Well, the sad news is October 1st has come and gone and not one lender has stepped forward to fund the FHA refinances for these home owners. Oh, there are a slew of lenders eager to originate the loans, but none seem willing to fund them. A bunch of mortgage companies jumped on the bandwagon and are taking loan applications; however, until an investor or bank with resources agrees to lend on them, it's hardly worth filling out the paperwork.
My sources tell me that the retail operations of JPMorgan Chase might be ready to accept loan applications next year. But where does that leave homeowners today? . . . read more about HOPE for Homeowners.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
You would think the banks would be quicker, but as Barney Frank even pointed out recently in admonishing banks for not lending after the bailout bill was passed, it still takes time to get the banks out there to lend again.
We (Mortgage Express in Portland, Oregon) are awaiting from our lenders and underwriters just what we can do to accept applications from homeowners and borrowers regarding the HOPE for Homeowners act, but my advice is to apply now and early, to secure a spot in line so to speak, while the banks get their acts together.
It may seem like a waste of time to apply and work with a lender, but really it’s going to be a big funnel of applications and the sooner you work with someone, the better to get your application prepared correctly.
I know our wholesalers are on the verge of accepting the first applications for this variation on a Loan Modification. Perhaps readers should at least speak with a loan professional, to consider the possibility of a loan modification, versus the HOPE for Homeowners or even a short sale.
In a nutshell, what you have to provide information-wise to a lender, is essentially much of the same information required to get a loan modification or to have a bank consider a short sale.
Start the process now, while we wait; that way you’re prepared and have done some of the legwork involved once the trigger is pulled.
Just my two cents…
Ed Bisquera, Mortgage Planning Consultant
(360) 597-8283
Blog.PDXLoan.com
This is exactly the problem. Everyone wants to accept application and blame lenders when it’s the brokers that push these nonsense loans.