Last week CitiMortgage announced they would suspend foreclosures (primary residences) to help distressed homeowners in the Gulf of Mexico region. Borrowers with first mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications. According to CitiMortgage, borrowers occupying residences in zip codes within approximately 25 miles of affected coastal areas will be eligible for the program. The suspension is effective from June 17 thru September 17.
This is good news for short sale sellers as they will have more time to get their property sold. Make sure you are priced “aggressively” based on other sales in your area. No amount of marketing will sell an overpriced property.
I applaud CitiMortgage for really “stepping up to the plate” and taking action. Hopefully, others will follow.
If you haven’t heard the news…Up to 10 properties are now allowed for the “bona fide” investor. Better late than never. The tax credit isn’t going to do anything for the investor and it’s the investors that will help buy up the inventory. Fannie Mae even admitted that these experienced investors will play a key role in the housing recovery. They want to serve these individuals who have a history of owning rental property.
The following guidelines must be met:
- 25% down payment
- No bankruptcies or foreclosures in the last 7 years
- No Mortgage lates within the last 12 months
- 2 years tax returns showing rental income from ALL rental properties
- Minimum credit score of 720
- 6 months of PITI reserves on EACH of the financed properties
All investors are also required to sign a form granting lenders permission to verify the tax returns that have been supplied, against the official IRS filed version.
Let’s remember that the banks are holding record numbers of foreclosed properties on their books….while the most likely buyers of these homes, the investors, have been unable to obtain financing. Investors want to buy and Fannie Mae, now our Government, made it impossible. The change is meant to extend banks and lenders a “lifeline,” bringing back experienced investors.
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