Real Estate

Home Loan Modifications Negotiated by Licensed Attorneys. Real Estate & Mortgage Laws and Guidelines are Complex. Beware of the Banks Loss Mitigation Department. Go To http://RealEstateMarketingThisWeek.com

Part 6 (Excerpt)

Fannie Mae is proposing to give you a 50 year loan with an adjustable rate

The next one is that your loan to value on your house has to be at least 90% of the property value. So in other words everyone under 90% gets foreclosed on? Right, if you only owe 80% of what your home is worth, they can foreclose on you, take your house and they dont lose as much money.

Back when I was working with Fannie Mae selling repos almost 20 years ago now, they always gave us the figure that they lost 20% of the homes value every time they had to foreclose. So they have plenty of room to sell your house if you only owe 80% on it. So if you owe, lets just throw out some numbers here, lets say your house is worth $100,000 and you owe $80,000 on it, well they are going to lose a little bit but they are going to make it back when they sell your house for $100,000.

Yes, they would just as soon kick you out and keep their money. Yes, exactly I am not necessarily going to say that Fannie Mae is going to kick you out of your house, however the reason why they have this guideline is very simple, they are not going to lose money on you if they have to foreclose on you when you are under 90%. They certainly are not going to lose very much money.

If you have subordinate loans it may be left outstanding and will not be considered in the LTV, so lets just give an example here, your house is worth $300,000 and you have a $300,000 1st mortgage and you happen to have a $50,000 second mortgage. They will re-modify your 1st mortgage but leave the 2nd mortgage in place. So people get to stay underwater, or upside down.

Well certainly you would be in that case and it just does not sit right. The best thing I certainly would like to see them do if nothing else in a situation like that is combine it all into one loan at a much lower interest rate. Because you know that 2nd mortgage is probably going to have a high interest rate. So it would just be so much better.

We need verification of income that makes sense. Here is one I dont get, 38% as far as your debt to income ratio. That seems kind of high to me. What do you think Michael?

Well I think that people who have gotten themselves into trouble and they need to do something like a loan modification then 38% is probably on the high side. People need relief, but they need relief that is going to last a long time. Even though this is essentially a trial-period loan modification this particular guideline of 38% really does not set well with me, I personally think it needs to be lower. People need a break; people need to be able to stay in their house.

Well what I was looking at is your average family; I always think probably pays about 30% of their gross income towards taxes, payroll, and things like that, so right off the bat Uncle Sammy takes 30%. Well now that Fannie Mae and Freddie Mac are owned by the government Uncle Sammy is going to get another 38% out of your paycheck which is a total of 68%, that doesnt leave a whole lot of money does it? Especially if you have a car payment, or you have kids to feed, maybe who go to daycare while you go off to work, assuming you still have a job. The unemployment rate is pretty high.

Well in order to qualify for this you do have to have income so you do have to have a job. So moving on to the next one because we are getting a little short on time, what they are going to do is take all of your back interest, escrow advances, costs, fees, everything they are going to add it to the loan amount and have you pay it back over as much as 50 years, if they need to stretch it out that long. Theyre going to give you a 50 year mortgage? I looked at that and thought, why dont you make it interest only because you are never going to pay the thing off anyway.

Lowest acceptable rate that they’ll have is 3%. The real kicker, if they get you a rate of 3% it will be an adjustable rate because it’s below today’s market rate. Your rate will actually increase starting five years from now at 1% per year until it gets up to the market rate. So not only are they getting a 50 year loan that you will never pay off, theyre giving you an adjustable-rate loan on top of it. If they give you 3% today it will begin to adjust up in the five years until it reaches today’s market rate. I think today’s market rate is about 6%, so you may get 3% for a couple years but eventually they go back up to 6%…

Duration : 0:6:35

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Enjoy the largest 2-bedroom unit, nearly 1000 sq. ft., in this very pretty garden-apartment complex.

Its got a sparkling new kitchen and bath, hardwood floors, new double-paned windows, living room built-ins, in-wall A/C and ample closets.

The handy basement affords plentiful storage and a bright laundry room.

From this central Montclair Center location, youll be able to appreciate the full extent of downtown life dozens of restaurants, art museum, library, cafes and boutiques on scenic Church St., Whole Foods Supermarket, and the fabulous new Wellmont Theater live-event schedule thats just blocks away.

Theres garage parking available at $30 per month in the development and on-site outdoor parking is free.

Maintenance on this unit includes heat and water. Best of all, youll have your choice of convenient bus or train transportation to Manhattan or Newark!Its a wonderful choice whether youre looking for your first place or downsizing from a larger home!

Duration : 0:0:58

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Just what is an as-is contract? Can you still negotiate? This video is part of My First Place show SHOW DESCRIPTION :My First Place follows the journey of real-life first-time buyers through the trials of finding and financing their first place. Every episode offers useful nuggets for viewers who want the latest info on securing financing in a down market, plus proven know-how straight from real estate professionals! See a set of first-timers and their realtor along the stress-filled journey, including the exciting search for the perfect home, learning the pitfalls of financing, the best bidding strategies and how to survive the home inspection. Their journey ends in the emotional culmination of homeownership – or sometimes not. Inevitably there’s a compromise to reach closing on a new home for the first time.

Duration : 0:2:3

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Hi this is Dave Stech again and thank you for listening to what is now the second in a series of videos we’re doing on the GO Zone. And in this case I want to talk about Why the GO Zone. Why is it that I would be interested – or you should be intersted – in investing in the GO Zone, or the Gulf Opprortunity Zone Act of 2005.

It’s basically all about why you would invest in the first place. We call it the investment triad. Any time you’re trying to do anything i- at least in the form of making money – what you’re trying to do is accumulate wealth, generate cash for income, and keep as much of both as you can.

We’ll talk at another time about accumulating wealth and generating cash, but the thing that the GO Zone offers you, above and beyond everything else, is the ability to be able to save on your taxes. That’s that “keeping both” category.

The way that you keep the wealth and the income that you accumulate is by reducing your tax liability, and reducing your personal liability. From a tax liability standpoint, the GO Zone, unlike any other real estate in the 230-year history of our country, offers an unprecedented 50% first-year tax write-off. Let me repeat that. A 50% first-year tax writeoff, which is 14 times more, as a writeoff, then you’ve historially gotten from real estate. It’s only available through the end of 2009, and offers a huge opportunity to not only reduce your income this year, but recoup income taxes paid in the last five years, or mitigate or eliminate the taxes that you’ll pay in the next 15 years. It’s a 20+ year window of tax opportunity, just for buying a single piece of real estate.

So you have to decide. Do I want to pay Uncle Sam, or do I want to legally avoid paying? You choose.

Duration : 0:2:11

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Contact Us:

239-206-4500
eo@2hot4realestate.com

This is the first episode of my new weekly show. I know it’s a bit rough. The sound will improve, so will the content and imagery.

“2 Hot 4 Real Estate” weekly show will bring you:

- Most interesting and useful Florida real estate and financial news

- “Home of the Week”, a review and a tour of a hand picked house in Florida.

- “Things To do in Florida”, a segment about place to go and things to do around the state of Florida

- “Celebrity Homes”, best and most interesting news in celebrity real estate

- “Question of the Week” will consist of E’s question for you , as well, as any of your question pertaining to real estate and more.

I hope you enjoy it!

Please subscribe, favorite, rate and comment.

SEND IT TO ALL OF YOUR FRIENDS! SPREAD THE WORD!

And of course, any questions, and future episodes suggestions are welcome.

In this Episode:
News: Chinese Drywall, Tax Credit, Banks’ Meltdown, Ben Stiller’s House and guest starring Alice.

Tell me what you think of Alice, I might make her a permanent guest on the show.

If you’re interested in Florida real estate, contact us at the number below:
239-206-4500
eo@2hot4realestate.com

Duration : 0:4:43

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February 2010 Cusotmer Success Story Contest 1st Place

When these customers returned home, they noticed things amiss in their bedroom. It lead them to check out the recorded video. Their Logitech video security camera captured their agent (without any potential buyers/clients) rummaging through drawers and PC hutch.

Learn more about Logitech Video Security Systems and cameras at http://www.logitech.com/index.cfm/video_security_systems/

Duration : 0:0:52

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Band Members:

Guitar: Shadowstep
http://www.youtube.com/user/ShadowstepSH

Bass: Gazoroth
http://www.youtube.com/user/Hellsbones

Vocals: Xemhanort
http://www.youtube.com/user/xemhanort

Drums: RustyWaffle
http://www.youtube.com/user/RustyWaffle

Duration : 0:5:27

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Home Loan Modifications Negotiated by Licensed Attorneys. Real Estate & Mortgage Laws and Guidelines are Complex. Beware of the Banks Loss Mitigation Department. Go To http://RealEstateMarketingThisWeek.com

Part 4 (Excerpt)

The pitfalls for trusting your bank one more time; Beware The Foreclosure Sharks

This whole loan modification thing reminds me a lot of the old Peanuts comics where every fall Lucy would get out with the football and she would set it down on the ground, and she would coerce Charlie Brown into coming along and kicking the football. Well of course as we all know Charlie never got to kick the ball, Lucy always pulled it out from underneath him and I kind of look at the mortgage industry, the servicing end of it in particular that way.

You have to think about it, in many cases the loan that you were put into was not a good loan in the first place. The person who gave you that loan knew it was not a good loan, the Wall Street banks that came up with these crazy ideas should have known better. Now admittedly they didnt otherwise they would not be out of business today, but they should have known that these were not good products.

Yet when you are faced with an issue regarding your house so many people go back to the bank, like Charlie Brown going back to Lucy and believing that THIS time Lucy is not going to pull the ball away. Well what is going to keep the bank from not pulling the ball away from you this time? Absolutely nothing.

I love that analogy; everyone remembers the Charlie Brown show and the comic books like you said. Another thing I want to point out too, going back just a little bit, you mentioned the lenders who put these home owners into these loans knew that they were not good loans. My thoughts after some of the mods that Ive seen, that you and I have seen doing the forensic audits, the home owner could have qualified for an FHA loan in those times, but it was so much easier for banks to put them into these sub prime loans because the documentation was easier, and it was just easier.

It is not just that they are easier; I know that your firm, Velocity Financial is FHA approved but what percentage of lenders today when, we probably have maybe 30% as many lenders as we had two years ago, what percentage today is FHA approved?

In the state of Arizona, of all the lending institution, less than 15% of all mortgage firm, banks, credit unions, less than 15% are licensed by the federal Housing Administration. Velocity Financial is proud to be one of those firms.

What I saw back in the peak of the market is of course everybody thought that real estate was going to go up for ever. Every body wanted to jump on board and buy 3,4,5,6 properties and I always tell the story that I knew we were in trouble, I knew we were hitting the top of the market long before I developed any of the models for Real Estates Future when I walked into our bank one day and I saw that they had a loan that was 100% financing for someone to buy an investment property and they didnt have to prove their income and they only needed a 620 FICO score.

Which considering everything now, I mean, to get a Fannie Mae loan today what kind of a FICO score do you need? If youre an investor? If youre an investor you need 720 and probably 20% down, at least 20% down and certainly it is not stated income anymore. No that doesnt exist, and significant cash reserves, the whole nine yards.

So these banks knew the kind of garbage that they were giving to people and yet we are supposed to trust them to get us good loan modifications. I think that in one of the later segments we are going to talk about the newest guidelines that just came out from Fannie Mae and Freddie Mac regarding their new fancy-schmancy loan mod program and to be honest with you I dont think it really does much for people at all. We will talk about that in the next segment and to the people who are in the mortgage or real estate industry or who have been in the real estate or mortgage industry it is going to sound a little bit like a comic bit because this might as well be bath tissue, I dont even know why they came out with it.

We are going to talk about that along with a few other things, so real quick I know we havent had too much of a chance to talk about The Foreclosure Sharks, Dan but we will touch on that a little bit later. How do people get a copy of this white paper, The Foreclosure Sharks these are things that people need to be looking out for?

Yes, for The Foreclosure Sharks you can go to my website, http://mortgageanswerman.com. There will be a link there you just click on it and pick yourself up a copy and it will help if you are in a foreclosure situation if people come knocking on your door it will help you to at least know what to look out for. So mortgageanswerman.com for The Foreclosure Sharks…

Duration : 0:6:54

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Mortgage rates have hit an all-time low, which is causing many to call it a buyers’ market— but experts say it’s more complicated than that.
On Thursday, mortgage rates were about 4.7%, but on Friday, they rebounded to nearly 5% as Wall Street reacts to better-than-expected unemployment numbers.
One local mortgage banker says it’s still not easy to get a home loan.
25-year-old Christopher Regan just bought a 3 bedroom, 2.5 bath home for a deal he couldn’t pass up.
“This is our first home, and it’s kind of exciting,” Regan said.
He says an $8,000 tax credit and rock-bottom interest rates sweetened the deal.
“Even at a 6 percent, or a 6.5 percent, in my eyes that’s still good. It’s lower than my car rate,” Regan said.
Mortgage banker Debbie Bulcock says gone are the days of the so-called “liar loans,” when people didn’t have to prove their income.
“They’ve turned around 180 degrees,” Bulcock said.
She says people need to have good credit, job stability, and a cash cushion— and she doesn’t think that’s a bad thing.
In fact, she says lowering standards is what got us into the mortgage mess in the first place.
“Just putting them into a position where they can’t win. They get a month behind; the late fees stack up, and they can’t catch up,” Bulcock said. “It’s not a good thing to put somebody in that position.”
Realtors say the real estate market is rebounding as the number of homes sold in October increased nearly 40% compared to the year before.

Duration : 0:1:49

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I seriously laugh so hard my side hurts when I read what people have to say on here. And no, I’m not casting any insults right now.

I hear a lot say that Bush is the boogy man or Hilary is the boogy man or Gore is, etc etc etc.

Fact is people, the two leading political parties in this country all crap in the same places. Foreign oil, pharmasuticals, BIG insurance companies, realestate, the auto industry and electricity. Sniff around a little and you will see a lot of names of people who you would never suspect.

It truly is possible to hate a politician to the point of becoming paranoid that they are out to get you. Don’t forget that we elect them and alot of the people that scream the loudest don’t vote when the polls are open.

Is the current administration corrupt? DUH! Was the previous one corrupt? DUH! Remember, polititians don’t spend millions to get into office for YOUR personal gain…but for their own!

Sorry if my spelling sucks…I still on my first cup.
I agree…they all stink like rotten meat!
susi, flattery will get you everywhere. But becarefull…he bites.

I know they Both like the Illegals… Dems like the Vote, Repubs Like the Labor.