Category Archives: Loan Process

good advice getting your through the loan process, quliafying tips, credit issues, escrow process

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

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

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

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




Top 10 Questions Buyers Ask

1. What should I do before considering purchasing a home?

Having your finances in order will facilitate your home search. Some things you should consider are: annual income, down payment, credit card debt, loan balances.


2. What is the first step when purchasing a new home?

It is important to know your buying power and you are pre-approved prior to starting your home search. This will allow you to concentrate on properties within your price range.


3. What is the cost of getting pre-qualified?

There is no cost for getting pre-qualified.


4. How do I choose my mortgage?

It is recommended that you consider your financial goals and long-term plans to determine which loan program is best for you.


5. Do I have to pay you to represent me?

Usually, the Seller will pay the Listing and Buyer’s Agent an agreed upon commission.


6. If I find a home that is not listed by you, can you still show it to me?

Yes, I am able to show you any home, new or resale, regardless of who is the listing office.


7. What do I do when I find the house I want?

You will need an earnest money check to accompany your Offer to Purchase. Usually, a minimum of 1% is acceptable. At this point, the Seller may accept your offer, reject your offer or counteroffer. Negotiations will begin. When the Seller accepts your offer or you accept his/her counteroffer in writing, you have a legal binding contract for the sale of the property. Your money will be deposited in the listing broker’s trust account until close of escrow.


8. Is it a good negotiating strategy to submit a low offer at first?

You should take into consideration that if your offer is too low, another buyer may submit a higher offer before you get an opportunity to submit another offer, or accept the Seller’s counteroffer. There have also been instances when the Seller is insulted by the low offer and refuses to entertain any more offers from you. Also it is common to have multiple offers on many REO properties, if that is the case, you should submit your best and highest. Your Realtor will give you input to help you decide what to do.


9. How long is escrow?

The length of time escrow is opened varies by transaction. There are various factors that affect the length of time escrow is opened. It varies by transaction.


10. When do I get my keys?

At the close of escrow, your Agent will contact you regarding the disbursing of your keys.

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 Title Insurance?

Some things you need to know about Buying a Home.


The purchase of a home is probably the single largest investment you’ll make in your lifetime. It is only prudent that you want to safeguard your rights and investment.

Title insurance assures that your rights and interests to the property are as expected, that the transfer of ownership is smoothly completed and that you receive protection from future claims against the property. It is the most effective, most accepted and least expensive way to protect your ownership rights.

Because land endures over generations, many people may develop rights and claims to a particular property. The current owner’s rights – which often involve family and heirs – may be obscure. There may be other parties (such as government agencies, public utilities, lenders or private contractors) who also have“rights” to the property. These interests limit the “title” of any buyer.


Before your real estate transaction closes, the title company performs an extensive search of all recorded documents related to the property. These records are then examined by experienced title officers to determine their effect on the current status of ownership and a report is issued to you or your agents for review. This thorough examination generally allows any pending title problems to be identified and cleared prior to your purchase of the property.


If title insurance companies work to eliminate risks and prevent losses caused by defects in the title before the closings, why do you need a title insurance policy?


Because even after the most careful research, some title flaws may go undetected. Among the more common flaws to title which are not of record are forgery, invalid court proceedings, mistaken legal interpretations, defective deeds, confusion due to similarity of names, previously unrecognized rights of spouses and undisclosedheirs. These problems may surface at any time in the future.


Protection against these flaws and other claims is provided by the title insurance policy which is issued after your transaction is complete. Two types of policies are routinely issued at this time: an “owner’s policy” which covers you, the home buyer for the full amount you paid for the property; and a lender’s policy which covers the lending institution over the life of the loan. When purchased at the same time, you can obtain a substantial discount in the combined cost of an owner’s and a lender’s policy. Unlike other forms of insurance, your title insurance policy requires only one moderate premium for a policy to protect you and your heirs for as long as you own the property. There are no renewal premiums or expiration date.


Each policy is a contract of “indemnity”. It agrees to assume the responsibility for legal defense of your title for any defect covered under the policy’s terms and to reimburse you for actual financial losses up to the policy limits.

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