Zillow Advice: Lenders - Can a lot of Stocktonians benefit from the new law that Obama signed?

I doubt there will be as ...

Sat, 07 Mar 2009 23:33:00 GMT

I doubt there will be as many Stocktonians who will qualify for the refinance, as compared to Modification.

Stockton is one of the hardest-hit areas in the United States, insofar as foreclosures and property value decline.

There is not much difference between 95%LTV and 105%LTV, when you consider most homes in this area have lost 50-70% of their value since 2006.

Or to put it another way, prices are down to 1999-2001 levels.

Good luck.

The refinance program being ...

Sat, 07 Mar 2009 19:30:00 GMT

The refinance program being launched by Fannie Mae will allow refinances of existing Fannie Mae loans to 105% of the current appraised value without the need for mortgage insurance if none currently exists - other acceptance criteria also apply. The program is scheduled to start in April subject to actuallly be offered by specific lenders. Might be of some help to some homeowners in the very hard hit Stockton area who can meet the criteria.

I think it will help a great ...

Fri, 06 Mar 2009 02:50:00 GMT

I think it will help a great many homeowners in the San Joaquin Valley, especially with Loan Modification options.

I have a good friend in Stockton who has caught a lot of flak from her current servicer (EMC) - and they seem to be ok with her making a PITI payment equal to about 70% of her current gross income. She's obviously feeling a lot of pain right now.

Her home as dropped in value tremendously... she's gone from about 72%LTV to over 200%LTV, so obviously refinancing was not an option.

I doubt that the means-test her servicer will perform, as part of the new plan, is going to see foreclosure at this time being more financially viable for their company vs. simply lowering the interest rate and possibly extending terms.

My friend should see her overall PITI payment drop by $900 a month, which brings her back into affordability (affordability policy states taking homeowners down to a 31% housing debt ratio) and will keep that particular home from going into foreclosure... so one less home becoming a distressed property. Also, the government is going to pay that servicer directly for doing it, which is another incentive for the servicer to participate.

Stockton has been one of ...

Mon, 23 Feb 2009 01:48:00 GMT

Stockton has been one of the hardest hit areas in the country in terms of home value loss. I'm not sure if the plan can address all of the hardest hit homeowners, but hopefully it will help many.