Michael Creed's Blog

Great news!

Yesterday, Fannie Mae (FNMA) and Freddie Mac (FHLMC) ordered their loan servicers and attorneys not to evict about 16,000 troubled borrowers - or sell their homes - while they implement a streamlined loan modification program that could save some from foreclosure. This is some great news for so many people - not only those that are about to lose their homes (that's obvious) but to their neighbors who may have lost value in their own home by having a foreclosure in their immediate market!

Presently, 10,000 borrowers who have FNMA loans scheduled for foreclosure between Nov. 26 and Jan. 9 will be contacted directly by the attorney handling the case to discuss workout options, the company said. FHLMC issued a similar statement pertaining to about 6,000 borrowers.

The temporary suspension of foreclosures is designed to allow borrowers to keep their homes while FNMA and FHLMC work with mortgage servicers to implement a streamlined loan modification program scheduled to launch Dec. 15 (see a story about this on Inman.com).

The streamlined modification program is targeted at borrowers who have missed three or more payments on their primary residence and have not filed for bankruptcy. The program could help some obtain a more affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan, or deferring payments on part of the principal.

FNMA said its loan servicers are also prepared to work with borrowers who have already tried, but failed to obtain workouts. Seriously delinquent loans are being reviewed under the company's "Second Look" initiative to determine if the borrower has been contacted and all workout options have been exhausted.

What do you think about this? Please leave your comments below!

This is for the countless number of people I have been talking with over the past 12 months that are trying to sell their homes.

In today's extremely competitive market, it's crucial that your home has great curb appeal if you want to get the absolute best price when you sell it - or even an offer from a potential buyer for that matter!  If you haven't already done so, I would highly recommend that you give your home an exterior makeover.  Depending upon your home, it may be an extreme exterior makeover.

Here are some tips for an easy and cost-effective way to make your home look great to potential buyers.

Latex paint - is almost everyone’s first choice for exterior paint because it is easy to apply, cleans up with water and dries quickly.  On top of that, it’s long lasting.  But if you don’t know what you’re painting over, choose alkyd. Alkyds will adhere to most surfaces, including chalking ones; latex is more finicky about what old paints it will bond to.

More About Latex Paint – Is it always damp around your house?  Choose a latex paint or stain. Porous latex breathes and lets moisture escape. Moreover, it doesn’t contain vegetable oils that encourage mildew by feeding it. Latex is also great for most masonry and can usually be applied without a primer.

Painting Cinder Block – For cinder blocks, get a solvent-thinned rubber-base paint. The water in latex can penetrate into the blocks, causing embedded iron particles to rust and stain your fresh paint job. 

Painting Other Surfaces – You can revive faded aluminum siding with any standard topcoat. But first, you must sand the problem areas, wash the surface well and coat any bare metal with a zinc-based primer.  For doors, windows and other places where durability is a concern, pick a glossy paint.  It contains more of the resins that give a paint body and hardness.

Power Washing the Siding – If your house’s exterior is badly soiled, rent power washing equipment.  The high-pressure jet of water it emits will blast away flaking paint as well as dirt.

Use Sandpaper – Scraping off loose flaking paint is also an important part of preparation.  But don’t overdo it.  There no need to scrape off any paint that is firmly stuck to the surface.  Areas where you have scraped off flakes and blisters will be less noticeable if you smooth the sharp edges of the old paint with sandpaper.

It Really is Painting Season– for most of us. For best results, paint when the temperature is between 50 & 90 degrees Fahrenheit.  Spring and Fall are the best seasons for painting.  Besides moderate weather, nearby leaf bearing shrubs are usually bare. Be sure to wait until the dew evaporates in the morning before painting, and in the evening, stop before the dampness sets in.

With only 49 days until Christmas, many of you may already be stressing out about it -- or your personal holiday of choice. This year, my family and I have completely embraced a stress-reducing movement that I thought I would share; check it out at http://www.adventconspiracy.org/. Be sure to play the video that is displayed in the top-right part of your screen.

On with today's topic...

Home Loan Myths

Here are a couple recent home loan myths that I have heard when talking to clients over the past week that I thought I would share with you. 

Myth Number One - You need at least 10% down to buy a home

This is false.  We have many home loan programs for borrowers with less than 10% down.  In fact, we have FHA, conventional and VA options available that fall into this category. Both the FHA and the Conventional options currently require 3% down and the VA will allow for 100% financing for all eligible veterans.

Myth Number Two - Only people with great credit can get a home loan

This, too, is false.  We have many programs available for borrowers with varying levels of credit history. If you have had financial troubles in the past, but are on the road to recovery, I can work to find a way to make a loan that you can afford!

Please contact me today for a free quote on a home loan refinance or new home purchase; we offer fixed rate mortgages amortized in five-year increments between 10 and 30 years - all without penalty for early payoff.