GREAT NEWS FOR FHA LOAN LIMITS IN 2014….THE GREAT NEWS JUST CAME IN

Just this morning, the Federal Housing Finance Agency (FHFA) announced it will keep the 2014 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $417,000 on one-unit properties in most areas and a cap of $625,500 in high-cost areas.

C.A.R. applauds the FHFA for keeping with the law and retaining the existing Fannie Mae and Freddie Mac conforming loan limits.  The FHFA recognizes that home prices have rebounded in California, especially in the high-cost areas, where lowering the loan limits would have reversed the housing recovery.  Retaining the higher loan limits is critical to providing liquidity in today’s housing market and is essential to a full housing recovery.

Earlier this year, the FHFA announced its intention of lowering the loan limits.  Since then, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) aggressively fought to prevent a reduction in the loan limits.  C.A.R. and NAR both have long advocated for making higher conforming loan limits permanent, and as a result of our combined efforts, Congress made permanent the maximum conforming loan limits at $625,500.

Without the extension of the higher loan limits, many California borrowers would have a harder time obtaining financing for new home purchases and refinancing homes. 

My great experience at La Costa Film Festival!

I had the good fortune of being invited to the first ever La Costa Film Festival in Carlsbad, CA by my good friend and client, Nick DeNinno, a local video and film producer.  The red carpet was rolled-out; there were lights, music, plenty of food and drinks and of-course, special guests and the press.   The best part was to be given the opportunity to appreciate the art of filmmaking amongst friends.  

At the opening night gala, we were privileged to view the screening of “The Short Game” produced by Justin Timberlake and his lovely wife, Jessica Biel.  Attending the inaugural Film Festival in La Costa was Josh Greenbaum, the director of “TheShort Game” and with whom I had the opportunity to chat a little bit. I also had the opportunity to meet Ameri Avery, one the young ladies starring in the film and winner of the 2012 Junior Golf‘s World Championship for girls under 7.

For me, what makes a good film is not only the acting, but the stories that are told and the clever use of the camera to create suspense or to foreshadow an event.  “The Short Game” nicely reveals the stories of 8 very young children competing for Junior Golf‘s World Championship. It was amazing to learn through the film that not only are these children under seven years old, but they come from 54 different countries, different backgrounds and social status’s seeking the same goal:  to be the best of the best at such a tender age.   All eight children casted for the documentary displayed a deep passion for the game, extreme talent, the willingness to sacrifice their childhood for the game and an uncanny ability to learn through their mistakes.

The film takes you into the daily lives and homes of these families, allowing the audience to experience the families’ backgrounds, the hard work these children have to put forth and their dedication to achieving their goals.  The sacrifices they make to train and the amount of pressure each child puts on him/herself -   along with the pressure exerted on them by their parents – is unimaginable.  It was heart-breaking to see the children lose their composure during practices and throughout the Pinehurst Tournament where each of them was vying to be the winner.  The film-makers allowed the influence of the social status of each family to come through the film.   The financially wealthy lived in gorgeous mansions and stayed in luxurious resorts.   Those with lesser means appeared in their modest homes and stayed in VERY inexpensive hotels.  

As a parent of three beautiful children, I could not help to question, if the parents had too much vested interest in helping their children to perfect the game: be it for their financial benefit, for pride or was it pure love for the child?  I was delighted, however, to see that these talented and driven children were still allowed to be children.   Away from practices and tournaments, these matured seven year-olds become vivacious and silly, just as any other 7 year-old would.  

As the backgrounds of each child and his/her family are being presented, I found myself rooting for Zama Nxasana from South Africa.  He was buoyant and infectious with his laugh and his responses were priceless.  I was happy to learn that he was a awarded “most improved player” in the 2012 Junior Golf‘s World Championship.

For someone who knows nothing about Golf, I found the film to be flavorful and enlightening.   It was not only about golf but the intricacies of life.   The viewer’s emotions were powerfully evoked through the children’s behaviors and the responses of the parents.   For example, I did not like Augustin’s mother.  Augustin Valery was the seven-year old French golfer whose days in the tournament were not going as desired.  It was upsetting to see any adult - specially a MOTHER - put such insurmountable pressure on her 7 year-old son.   On the other hand, I could feel the raw emotions of Ameri Avery, the winner of the 2012 Junior Golf‘s World Championship tournament for the 7 and under, as well as the poor responses from her caddy and dad.


Ameri Avery and Soledad

Next time you hear there is a film festival in your city, try to attend. There is much to enjoy and to make it even better; the LaCosta Film Festival benefited our local Boys’ and Girls’ club.

 

 

HELPING HOMEOWNERS KEEP THEIR HOMES

 

BECAUSE WE ALL NEED A HELPING HAND!

In these times, we all know someone who is in distress for various reasons: job loss or loss of income, family sickness, high interest mortgages that are resetting or are about to reset. While most people are not comfortable discussing their financial hardships, here is some information that I believe might help someone you know.

CURRENT PROGRAM HIGHLIGTHS:
The federal government has allocated funding to help pay the mortgages of qualified homeowners who are unemployed or underemployed through no fault of their own. Troubled homeowners throughout California who want to apply for HHF financial assistance will be able to do so via this website listed below. If you are in other States, there will be programs available to you, as these are federally funded programs.

Unemployment Mortgage Assistance Program (UMA)
Mortgage assistance of up to $3,000 per month for unemployed homeowners, who are collecting or approved to receive unemployment benefits from the State of California’s Employment Development Department.

Mortgage Loan Reinstatement Payment (MLRP) Program
For eligible homeowners who have fallen behind on their mortgage payments.
Funding of up to $25,000 to help qualified homeowners catch up on their mortgage payments

For additional information (including detailed eligibility criteria) and/or to apply for these programs, visit the HHF website at http://keepyourhomecalifornia.org/programs/

While NOT all homeowners may qualify for this program, it would not hurt to navigate through the above website to explore all the available options before being forced to a short sale or a foreclosure.

In the event the above programs are not helpful, a short sale is a better option than a foreclosure; as the foreclosure is a harder hit to one’s credit worthiness. In addition, there are other government initiatives that currently make short sales much easier and attractive to homeowners. Another viable option for upside down homeowners is another goverment initiative that allows home owners to refinance their home without an appraisal, this is the HARP program.

Because of my extensive experience with distress properties, I keep up with the current legislation that helps homeownership in the challenging CA housing markets.