Real Estate

Fannie, Freddie Extend Ban on Evictions, Foreclosures

NAR Daily News Magazine - May 15, 2020 - 1:00am

The country experienced a 75% decline in foreclosures year over year in April—but that’s likely a temporary trend.

Categories: Real Estate

Mortgage Rates Remain Near Record Low for 6th Week

NAR Daily News Magazine - May 15, 2020 - 1:00am

“While demand is improving, inventory is low and declining with no signs of a turnaround yet,” says Freddie Mac’s chief economist.

Categories: Real Estate

Google Searches of Homes for Sale Show Strong Rebound

NAR Daily News Magazine - May 15, 2020 - 1:00am

The online hunt for property listings is making a comeback. Find out which markets are seeing some of the largest upticks.

Categories: Real Estate

Your Priority Should Be Self-Care

NAR Daily News Magazine - May 15, 2020 - 1:00am

During stressful times, focus on routines and practices that spark personal and professional growth.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

Consider a ‘40-30-20-10’ Spending Plan

NAR Daily News Magazine - May 15, 2020 - 1:00am

The pandemic gives you time to get your financial house in order.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

Watch for Home Sales Rebound as Economy Opens Up

NAR Daily News Magazine - May 14, 2020 - 1:00am

As states relax COVID-19 restrictions, stable home prices and job creation could be positive spurs for both buyers and sellers.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

U.S. Lawmakers: We Need REALTORS® to Help Us Recover

NAR Daily News Magazine - May 14, 2020 - 1:00am

The real estate community is an invaluable ally in supporting policies that protect homeowners’ financial investment as the country seeks an economic comeback after the pandemic, said General Session speakers.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

How the Pandemic Is Changing Appraisals

NAR Daily News Magazine - May 14, 2020 - 1:00am

While most appraisers are still conducting interior inspections, they’re often putting new safety measures in place.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

Realtor.com® Reveals April’s 10 Hottest Housing Markets

NAR Daily News Magazine - May 14, 2020 - 1:00am

Smaller cities that offer greater affordability largely outperformed larger housing markets.

Categories: Real Estate

Fannie, Freddie Allow Payment Deferral Post-Forbearance

NAR Daily News Magazine - May 14, 2020 - 1:00am

The mortgage financing giants spell out borrowers’ options for making up missed housing payments due to the pandemic.

Categories: Real Estate

Fourth Consecutive Weekly Jump in Mortgage Applications

NAR Daily News Magazine - May 14, 2020 - 1:00am

As states reopen, buyers are reemerging faster than expected, proving market resiliency against the COVID-19 pandemic.

Categories: Real Estate

Will National, State Elections Hinge on Pandemic Response?

NAR Daily News Magazine - May 13, 2020 - 1:00am

Former New Jersey Governor Chris Christie and former Chicago Mayor and White House Chief of Staff Rahm Emanuel join REALTORS® for a look at the November elections.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

The States Best Prepared for a Digital Economy

NAR Daily News Magazine - May 13, 2020 - 1:00am

COVID-19 has created urgency for digital commerce and remote workplaces. Find out which states are best equipped to handle the transition.

Categories: Real Estate

Marijuana Ignites Skirmishes Between Users, Neighbors

NAR Daily News Magazine - May 13, 2020 - 1:00am

Condo associations and courts are dealing with complaints over the drug’s smell and residue.

Categories: Real Estate

CFPB Director Unveils One-Stop Shop for Housing Info

NAR Daily News Magazine - May 13, 2020 - 1:00am

A new government website offers convenient information about mortgage relief and renter protections.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

Builders Offer Incentives to Draw Out Buyers

NAR Daily News Magazine - May 13, 2020 - 1:00am

Homebuilders want to turn buyers on to new-home construction, and they’re willing to sweeten the pot to do so.

Categories: Real Estate

Everything You Should Know About Mortgage Forbearance

Daily Real Estate News - May 12, 2020 - 4:11pm

(TNS)— More than 3.4 million Americans are in mortgage forbearance plans, which allows them to pause payments for a month to as long as a year. As the coronavirus pandemic continues to jolt the economy, more people will face financial difficulty, including how to pay their monthly mortgage bill.

“The forbearance program is obviously designed to deal with the characteristics of this pandemic. This isn’t related to mortgage underwriting or a downturn in the economy—it’s a sudden disruption that’s believed to be temporary in which people can resume their normal life,” says Ed DeMarco, president of the Housing Policy Council (HPC). “A forbearance is a normal tool in the toolkit, it’s been used with some regularity with natural disasters, or any temporary emergency which disrupts normal living and income.”

Some 6.4 percent of all active mortgages are in forbearance. So far, the total amount of unpaid principal due to forbearance is $754 billion, according to Black Knight. This includes 5.6 percent of loans backed by Fannie Mae and Freddie Mac and 8.9 percent of all FHA and VA loans.

Going into forbearance might be worrisome for many borrowers who are facing financial problems they didn’t expect or plan for. Understanding the basic facts might help alleviate some of the worry. Here we’ll cover essential forbearance questions borrowers have.

What is a mortgage forbearance?
Mortgage forbearance allows homeowners to pause their mortgage payments while dealing with a short-term crisis. In the case of coronavirus-related forbearance requests, most lenders are not requiring proof of hardship outside of verbal or written verification from the borrower.

Depending on whether you have a government-backed or privately-owned mortgage, your forbearance options might differ. Before you apply for forbearance, find out from your lender which type of loan you have.

What does forbearance mean under the CARES Act?
The CARES Act is the federal government’s relief response to the economic blow delivered by the coronavirus pandemic. The trillion-dollar relief package includes help for homeowners with government-backed mortgages, which make up about three out of four mortgages in this country. That includes home loans owned by Fannie Mae and Freddie Mac as well as VA, USDA and FHA mortgages.

Under the CARES Act, borrowers facing economic hardship because of COVID-19 can get mortgage forbearance for up to a year. During this time, lenders cannot foreclose on your property. There are several repayment options available to homeowners once the forbearance ends. You can read about these options here.

What happens if you’re not protected under the CARES Act?
Borrowers with privately-owned mortgages are not covered under the CARES Act. Nevertheless, most lenders are offering forbearance and loan modification options for borrowers with privately owned mortgages.

“The congressional mandate and CARES Act only covers loans owned by the government, loans that don’t meet those qualifiers aren’t guaranteed forbearance. However, the forbearance take-up rates for non-federally backed loans is pretty meaningful,” DeMarco says.

Regardless of who owns your loan, be sure to talk to your lender if you’re having trouble paying your mortgage. The worst thing you can do for your credit is to simply stop paying the bill.

Can a private mortgage be switched to a government-backed mortgage?
The only way to get out of your current mortgage is to pay it off and get a new one via mortgage refinancing.

“There might some loans on a bank balance sheet that are available for Fannie Mae or Freddie Mac to buy,” DeMarco says. “But if they’re already in forbearance, it’s unclear if Fannie and Freddie will buy them.”

Will mortgage forbearance hurt your credit?
No, mortgage forbearance does not appear on your credit report as a negative activity.

Do borrowers pay extra interest if they get a forbearance?
Borrowers typically won’t have to pay additional interest on their mortgage in forbearance. The amount of interest and interest rate stays the same according to the borrower’s contract.

“During a forbearance plan, interest is not paid but still accrues in accordance with the terms of the note,” says Tom Goyda, senior vice president, consumer lending communications at Wells Fargo. “Additionally, as required by the CARES Act, no interest accrues during the forbearance period beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the note.”

The only situation in which the loan interest might change is if the lender extends the loan maturity date or increases the loan interest rate, says Andrew Demers, partner at Weiss Serota Helfman Cole & Bierman in Boca Raton, Florida, specializing in banking and real estate law. Demers points out that it’s critical for borrowers to understand the payment terms of the forbearance and says they should ask a few key questions, including:

– Do I have to pay interest or escrow advances during this time, or is this a complete payment deferral?
– Is the loan maturity date being extended?
– Will the lender recapture the deferred through a balloon payment at loan maturity, an extended maturity date, or some other catch-up method?

“Technically speaking, a deferment agreement is a modification and amendment to the loan documents, which requires a clear understanding of the parties’ respective rights and obligations,” Demers says.

After the forbearance plan is complete, if the borrower is approved for another workout option, the type of workout option offered will determine how the interest is handled.

“Interest accrues during the forbearance, but it doesn’t have to be repaid until later. At the end of the forbearance, the delayed payments and interest accrued can be paid in full by the client, resolved through an extended repayment plan or the loan may be modified, depending on the client’s needs,” says Susan Atran, spokesperson for Bank of America.

Can you refinance your mortgage during forbearance?
The chances of refinancing during a forbearance are slim. Lender will likely not be able to resecuritize your loan during forbearance.

Can lenders refinance once forbearance ends?
Generally, the borrower would have to pay off the foreborn amount (either with a new mortgage or cash) in order to refinance. However, there are variables that might affect whether a refinance is possible. Things like the type of loan you’re trying to refinance into, whether you ended up with a loan modification at the end of the forbearance and how the missed payments are being handled can all play a role in getting approved for a refinance.

“If they tack on mortgage payments to the back of the loan and resume normal monthly payments, the principal amount of the new, refinanced loan will have to capture the forbearance payments,” DeMarco says.

Can you sell your home during forbearance?
Yes, homeowners in forbearance can sell their homes. The foreborn amount would become payable upon sale of your property.

Are rental properties or second homes eligible for forbearance?
It depends on the type of mortgage you have. GSE-backed mortgages—i.e., owned by Fannie Mae or Freddie Mac—are eligible for forbearance if they’re used as rental properties or second homes. However, FHA, VA or USDA loans cannot be put into forbearance if the property is used as rental property or second home.

Can you get a forbearance if you have a HEL or HELOC?
Some banks, like Wells Fargo, are offering forbearance to home equity customers. So check with your lender.

“At the end of the initial three-month payment suspension, Wells Fargo has a number of potential options available for mortgage and home equity customers,” Goyda says. “Depending on the loan investor and other factors, those options could include a continuation of the payment suspension, moving the missed payments to end of the loan or a modification to address longer-term financial changes that may impact their ability to keep up with their monthly payments. We’ll need to talk with them directly to understand their circumstances and identify the best way to help them going forward.”

Bottom Line
If your finances were hit by COVID-19, talk to your lender as soon as possible about your mortgage relief options. A mortgage forbearance is not automatic, so you can’t just stop making payments otherwise your credit report will suffer and you can end up in default.

©2020 Bankrate.com
Distributed by Tribune Content Agency, LLC

The post Everything You Should Know About Mortgage Forbearance appeared first on RISMedia.

Categories: Real Estate

NAR Leaders: Association Is ‘Open for Business’

NAR Daily News Magazine - May 12, 2020 - 1:00am

Though the real estate industry is still observing social distancing guidelines and stay-at-home restrictions, NAR is working around the clock on advocacy efforts to support members.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

Problem-Solving Strategies for Property Managers

NAR Daily News Magazine - May 12, 2020 - 1:00am

Some commercial businesses may not survive while others are gearing up to reopen. Use these tips to aid tenants while protecting your assets.

From the virtual 2020 REALTORS® Legislative Meetings, April 27-May 15

Categories: Real Estate

80% of Tenants Paid Rent in April

NAR Daily News Magazine - May 12, 2020 - 1:00am

The National Multifamily Housing Council expects May numbers to largely mirror April.

Categories: Real Estate
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