WASHINGTON – Today, Acting Federal Housing (FHA) Commissioner Carol Galante announced significant price cuts to FHA’s Streamline Refinance Program that could benefit millions of borrowers whose mortgages are currently insured by FHA.   Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.

To qualify, borrowers must be current on their existing FHA-insured mortgages which were endorsed on or before May 31, 2009.  Late last month, FHA also announced it will increase its upfront premiums on most other loans by 75 basis points to 1.75 percent.  In addition, FHA will raise annual premiums 10 basis points and 35 basis points on mortgages higher than $625,500.

HUDNo.12-045PR.

Foreclosure Delays Reach New Records

Here is a PDF of the www.IRS.gov web site where I searched for information concerning the mortgage debt forgiveness act.  I don’t post this attachment to give tax or legal advice, but to help struggling homeowners ask better questions to their licensed/certified professionals when weighing the significant elements of a serious decision.  In my experience of closing 72 short sales in the last 2 1/2 years, one of the first things I ask all of my clients to do is consult with their CPA – things are not always so cut-and-dry; however, by doing this, I have found that many tax preparers and CPAs are not well versed with the particular IRS codes governing Short sales (pre-foreclosure sales) and foreclosures – if at all.  As a service to those professionals as a part of their consultation to their clients, I always include the financial analysis we compile to qualify a short sale along with a list of questions to review with their clients including the topics of: insolvency, state income tax, and federal income tax — not to mention whether the property in question was ever refinanced, and if so, what that money was used for (both because it plays into the actual short sale negotiation with the various lenders, but also can have SIGNIFCANT tax implications for the homeowner/property owner).

…Bank of America, the largest home mortgage servicer, expects to complete more than 100,000 short sales this year — more than double what it did in 2009, the bank says.

Wells Fargo Senior Vice President J.K. Huey says short sales have been “steady to slightly” up in recent months, partly because there are fewer bank-owned houses for sale in some markets, and that has forced buyers to pursue more short-sale properties.

Short-sale homes, which often remain occupied until sold, tend to retain values better than those that go through foreclosure. That helps values of neighboring homes. …

In a short sale, Freddie Mac agrees to accept less than a full payoff of a mortgage when the borrower is unable to sell their home for enough to pay off their entire loan. Freddie Mac short sales have risen from about 4 percent of completed workouts in 2000 to nearly 14 percent in 2010….

I am a firm believer in hiring the best advocates / experts in a  given field to achieve the best results…