Venice Area Homes Blog

There are some new rules going into effect shortly that will have an enormous effect on some mortgage transactions. Here's the biggest one:

Effective for all loan applications dated June 1, 2010 and later, Fannie Mae is "requiring lenders to determine that all debts of the borrower incurred or closed up to and concurrent with the closing of the subject mortgage are disclosed on the final loan application and included in the qualification for the subject mortgage loan."

Here's what it means. If a borrower opens a new account or increases the balance on an existing account between the time of application and the closing, the new debt has to be included. The best case is that the closing gets delayed. The worst case is that the borrower no longer qualifies for the loan and the deal is dead.

Fannie Mae provides the following "tips for lenders to consider" when attempting to find undisclosed liabilities. That's Fannie Mae Speak for "Do these things or else!"

- Refreshing a credit report just prior to closing may uncover additional debt or credit inquiries.

- Credit inquiries found on the credit report should be investigated to determine whether the borrower did in fact open additional debt resulting in repayment obligations. In some cases, it is possible to obtain a direct verification with the creditor associated with the inquiry.

- Fraud-detection tools are available through multiple vendors that assist lenders in identifying undisclosed mortgages or other potentially fraudulent scenarios.

Fannie Mae is not requiring these things until June 1, but lenders are allowed to implement them earlier. Many lenders probably will.

Be prepared! The mortgage industry has changed and continues to change. Being in the industry for 20 years means nothing if you don't stay up to date with all the changes. If your current lender has not already told you about these new rules, ask him why he hasn't. Maybe it's time to change lenders.

What Buyers need to know about FSBO (For Sale by Owner) properties

My favorite Lender, Juliana James-Thomas of 1st Capital Mortgage, contacted me about a client interested in purchasing a FSBO property - “for sale by owner.” She was concerned that he didn’t have his own representation and that he may be paying too much for the property. The Buyer feels rushed to make an offer on the property because the Sellers have offered to pay a portion of his closing costs and have come down from their original list price.

Juliana asked me to investigate to determine if the Buyer was indeed getting a good price on the “for sale by owner” property. He is getting pre-qualified in preparation to make an offer. Many Lenders wouldn’t care whether their client are actually paying a fair price, but Juliana takes a very personal and ethical approach to lending, which is why she builds client relationships for life.

I did some quick research on the property, and the “for sale by owner” property is over-priced by at least $10,000. In fact, the Sellers are asking almost $30,000 more than they paid for the property four years ago and from what I can tell from our MLS data (Multiple Listing Service), they have made limited improvements since their purchase.

Even IF Seller and Buyer agree on price, this property may have a problem appraising for the agreed-upon sales price, and that won’t be discovered until the Buyer has already spent $400 on an appraisal and possibly $500 on inspections. What happens then?

 

What Buyers need to know about FSBO (For Sale by Owner) properties

Often Buyers think they will get a better deal on For Sale by Owner properties because the Seller is not paying Realtor commissions. In actuality, Sellers rarely pass that savings along to the Buyer. Without having Realtor representation, a Buyer will often pay too much for a property and not negotiate needed repairs or know to ask for a residential service agreement.

Buyers, please take advantage of the many services a Buyer’s agent can offer you. We can access records to determine what was originally paid for a property, what improvements have been made, what the Sellers owe on the property and much more.

We help people buy houses every day, so we can craft an offer asking for the appropriate amount for repairs, closing costs, home warranties and more. We will be aware of what will likely be an appraisal requirement and will know if the house will appraise for the amount paid.

We will guide you through the buying process -- the largest investment you will make in your life time.

With the deadline approaching for 1st-time home Buyers to be under contract by April 30th, please contact me if you are considering purchasing a home.

Time is of the essence and Buyer representation is PRICELESS.

Lori is a residential Realtor serving the greater Tulsa area, and specializing in midtown Tulsa real estate. Please visit Lori’s web site, LoriCain.com or call 918-852-5036.

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Let's Get Connected!

If you're looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

CitiMortgage rolled out a new program for delinquent homeowners and homeowners who are in foreclosure in Florida. CitiMortgage says:

"Give us the keys and we will let you stay for six months for free." 

Before you jump on this so called deal here are some facts about Florida Foreclosures followed by our Real estate agent take on this.

Is there really an advantage to you, the homeowner in this offer from CitiMortgage? According to most attorneys we have spoken with, their answer is not really. 

Once you are served a summons and complaint which would be in this instance CitiMortgage filing a law suit complaint against you as the homeowner- you have 20 days in which to respond to the complaint. If you hire an attorney or go to the legal aid society if you can not afford an attorney- they will file a defense or a counter complaint in court. 

At that point, there will have to be a hearing scheduled. Most of the time here in the state of Florida- you will be able to have your foreclosure postponed for much longer than 6 months.

We know people who have not made a mortgage payment in over 24 months and are still living in their homes. 

Take that in consideration before jumping on CitiMortgage's offer. They make it sound very good but they are not in business to protect you or to help you. They are in the business to cut their losses and what is in the best interest of their company and their shareholders, although the latter is questionable at best. 

Turning in your keys is called a "Deed In Lieu of Foreclosure".

Remember too, there are rules that must be adhered to even in Deed In Lieu and unless CitiMortgage is also going to change the rules you may not even qualify for the Turn in the Keys program. 

If you have a second loan on your property or a HELOC on your property, your second lender has to be taken care of before a Deed in Lieu can be processed. If you don't have the money to pay your mortgage payment you most likely don't have money to pay your second note off either. 

Also, if you do a Deed in Lieu- the mark on your credit report is the same as a foreclosure. 

A Deed in Lieu is nothing more than giving up your rights to a judicial foreclosure. It is a foreclosure without going to court. 

There is most often a much better way to deal with your foreclosure filing and that is to do a SHORT SALE. 

First, let me say to CitiMortgage that we as agents have had a solution to your foreclosure problem for years now and it is called a SHORT SALE!

All you have to do is relieve the homeowners of a deficiency and release the lien and give clear title to a new purchaser thereby circumventing you having to own yet another property.

Why can you not give the same deal to a SHORT SALE as you are offering to a DEED IN LIEU?

Therein lies the mystery.  

This gets us to thinking, why is it that you want to own all these properties? Is there something you are not telling us? 

 

There are qualified short sale Realtors® in the state of Florida who are ready to help you solve the foreclosure problem you are complaining about. 

CitiMortgage's CEO of CitiMortgage- Sanjiv Das says: "We're committed to finding every solution possible to help families facing foreclosure. Not every homeowner has the financial stability to remain in their home." No S&%# Sherlock! 

THEN CITIMORTGAGE: Embrace the SHORT SALE! It will save your shareholders money. You won't have to keep holding on to Phantom Inventory. You won't have to be a landlord. It will help home values. It will stabilize neighborhoods. It will help the economy. But then again, is there something here that we don't see? 

In Florida CitiMortgage has over 12 % of their loans in a 90 days or more delinquent status. Nationwide that number is 6%. 42% of all the loan modifications that CitiMortgage approved in Florida are now 60 days one year after their loan modification was approved. 

We will go into further detail about the follies and idiocies of the loan modification programs and how those are set up for failure from the onset. 

This post does NOT constitute legal advise. You should seek the legal advice of a qualified attorney who works in the foreclosure field. We are not attorneys and we don't play them on TV either. This post is informational only. 

Avoid Foreclosure! Call Nestor and Katerina Gasset for Short Sale Information Today- 561-753-0135 or learn more at Short-Sales-Florida.com.

 

   

 

To  view Florida Short Sales- Click here. We know Palm Beach County Short Sales and Port St Lucie Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.

 

   

 

 

        

 

Copyright © 2010 By Katerina Gasset, All Rights Reserved.*CitiMortgage Rolls Out A New Program For Delinquent Homeowners- Give Us The Keys...* 

 

 

 

 

DON'T WAIT.  CALL YOUR REALTOR NOW!

It had to happen.  The New York Times news alert headline says Federal Reserve Raises Interest Rate Charged to Banks, In First Move Since 2008.

Is it a big deal?  That remains to be seen.  If you locked your loan yesterday, be happy.  The rate you got isn't available today.

An Example From History
(You can't call it a lesson unless something has been learned...)

To put things in perspective, when Jimmy Carter defeated Gerald Ford in 1976, the discount rate stood at 5.25%.  Two years prior, under Nixon, it had been higher, at 8%.  Commodity prices were through the roof.  (Google "oil prices 1973.")  Inflation had taken hold, and the Federal Reserve decided that enough was enough.

The Fed started raising the Discount Rate to combat inflation. 

In four short years, the discount rate rose from 5.25% to a staggering 13.00%.  Remember that the discount rate is the rate banks pay to borrow the money they lend to you. You pay more.

What did that mean to consumers?  I was a homebuilder in the 1980's.  My buyers back then had first mortgages as high as 17%.  (And we still sold new homes at the Jersey Shore.)  Second mortgages were available at 21.5%.

Parallel to today...

Nixon was winding down the Vietnam war, and bringing home the troops.  The NY Times headline on March 29th (the day the last of the US forces were out of Vietnam) was Nixon Sets Meat Price Ceilings at Both Wholesale and Retail; Asserts Costs 'Should Go Down'. 

Congress was trying to force an outcome on the free market. 

The result was inflation. 
Rates had to go up to kill the monster, and economic results of the next decade were a template for for our current dilemma.

Moral of the story?

If you intend to finance the purchase of a home, better do it now!  I recommend a 30 year fixed rate.

p.s.  If you intend to qualify for the $8,000 first time homebuyer tax credit or the $6,500 credit, you must be in escrow by April 30. 

Call your REALTOR now.

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I'm Mike in Tucson, your preferred Tucson Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Mortgage Bankers, Not Brokers!
Offices in Scottsdale, Tucson, and Nogales, AZ, and Albuquerque, NM.

Call me on my Blackberry  (520) 349-9090

photo courtesy Kevin Chauvin, Flickr