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Mario Said:

FHA STREAMLINE DECISION HELP?

We Answered:

I sure hope you didn't pay this "FHA specialist" anything extra...because any bank that does FHA loans can do an FHA streamline.

It's a scam if they tried to tell you that you could get a "better deal" with them.

It came out to $419K because of the closing costs and the re-setting of escrow...but your monthly payments should be lower.

You are also re-starting your mortgage....but 7 months ago is not significant.

The way you figure out if it's "worth it" is this:

1. Take the total closing costs associated with the NEW mortgage (do not include set ups for per diem interest, taxes, or insurance...these are not closing costs, they are prepaids).

2. Divide that figure by your MONTHLY savings (again, take out MIP, taxes, insurance).

If that figure is higher than 36, then you can get a better deal elsewhere.

Keep in mind that you'll be getting back a partial MIP refund from where you did your first loan.

Be sure you get the re-issue rate on the title work.

Ruth Said:

do you understand a california FHA Foreclosure?

We Answered:

An FHA foreclosure is no different than any other. The main investor will be the foreclosing entity, it has little or nothing to do with PMI. PMI does not work like car insurance.

By the time the house gets to auction, the bank will already have had at least one BPO and an appraisal to have a strong indication of current fair market value. It will be auctioned when the lender gets around to it. In my area, it is common for this to be delayed repeatedly. The last auction date I attended, there were 6 houses scheduled and none were auctioned. They do not always hold out for the loan balance, if there is a bid that is high enough, some lenders do sell the asset at the courthouse steps.

Banks do not want to do modifications because there is more profit for their bottom line to do the foreclosure. There are a few interesting videos available on how this works, if you are curious, look on YouTube, you will find them.

I do not know of any websites that address this process that I can recommend, but I will tell you that there is plenty of misinformation available.