Guest Writers & Contributors SANTA


ROSA,


CA. ~ The dust is settling and neigh- borhoods are put- ting the pieces back together.


No lon-


ger are neighbor- hoods lined with “For Sale” signs on unkempt yards of vacant homes. The housing indus- try is once again on the rise. Home values are increasing year after year since bottom- ing out in 2011 with a median price for a single family home in Sonoma County at $325k. In February 2013 The Press Democrat reported the median price for a single family home had risen to $389,750.


This


is still a far cry from its peak in 2006 when it was reported to be $619k. All these num- bers are just abstractions from obscured data that only mea- sures trends.


is when you decide to buy, sell, or refinance your home. This is when value truly has meaning.


“Happiness lies in


engaging in worthwhile activities.”


L. Ron Hubbard E B


YEP! LOCAL HONEY


In 2009, Congress enacted


HARP


and HAMP to try to stop the free fall of home values and keep homeown- ers in their homes. HARP was the Home Affordable Refinance Program and HAMP was the Home Affordable


The real story


Modification Program. HARP was limited to mortgages that were owned by Fannie Mae or Freddie Mac. HAMP was the program offered through your loan servicer to modify your mortgage to make more affordable. The biggest prob- lem with HAMP was, ser- vicers would not even con- sider modifying the mortgage unless they were behind on their mortgage. With the ser- vicers encouraging homeown- ers to fall behind on their mortgages, it left many home- owners with destroyed credit and their homes even further underwater.


In my opinion this only added to the prob-


lem. The original HARP had a loan-to-value restriction of 125%, requiring documented income, credit overlays and debt to income limitations. With home values tumbling into a free fall, too many lend- ers were not willing to take the risk. In 2012 HARP 2.0 was


introduced eliminating


many of the limitations and opened the door for so many more responsible homeown- ers to take advantage.


This


program is set to expire at the end of 2013.


There is a new bill before Congress called the Responsible Homeowner Refinance Act of 2013 also referred to as HARP 3.0. This bill was introduced by Senators Robert Menendez and Barbara Boxer and is cur- rently in committee. Here are some key changes to the program worth noting. They want to eliminate the need to document income, appraising property value, and extend the program to the end of 2014. Unlike what most responsible


UPBEAT TIMES • April 2013 • 7 THE Mortgage Coach~Harp 3.0 JOKES & Humor # 4


homeowners have hoped for, the act is still restricted to loans owned be Fannie Mae and Freddie Mac prior to May 31, 2009.


Senator Boxer calls this, is a win win for responsible home- owners and the process should be streamlined without all the red tape. This should be much like the FHA Streamline pro- gram, which does not require any income or appraisals.


I


wish I could report that this new version of HARP was rushing through Congress but the only things that seem to get rushed through are bank bailouts and not people bail- outs.


There was a young driver who would always accelerate hard before coming to any intersection. He would barrel right through it and slow down again on the other side. One day he took a passenger who was understandably unnerved by his driving style.


"Why on earth do you step on the gas before


The White House did initiate a social campaign to help it to gain support called #myrefi. You can search that link and put in your two cents. Maybe if enough people share their opinions we might get legislation that makes sense.


by Barry O'Meara-


Questions or comments? barryo@stearns.com


every intersection?" the anxious passenger asked. "Well," the young man replied, "I read that you are ten times as likely to have an accident at an inter- section as anywhere else, so I try to spend as little time in them as possible."


8 Years of Service to Bees & Folks


Bees, Supplies, Classes, Support


921 Gravenstein Hwy. South Sebastopol (707) 824-2905 beekind.com


Never apologize for showing feeling. When you do so, you apologize for the truth. ~ Benjamin Disraeli UPBEAT TIMES • April 2013 • 7


W


O


O R


N D


E


S R


E


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24