Maine Real Estate Info

If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don’t let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or “saved” by this move. For many borrowers, a short sale or a foreclosure will be the only available option.

What is a Short Sale?
A short sale, defined as an “agreement” to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today’s tight-fisted credit environment. Read on at….http://www.allaboutnews.com/vc.php?a=y&b=23&i=143&rs=80b2f6425c0fae123c4fd8e
Source: All About News, Inc.

On August 31, 2007, President Bush announced a new initiative called FHASecure, which will give the Federal Housing Administration (FHA) flexibility to help more families keep their homes in light of the decline of the subprime market and impending interest rate adjustments affecting numerous borrowers in both the subprime and Alt-A markets. The FHASecure program will help people who have not made all of their payments on time because of rising mortgage payments but who otherwise have good credit. NAR applauded President Bush’s statement of support for giving homeowners greater flexibility to refinance their loans through the FHA. At a white house conference call on the initiative, the administration specifically signaled out NAR for our timely support of the initiative. NAR has been advocating regulatory changes to the FHA program. On April 9, 2007, NAR sent a letter to Alphonso Jackson, Secretary of Housing and Urban Development, asking that FHA waive the requirement that a homeowner’s mortgage be current to refinance into an FHA loan product. NAR also supports legislation that would give FHA greater flexibility by increasing loan limits, eliminating the statutory 3 percent minimum cash down payment, allowing FHA flexibility to provide risk-based pricing, and revising the condominium program. Contact Jerry Nagy of the Regulatory and Industry Relations division with any questions. Jerry Nagy of the Regulatory and Industry Relations division with any questions. Read NAR’s press release supporting the announcement. Read President Bush’s remarks.

Banks Woo Borrowers Who Have Good Credit
Banks have plenty of money available for borrowers with great credit and a desire for a conventional fixed rate mortgage, says James Chessen, chief economist for the American Bankers Association.

To attract these customers, lenders are offering fee waivers, competitive interest rates, and a willingness to negotiate.

Banks like conventional borrowers because they tend to be the kind of customers that will take advantage of other products from the lender, including savings accounts, credit cards and checking accounts. “We find that someone who has a mortgage with us will have about five products in addition to the mortgage,” says Terry Francisco, a spokesman for Bank of America Corp.

To attract this kind of business, Bank of America is offering “No Fee Mortgage Plus,” saving consumers about $3,000 in closing costs, which the bank covers.

Deals like this one make it important for borrowers with good credit to shop around.

Source: The Wall Street Journal, Julian Mincer (09/06/2007)

More interesting news…Maine is one of the region’s least expensive states in which to close a mortgage transaction, according to an annual closing cost survey by Bankrate.com. Here’s a list of the average cost of closing a mortgage transaction in New England’s six states, as well as their national ranking. New York is the most expensive state in which to close a mortgage transaction, with an average closing cost of $3,830.

Source: Bankrate Inc.

This brochure provided by the Center For Responsible Lending and The National Association Of REALTORS, gives you the tool needed to be informed. In many housing markets, first time home owners are having difficulty affording their home and traditional mortgages may not be the best option for everyone. Many home-buyers are using Specialty Mortgages to “stretch” out their income so they can qualify for a larger loan.

In this brochure you’ll discover:

1. The common types of Specialty Mortgages: The 40 Year Loan - Interest Only Mortgages - Negative Amortization Mortgages  and Payment Option ARM Mortgages.
2. What are the major risks of specialty mortgages?
3. Who is best suited for a specialty mortgage?
4. Helpful steps to take before financing a home
5. Seven questions to consider before considering a specialty mortgage

Other helpful websites to visit for basic finance are:

• http://www.mymoney.gov/
• http://www.fdic.gov/consumers/consumer/moneysmart/mscbi/mscbi.html
• http://www.freddiemac.com/creditsmart
• http://www.credit-power.org/
• http://www.realtor.org/gapublic.nsf/files/FCRABroch.pdf/$FILE/FCRABroch.pdf

For Home Finance:

• http://www.hud.gov/buying/index.cfm
• http://www.homebuyingguide.org/
• http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm

Call us at 207-784-2525 for your free copy or email me at mike@meservier.com

Go to meservier.com for Maine Real Estate information or visit MaineMLS.info to search for over 25,000 Maine properties for sale.

According to this NAR brochure, Do you homework first! The National Association of REALTORS has provided this wonderful resource on “How to Avoid Predatory Lending” and use it to help prospective homeowners avoid unfair lending practices.

Useful topics include:

1. Beware of predatory loans
2. What are some of the problems connected with predatory lending?
3. Shop for the lowest-cost loan
4. If the loan is an adjustable rate mortgage (ARM), ask these 10 questions
5. Other solutions REALTORS and home buyers can use to avoid predatory lenders
6. Possible warning signs of a predatory loan

This brochure is available to you by calling Michael Meservier at 207-784-2525 or by email at mike@meservier.com.

visit Meservier & Associates to see information for buyers and sellers alike. Search over 25,000 Maine properties at http://www.mainemls.info/.

The brochure, “How to Avoid Foreclosure and Keep Your Home,” provides outstanding information for existing homeowners who may not be able to afford their current mortgage, including phone numbers, counseling services and just plain good advice. This brochure is available by contacting us through our website, Meservier & Associates, email mike@meservier.com or by calling 207-784-2525. We understand Maine’s Real Estate market and how some homeowners may be having difficulty paying their mortgage.

Some of the areas covered in the brochure are:

1. You’re not alone if you’re having trouble paying your mortgage
2. Mortgages with “Payment Shock”
3. How Realtors can help
4. Talk with your lender
5. What if the value if your property is less than what you owe?

And finally, Quick references for Consumers. This is a valuable resource is brought to you by the National Association of Realtors and is yours for the asking.

Go to meservier.com to search for over 25,000 Maine properties or visit MaineMLS.info.