This article from RISMEDIA is so good, I am posting it here for all to read and want to give 100% credit to RISMEDIA.

FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”

7 Things All Borrowers Should Know About FHA Loans is a post from: Barbara and Susi

Beware of the Short Sale Scam
Because of the large number of short sales and because they promise to remain strong for the next five years, they are the perfect playing field for unscrupulous scammers.
Unlicensed “Short Sale” negotiators are approaching homeowners in distress and asking for upfront money to negotiate with lenders. This is illegal. Only attorneys and licensed brokers can ask for money up front – and only after the Department of Real Estate approves the agreement with an individual seller.
These “so called” Short Sale negotiators, including some real estate agents are lowballing offers to overwhelmed banks. This is called “flopping.” The home is then flipped to a waiting buyer for a much higher price. Beware when you are asked to use one of these “floppers” title companies. This could be a clue you are involved in a flop.
Another practice that is happening with regularity is that often the holder of a 2nd mortgage on the property is demanding extra money outside of escrow in a “secret deal”, because they don’t want the primary lender to know. If you don’t play ball with them they will refuse to approve the sale. It is out and out blackmail and extortion. The government really needs to crack down on this practice.
Some homeowners, especially savvy, well-off owners who owe far more than their houses are worth, are hiding savings and income to persuade lenders to agree to short sales. Many can afford their mortgages, but know it will take them years to recoup their 2006 values.
If someone asks you for money to negotiate a Short Sale, you should probably look elsewhere for help. HELP IS FREE! There are many well qualified people who can help for free. Look for an agent who holds a CDPE or SFR designation. These agents have been trained to help you through the process.

Beware of Short Sale Scammers is a post from: Barbara and Susi

Having earned the CDPE designation was a great step in a quest to help homeowners facing foreclosure. Recently I added to that designation with the SFR which is the National Association of Realtors course with certification upon passing course materials and exams for those agents interested in working short sales. It stands for Short Sale Foreclosure Resource.

Sellers facing foreclosure deserve representation by knowledgeable agents. The vast majority of agents certainly want to do a good job for a seller in distress. Wanting to do a good job and having specialized training are distinctly different. The details, follow-up and timelines in the foreclosure process are very precise and require specialized training to insure the greatest possibility of success.

An agent would be much better advised to refer short sales to a verifiable short sale specialist, earn a referral and praise from their clients for their help than muddle through an unfamiliar process and possibly end up with less than a favorable result.

Short Sale and Foreclosure Resource SFA is a post from: Barbara and Susi

California Foreclosure activity has risen in the first quarter of 2010. California, thus, maintains its status as the nation’s foreclosure leader for the 16th consecutive quarter. There had been a 17% decline in the number of foreclosures in the third and fourth quarters of 2009, but the numbers began moving up again in the first quarter of 2010.

Are we headed for a new real estate decline? The rise in foreclosures coupled with the end of the first-time homeowners tax credit may see a waning demand for homes. This could lead to another softening of prices.

California Foreclosure Activity Rises in First Quarter is a post from: Barbara and Susi

There is a lot of confusion between HAMPand HAFA. HAMP is the Home Affordable Modification Plan and HAMP is the Home Affordable Foreclosure Alternative program. Under one program (HAMP) you are trying to get a loan modification on your loan/s. Under the other program (HAFA) you are trying to find an alternative to a foreclosure by selling your home using the short sale process or giving your property back to the bank using a Deed in Lieu of foreclosure.

If you qualify under HAFA to sell your home and your lender is identified as subscribing to the HAFA program, you, as the borrower will be fully released from all liability for repayment of the loan.

Because, in any case, there could be significant tax and credit issues, it is always best to check with your attorney and tax advisor as to your personal situation.

There is a lot of confusion between HAMP and HAFA is a post from: Barbara and Susi

What are the eligibility requirements for a HAFA Short Sale? is a post from: Barbara and Susi

What is HAFA? is a post from: Barbara and Susi

Interviewing the seller in pre-foreclosure is an important part of the short sale process. Not all sellers will qualify.

The Short Sale Seller Interview is a post from: Barbara and Susi

I have just finished passing all of the requirements to become a CDPE (Certified Distressed Property Expert).I am very excited about this, as it will allow me to make a real difference in the lives of so many homeowners.

When faced with a financial hardship, many families reach the point where they can no longer afford their mortgage payments and have fallen behind or are just a payment or two away from falling behind in their payments. This is a very scary place to be. While this situation is an economic one, it is even more an emotional one. We see responses from out there from out and out panic to people who feel completely helpless to those who pretend it isn’t happening. People in this situation are under incredible stress as they see their whole world crashing down around them. Most people just don’t know what to do. They’ve seen ads for help (usually requiring some sort of payment), they’ve heard nightmare stories about short sales and many have tried one of the loan modification programs available and have not qualified. This is not a process to undertake without aligning ones self with an expert.

Most agents want very much to help, but wanting to help and having the educational background to do so are a world apart. You need a CDPE, (an agent or broker who has the knowledge, the insider track, has intimate knowledge of the data required by the lenders and knows how to accelerate your file when time issues arise). You wouldn’t think of having a friend who loves numbers do your taxes or a non-surgeon perform heart surgery. You need a professional who understands the process and can walk you through it. You need a CDPE. A one-hour, no-obligation free consultation is yours for the asking.

Not all sellers will qualify. There is a qualification questionnaire that will help us determine, if we can be of help. Call us today. 949-682-5416. Time is not your friend, but we are.

A CDPE will make the difference! is a post from: Barbara and Susi