Banks, Fannie Mae and Freddie Mac you are ripping the American consumer off. In the last 4 weeks, we have had 4 short sale offers declined by banks. WHY?

            I will tell you why. Banks are getting refunds from Freddie Mac and Fannie Mae to cover their losses. When a bank takes a loss of $50,000 the government gives it back to them. Check out this YOU TUBE site and it helps explain http://www.youtube.com/watch?v=ssl5yb7FewA&aia=true

            I hopes this link works because it clearly illustrates the banks getting money behind the scenes. Why else are so many short sales being denied? Why are banks not processing offers? I believe it’s a racket and that is why the banks are showing profits.

            Spread the word. Lets complain and stop this travesty.

Thanks,

Brian

(719) 570-8928

Please contact us for any questions or assistance

Over the past week, Congress has taken quick action and passed H.R. 5981. The bill gives FHA the authority to adjust its annual mortgage insurance premium, yielding approximately $300 million per month in value to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low.

As I have previously stated in my testimony before Congress, FHA will lower its upfront premium simultaneously with the increase to the annual premium¹. It is our intention that effective on September 7, 2010, FHA’s upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points on amortization terms greater than 15 years². A Mortgagee Letter will be forthcoming once President Obama signs the bill into law, but with today’s passage of H.R. 5981 and our expedited implementation schedule, I wanted to immediately inform the industry of our plans so the lending community can begin preparing for the operational and system changes required to implement FHA’s new mortgage insurance premium structure on all new case numbers by September 7, 2010.

With this authority, FHA is in a better position to address the increased demands of the marketplace and return the MMI fund to congressionally mandated levels without disruption to the housing market.

While we appreciate and applaud this recent action, there is still work to be done. HUD remains steadfast in its commitment to comprehensive FHA reform legislation, similar to the FHA Reform Act passed earlier this year by the House, which would further enhance FHA’s lender enforcement capabilities and risk management efforts. We hope Congress will take swift action to pass a broader FHA reform bill when they return from the August recess. FHA’s risk management efforts will not be complete without the ability to monitor lender performance and ensure compliance with our rules.

Although the transition timeframe is short, implementation by September is critical. Thank you in advance for the efforts of you and your organization to make this change happen on such short notice. We appreciate your hard work and continued partnership.

¹The upfront and annual premium changes do not apply to the following FHA Programs: Title I, HECM, HOPE for Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), Section 223 (e) (declining neighborhoods), Section 238(c) (Military Impact areas in Georgia and New York).
² LTV’s <= 95% will increase to 85bps and LTV > 95% will increase to 90 bps

  Sellers are you smoking Hopeium? Homes will sell if they are priced right and in good condition and staged to show. I recently went showing some homes in the Woodmoor/Tri Lakes area. I was amazed how poorly homes were showing between $300,000-$400,000. We saw peeling paint, weedy yards, run down carpet, heavy pet odors and busy streets.

            The people I was with dropped their price $100,000 to get it to the right price. I then had it staged and we sold it for $575,000 in month. I have sold 20 homes this month. I would like to publicly thank my SELLERS in Briargate, Downtown, Fountain , Powers, Norwood, Black Forest, Rockrimmon and Broadmoor for listening to my pricing strategies and applying our staging services.

            The market is what it is. Sellers you need to get real and understand that buyers know value and will not overpay. Get real and prepare and your hope will sell.

            Quit smoking HOPEIUM and get a clear view of the market and you will see success!

Thanks,

Brian