Truth in Lending Act & RESPA
This service is a very specialized and imperative in identifying if a borrower is a victim of predatory lending. We review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.
Our #1 goal is to determine whether there were violations of federal law. If these violations are found, then the borrower may be eligible for complete relief of the predatory loan. This is know as a loan rescission. Meaning the lender takes back the "predatory loan" and awards or credits back to the borrower all interest made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney's fees.
NOW available in all states!
This can be done by means of a loan modification or a new affordable loan. This allows the borrower to get a new loan with a smaller principle, meaning that the mortgage can be affordable and non-predatory.
FORENSIC LOAN DOCUMENT AUDIT
Complete client interview and all applicable parties
Complete loan document and disclosure audit by 30 year underwriting and fraud and compliance mortgage professional
Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA)
Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations
Complete 10 page report with all violations and findings
CONSTRUCTIVE FRAUD
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?
FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicted the terms of the documents?
NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
BREACH OF CONTRACT
The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?
LOAN AUDIT REPORT
Results report of all factual findings of the forensic audit
Any and all applicable federal law violations
The real terms of your loan
Outline of hidden fees and/or commission earned by your broker or lender
A complete assessment so you can pursue possible legal claims against your broker and/or lender
Call Peter Wu (214) 682-8888 or 777Realty@gmail.com
http://www.ok8888.com/
Tuesday, July 29, 2008
Dallas Texas Loans - Downpayment Assistance www.ok8888.com
Downpayment Assistance
Charitable Downpayment Assistance 1. Charitable downpayment assistance works .
HUD-approved charitable downpayment assistance (DPA) programs have been critical in enabling over one million low and moderate income families over the past decade to purchase their own homes, an estimated 80% for the first time.
The current FHA Commissioner who now opposes charitable DPA until recently praised the program, writing that “Borrowers who rely on seller-funded downpayment assistance are representative of the population that FHA was established to serve families who are otherwise underserved by the private sector. Because of this fact, FHA has determined that additional requirements or restrictions that would prevent these borrowers from obtaining FHA financing would not be beneficial, leaving this population with financing options that are more costly and riskier than FHA.”
HUD itself has utilized seller-funded DPA in the sale of HUD-owned properties. 2. Charitable downpayment assistance, including DPA funded in part by sellers, complies with applicable law and HUD guidelines.
Congress expressly provided for the use of charitable downpayment assistance to assist low and moderate income homebuyers to qualify for FHA insured loans; in doing so, Congress placed no limitation on the charities’ funding source.
HUD has developed clear guidelines which state how charitable downpayment assistance providers, including those funded in part by seller contributions, should be structured. Charitable DPA providers must, and do, adhere to HUD’s rules to operate. 3. Recent HUD claims regarding charitable downpayment assistance are flawed.
HUD recently has reversed its prior position on downpayment assistance and made unsubstantiated statements and released flawed data regarding seller-funded DPA. In 2008, two different federal courts took the extraordinary step of striking down implementation of a HUD regulation restricting seller-funded DPA, holding that HUD failed to provide an adequate policy rationale or reliable data in support of its position. 4. HUD should reform, not ban, charitable downpayment assistance programs.
In a June 2007 Congressional hearing on seller-funded downpayment assistance, HUD testified that it could “Absolutely” adopt underwriting reforms that would largely fix any policy concerns relating to DPA, but chose not to do so because it preferred to push legislation authorizing zero downpayment FHA loans.
Eliminating seller-funded DPA would force low and moderate income homebuyers to seek subprime or predatory loans, or not purchase homes at all. Reforms to reform, rather than eliminate, a highly successful program, would permit FHA to continue fulfilling its historic mission of service to families. 5. HUD’s mortgage insurance fund will not require taxpayer dollars.
HUD’s fund that supports the home mortgage program will realize over $1 billion annually and maintain a solvency ratio at three times the required amount as reported in the most recent congressionally mandated independent accounting report of HUD’s fund. No public documents support HUD’s claim that down payment assistance programs could cause the fund to be insolvent.6. A difference of 1% in the foreclosure rate exits between charitable downpayment assistance and government-funded down payment assistance homeowners.
Homeowners who used these charitable down payment assistance programs enjoy a 94% success rate as reported in a recent government study compared to a 95% success rate for government-funded down payment assisted homeowners. HUD’s loan program coupled with charitable down payment assistance programs has proven to be a safer alternative to subprime loans as echoed by HUD’s Assistant Secretary, Brian Montgomery.7. Dispelling the Myths of Downpayment Assistance Programs
Quick fact checker on charitable downpayment assistance programs... Read more
June 22, 2007 - HUD testifies that the agency could absolutely put standards in place for downpayment assistance programs during a U.S. House of Representatives Subcommittee on Housing hearing regarding the issue... Watch the hearing
February 2008 - Overview of charitable downpayment assistance issues in response to considerable and often conflicting commentary regarding these programs... Read full overview
March 2007 - George Mason University Center for Regional Analysis found the total economic impact of these downpayment assistance programs was $24.8 billion over a 5 year period... Read full report
Call Peter or Linda at (214) 682-8888 or (469) 567-0567 for your mortgage
application.
Charitable Downpayment Assistance 1. Charitable downpayment assistance works .
HUD-approved charitable downpayment assistance (DPA) programs have been critical in enabling over one million low and moderate income families over the past decade to purchase their own homes, an estimated 80% for the first time.
The current FHA Commissioner who now opposes charitable DPA until recently praised the program, writing that “Borrowers who rely on seller-funded downpayment assistance are representative of the population that FHA was established to serve families who are otherwise underserved by the private sector. Because of this fact, FHA has determined that additional requirements or restrictions that would prevent these borrowers from obtaining FHA financing would not be beneficial, leaving this population with financing options that are more costly and riskier than FHA.”
HUD itself has utilized seller-funded DPA in the sale of HUD-owned properties. 2. Charitable downpayment assistance, including DPA funded in part by sellers, complies with applicable law and HUD guidelines.
Congress expressly provided for the use of charitable downpayment assistance to assist low and moderate income homebuyers to qualify for FHA insured loans; in doing so, Congress placed no limitation on the charities’ funding source.
HUD has developed clear guidelines which state how charitable downpayment assistance providers, including those funded in part by seller contributions, should be structured. Charitable DPA providers must, and do, adhere to HUD’s rules to operate. 3. Recent HUD claims regarding charitable downpayment assistance are flawed.
HUD recently has reversed its prior position on downpayment assistance and made unsubstantiated statements and released flawed data regarding seller-funded DPA. In 2008, two different federal courts took the extraordinary step of striking down implementation of a HUD regulation restricting seller-funded DPA, holding that HUD failed to provide an adequate policy rationale or reliable data in support of its position. 4. HUD should reform, not ban, charitable downpayment assistance programs.
In a June 2007 Congressional hearing on seller-funded downpayment assistance, HUD testified that it could “Absolutely” adopt underwriting reforms that would largely fix any policy concerns relating to DPA, but chose not to do so because it preferred to push legislation authorizing zero downpayment FHA loans.
Eliminating seller-funded DPA would force low and moderate income homebuyers to seek subprime or predatory loans, or not purchase homes at all. Reforms to reform, rather than eliminate, a highly successful program, would permit FHA to continue fulfilling its historic mission of service to families. 5. HUD’s mortgage insurance fund will not require taxpayer dollars.
HUD’s fund that supports the home mortgage program will realize over $1 billion annually and maintain a solvency ratio at three times the required amount as reported in the most recent congressionally mandated independent accounting report of HUD’s fund. No public documents support HUD’s claim that down payment assistance programs could cause the fund to be insolvent.6. A difference of 1% in the foreclosure rate exits between charitable downpayment assistance and government-funded down payment assistance homeowners.
Homeowners who used these charitable down payment assistance programs enjoy a 94% success rate as reported in a recent government study compared to a 95% success rate for government-funded down payment assisted homeowners. HUD’s loan program coupled with charitable down payment assistance programs has proven to be a safer alternative to subprime loans as echoed by HUD’s Assistant Secretary, Brian Montgomery.7. Dispelling the Myths of Downpayment Assistance Programs
Quick fact checker on charitable downpayment assistance programs... Read more
June 22, 2007 - HUD testifies that the agency could absolutely put standards in place for downpayment assistance programs during a U.S. House of Representatives Subcommittee on Housing hearing regarding the issue... Watch the hearing
February 2008 - Overview of charitable downpayment assistance issues in response to considerable and often conflicting commentary regarding these programs... Read full overview
March 2007 - George Mason University Center for Regional Analysis found the total economic impact of these downpayment assistance programs was $24.8 billion over a 5 year period... Read full report
Call Peter or Linda at (214) 682-8888 or (469) 567-0567 for your mortgage
application.
Dallas, Texas Loans FHA www.ok8888.com
FHA
On July 11th, the Senate voted 63 to 5 to approve the legislation To modernize and update the FHA loans. HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure
This bill is critical to restoring confidence in the mortgage and housing markets and the nation's entire economy. But it isn't complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President's desk before the August recessWhat a positive step in the right direction. Thank you, Senators
Call Peter or Linda at (214) 682-8888 or (469) 569-0567 for your mortgage
application.
On July 11th, the Senate voted 63 to 5 to approve the legislation To modernize and update the FHA loans. HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure
This bill is critical to restoring confidence in the mortgage and housing markets and the nation's entire economy. But it isn't complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President's desk before the August recessWhat a positive step in the right direction. Thank you, Senators
Call Peter or Linda at (214) 682-8888 or (469) 569-0567 for your mortgage
application.
Wednesday, July 23, 2008
Number ONE : Plano, TX. Real Estate Service www.ok8888.com
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Office: 702-577-7112
Cell: 214-682-8888
Whether the merchandise is clothes, cars or homes, the sales price is obviously the primary indicator of the level of demand for the merchandise. While I'll make every effort to get top dollar for your property, the fact remains that many sellers find it difficult to list above market value, simply because there's a good chance that potential buyers will be scared off.
On the other hand, the last thing we want to do is sell your home for less than its real value. That's why I'm offering my services to you, so you can avoid any pricing mishaps during the sales process. Call or email me today so we can get started!
Regards,
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Cell: 214-682-8888
Office: 702-577-7112
AAA Realtors
777realty@gmail.com
www.ok8888.com
Office: 702-577-7112
Cell: 214-682-8888
Whether the merchandise is clothes, cars or homes, the sales price is obviously the primary indicator of the level of demand for the merchandise. While I'll make every effort to get top dollar for your property, the fact remains that many sellers find it difficult to list above market value, simply because there's a good chance that potential buyers will be scared off.
On the other hand, the last thing we want to do is sell your home for less than its real value. That's why I'm offering my services to you, so you can avoid any pricing mishaps during the sales process. Call or email me today so we can get started!
Regards,
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Cell: 214-682-8888
Office: 702-577-7112
Commercial Loans # 1 Dallas, Texas www.ok8888.com
You may think that your work on a commercial loan is finished once you have completed an application and prepared a complete financing plan for your borrowers. But this is not the case. You are done with the pre-application phase, but you still have a role to play in the post- application stage.
Two critical steps that are paramount to a deal’s overall success take place post-application, and they require a considerable amount of detail work. You must work with your borrowers to complete any missing documentation, and you must take the lead in communication between the two parties. Only then is your role in the deal complete.
A deal cannot close without proper submission of required documentation. It seems simple enough, but this process still causes many problems. Borrower confusion and apprehension typically slow down this process. You can play a role in alleviating these issues.
Borrowers may be confused about the kinds of documentation the lender requests or why the lender is requesting them in the first place. Help them understand what has been requested and assist them in collecting the data.
It is wise to evaluate the lender’s list of requirements before providing it to the borrowers to ensure that everything is clear. That way, if it isn’t, you can easily call upon your lending partner for clarification.
Borrowers may be apprehensive about fulfilling some of the lender’s requests. For example, lenders sometimes require personal tax returns from the borrowers. If the borrowers balk at sharing this personal detail, explain that this personal information is a requirement especially when dealing with nonrecourse loans because the lender is placing its money in the hands of strangers who technically demonstrate no personal liability.
You can also help the borrowers understand that it is better to turn over questionable documentation and have a discussion with the lender about it than to not provide the document at all.
Once you’ve submitted your documentation to the lender, you should continue to act as a communication bridge between the lender and the borrowers. After reviewing the documentation, the lender will typically have questions for your clients. In many cases, its underwriters will scrutinize the business plan or even conduct their own research into rents, costs or the borrowers’ previous work history. Improve the chances of the deal by working with your borrowers to respond quickly to any questions that may arise.
For instance, the underwriters may notice that the borrowers’ rents on an apartment deal are 25-percent higher than those on competing apartments in the market. The lender might request that the borrowers explain in writing why people will live in this building despite the higher costs. Or the lender might ask the borrowers to explain why they believe they can build and lease a 75,000-square-foot shopping center when their largest previous property was 25,000 square feet.
Borrowers, especially those with minimal experience, may be easily intimidated by these types of questions. Work with them to take a step back and understand why a lender might ask such detailed questions. Then help the clients craft detailed, written responses that address the questions.
When you take a deal beyond the application phase, you can enhance the process with your smarts and communication skills. By paying attention to detail and acting as an ombudsman between the borrowers and the lender, you help ensure that a deal maintains its momentum and continues down the path toward funding.
Call Peter Wu (214) 682-8888 www.ok8888.com
or Linda Montaniel at (469) 569-0567 Dallas, Texas
or Judi Rock at (702) 577-7112
Two critical steps that are paramount to a deal’s overall success take place post-application, and they require a considerable amount of detail work. You must work with your borrowers to complete any missing documentation, and you must take the lead in communication between the two parties. Only then is your role in the deal complete.
A deal cannot close without proper submission of required documentation. It seems simple enough, but this process still causes many problems. Borrower confusion and apprehension typically slow down this process. You can play a role in alleviating these issues.
Borrowers may be confused about the kinds of documentation the lender requests or why the lender is requesting them in the first place. Help them understand what has been requested and assist them in collecting the data.
It is wise to evaluate the lender’s list of requirements before providing it to the borrowers to ensure that everything is clear. That way, if it isn’t, you can easily call upon your lending partner for clarification.
Borrowers may be apprehensive about fulfilling some of the lender’s requests. For example, lenders sometimes require personal tax returns from the borrowers. If the borrowers balk at sharing this personal detail, explain that this personal information is a requirement especially when dealing with nonrecourse loans because the lender is placing its money in the hands of strangers who technically demonstrate no personal liability.
You can also help the borrowers understand that it is better to turn over questionable documentation and have a discussion with the lender about it than to not provide the document at all.
Once you’ve submitted your documentation to the lender, you should continue to act as a communication bridge between the lender and the borrowers. After reviewing the documentation, the lender will typically have questions for your clients. In many cases, its underwriters will scrutinize the business plan or even conduct their own research into rents, costs or the borrowers’ previous work history. Improve the chances of the deal by working with your borrowers to respond quickly to any questions that may arise.
For instance, the underwriters may notice that the borrowers’ rents on an apartment deal are 25-percent higher than those on competing apartments in the market. The lender might request that the borrowers explain in writing why people will live in this building despite the higher costs. Or the lender might ask the borrowers to explain why they believe they can build and lease a 75,000-square-foot shopping center when their largest previous property was 25,000 square feet.
Borrowers, especially those with minimal experience, may be easily intimidated by these types of questions. Work with them to take a step back and understand why a lender might ask such detailed questions. Then help the clients craft detailed, written responses that address the questions.
When you take a deal beyond the application phase, you can enhance the process with your smarts and communication skills. By paying attention to detail and acting as an ombudsman between the borrowers and the lender, you help ensure that a deal maintains its momentum and continues down the path toward funding.
Call Peter Wu (214) 682-8888 www.ok8888.com
or Linda Montaniel at (469) 569-0567 Dallas, Texas
or Judi Rock at (702) 577-7112
Friday, July 18, 2008
Dallas Mortgage
One of the new rules will prohibit loans to borrowers who can’t repay the loan from income and assets other than the home’s value and will require lenders to verify the borrower’s income and assets. And this one is the best one Prepayment penalties are banned for the first four years of any adjustable rate subprime loan and for the first two years on other subprime loans. Lenders also must establish escrow accounts for property taxes and insurance for all first-lien loans.
Also banned are seven misleading advertising practices, including use of the word “fixed” to describe a rate or payment that changes at any time during the loan term. Other prohibited practices include loan comparison advertising (unless all payments and rates are disclosed), foreign-language ads where disclosures are presented in English, and encouraging appraisers to misrepresent a home’s value. The rules also will require lenders to credit payments on the date of receipt, prohibit pyramiding of loans, and require a good faith estimate of costs and payments on any loan application for a home secured by its value (including home equity loans and refinancings) within three days. Further, borrowers cannot be charged any fees other than to obtain a credit report before receiving that estimate. I am glad to see this changes happen as it will benefit consurmers and prevent lenders from what they do best "Take Our Money".
Call Linda at (469) 569-0567 / Peter at (214)-682-8888
www.ok8888.com
777Realty@gmail.com
Also banned are seven misleading advertising practices, including use of the word “fixed” to describe a rate or payment that changes at any time during the loan term. Other prohibited practices include loan comparison advertising (unless all payments and rates are disclosed), foreign-language ads where disclosures are presented in English, and encouraging appraisers to misrepresent a home’s value. The rules also will require lenders to credit payments on the date of receipt, prohibit pyramiding of loans, and require a good faith estimate of costs and payments on any loan application for a home secured by its value (including home equity loans and refinancings) within three days. Further, borrowers cannot be charged any fees other than to obtain a credit report before receiving that estimate. I am glad to see this changes happen as it will benefit consurmers and prevent lenders from what they do best "Take Our Money".
Call Linda at (469) 569-0567 / Peter at (214)-682-8888
www.ok8888.com
777Realty@gmail.com
Wednesday, July 16, 2008
Mortgage & Real Estate & Business Broker & Insurance
1. First off I want to say that I am not promoting going into foreclosure but let me tell you something about when it makes sense to do it. Foreclosure is now a word that every American now knows. Ten years ago you might hear that word occasionally or maybe when a business was going bankrupt, but not as much as you do now. The mortgage industry is having the worst time of its existence and their is not one person who is not affected by it one way or another. This is a story for the people who can pay their mortgage but need to move or downsize or something else but just cannot sell their house.
2. Many people around the country are losing their jobs right now because the economy is heading or already is in a recession. When people don’t have the money coming in to pay their bills the bills do not get paid. The first things that usually get passed up on are the credit cards and car loans. The last one that you want to pass up on is your mortgage payment. You need a place to live so you keep paying it as long as you can without being late.
3. Let’s say that you are one of the people who have a job right now and are not affected by what’s going on in the economy around you. You have enough income coming in your household to continue living your current lifestyle. You keep paying your bills but are at the point where maybe you live to far from work right now and with gas prices going up its just eating away at your wallet. Maybe your kids are moving out and its time to downsize. Time to sell the home.
4. You walk out your front door and you look to the right then the left and you count 14 for sale signs just on your street. This is pretty common in the Detroit area right now so don’t feel like I am exaggerating. It’s reality. Eight of those homes are going into foreclosure so you know already that the price of those homes is going to be way below what you perceive the value of your home to be. You also owe on your house $40k more than what all of the foreclosed homes are selling for.
5. Your options are to put it up for sale and hope somebody just really loves your house more than the other 8 homes that look identical to yours, same sq footage, bedrooms, tiling, everything, and wants to pay top dollar for it walks into your house and slaps down cash. This is more than likely not going to happen. Another option is to sell the house for what the foreclosed homes are selling for and bring $40k to the closing table out of your pocket to cover the difference. You don’t have $40k and if you did you wanted to use that for your down payment. What to do now?
6. You game the system. That’s right, game the system so it comes out in your favor. Keep making the payments on your home while you are looking for the new house that is closer to work or a smaller one. You should be able to find exactly what you want nowadays with so many homes up for sale. Take your time. You still have money coming in to pay your bills and home prices (including yours) are dropping every month. Make a low ball offer on every home that you think is going to be the one that you want. Just remember that the real estate market around the country is going to be heading back to what home prices were in the 2001 era. Do your home work and see what it sold for then. The home is still probably over prices and offer them near to what it sold for. Maybe they take it.
7. You find the home you want. This is when things get into action. You call up your local bank, credit union, or national lender to get approved on a mortgage. You talk mortgage rates with them and tell them that you are trying to buy a new home. The new home is probably going to have a much smaller mortgage than the home your currently living in. You tell the lender that you are keeping your current home as a second home or that your going to let your kids or family live in it while you move. You ask them if you can be approved on the new mortgage with your current income.
8. If they say yes then the game is on. What the mortgage lender just told you is that you are approved for a new mortgage to buy a new home and that you make enough money (in their eyes, based off a credit report) to handle two home loans, car payments, etc. If they say no, then most mortgage companies will ask you if you plan on renting it out? Say yes. What the mortgage lender will do now is see how much comparable homes are renting for in the area, get a dollar number and put that number in their approval process as income. They shouldn’t do this because you have no way of showing them that you are going to rent it at all. Remember, the mortgage lender is there to make loans and as long as their guidelines permit it then they will do it.
9. Let’s say though that you are approved just based on your income and no additional rental income is needed. At this point you have to ask yourself a real personal question. How bad do I want this home and am I willing to live with what is going to happen to my credit if I let the home go into foreclosure? If you say yes then this is what you will have to do. If you plan on getting any new cars within the next 2-3 years go out and get them now if you plan on leasing or financing a new car purchase. If you do not have a credit card go out and apply for 2 or 3 of them. If you want to buy a time share in Cancun get it now. If there is anything that you think you are going to want to finance over the next 2-3 years get it before you let your home go into foreclosure. The reason is that when you let your home go into foreclosure your credit history is going to get jacked up. Its going to show that you have paid all of your bills on time, credit cards, car loans, time shares, etc. All that is besides a home foreclosure. Since you have taken the cars, credit cards, time shares out before the foreclosure those lending institutions are not going to know the difference. They don’t care and as long as you are paying them its all the same. You can still charge things to your credit cards and use them as normal, just pay them off in full every month. You are going to need those things opened to help rebuild your credit over the next two years. Most mortgage companies are not even going to look at you to but a new home or refinance one if it has been two years since a foreclosure. After that then you can do it. In those two years you have been paying every thing on time so your credit scores should be on their way down. Be prepared to see you credit score drop 150 points or more on your credit report. Who cares. As long as you pay all your bills and use cash for alll of your purchases then you do not need any more credit. All a credit report is is a piece of paper. Do not let it tell you how to live your life. It does not know what;s going on in the outside world. Look down at your desk, find a piece of paper, write credit report on it and rip it in two. This piece of paper will mean nothing.
10. So you buy the new house and get moved in. As an example let’s say your old house had a mortgage on it for $150k and the exact same homes that foreclosed sold for $110k. Instead of paying the bank $40k, you keep it in your pocket and put it into a savings account or mutual fund earning you interest. You buy your smaller home for $100k and you probably got a home that is not a fixer upper. You are in the new home, your loan is closed and the new mortgage shows up on your credit report the next month along with your old one and the other cars you just leased or purchased. You lock up your old house because you still technically own, collect the mail and wait for a notice of foreclosure. The notice comes, you call the bank and drive up there and drop off the keys. They of course will not be happy. Now look how much grief you saved yourself. You have $40k still in the bank (if you even had it). You are now in the house you need. Your mortgage payment probably dropped by $100 month. For fun lets calculate it. $150k at 7% on a 30 years fixed rate mortgage is $998 a month. $100k at 7% for 30 years is $665 which is $998 - $665 = $333 in savings a month. I was way off in my guess. That’s the car payment on the car you just leased before foreclosing. Most importantly, you are no longer stuck with a house you are never going to be able to sell without having to bring money to closing. The reality of the real estate market is that home prices are never going to be as high as they were from 2002-2007. Just like I stated when I started writing, I don’t promote you foreclosing on your home. I’m just saying that if you have everything else in order and it makes sense don’t feel bad about doing it. All that is going to get messed up in your name is your credit report. Since you have everything you were going to finance for the next couple of years and you still make good money then your all set. If you like the area you live in then you might be biting the bullet now but that’s the price you pay if you have to stay.
Call Linda Montaniel at (469) 569-0567 or Peter Wu at (214) 682-8888 cell
www.ok8888.com
777Realty@gmail.com
2. Many people around the country are losing their jobs right now because the economy is heading or already is in a recession. When people don’t have the money coming in to pay their bills the bills do not get paid. The first things that usually get passed up on are the credit cards and car loans. The last one that you want to pass up on is your mortgage payment. You need a place to live so you keep paying it as long as you can without being late.
3. Let’s say that you are one of the people who have a job right now and are not affected by what’s going on in the economy around you. You have enough income coming in your household to continue living your current lifestyle. You keep paying your bills but are at the point where maybe you live to far from work right now and with gas prices going up its just eating away at your wallet. Maybe your kids are moving out and its time to downsize. Time to sell the home.
4. You walk out your front door and you look to the right then the left and you count 14 for sale signs just on your street. This is pretty common in the Detroit area right now so don’t feel like I am exaggerating. It’s reality. Eight of those homes are going into foreclosure so you know already that the price of those homes is going to be way below what you perceive the value of your home to be. You also owe on your house $40k more than what all of the foreclosed homes are selling for.
5. Your options are to put it up for sale and hope somebody just really loves your house more than the other 8 homes that look identical to yours, same sq footage, bedrooms, tiling, everything, and wants to pay top dollar for it walks into your house and slaps down cash. This is more than likely not going to happen. Another option is to sell the house for what the foreclosed homes are selling for and bring $40k to the closing table out of your pocket to cover the difference. You don’t have $40k and if you did you wanted to use that for your down payment. What to do now?
6. You game the system. That’s right, game the system so it comes out in your favor. Keep making the payments on your home while you are looking for the new house that is closer to work or a smaller one. You should be able to find exactly what you want nowadays with so many homes up for sale. Take your time. You still have money coming in to pay your bills and home prices (including yours) are dropping every month. Make a low ball offer on every home that you think is going to be the one that you want. Just remember that the real estate market around the country is going to be heading back to what home prices were in the 2001 era. Do your home work and see what it sold for then. The home is still probably over prices and offer them near to what it sold for. Maybe they take it.
7. You find the home you want. This is when things get into action. You call up your local bank, credit union, or national lender to get approved on a mortgage. You talk mortgage rates with them and tell them that you are trying to buy a new home. The new home is probably going to have a much smaller mortgage than the home your currently living in. You tell the lender that you are keeping your current home as a second home or that your going to let your kids or family live in it while you move. You ask them if you can be approved on the new mortgage with your current income.
8. If they say yes then the game is on. What the mortgage lender just told you is that you are approved for a new mortgage to buy a new home and that you make enough money (in their eyes, based off a credit report) to handle two home loans, car payments, etc. If they say no, then most mortgage companies will ask you if you plan on renting it out? Say yes. What the mortgage lender will do now is see how much comparable homes are renting for in the area, get a dollar number and put that number in their approval process as income. They shouldn’t do this because you have no way of showing them that you are going to rent it at all. Remember, the mortgage lender is there to make loans and as long as their guidelines permit it then they will do it.
9. Let’s say though that you are approved just based on your income and no additional rental income is needed. At this point you have to ask yourself a real personal question. How bad do I want this home and am I willing to live with what is going to happen to my credit if I let the home go into foreclosure? If you say yes then this is what you will have to do. If you plan on getting any new cars within the next 2-3 years go out and get them now if you plan on leasing or financing a new car purchase. If you do not have a credit card go out and apply for 2 or 3 of them. If you want to buy a time share in Cancun get it now. If there is anything that you think you are going to want to finance over the next 2-3 years get it before you let your home go into foreclosure. The reason is that when you let your home go into foreclosure your credit history is going to get jacked up. Its going to show that you have paid all of your bills on time, credit cards, car loans, time shares, etc. All that is besides a home foreclosure. Since you have taken the cars, credit cards, time shares out before the foreclosure those lending institutions are not going to know the difference. They don’t care and as long as you are paying them its all the same. You can still charge things to your credit cards and use them as normal, just pay them off in full every month. You are going to need those things opened to help rebuild your credit over the next two years. Most mortgage companies are not even going to look at you to but a new home or refinance one if it has been two years since a foreclosure. After that then you can do it. In those two years you have been paying every thing on time so your credit scores should be on their way down. Be prepared to see you credit score drop 150 points or more on your credit report. Who cares. As long as you pay all your bills and use cash for alll of your purchases then you do not need any more credit. All a credit report is is a piece of paper. Do not let it tell you how to live your life. It does not know what;s going on in the outside world. Look down at your desk, find a piece of paper, write credit report on it and rip it in two. This piece of paper will mean nothing.
10. So you buy the new house and get moved in. As an example let’s say your old house had a mortgage on it for $150k and the exact same homes that foreclosed sold for $110k. Instead of paying the bank $40k, you keep it in your pocket and put it into a savings account or mutual fund earning you interest. You buy your smaller home for $100k and you probably got a home that is not a fixer upper. You are in the new home, your loan is closed and the new mortgage shows up on your credit report the next month along with your old one and the other cars you just leased or purchased. You lock up your old house because you still technically own, collect the mail and wait for a notice of foreclosure. The notice comes, you call the bank and drive up there and drop off the keys. They of course will not be happy. Now look how much grief you saved yourself. You have $40k still in the bank (if you even had it). You are now in the house you need. Your mortgage payment probably dropped by $100 month. For fun lets calculate it. $150k at 7% on a 30 years fixed rate mortgage is $998 a month. $100k at 7% for 30 years is $665 which is $998 - $665 = $333 in savings a month. I was way off in my guess. That’s the car payment on the car you just leased before foreclosing. Most importantly, you are no longer stuck with a house you are never going to be able to sell without having to bring money to closing. The reality of the real estate market is that home prices are never going to be as high as they were from 2002-2007. Just like I stated when I started writing, I don’t promote you foreclosing on your home. I’m just saying that if you have everything else in order and it makes sense don’t feel bad about doing it. All that is going to get messed up in your name is your credit report. Since you have everything you were going to finance for the next couple of years and you still make good money then your all set. If you like the area you live in then you might be biting the bullet now but that’s the price you pay if you have to stay.
Call Linda Montaniel at (469) 569-0567 or Peter Wu at (214) 682-8888 cell
www.ok8888.com
777Realty@gmail.com
Mortgage & Real Estate & Business Broker
Dear Real Estate Broker, As time is changing in the mortgage industry, so is the ability of your clients to obtain a mortgage for the properties you are offering. A lot of Mortgage companies will waste your time with the promise of FHA or financial institutions that will still process subprime loans. THEY ARE WASTING YOUR TIME! Here are the fact: very Little financial institutions will process any STATED Loans. The rule is, only 1,2, family, up to 70-75 LTV , must have a score of 720 or more. No investment! 1,2,3,4 Family FULL Doc up to 80 LTV 700 fico and up, No Investment Properties. Prices are to the conforming level absolutely no jumbos. FHA is only FULL DOC, anybody that tells you otherwise is LAYING! Yes it has higher levels then conforming like one family up to $729k and so on, but make sure your customer makes enough money to support such a loan. His front ratio can’t exceed 45% and if he requires more then 80 LTV he has to pay mortgage insurance and taxes and insurance. Does your client make enough money? I don’t think so! Do you know a lot of people that make more then 100k ON THE BOOKS? With FHA all documents will be strictly checked and rechecked, your appraisal will be scrutinized, they will call your bank to make sure the money is there and seasoned, and so on . Yes you can process people with low fico score but you will have to explain why is their fico score so low and they will have to come up with a very good excuse. And what about the rate? for that loan surly you don’t expect them to gat a rate at the low 6% right? If you are in the commercial business things are not much better here. Multi family up to 90 LTV owner acc’ only! Full doc, less vacancy, and they will check DHCR for the reported rents and other expenses. Investment properties 70-75 LTV, very good deals 80 LTV max. Construction Loans – 65-70 LTV on purchase and up to 100% on construction budget , approved plans a must! Your money goes in first. Very little banks will give you a first withdraw at the closing! Gas station / Car Repair, Restaurants, and other businesses , SBA Only they’ll tell you up to 90 LTV owner Acc, but they will find a way to make it 80 LTV or less. And be ready, it takes a long time before you’ll see a closing. Private money / Hard Money -up to 65 LTV short term, very high interest rate- in the teens, and high closing costs. ANM Funding is a serious company that will TELL YOU THE TRUTH! Not what you would like to hear. Please call me for the TRUTH IN LENDING! 469-569-0567 my name is Linda Montaniel or 214-682-8888
Peter Wu and I’m still proud to be a mortgage broker.
Peter Wu and I’m still proud to be a mortgage broker.
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