Dallas Home Appraisals News and Information

Despite many lenders placing halts on new foreclosures, the number of homeowners threatened with losing their homes rose by 30% over a year ago in February.  Florida and New York both contributed heavily to the rise as the temporary bans on foreclosures ended in those states.  The same report indicates that banks are still holding off on listing foreclosed properties, creating a "shadow inventory" of unsold homes that could help prolong the housing crisis.  Texas is still not seeing the same rate of foreclosures as most of the rest of the country, but unemployment is creeping up and more homeowners are at risk of becoming delinquent in their payments.

If you haven't yet looked at the recent programs announced by the Obama administration, now is the time.  There are essentially two ways that the programs can help.  The first is through the Modification Program, where you may be able to modify a loan on your primary residence if you can show financial hardship - that is, either your income must have come down or expenses must have risen since you took out your loan.  Loan servicers are not required to participate in this program unless they accept new government funding, but there are incentives for both servicers and homeowners if they choose to participate.

The second program that might be helpful is the Refinance Program.  This is primarily aimed at homeowners who are current on their payments, have loans owned by Fannie Mae or Freddie Mac, and whose mortgage balances do not exceed 105% of the current value of their homes.  Closing costs are up, as are rates for locking in rates, so you really need to work with a lender or broker to figure out if refinancing is right for you.

Current conventional wisdom (for today anyway) is that if you have a loan rate that is greater than 5.5% you should talk to a mortgage professional about whether you would benefit from refinancing.  You may want to enter a rate watch program in which your lender or broker will notify you when the rate hits your target level.  With rates bouncing up and down on a near-daily basis, this might be your best bet.

Blue Star Appraisals Inc. can put you in touch with a mortgage professional who will help guide you through the most recent developments and requirements for these and other loan programs.  Contact us today for a referral or to discuss market conditions in your area.

For more information about loan modifications click here.