Defense.gov News Article: Family Matters Blog: Show Seeks Families for Home Makeover

Defense.gov News Article: Family Matters Blog: Show Seeks Families for Home Makeover

From the American Forces Press Service:

WASHINGTON, April 19, 2011 – I’m excited to share new information about an amazing opportunity for deserving military families.

The producers of ABC’s “Extreme Makeover: Home Edition” are seeking people involved in the military whose home deserves an extreme makeover.

The producers are looking for people with “amazing strength of character and who put their own needs aside to help others,” a press release said. “Whether it’s a soldier, a mom, a teacher or a fireman, we think deserving families are families who inspire those around them.”

Additionally, the show’s producers are seeking families whose houses need major alterations or repair – “homes that present serious problems for the family and affect the family’s quality of life.”

To be eligible, families must own their single family home and be able to demonstrate how a makeover will make a difference in their lives.

Interested military families or people who wish to nominate a military family should e-mail a short description of the family’s story to emheusa@gmail.com. The e-mail should include the names and ages of household members, a description of the family’s challenges, an explanation of why the family is deserving of a makeover or is a positive role model in the community, photos of the family and their home, and contact numbers.

The deadline for nominations is May 30, but people should send submissions early, the release said. Only up to 25 families are selected each season.

For more information on the application process, visit
http://abc.go.com/primetime/xtremehome/index?pn=apply.

Please pass this information on to deserving military families. I hope to see a few on “Home Edition” next season.

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Treasury Department Amends HAFA Program to Increase Borrower Eligibility

As Reported by the National Association of Realtors:

"On December 28, 2010, the Treasury Department released an update to the Home Affordable Foreclosure Alternatives Program (HAFA). The changes will increase the number of eligible borrowers who may participate in the program and should expedite approvals:

(1) A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect."

To see complete information about the HAFA Program, see the HAFA Policy Update and the HAFA webpage.

FTC Issues new rule to help protect consumers from loan modification scams

You have probably seen the ads for loan-modification firms that say they can get your loan modified, save you from losing your house, cut your interest rate, get you a short sale, or get your loan reduced.  Many of these firms will charge you thousands of dollars and pay up front, and then do very little or nothing to help you.  The FTC has issued a new rule called "MARS" (Mortgage Assistance Relief Services Rule) to help protect struggling homeowners -- most significantly, this new rule bans these mortgage-relief type-companies from collecting advance fees.  Mortgage relief companies must contact your lender and provide a written offer from the lender that the consumer deems acceptable prior to collecting a fee for this service. These mortgage modification companies also must now let you know that they are not associated with the government and are not allowed to keep clients from communicating with their lender. See the FTC website for more detail and info. 

These rules should help, but always beware of any company asking you for a fee in exchange for loan modification or counseling on a mortgage loan.  Assistance from a HUD-approved counselor through the Making Home Affordable program is always free.  See the Making Home Affordable website for more information.

Realty Times - FHA's Rehabilitation Program

Realty Times - FHA's Rehabilitation Program

This is a good article about the FHA's Section 203(k) loan program.   For a homebuyer (investors are not eligible) seeking a "bargain" home that may need to be completely renovated, this program may offer an option that lets homebuyers finance both the purchase price of the home and the cost of renovation (rehab).  There are restrictions on eligibility, how much can be borrowed, time period for construction, etc. For more information, see the information listed under "Home Improvements -- Federal Loan Programs" on HUD's website: http://portal.hud.gov/portal/page/portal/HUD/topics/home_improvements

Certain member of the armed forces may still be eligible for the 2009 first time homebuyer tax credit

As many people know, the first-time homebuyer credit (otherwise known as the "Homeownership and Business Assistance Act of 2009" as signed into law on 6 Nov 2009, extending and expanding the previous first time homeowner credit) required an eligible individual to have a ratified contract by 30 April 2010, and thus has long since expired for most taxpayers.  However, if you are a member of the armed forces who was assigned overseas for 90 days or more between the dates of 31 Dec 2008 and 1 May 2010, you may have an extra year to qualify for the credit.  According to the IRS website:

"Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. "

Additional details can be found at the IRS website:  First-Time Homebuyer Credit: Members of the Military and Certain Other Federal Employees