The ‘Subprime - Short Sale - Bank-Owned’ Primer

Here’s a short and sweet summary of links and info to fill you in on the many issues the title words conjure up:

First off, if you’re caught in an adjustable subprime loan that is strangling you with upward spiraling house payments, check into FHA’s recent option to refinance called FHA Secure.  If a subprime borrower has a good payment history and at least 3% home equity, you can get a safe FHA loan with fixed payments. Even if you’re in default on your loan now, but were making payments before your adjustable loan reset to a higher interest rate, you can qualify. Special note: this is a temporary program (for now) with an application deadline date of 12/31/08– so let all those you know in this fix to move on this option.  There is also an option in Ohio sponsored by OHFA– the Ohio Housing Financing Agency.

If you’re a buyer that can’t find financing since the lenders have tightened their loan approval guidelines, click here.  There are new programs available (not all banks offer them) that can get you the money you need.

If you think that it’s the ‘end of the world as we know it’ and the real estate industry is imploding into oblivion, click here.  The media mavens who report all the real estate hoopla are talking about less than 1% of the total market.  Yes, it’s an issue, but let’s get a little perspective!  If you’re a numbers person, here’s statistics on the foreclosure numbers in the Columbus and central Ohio area as of September 2007…..

Trying to avoid foreclosure? Don’t ignore it– do something about it. Visit the HUD website to find a counseling agency near you. There are a number of agencies in Columbus Ohio; The Ohio Housing Finance Agency is one of them.  Another great resource is the Homeownership Preservation Foundation– they offer FREE advice and support.

Are you a victim of predatory lending? Call the Office of Attorney General Marc Dann at 800–282–0515… they want to know about it. The Ohio Division of Financial Institutions also registers complaints; call 866–278–0003.

Think you want to buy a bank-owned home?  You may want to think again… it’s a long and winding road.  Click here and here to see the experiences of others……

Need a little humor on the subject?  Click here to read about people who tried to get a loan and shouldn’t…….

The ‘short sale’ home situation is a unique animal…. which can kick the owner hard long after the sale.  Click here for more details. (A lender told me about a brand new surprise for owners. A couple had given their FHA deed-in-lieu-of-foreclosure to the bank and a year later wanted to get a new home loan.  However, the lender had filed a CAIVERS report on the couple months after the fact… which meant they could not get an FHA or VA loan for a period of 3 years! Please, talk to a knowledgeable lender or realtor early in the process….)

Curious about how and why the foreclosure crisis has developed?  Read earlier posts dated in March and August that gives some background…..