Posts Tagged ‘mortgages’
January 23, 2012
My heart goes out to the good folks in the mortgage business these days. Business is TOUGH!
A significant percentage of buyers come equipped with enough bad credit baggage to fill a truck, what with having done a recent short sale or having a recent foreclosure or deed in lieu of foreclosure (same as a regular foreclosure, but it sounds nicer) or strategic foreclosure (a purposeful decision to walk away from a debt they CAN pay but don’t WANT to pay – don’t get me started on these).
Combine that with the over-reaction of underwriters making it nearly impossible to qualify for a loan if the buyer has to put gas in the SUV on the way to the closing (“Oops, sorry, that gas charge 15 minutes ago just bumped your debt ratio out of whack”) or if part of the buyer’s down payment is the gift money received from Grandma for graduation and Grandma made the money having a garage sale or the buyer’s publicly traded employer has recently filed a negative outlook report with Wall Street or any number of other scenarios.
Add in the burden of complex Good Faith Estimates which have to be redone every time anyone sneezes and you have a frustrating mix. (more…)
Tags:ann bone, atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Consumer Protection Financial Bureau, Federal Trade Commission, Frank-Dodd Act, georgia, good faith estimate, loan officer, marketing, Metro Home Mortgage, mortgages, Real Estate, real estate agent, real estate career, success, Tips
Posted in Agents | 3 Comments »
October 10, 2011
There are so many things that Realtors and their customers need to be aware of when dealing with HUD properties. And if your buyer is purchasing a HUD property and utilizing FHA financing, there’s even more to consider. The following tips will help you get to a successful closing.
Be sure to check out the HUD class we’re offering that discusses all of the changes that went into effect in October. The class is tomorrow (Oct. 11) at 10am inAtlantaor you can take it on Friday (Oct. 12) inWoodstockat 10am. Use the promo code “HUD“ to take the class for free. See details below. (more…)
Tags:ann bone, atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Buyers, fha financing, georgia, housing and urban development, HUD, hud homes, Metro Brokers, mortgages, Real Estate, real estate agent, seller, success, Tips
Posted in Agents, Buyers, Sellers | 1 Comment »
August 22, 2011
Most agents and homebuyers are not aware that the IRS is often one of the major delays to be able to meet the closing date on time. You may be asking, “How does the IRS delay the mortgage process?” Well, every mortgage lender in the U.S. today must obtain the IRS transcripts for the homebuyer’s last 2 years of filed federal tax returns.
These transcripts are provided by the IRS once the mortgage lender sends in the signed 4506-T form that allows the release of the homebuyer/borrower’s filed tax records.
The Mortgage Lenders must obtain a “Clear 4506-T Result” from the IRS before they can move the loan file forward and on to closing. There are many reasons for a FAIL result on a 4506-T request, but in 80% of the cases it is because of an “Invalid Address”. (more…)
Tags:atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, closing success, failed closing, georgia, irs, irs 4506-t, Judy Jones, Metro Brokers, mortgages, Real Estate, real estate career, Realtor, success, tax records, Tips
Posted in Agents, Buyers, Sellers | 3 Comments »
July 25, 2011
There have been rumors and various news reports circulating that FHA will soon be allowing unemployed Americans who have an FHA insured mortgage to miss up to 1 year of mortgage payments without being foreclosed on.
My hope in writing this article is to provide more details on this topic that is sure to prompt more and more discussions and questions.
IMPORTANT: Please note that only the customer’s current lender can give them a final answer on if they qualify under this program. The number to call is on their mortgage payment coupons or monthly statements from their current lender. (more…)
Tags:atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Fannie Mae, FHA, Foreclosures, Freddie Mac, HUD, Judy Jones, loans, Metro Brokers, Metro Home Mortgage, mortgages, Real Estate, success, Tips
Posted in Agents, Buyers, Sellers | 4 Comments »
November 8, 2010
I saw an article published by RISMedia (Real Estate Information Systems) last week which made me pause. It concerned the necessity and advisability of disclosing the dollar amounts of all liens filed on a listed property if those liens “may make it difficult to close escrow on a property or impede the transfer of free and clear title”.
The “necessity and advisability” comes as a result of a lawsuit in California (where else?), Holmes v. Summers (October, 2010) in which a court ruled that the Listing Broker could be liable and responsible for costs and damages incurred by a buyer in a failed deal when the existing liens on the property exceeded the sales price. The logic seems to be that buyers who spend money on inspections, appraisal and any other due diligence activity are damaged if the Listing Brokers fail to disclose that the property seller is “upside down”, “underwater” or other euphemisms for in a bad financial position and the sale fails to close because of the seller’s bad financial position. That makes sense to me. (more…)
Tags:ann bone, atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Buyers, California lawsuit, Foreclosures, georgia, Holmes v. Summers, Metro Brokers, mortgage lien, mortgages, Real Estate, real estate agent, Realtor, rismedia, seller, short sales, tax lien
Posted in Agents, Buyers, Sellers | 4 Comments »
September 27, 2010
Condo Ownership is the perfect lifestyle for some, but not for others. If you’re thinking of buying a condominium, you must do your due diligence regarding the Condo CCR’s (Covenants, Conditions and Restrictions). Also important is the financial stability of the Condominium (Budget and amount in Reserve Account).
“Condominium” is a form of ownership, not a physical description. In Georgia, stacked flats, mid-rises and high-rises are almost always condominiums. However, town homes can be fee simple ownership or condominium ownership. In condominium ownership, the unit owner owns everything from the sheetrock in as well as from the floors up to the ceiling. The outer walls and roofs are commonly owned by and maintained by the HOA. The land is also commonly owned and maintained by the HOA. There have been cases where a contract is written up as fee simple, and at the last minute the closing attorney’s title report shows it as a condo, and the entire loan has to be redone, causing a long delay in the closing. (more…)
Tags:ann bone, atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Buyers, CCR's, condo, condo ownership, condominium, covenants, down payment, fee simple ownership, FHA, first time homebuyers, georgia, high-rises, hoa, home ownership, homeowners association, insurance policy, Metro Brokers, mid-rises, mortgages, Real Estate, real estate agent, stacked flats
Posted in Agents, Buyers | 10 Comments »
September 20, 2010
My second “Closing Killers” story is about buyers relocating from Idaho who expose their closing to one of the Closing Killer gang leaders: “Opening New Credit”!
Sam and Sue Spud had found a peach of a deal in Peachtree City. This foreclosed home was perfect. It had taken the Bank seller over 7 weeks to respond to their offer. They were finally under contract and heading for closing. If they missed the original closing date, they would have to pay the seller $100 per day to extend the closing date. Their loan application had been in process for over 3 weeks… everything looked “fine”.
Their agent and loan officer had told them not to make any changes to their credit or finances until after closing. (more…)
Tags:atlanta, atlanta real estate, Buyers, closing, closing killer, credit score, FHA, georgia, GFE, good faith estimate, HERA, HUD, Judy Jones, Metro Brokers, Metro Brokers Financial, mortgages, opening new credit, Peachtree City, pre-clising verification, Real Estate, underwriting, undisclosed debt
Posted in Agents, Buyers | 4 Comments »
September 13, 2010
Homebuyers are always asking me to find them a “great deal”. Today’s market makes that easier in some respects (prices are depressed and mortgage rates at a lifetime low) and tougher in some respects (there is SO much inventory to look at). Inevitably, though, the buyer’s definition of a “great deal” involves much, much more than just the price of the home. Here are some examples of truly GREAT DEALS:
Example 1
A young first-time buyer tried his best, but was declined by the mortgage lender for the financing he needed. He had a 5% down payment, but the lender wouldn’t lend him more than 90% of the home’s value. Fighting tears, he told me he was so embarrassed not to be able to complete the purchase. I asked the seller if he would be able to hold a note for the missing 5% for a year or two until the buyer could arrange other financing. He was happy to, since he could receive interest income on the note and hold a security interest in the property. The fact that the seller also respected the young man for his honesty and integrity probably played a part, too. This was a GREAT DEAL because of the financing terms. (more…)
Tags:ann bone, atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Buyers, down payment, emotional attachment, frank sinatra, georgia, great deal, listing, low interest rates, low prices, Metro Brokers, mortgages, Real Estate, real estate agent, timing
Posted in Agents, Buyers, Uncategorized | 3 Comments »
August 30, 2010
Homebuyers who are taking advantage of the great home values and historically low interest rates are finding the mortgage qualifying process much harder than ever before.
I’ve put together several stories based on real buyers from recent deals that were almost killed by the top “Closing Killers” in the market today. The names have been changed to protect the innocent.
Our first story is about a first time homebuyer couple who barely escaped the sneaky Closing Killer, “Unexplained Deposits” who is part of the Closing Killer gang led by “Opening New Credit”!
Harry and Sally were buying their first home. The house had originally sold for over $250,000. Harry and Sally were able to secure a signed contract for $134,500 with the seller paying all closing costs. They had applied for an FHA 30-year fixed rate loan, putting down only 3.5%. They only needed $4,700 for down payment and 2 months reserves of the PITI (principal, interest, taxes and insurance) payment to qualify for the loan. When they finally sent their current monthly bank statement to the mortgage processor, it showed a current balance of $16,000! Much more than what they needed to close! But wait… did this bank statement reveal a possible Closing Killer: Unexplained Deposits”? YES! (more…)
Tags:atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, Buyers, closing, debt, Fannie Mae, FHA, Freddie Mac, georgia, Metro Brokers, Metro Brokers Financial, mortgages, Real Estate, real estate agent, VA
Posted in Agents, Buyers, Sellers, Uncategorized | 9 Comments »
August 2, 2010
Military personnel and federal employees who are “under water” with their mortgage can benefit from a program by the Department of Defense that is administered by the US Army Corps of Engineers under the Base Closure Act known as HAP (Homeowner’s Assistance Program). This program was extended under the American Recovery and Reinvestment Act of 2009. For full information, go to http://hap.usace.army.mil/
This program was originally designed to apply to members of the military or federal employees who owned a principal residence in an area where a base closure or realignment caused the values of the homes to decline. (more…)
Tags:American Recovery and Reinvestment Act, atlanta, atlanta real estate, Base Closure Act, Better Homes and Gardens Real Estate Metro Brokers, dana eskridge, Foreclosures, georgia, HAP, Metro Brokers, military, mortgages, Real Estate, short sales, Tips, US Army Corps of Engineers, veterans
Posted in Buyers, Sellers, Uncategorized | 5 Comments »
July 19, 2010
With the new LQI (Loan Quality Initiative), buyers better not make ANY purchases until after closing or there might not be a closing! Even after the mortgage loan is approved, lenders now do a final credit check to make sure nothing has changed.
This means that homebuyers could now find their closing stopped the day of closing if they make any new purchases or changes to their credit, income or assets after they make loan application. The LQI rules require lenders to re-check all of the borrower’s data to ensure that there have been NO changes since the loan application.
In the past, homebuyers were sometimes advised by their Realtor and Loan Officer not to make any purchases or open any new credit until AFTER the closing. Now with the new LQI lender re-verification of the borrower’s mortgage file within days prior to closing, homebuyers could stand to lose more than their loan approval. (more…)
Tags:atlanta, atlanta real estate, Better Homes and Gardens Real Estate Metro Brokers, buyer, Fannie Mae, FHA, georgia, Judy Jones, loan quality initiative, Metro Brokers, Metro Brokers Financial, mortgages, Real Estate, real estate agent, seller
Posted in Agents, Buyers, Sellers, Uncategorized | 4 Comments »
June 28, 2010
If you are having difficulty making your mortgage payments because you have lost a job, had a reduction in income or had an increase in your payments, foreclosure may be avoided. Here are some steps to take:
1. Don’t ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Avoid foreclosure prevention companies. You don’t need to pay fees for foreclosure prevention help–use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender and a trained real estate professional will provide free.
(more…)
Tags:atlanta, atlanta real estate, dana eskridge, Foreclosures, georgia, Metro Brokers, mortgages, Real Estate, real estate agent, short sales, Tips
Posted in Sellers, Uncategorized | 16 Comments »
June 14, 2010
The current economic climate we find ourselves in could easily be titled, “The Good, The Bad and the Ugly”, “The Best of Times and the Worst of Times” or even, “I have good news and I have bad news”
I’m a very strong believer that if you know what to expect and have an understanding of possible challenges and plan for them and anticipate them, bad news or challenges can be overcome.
Well, here’s the GOOD News:
• Interest rates are at 50 year lows.
• Home prices are at 10 year lows in some markets.
• It’s a buyer’s market.
• FHA HUD homes can be bought with $100 down.
• There are a large number of homes to choose from.
• Etc., Etc.
Some have grown complacent to all this good news. Some even thought there was better news coming and missed the only Federal Homebuyer Tax Credit in History!
Well, here’s the BAD News:
• The low interest rates mean that Lenders have more to lose than gain by making loans!
• These lenders have already lost large sums due to unpaid mortgage loans that have resulted in the drop in home prices.
• Risk rules the Lending world today, making getting a new mortgage a very difficult and long process.
So, be prepared for the reality of the new lending requirements. It’s definitely worth it when you consider what they have to gain.
(more…)
Tags:atlanta real estate mortgages, Judy Jones, lending requirements, Metro Brokers Financial, mortgage industry, mortgages, obtaining a mortgage, risk
Posted in Agents, Buyers | 8 Comments »
April 12, 2010
Wow! New Good Faith Estimate(GFE) rules from HUD, new HUD-1 Settlement Statements for use with the new GFE’s, new appraisal rules for Conventional loans, new HERA (Housing and Economic Recovery Act) rules affecting most loans and designed to give consumers time to rethink mortgage scenarios…..it’s mind boggling.
OK, so the lender can’t order my appraisal (or collect the money to pay for it) until four business days after I apply for the loan, but they MUST issue me a binding GFE within three business days of my application….I get that.
But what if something changes along the way? What if I decide to add some upgrades to my house and the price increases? Or I decide to try for a 15-year loan instead of a 30-year loan? Or what if we can’t close within my loan lock-in period and interest rates change? What if I win the lottery and decide to make a larger down payment?
(more…)
Tags:ann bone, closing delays, good faith estimate rules, HUD changes, HUD-1 settlement statements, mortgages, Real Estate
Posted in Agents, Buyers, Sellers | 5 Comments »
August 6, 2009
It’s been an interesting week. On July 30, the Housing and Recovery Act went into effect. Now, the nation’s 12th largest mortgage investor, Taylor, Bean and Whitaker (TB&W) Mortgage Corporation has closed its mortgage lending operations.
TB&W served as a major wholesale investor for many major mortgage brokers, such as Metro Brokers Financial, Inc. as well as smaller mortgage banks nation wide.
(more…)
Tags:Judy Jones, loans, Metro Brokers Financial, mortgage lending operations, mortgages, Real Estate, Taylor Bean Whittaker, TB&W suspension
Posted in Agents, Buyers, Sellers | 16 Comments »
My heart goes out to the good folks in the mortgage business these days. Business is TOUGH! 
