Foreclosure Answers

From Cooporative Extension Site …

"Answers to Frequently Asked Questions about Foreclosure"

… from its implication to actions to be taken in foreclosure proceedings.

Homeowner Rookie-To-Be

My response to a would-be first-time homebuyer …

Hi,

These are some information about first-time home purchase. HUD is definitely a good place for your initial search on concerns, issues, and incentives. It also has common questions from first-time homebuyers that would be of our interests. You may also want to consult a housing counseling agency in NM.

First-Time Homebuyer Credit is the big incentive that they are talking about, but note that it is not the regular tax credit. Instead, it is a tax free loan, up to $7,500. Your friend may have utilized this that they did not pay anything out of his/her pocket. To qualify, we need to purchase the house by December 31, 2009. I am not sure if this applies to buying a land and then, building a house there – this would be a question for the housing counseling agency personnel.

Since people in Las Cruces tend to be environmentally loving ones, you may want to consider energy efficient mortgages and Federal Tax Credits for Energy Efficiency : ENERGY STAR (via The American Recovery and Reinvestment Act of 2009). They include Home Energy Efficiency Improvement Tax Credits and Residential Renewable Energy Tax Credits.

All the best!

FTC to Stop Fraud and Help Distressed Homeowners

This is based on an e-mail I received from Employee Benefit Research Institute.  The Federal Trade Commission (FTC.gov) is cracking down fraudulent activities that supposedly help people out to save their house from foreclosure. Mortgage modification fraud companies are offering help and pressuring people to use their service which comes at a price.

Help is available from your mortgage company and reliable financial counselors, usually at no cost. As I have written in my Extension publication:

In reality, homeowners may request a mortgage modification from their loan officers or lenders at no cost. Mortgage companies actually do not like foreclosures because they will lose money. Fraudulent mortgage loan servicers who promise to work wonders may use pressure tactics such as making you sign a stack of documents that includes handing over the house ownership, emphasizing that the fraud solution is the only out, and singling out the need to act fast.

FTC (youtube collection) has come up with some videos to explain these issues and contact information for help.

Link: youtube=http://www.youtube.com/FTCVideos#play/uploads/0/BnnvD946y9o

(View in English)

1-888-995-HOPE or www.hopenow.com

Energy Efficient Houses for the Poor

The Green Dream is sweeping the limited resources population via homes. Housing and Urband Development (HUD) and Department of Energy (DOE) are joining hands to inject $16 billion of economic recovery funds for energy efficiency and “green” housing efforts. These efforts include energy efficient bamboo floors, recycled carpets, recycled composite lumber, solar thermal collectors, and weatherization of housing, which includes rental housing units. The financial assistance part of this funding will alter the Federal Housing Administration’s mortgage products. A house that would sell for $110,000 in the market would be available for $85,000 with this financial assistance.

The colonias are also positively affected by this program. Traditionally built with inadequate housing needs, the houses in these colonias focuses on improving sanitation, paved roads, garbage services, water drainage, public safety, and last but not least, energy efficient properties. The energy savings are centered around using evaporative cooling system, compact flourescent bulbs (CFLs), and low bathroom fixtures. Pictures are available here.

Another greening effort is to improve on transportation in these areas. The goal is to strategically place the housing and transportation services where the cost of trasportation will be minimized, yet fully utilized.

Inquiries about the assistance programs may be directed to New Mexico’s HUD.

Adopted from: HUD (2009). Research Works, 6(6).