any questions or concerns regarding your potential purchase.

Have a great day!

Hopefully this information will help someone that was affected by their closing.

Just a reminder that any loan that was in process or at closing with Taylor, Bean and Whitaker will have to be resubmitted with another FHA lender. Hart Mortgage Services is a direct mortgage lender and would be happy to help anyone that was caught in the middle of this unfortunate circumstance.

We have also linked the article to our website which can be viewed by clicking here: Taylor, Bean and Whitaker Q&A for Consumers and have also attached a PDF for your review. 

Here is the entire letter: 

FHA insured Loans Associated with Taylor, Bean and Whitaker (TBW)

Questions and Answers for Consumers

August 11, 2009

(Update to Q&A released on August 7, 2009)

I have a loan with Taylor, Bean and Whitaker and I

heard they are closed. Who will be my new lender?

Ginnie Mae’s master sub servicer, Bank of America, has taken over servicing of the TBW portfolio. You will receive a

letter from BAC Home Loans Servicing, LP (a Bank of America subsidiary), confirming this transfer and welcoming you as a

valued customer within two weeks of your loan being added to their systems.

My loan is currently being serviced by TBW. Where

do I send my payment?

You should continue making your mortgage payment at its normally scheduled time. However, your payment should

now be sent to:

BAC Home Loans Servicing, LP

Payment Processing

P.O. Box 10334

Van Nuys, CA 91410‐0334

Please use your TBW loan number until you are notified in writing by BAC Home Loans Servicing of your new loan

number. You will receive a letter from BAC Home Loans Servicing confirming your loan transfer and welcoming you as a

valued customer within two weeks of being added to their systems. If you have additional questions about servicing

your loan, you may contact Bank of America Home Loans Customer Service at 1‐800‐669‐6607 from 5am to 6 pm PST

Monday‐Friday.

I recently sent my monthly loan payment to TBW.

Will my payment be accepted?

Your payment should have been received and transferred to BAC Home Loans Servicing. However, please keep a record

of your payment in the event that there are some difficulties in the transition. After you are notified in writing by BAC

Home Loans Servicing with your new account number, you can contact them to certify that your payment was received.

I have a loan with Taylor Bean and Whitaker and I

am falling behind on my payments. What should I

do?

BAC Home Loans Servicing is now managing the servicing of your TBW loan. If you have questions about your options

please contact Bank of America Home Loans Customer Service at 1‐800‐669‐6607 from 5am to 6 pm PST Monday‐Friday.

If you haven’t already, you may wish to contact a HUD‐approved Housing Counseling Agency. To find one near you call

1‐800‐569‐4287 or visit the web at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm

My FHA insured loan was in default and my loan

was being reviewed for a Loss Mitigation workout

with TBW. What should I do?

BAC Home Loans Servicing is now managing the servicing of your TBW loan. If you have questions about your options

please contact Bank of America Home Loans Customer Service at 1‐800‐669‐6607 from 5am to 6 pm PST Monday‐Friday.

If you haven’t already, you may wish to contact a HUD‐approved Housing Counseling Agency. To find one near you call

1‐800‐569‐4287 or visit the web at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm

My mortgage broker or banker told me I won’t be

able to close my loan because of FHA’s action

against TBW. What do I do now?

FHA’s action did not prevent TBW from closing and funding already approved loans. You should contact your mortgage

broker or banker to explore other options for placing your loan with a different lender.

I was in the process of refinancing my loan with

TBW and was supposed to close in a few days.

What do I do now?

Contact your mortgage broker or banker to determine the status of your loan and to explore other options for placing

your loans with a different lender. If you were not approved for your loan, you will need to contact a new FHA‐approved

lender. To find one near you, visit our website at http://www.hud.gov/ll/code/llslcrit.cfm

My loan was closed but TBW shut its doors before

funding it. Who is going to fund my new loan?

It is possible your loan was funded. You should contact your mortgage broker or banker to find out. If it wasn’t funded,

you should work with your mortgage broker or banker to explore with them other options for placing your loan with a

different lender.

I already had an appraisal completed as part of my

original FHA‐insured loan application through TBW.

Can I use it with another lender?

FHA appraisals are valid for six months. Your loan file along with the appraisal can by transferred to another FHAapproved

lender if it is within that time period. You should contact your mortgage broker or banker to discuss placing

your loan with another lender.

FHA is communicating with FHA‐approved lenders to support the transition of loans from TBW to a new lender. FHA continues to monitor the situation closely and we will

continue to update you with additional information in the coming days. If you have additional questions, you may contact FHA’s Resource Center at 1‐800‐Call‐FHA.

Hart Mortgage Services understands your concerns as a borrower. If you are a borrower that is currently in process with Taylor Bean and Whitaker please use our Free Purchase Assistant to find out today if you qualify for a loan. You can also call us at 239-437-4278 ext 11.