Category Archives: Buyers

Tips for buying a new home, topics include, insurance, escrow process, obtaining a new loan, credit issues, Fico Score improvement.

When can I buy after a short sale?

Do you ever wonder how long your clients need to wait until they can get a loan after a short sale or foreclosure?

Your timeline to buy after a short sale all depends on the kind of loan you had, if it was an investment home, or if you went bankrupt. Look at the chart below to see where you fit in.

We have real estate attorneys that can help you figure out the best way you should go it you are facing a future short sale. Make sure you give us a call for any questions you may have concerning a short sale.


short sale time line to buy again

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area


New Rules for Buying after a Short Sale- August 16, 2014 deadline!

Starting August 16 2014, if you short sold you home over 2 years ago and saved for a 20% down payment you would now have to wait 4 years instead of 2!

You can still get it done now if you act fast! If your application date and underwriting is done prior to August 16th 2014, the loan may still close after August 16th, 2014 , as long as 2 years has passed and the loan either receives an Approve/Eligible or the loan qualifies for manual underwriting guidelines.  Not Short Sale Repurchase changes after August 16 2014all lenders can do this. Call us for a lender that can get this done for you now while you still have a chance.

Please note, Fannie Mae does approve extenuating circumstances for a 2 year repurchase. Call now to see if you still qualify for a 2 year purchase after a short sale.

If you are planning on doing a short sale in the near future and have a real hardship, keep records of your hardship, so when you plan to buy again, you can demonstrate your hardship for a 2 year repurchase.

Current Guidelines for Eligibility after a short sale for FHA is 3 years, VA is 2 years, and USDA is 3 years.

Call the Kathy Dyer Monterey Peninsula Short Sale Specialist to help you find your home now.

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Life after a Short Sale

Buying after a short saleThere is a life after a short sale.  Even though it is a horrendous decision to default on your home,  there is hope for a brighter tomorrow once the smoke clears.

Being a Realtor who Specializes in Short Sales in the Monterey Peninsula Ca area, I have successfully closed many short sales for my clients within the past years. Excitedly,  I am starting to see many of my former clients  return back into the market as new buyers!   Even though it is rewarding to help someone stay out of foreclosure,  I get a tremendous amount of  satisfaction helping these clients celebrate as they dig their way back and  move into their new homes!

I wanted to share this incredible story about one of our very happy clients.

Our client bought their home at the peak of the 2006 housing boom. They paid $693,000 for their home in a nice neighborhood. Hard times fell upon them after a job change. They found themselves no longer able to afford their loan after the interest rate reset 5 years later. They were forced to short sell it in 2011.  Now 2 years later, they have saved enough money to do a conventional loan with 20% down.

We just closed on their new home!  The good news is that they were able to buy their new home with the same floor plan,  plus it had $30,000 worth of upgrades and a pool.  This home  sold only for $454,000!  Their mortgage payment in 2011 was $4,200 and now it is $2,296. We were happy to help them out of their nightmare.  They were not able to keep paying on their old home, and their savings were dwindling down to nothing and a forclosure was heading their way! So after so much stress, a short sale was the best decision for them. I negotiated with the bank on the short sale and the bank accepted the amount  on the offer as full payment. There were no deficiencies owed to the bank.  The bank forgave them for the difference of what they received and what was owed on the mortgage.  With the new loan, they will only pay $276,047  interest over the 30 years life of the loan as compared to $675,000 in interest  they had with the home that they short sold.

Life after a short saleI was very elated to see a happy ending to their story. I often cry along with my clients when they lose their home and have to short sale. I remind them that this time will pass fast and they should  look forward to re-entering the market in better shape.  And at that time, we all celebrate as they open the door to their new home!

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

I’m Late with My Mortgage Payment- HELP!

Short Sale Repurchase changes after August 16 2014Home Affordable Modifications

Avoid Foreclosure- Free Counseling

Are you having a hard time making your loan payment? Are you hearing about all those loan modification programs on the radio and TV and do not know who to trust?

Afraid of Fraud?  Did you know that there is free counseling that is available to you through government programs?

You may not be alone- one out of every 10 families who are just like you who have either missed one or more of their mortgage payments and still desperately want to keep their personal residence. If you can no longer afford to make your monthly loan payments, you may qualify for a new government loan modification program called HAMP.

 Am I eligible for a Home Affordable Modification? Answer these questions:

  1.  Is your home your primary residence?
  2. Is the amount you owe on your first mortgage equal to or less than $729,750?
  3. Are you having trouble paying your mortgage?For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
  4. Did you get your current mortgage before January 1, 2009?
  5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?

 If you answered yes to these questions- you may qualify for a loan affordable modification Click here to view the government loan modification survey. Fill it out and see if you qualify.

If you do not qualify for a  loan mod, you may want to see  if you qualify for the government HAFA short sale program and the 3,000 moving expenses if you complete a short sale.

Kathy Dyer wants you to keep your home. Call her for any questions and we will direct you to people who can help. If you can not get a loan modification, call us to see if a short sale if right for you.

Avoiding Mortgage Scams

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

House hunting? It’s not a buyer’s market everywhere

CB104916Some potential home buyers, especially first-time buyers, may be misinformed about today’s market, believing that all sellers are desperate and will accept any offer. However, in many desirable, middle-class neighborhoods, bidding wars are prominent and buyers often have to make offers slightly above the asking price.

• Although California’s median home price – the price point where half of the homes sold for higher and half for lower — was 39 percent lower in March than a year ago, many of the sales taking place are in areas, such as the Central Valley and the Inland Empire (Riverside and San Bernardino counties), which have higher foreclosure rates. These regions offer home buyers better opportunities to purchase homes at extremely low prices.

• The California housing market is often characterized as having three pricing segments: under $500,000, $500,000 to $1 million, and more than $1 million. Homes in the under-$500,000 segment have accounted for the majority of the state’s price declines thus far.

• As real estate is local, a home in one neighborhood with the same square footage and amenities may not sell for the same price as a comparable home in a neighborhood one mile away. By working with a REALTOR® familiar with a specific area, home buyers should be able to submit reasonable offers that are more likely to receive seller approval.

Read this Story

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area


Certified Distressed Property Expert

Home Ownership Becoming More Appealing Than Renting

Home Ownership is finally becoming more affordable than renting.

Rent versus own– that is the question…

First time home buyers

Declining home prices are helping to close the gap between the costs of renting versus the cost of owning a home, making home ownership more appealing and affordable in many metropolitan markets.

·     Historically, after-tax mortgage payments have averaged 26 percent more than rent payments, according to Greet Street Advisers.  At the peak of the current real estate cycle, mortgage payments reached as high as 66 percent more than rent payments.  However, by the end of 2008, mortgage payments averaged just 24 percent more than rent payments, the narrowest gap since 2001.

·      In Los Angeles, mortgage payments averaged 60 percent more than rent payments between 1990 and 2008, but have since fallen to only 30 percent more than rent payments.

·      Some economists predict mortgage rates could fall to 4.5 percent, which could push mortgage payments to an average of 14 percent more than rent payments, a level last reached in 1998.

·      In some markets, well-qualified home buyers are finding that they can pay less for a mortgage payment than they spend on rent.

·      Although mortgage payments in some areas may be slightly higher than rent payments, the long-term benefits of home ownership outweigh the costs.  Homeowners can deduct the interest they pay annually on their mortgage.

·      Additionally, homeowners can build up equity in their homes over the long term. Historically, homeowners who remain in their homes for at least five years have an average annual rate of return of nearly 12 percent.

·      Unlike rent payments, a mortgage can be paid off, enabling the homeowner to live in a house free and clear.

To read the full story, please click here

 For more articles:

New Home Buyer Fence Sitters may Lose out to Market

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Certified Distressed Property Expert

Qualifications Tightend as Mortgage Interest Rates Lower


Buyer Qualification has  tightened as mortgage interest rates lower.

Mortgage rates are near historic lows, spurring an increase in mortgage applications and applications to refinance.  However, most financial institutions have tightened their loan underwriting standards, making it more difficult for home buyers to qualify for the best rates.  In many cases, borrowers must issue a down payment of at least 20 percent; borrow $729,750 or less; have a credit score of at least 720; carry low debt relative to reliable income; buy in an area where home prices are relatively stable; and use a community bank rather than a national bank, to qualify for the best rates.

·      Most of the risky loan packages, such as “stated income” loans, where borrowers were not required to document their income, and option adjustable-rate mortgages, where consumers could choose to pay less than the interest due, are no longer available.  Some financial institutions offer interest-only loans, but they can be quite costly.


·      The majority of today’s mortgage loans are through Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).  Combined, the government sector accounts for 87 percent of mortgages.  Purely private financing is rare.


·      The government entities purchase and/or guarantee loans up to a certain limit.  In high-cost areas, such as most areas of California, the conforming loan limit is $729,750.  The best interest rates are offered on conforming loans.  Jumbo loans – those that exceed $729,750 – are more expensive and can cost a quarter-point to a full percentage point more.


·      Fannie Mae and Freddie Mac also have added a quarter-point “adverse market delivery charge” due to declining home prices.  They also have instituted “risk-based pricing,” which raises fees on borrowers with credit scores of less than 720.  Borrowers purchasing a condominium and putting down less than 15 percent also will pay more for a Fannie Mae or Freddie Mac loan.


·      Borrowers with a down payment of less than 20 percent also are required to take out private mortgage insurance.  Premiums have increased in most parts of the country, including California.


·      Consumers without a 20 percent down payment may be eligible for a mortgage loan through the FHA, which accepts down payments as low as 3.5 percent.  The FHA charges an upfront mortgage insurance premium of 1.75 percent, which can be added to the loan, in addition to a monthly premium.


·      Although rare, the U.S. Dept. of Veterans Affairs (VA) and U.S. Dept. of Agriculture offer loans in rural areas with no down payment or mortgage insurance requirements.


To read the full story, please click here

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Certified Distressed Property Expert

Snag a Deal on a Short Sale

reasons to buy a short sale

Reasons to buy a short sale!

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allows a homeowner to sell their home for less than owed on the mortgage. With the lender’s approval, home buyers can purchase properties in desirable neighborhoods and at favorable prices.


•  As of July 2014, the percent of Roseville homeowners underwater on their mortgage is 14.5%, which is lower than Sacramento Metro at 20.0%.

• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained as many owners may still live in the home.

• In a short sale, the homeowner must receive approval from the lender before the sale of the property can proceed. With many lenders overwhelmed by short-sale transactions, it can take between two and six months to execute.

• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR®  in Short Sales will be able to serve as the mediator between the seller and the lender and lead to a successful transaction, while a buyer’s agent can help with offers, counter offers, home inspections, closing, and more. Make sure you work with a Realtor that knows how to qualify what properties to make offers on. Some properties will never get closed. It depends on many factors:

1.      How many loans are on the property?

2.      How far away is the foreclosure sale date?

3.      Who the loan is serviced by?

4.      Who the investor is that owns the mortgage.

5.      If the seller qualifies for a short sale.

An experienced Realtor will know which properties you should make offers on and which ones that are a waste of time.

• It is important to remember that although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Therefore, home buyers should work closely with their REALTOR® to submit a realistic offer.

• Buyers should ask the lender to pay for some of the closing costs as part of the contract. The contract also should specify that the buyer will not conduct an appraisal or inspection of the property until the offer is approved. This added guarantee can protect home buyers from spending money on a home they may not purchase.

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

New Home Buyer Fence Sitters May Lose Out on the Market?

j0401054Fixed-rate mortgages of Four percent,  zero-down payment requirements, and a 30-40 percent break on the market value of the house appear to be what many “on the fence” home buyers are waiting for before they consider purchasing a home.


• According to a study of more than 700 self-described “on-the-fence” buyers, 44 percent responded that they haven’t yet committed to purchasing a home because they are waiting for lower mortgage rates.  (WE ARE  HERE NOW) 

The study, conducted by the National Association of Home Builders’ research subsidiary,  found that 41 percent of undecided buyers are unsure if they could qualify for financing.  Another 38 percent reported they expect to see home prices decline further.

Again people we are there now- my opinion – people are gambling if they wait longer. The interest rates are good now- even if and when homes will go down- I believe the rates will go up again.

• The study found that concerns about declining property values were most prevalent among home buyers in the Western region, while buyers in the Northeastern and Midwestern states were more concerned with lower mortgage interest rates.

• Of the potential home buyers surveyed, the mortgage rate that seemed most favorable and would be most effective in persuading consumers to buy now is a 30-year, fixed-rate mortgage at 3 percent.  Now we are closer to the mid 4’s.  According to Freddie Mac, interest rates on 30-year, fixed-rate mortgages averaged 5.25 percent for the week ending Feb. 5.
• Survey respondents said guarantees by home builders that their loan applications would be accepted with verifiable proof of income and a “fair” credit score ranked six times more effective than standard application procedures.
• Price concessions, such as a 10-percent discount below market value, appeared to be the most compelling option for on-the-fence buyers.
To read the full story, please click here

To put this into perspective- if you plan to stay in your home for awhile– waiting can price you out of the market.   Home prices are already good.   Get in now while interest rates are still low.  They are the lowest they have been in over 30 years.   While people gamble and wait for prices to drop, they may lose the ability to qualify for a loan if rates climb.  Buyers have to live somewhere and paying rent can be the same price as paying on a mortgage.  Have a CPA run Numbers for you on tax savings with owning a home.  At least once you buy, you are gaining equity for the future when prices come back up.

More articles:

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Short Sale Specialist

Plunging Home Prices Good News for 1st Time Home Buyers

Good news for First Time Home Buyers! There are great deals out there.

We have found that at the under $250,000 price range that there are multiple offers all competing for the best deals. We have found that buyers who shop with a Realtor have a better chance getting a house than those who do not. Most times than others- First Time Home Buyers  don’t see the listing until it is too late. By the time they put in an offer, they are already beat out.

Read the article below on some great stats.

NATIONAL ASSOCIATION OF REALTORS® (NAR), the median home price First time home buyersnationwide in December was down 15 percent to $175,400. With current interest rates at or near historic lows, borrowers with a 10 percent down payment could save $254 per month on a median-priced home compared with a year ago.

  •  The percentage of First Time Home Owners that could afford to buy an entry-level home in California stood at 53 percent in the third quarter of 2008, compared with 24 percent for the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REACTORS® (C.A.R.).
  • The minimum household income needed to purchase an entry-level home at $287,760 in California in the third quarter of 2008 was $56,100, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment. The monthly payment including taxes and insurance was $1,870 for the third quarter of 2008.

To read the full story, please click here

For more reading:

Snag a Deal on a Short Sale

Home Ownership more appealing than renting

New Home Buyer Fence Sitters may Lose out to Market

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area


Short Sale Specialist

Fed Adopts Program to Stem Foreclosures

This week’s C.A.R. Mortgage Update contains information Freddie Mac, curbing foreclosures, credit unions, and financial roadblocks to home ownership.

Fed adopts program to stem foreclosures  holding head

The Federal Reserve recently announced it will seek to renegotiate mortgages it owns that might otherwise enter foreclosure, according to Federal Reserve Chairman Ben S. Bernanke. Under the program, the Fed could reduce what a homeowner owes on a mortgage; lower the interest rate; lengthen the term of a loan; or take other steps to prevent a loan from defaulting.

The Federal Reserve’s program will focus on reducing the amount of principal owed by those at risk of foreclosure, especially those with loan balances exceeding 125 percent of the estimated value of their property. It is unclear how many homeowners could benefit from the program, and most individual borrowers will likely not know if their mortgages are owned by the Federal Reserve. If eligible for a loan modification, the homeowner would work with mortgage servicer and not the government directly.

For any questions concerning your real estate situations feel free to give us a call and we can put you in touch with professionals to help you through this tough time. Kathy Dyer 831-717-7047

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

That House May Fit your Budget – ACT NOW!

With home values in many areas declining, the market is providing an Home Buyer info Roseville Caopportunity for many first time home buyers to purchase homes that previously may have been out of reach.  With increased affordability, families can now purchase homes with more square footage, in desirable neighborhoods, and in closer proximity to amenities and public transportation.

·      In California, the median price of an existing home declined to $285,680 in November 2008, down 41.8 percent from November 2007 when the median price of an existing, single-family home was $490,511.   


·      The average rate for 30-year, fixed-rate mortgages was 5.01 percent for the week ending Jan. 8, according to Freddie Mac. Lower interest rates coupled with lower home prices can lead to more affordable mortgage payments, enabling some homeowners to move up, and first-time home buyers to enter the market.


·      To qualify for the record-low interest rates, borrowers will need a down payment of at least 20 percent and a FICO score of 700 or higher.  In California, a 20 percent down payment on a median-priced home would be $57,136.  Additionally, home buyers will need to pay for any closing costs not paid by the seller. There are though still first time home buyers programs that will help a new home buyer to get into a home with little money down. Just call you Lender for more info to see if you qualify.

 ·      The large number of foreclosures on the market also is presenting an opportunity to purchase a home at a favorable price.  However, some foreclosed homes may be in disrepair and may require additional work to make the property livable.  A program offered by the Federal Housing Administration, 203K Streamline, allows home buyers to borrow as much as $35,000 more than the mortgage to pay for certain renovations, such as new paint, carpeting and appliances that a foreclosed home may need.


·      To calculate how much house is affordable, consumers should follow the general principle of dedicating no more than 28 percent of their gross monthly income to covering the monthly mortgage payment, including property taxes and homeowners insurance.  All debt payments combined, including mortgage, credit cards, car payments, student loans, etc., should be less than 35 percent of the gross monthly income.


For related articles for New Home Buyers

Best Place to Buy a Home 

Top Mistakes Buyers Make when Placing Offers

Top 10 Questions Buyers Have

Rent vs Own

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area


How to Find out if your Landlord is in Foreclosure

How to find out in you land lord is in foreclosure

Finding out if your prospective landlord is about to go into foreclosure simply a good idea for any tenant who is contemplating renting. You don’t have to wait until the Sheriff shows up at your door with an eviction notice. You can be notified immediately when a Notice of Default is filed by your landlord’s lender, indicating that a foreclosure process has begun.

Here is how to find out if your landlord is in foreclosure.

  • Call a local title company and ask for customer service.
  • Give the customer service rep the property address and ask for a free copy of the first deed of trust to be emailed to you.
  • Print the copy of the deed of trust, because you will need to know the document number, book, page, name of beneficiary (the lender) and name of trustor (the landlord).
  • Go to to access a free Copy of Notice of Default.
  • On your computer, fill in the blanks with the information above from the deed of trust, and enter your name and address in the space provided.
  • Print the Request for Copy of Notice of Default.
  • Sign it in front of a notary.
  • Attach a check for made payable your county’s Recorder. Check your counties website for more info.

The Request for Copy of Notice of Default will be recorded upon receipt. Then, if your landlord’s lender files a Notice of Default, you will receive a copy of it in the mail. Foreclosures in California take about 3 1/2 to 4 months to complete. This time period should give you ample opportunity to work out the problem with your landlord. You might also consider asking if your security deposit can be applied to rent because once the foreclosure is complete, your lease is no longer valid, and you might not get your security deposit back.

If you prefer to handle the entire procedure in person, you can go to your County Recorder’s office and pull a copy of the deed of trust. Take the Request for Copy of Notice of Default with you and fill it out at the Recorder’s office. Get it notarized, pay your money, it shouldn’t be much,  and you’ll go on record that afternoon or the following day.

Tenants in foreclosure should know that California law gives tenants the right to receive a 60-day notice.

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

What is a Loan Modification?

A Loan Modification is a negotiation between a lender and a borrower whereas the loan terms are restructured without refinancing.  The rate and terms of your loan are restructured to fit your current financial situation.
In these market conditions, the banks and lenders have been mandated by the president to do everything they can to work out a payment plan with their borrowers. This is a great thing for today’s borrowers, especially for those who are running late on their payments or are having trouble making them on time. The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense of foreclosing on the home, hiring a listing agent, rehabilitating the home, and letting it sit empty on the market for months, only to lose thousands in the process.

 We have referrals if you need any lenders help you with a loan re-modification, give us a call or email us.


Read below for more information:

Mortgage Modification Programs

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Mortgage Modification Programs

Homeowners seeking information on existing mortgage workout


Below is a snapshot on eligibility requirements and contact information for a loan workout. If a lender or loan servicer is not mentioned below, homeowners may wish to contact their lender or loan servicer to determine if a workout program is available. In general, the loan modification programs below and consumer information sheets are intended for primary residences only.
It’s important to stress to clients that mortgage loan modifications typically are handled on a case-by-case basis. Prior to calling a lender or loan servicer, homeowners should have the following information available:

·         Loan number

·         Income information and documentation

·         Most recent mortgage statement

·         Bank statements

·         Letter demonstrating financial hardship

Hope for Homeowners (H4H)

Designed for borrowers at risk of default and foreclosure. Provides new 30-year, fixed-rate mortgages insured by FHA, mostly via refinance.      Lender must willingly participate.

·         Loans originated on or before Jan. 1, 2008

·         Primary residence, owner occupied (Borrower may not own a second home)

·         Unable to pay existing mortgage without assistance and has made at least six payments

·         Current total monthly mortgage payments exceed 31 percent of gross monthly income as of March 2008

·         Homeowner has not been convicted of fraud in the last 10 years and did not knowingly or willingly provide false information to obtain existing mortgage

·         Contact your lender to check for participation in H4H program

·         Need to apply through participating lenders

Program timeline: Oct. 1, 2008 – Sept. 30, 2011

For a list of participating lenders visit the site:


Countrywide Financial (Bank of America)

Homeownership Retention Program for Countrywide Customers Will modify troubled mortgages with interest rate and principle reductions.


·         Subprime or pay option adjusted-rate mortgage loans originated on or before Dec. 31, 2007.

·         Primary residence, owner occupied (one to four units)

·         Borrower is 60 days or more delinquent and current loan-to-value is 75 percent or greater.

·         Borrower is current today but becomes 60 days or more delinquent at any time before June 30, 2012, and loan-to-value is 75 percent or greater at the time of the modification.

·         Modifications would be designed to achieve sustainable payments at a 34 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance

·         Call BofA/Countrywide to check for eligibility

Program timeline: Begins Dec. 1, 2008 with no end date specified.

Call (800) 669-6650


Citigroup, CitiMortgage – Citi Homeowner Assistance Program

Will preemptively reach out to homeowners in need of assistance and will not initiate a foreclosure or complete a foreclosure sale on any eligible borrower where Citi owns the mortgage.

·         No requirements on origination.

·         Must be first mortgage and must be a loan Citi owns.

·         Primary residence, owner occupied (owner may own a second home).

·         Borrower is working in good faith with Citi.

·         Borrower may not be currently behind on their payments but may require help to stay current.

·         Current total monthly mortgage payments exceed 38 percent of gross monthly income

·         Call Citibank to check for eligibility

Program timeline: Nov. 11, 2008 – May 2009

(800) 667-8424 


Chase’s mortgage modification program

includes extending modification programs to Washington Mutual and EMC Mortgage Corp. customers. Program is designed to actively contact borrowers and work with them to develop viable and sustainable options.

·         No requirements on origination.

·         Must be first mortgage and must be a loan JP Morgan Chase owns.

·         Primary residence, owner occupied (owner may own a second home).

·         Targets Chase, Washington Mutual or EMC Mortgage Corp., borrowers with adjustable-rate mortgages (ARMs) including subprime and pay-option ARMs.

·         Modifications would be designed to achieve sustainable payments at 31 to 40 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance

·         Call Chase to check for eligibility

Program Timeline:  Chase expects to implement by Jan. 31, 2009 and will extend two years after implementation.

For help with Chase, WAMU or EMC loan, call (866) 550-5705


IndyMac Federal Bank, FDIC

Program to modify troubled mortgages to achieve affordable and sustainable mortgage payments for borrowers, and increase the value of distressed mortgages by rehabilitating them into performing loans.

·         No requirements on origination.

·         Must be a first mortgage and must be a loan owned, or securitized and serviced, by IndyMac Federal

·         Primary residence, owner occupied

·         IndyMac borrower already seriously delinquent or in default.

·         IndyMac borrowers at risk of default due to payment resets or changes in the borrowers’ repayment capacities.

·         Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance

·         Call an IndyMac Federal customer service specialist to check for eligibility.

 Program Timeline: Aug. 2008 – no end date specified.

 Call (877) 908-4357 default.aspx?id=1178


Federal Government Loan Modification

Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, Wells Fargo

Designed to reduce preventable foreclosures with a simplified, streamlined loan modification program to put struggling homeowners into mortgages they can afford via a uniform process for loan modifications that the majority of lenders and servicers will use.

·         Borrower must have missed three or more payments.

·         Primary residence, owner occupied

·         Not filed for bankruptcy.

·         Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, and association dues

·         Troubled homeowners should call with their lenders or servicers as to participation and eligibility for this new program.

 Program Timeline: Dec. 15, 2008, more details to follow.


For more info:

Kathy Dyer Realtor CABRE #01723710  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area