Alternatives to Foreclosure Keeping Your Home April 19, 2011

1. Reinstatement – The repayment of the entire outstanding balance including all payments, inspection charges, late charges, returned checks fees, and attorney fees and costs.  This is a full loan payoff.  Good if you have come into a lump sum of money and can afford to pay off the loan.
2. Repayment Plan or Forbearance to Reinstate – This is a temporary plan where you will be allowed to repay the past due amounts on your mortgage over an agreed upon time frame to help you get current on the loan.  Your financials will need to support the current payment and the past due divided by the number of payments your mortgage lender will allow (usually spread over 6 to 12 months) with a goal to get you current by the end of that temporary plan.  Example your past due balance is $3,000 and your current monthly payment is $1,000. $3,000 divided by 6 = $500 + $1,000 this will be the temporary payment for 6 months and you should be all caught up on the 7^th month.  This is great if you have had a temporary hardship and your situation has improved -especially if you are behind but would like to keep your awesome interest rate of 2%.
3. Forbearance to Modification – Do not confuse this for a modification.  This is also a temporary payment plan at a reduced or equal payment to your current payment – you may get a break in the payment amount of $100 or $200 depending on what type of modification they have you slated for. This is usually offered to a borrower who is a candidate for modification it may bring the loan current.  If you complete this successfully, meaning you pay on time and give them all the financial documents they request to be able to prove income (W2s, Bank Statements, Pay Stubs / Profit and Loss, Tax Returns, Hardship Letter, 4506T), and you cooperate with whatever else they need (possibly an interior evaluation of your home), and you qualify you will most likely get the modification.
4. Loan Modification – If you qualify, this should help you secure a lower interest rate and a possible principal balance reduction both of which, should result in a lower affordable payment. Usually your mortgage lender will have you start with a forbearance or trial payment plan prior to modifying or re-writing your loan to get the loan. The purpose would be to not only get your loan performing again but also to gauge your performance during the forbearance.  There are different types of modifications. Don’t be afraid to ask questions! Such as what kind of a modification they have planned for you.  Is it an internal modification or a HAMP (Home Affordable Modification Program), will it result in a fixed interest rate for the life of the loan or will it be a step rate (introductory rate for the first couple of years then it goes up to a higher but fixed interest rate).  Will there be a possibility of principal balance reduction?  What happens to your past due amount will it be waived or added back into the loan? 
5. FHA Refinance – There are a lot of refinance programs available even to homeowners who have fallen under water such as the 821, 203B or H4H (Hope for Homeowners).  Your mortgage lender would be able to determine if you qualify and which you would qualify for. Not all are credit score driven, most of these programs will take a 580 credit score. Some are performance driven-meaning as long as you have completed your forbearance plan, and have maintained on time payments during your modification of at least 3 months, 6 months or 12 months (depending on which program you qualify for), you may qualify for an FHA refinance.  You may be able to receive another principal balance reduction due to the fact that this government insured program will only underwrite a loan equal to its appraisal and if home values have dropped again after your modification was completed, you will receive a principal balance reduction. 

The number one reason homeowners are still ending up in Foreclosure April 11, 2011

What is the number one reason why are homeowners still ending up in foreclosure?  The number one reason would be is that they don’t answer their phones or have disconnected their number! There are numerous options available to you to avoid foreclosure.   If you are behind on your mortgage payments, you can be sure your mortgage company is trying to get in contact with you to resolve the situation.  Don’t set yourself up for foreclosure!  Know your options, make a decision and follow through.  The worst thing you can do is not answer that call. 

So what options are out there?  Do you want to keep the home or not? Are you financially able to keep the home?  Are there options other than foreclosure available to you if you decide to not keep the home?  Here are some questions you will want to ask yourself and should have ready answers for before you get in touch with your mortgage company…and if you’re not sure if you are financially able to keep the home they will walk you through taking a financial statement (income versus household expenses, credit/debt obligations, liquid assets, personal debt) to be able to do so.  See what is in a financial statement.

Alternatives to Foreclosure Financial Statement April 7, 2011

So you’ve decided to get help but your mortgage lender is asking you for a financial statement and you have no clue about what they really need.  Here’s an idea of the financial information they need to know in order to consider you for a work out option, keep in mind they will need this information for both borrowers or any other third party whose income will be contributed to the household .Property Information and Status

Is the property occupied, if so by whom? If by a tenant are you receiving rent? 

Is the property for sale?  List Date, List Price, Realtor Name and Phone Number.

Total Monthly Income  

•·         Gross Salary or Wages before taxes and withdrawals

•·          Overtime Wages

•·         Commissions and  how often paid

•·         Bonus and when paid

•·         Disability

•·         Social Security

•·         Alimony

•·         Child Support and how old children are

•·         Other Income

•·         Rental Income

Total Monthly Expenses

•·         1^st  and 2^nd Mortgage

•·         Other mortgages, property taxes and homeowners insurance

•·         Auto loans

•·         Credit or Department cards

•·         Personal debts

•·         Student loans

•·         Alimony Payments

•·         Child support payments

•·         HOA, Club or Union Dues

•·         Food

•·          Utilities (Water/Gas/Electric)

•·          Transportation (Fuel, Maintenance)

•·         Child Care

•·         Tuition or School Expenses

•·         Life, Auto, Homeowners Insurance

•·         Medical Expenses/Health Insurance

•·         Cable or Satellite

•·          Cell or Home Phone

•·         Internet

•·          Entertainment

Assets and Liabilities

•·         Cash 

•·         All Checking and Savings  

•·         All Retirement Assets (401ks, IRAs, etc.) 

•·         Primary Home 

•·         Other Real Estate 

•·         Automobiles  

Your mortgage lender will use this information to determine whether you can afford the home or not and in most cases they will also run a credit report to make sure you haven’t left anything out.    

 

 

 

 

 

 

 

 

If you are looking for a home in the Houston

(Harris or Montgomery County) area please visit

website www.HousesByJoanne.com

Joanne Dungca

Prudential Gary Greene Realtors

936-499-4267

Joanne@HousesByJoanne.com

U.S. News Names Kipp Houston High School #16 in Top 100 of America’s Best High Schools December 10, 2009

U.S. News Thursday December 10, 2009
Kipp High School in Houston is named top 16th out of 100 of America’s Best High Schools earning the U.S. News Gold Medal Award. Ranking is based on AP Placement Tests and International Baccalaurate tests.

KIPP Houston High School (Top 100, #16)
KIPP Inc. Charter School School District
Harris County
10711 Kipp Way
Houston, TX 77099
Telephone: (832) 328-1051

College Readiness Index 95.7
Poverty-Adjusted Performance Index 3.81
Disadvantaged Students Performance Gap 30.3

Detailed Information (methodology)
School Data
Grades Served 6-11
Magnet School Not Available
Charter School Yes
Admissions Type Open Enrollment
NCES Locale Type City, Large Territory
Receives Title I Funding Yes

Demographic Data
Enrollment 633
Minority Enrollment (% of total) 97.6%
Black Enrollment (% of total) 18.0%
Hispanic Enrollment (% of total) 79.6%
American Indian Enrollment (% of total) 0.0%
Asian Enrollment (% of total) 1.6%
White Enrollment (% of total) 0.8%
Economically Disadvantaged Student Enrollment (% of total) 87.5%

Overall Student Performance
State Test Performance Index 119.7
Poverty-Adjusted Performance Index 3.81

Disadvantaged Student Performance
Disadvantaged Students’ State Test Proficiency Rate 98.2
Disadvantaged Students Performance Gap 30.3
Non-disadvantaged Students’ State Test Proficiency Rate 93.2
Current State Test Achievement Gap -5.0

College-Ready Student Performance
College Readiness Index 95.7
Quality-Adjusted Exams Per Test Taker 1.1
Participation Rate 100.0%
Quality-Adjusted Participation rate 94.2%
Participant Passing Rate 87.5%
Exams Per Test Taker 2.5
Exam Passing Rate 45.7%

Advanced Placement Student Performance
Quality-Adjusted AP Exams Per Test Taker 1.1
AP Participation Rate 100.0%
Quality-Adjusted AP Participation Rate 94.2%
AP Participant Passing Rate 87.5 %
AP Exams Per Test Taker 2.5
AP Exam Pass Rate 45.7%

International Baccalaureate Student Performance
Quality-Adjusted IB Exams Per Test Taker Not Available
IB Participation Rate Not Available
Quality-Adjusted IB Participation Rate Not Available
IB Participant Passing Rate Not Available
IB Exams Per Test Taker Not Available
IB Exam Pass Rate Not Available
IB Diploma Per IB Test Taker Not Available
IB Diploma Per Grade 12 Enrollment Not Available

Criteria for Medals
Gold Medal: Top 100 schools nationally based on the College Readiness Index

Silver Medal: all other schools with a college readiness index of at least 20 but that are not ranked in the top 100 nationally
Bronze Medal: either do not offer AP or IB or do not achieve a college readiness index of at least 20 but successfully meet the other two key performance indicator criteria
Honorable Mention: schools that achieved very high levels of college readiness but only partially met state test performance criteria
College-ready student performance data derived from data provided by the College Board and/or International Baccalaureate of North America.

Advanced Placement student performance data derived from data provided by the College Board. Copyright © 2009. Data provided by the College Board. All rights reserved. www.collegeboard.com

International Baccalaureate student performance data derived from data provided by International Baccalaureate of North America. Copyright © 2009. Data provided by International Baccalaureate of North America.

To see the who else made the list go to http://bit.ly/6e1laJ

Congress Passes Home Buyer Tax Credit Extension November 7, 2009

BREAKING NEWS: Congress Passes Homebuyer Tax Credit Expansion

By Steve Cook – RISMEDIA

RISMEDIA, November 6, 2009—After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less. The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties. In the House debate, Speaker Nancy Pelosi (D-Calif.) took the floor to say the homebuyer tax credit was helping a new generation of Americans live out their dream of homeownership and financial independence. Debate on the homebuyer credit was overwhelmingly positive and the legislation passed 403 to 12. However, several leading economists have voiced concern about the $16.7 billion cost of the credit and the wisdom of spending up to $400,000 per homebuyer to stimulate real estate sales and White House support for extending the credit has been lukewarm at best. However, it is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes. In the Senate, the homebuyer tax credit was amended to a bill expanding unemployment benefits by 20 weeks for those who have exhausted their benefit. The latest unemployment numbers are due out tomorrow and Congressional leaders are rushing the unemployment bill to the White House so that the President can show compassion by signing on the same day more job losses are announced. The legislation included provisions added to address complaints of fraud. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit. The legislation also contains a provision supported by the National Association of Home Builders which will help larger companies strapped for cash with net operating losses (NOL). Ordinarily these companies can carry back these losses for only two years to qualify for a tax refund. The provision would make this process extend the carry-back to five years for either 2008 or 2009. The tax break will now apply to losses in either 2008 or 2009, and the income cap will come off.