Anita Acacio- Preventing Foreclosures

San Diego Union Tribune

An estimated 35 percent of the U.S. home-loan defaults in late 2010 were considered strategic, increasing from 26 percent in March 2009, based on figures from the University of Chicago’s business school.
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http://www.utsandiego.com/news/2012/apr/14/why-people-walk-away-home-loans/

The Wall Street Journal
Loans closed by banks and mortgage lenders in February had borrowers with a credit score of 750, up from 740 six months earlier, and an average loan-to-value ratio of 76 percent.  The average denied loan had a credit score of 699 and a loan-to-value ratio of 83 percent.

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http://blogs.wsj.com/developments/2012/04/04/are-mortgage-credit-standards-loosening-hint-no/

CalHFA has announced it will end its School Facility Fee Down Payment Assistance Program, which has been responsible for providing more than 14,000 grants totaling more than $61 million. Associated with this down payment assistance was more than $3.3 billion in first mortgage loans for people purchasing newly constructed homes throughout California. The program currently has approximately $700,000 left in funds, and CalHFA anticipates the final funds being expended by the end of April.

CalHFA will continue to accept applications for SFF until funds are exhausted. Applications will be accepted on a first come, first served basis.

Mercury News
Next to filing for bankruptcy protection, nothing wrecks a borrower’s chances of qualifying for a home loan like a foreclosure.  And, some lenders may not look favorably upon borrowers who were able to successfully complete a short sale either.

Making sense of the story

• Although more than 4 million homes have been lost to foreclosure in the six years since the housing market began its descent, it’s a reality that the former owners will have to contend with the repercussions of foreclosures and/or short sales.  However, the passage of time makes all the difference.
• The mortgage-lending guidelines followed by the majority of banks prohibit lenders from making loans to people with foreclosure or short sale in their credit history, often for years.
• Still, some homeowners who were foreclosed upon when the market first started to skid are now looking to buy another home and are getting approved for new loans.
• The likelihood of a borrower with a real-estate related blemish on their credit history being approved for a new loan depends on several factors, but largely on whether the borrower had a foreclosure or a short sale.
• Generally, borrowers who have a foreclosure in their credit history can expect to wait between two to seven years before a lender will even accept their loan application.  The waiting periods stem from guidelines most banks must follow in order to sell their loans to purchasers such as Fannie Mae and Freddie Mac.
• If a buyer with a past foreclosure is seeking a government-backed mortgage, the waiting period can vary before they can qualify.  The Federal Housing Administration, which insures roughly 30 percent of new loans, requires former homeowners to wait three years from the date of their foreclosure before they can qualify for a loan guaranteed by the agency.

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http://www.mercurynews.com/business/ci_20241918/past-foreclosure-means-waiting-years-new-loan

San Francisco Chronicle
On Tuesday, the Federal Housing Administration announced it will slash mortgage insurance premiums for certain homeowners who refinance an FHA loan into a new one under its streamlined program.
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http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/06/BUVD1NGS5O.DTL