How is the Real Estate Market in San Diego?

The real estate market in San Diego has been slow to say the least. Property values are dropping fast and the foreclosure signs are popping up all over the place. It would probably be a few years before the market turns around there.

The next phase of loan resets should hit in 2009. Once this is through I think we will see where we are at in terms of market exposure.

http://www.mylesweisman.com/

What is a relo?

What is a relo? The term relo stands for relocation property. A relocation property is a property that was purchased by a company for an employee who is being transferred to a new location. A relo is considered a benefit to the employee because they don't have to worry about selling their home. They just get a check from the relo company. The relo company takes on the burden of selling the property.

What is a RELO?

Real Estate Articles

What is a BPO?

What is a BPO? BPO stands for broker price opinion. A realtor will do a bpo for a bank, lender or homeowner who is seeking to know what the value of their home is.

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Real Estate Articles

Ameridream could be going away

Ameridream could be going away. That is if congress has anything to say about it. Under proposed legislation, an estimated 100,000 home buyers would be negatively impacted each year. The worst part about this is that it comes at one of our worst housing slumps in history. We need Ameridream to help keep the real estate market moving. Call 202-224-3121 and tell your elected official to keep DPA and down payment assistance programs part of the down payment option.

What is Ameridream

What is a amb4rloan finance loan?

What is a amb4rloan finance loan? Who knows but you can find more information on finance at GetPrequalified.com

What is a qmberloan finance loan?

What is a qmberloan finance loan? It is most likely a misspelling for cumberland finance loan.

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What is loan modification?

What is loan modification? Loan modification is where you have a lender modify your original mortgage loan. You may have a situation where you are upside down or cannot make the new adjust interest rate payment. Lenders do not want to take your property back. They are very interested in helping you stay in the property. You must be able to demonstrate a hardship. So don't be surprised is they ask you for tax returns and bank account statements.

Mortgage Articles

What is a foreclosure?

What is a foreclosure? A foreclosure is a process that a bank, lender or individual goes through to legal take possession of a property when the owner fails to pay the mortgage.

Foreclosure Articles

What does REO mean?

What does REO mean? To some REO might mean REO Speedwagon but in the real estate business REO means Real Estate Owned. This signifies that a bank has taken a property back during a foreclosure and is now selling it.

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Publish your real estate, mortgage, debt and credit articles now on GetPrequalified.com

How do I publish my articles online? The answer is simple just go to GetPrequalified.com and read the editorial guidelines. You can publish anything relevant on mortgages, debt negotiation, real estate, debt consolidation, home improvement and credit repair. We will even give you a back link. For more information please go to GetPrequalified.com and read the terms of publication on the home page.

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Do I need Identity Theft Protection?

Do I need Identity theft protection? You probably have seen the commercials all over the TV for LifeLock. Todd Davis the owner of LifeLock is proudly displaying his social security number all over a city bus in public. He is so confident that his service works that he is offering up to one million dollars of theft protection. These services are good, but your homeowners insurance policy may have you covered. Just call your insurance agent to see if you already have protection before you sign up for a credit protection program.

Identity Theft information

What is a Fraud Alert?

What is a Fraud Alert? A fraud alert is a way to alert the credit bureaus that you have had a case of identity theft. If you want to open new credit after the fraud alert has been implemented, you will be called by the credit bureaus to make sure that it is valid. It makes it tough for a thief to open a new credit account because you will get called first before they can do anything. If you suspect that an identity thief has gotten a hold of your information you need only call one of the three credit bureaus to activate it across all three credit repositories.

Call the credit bureaus to active a fraud alert on your credit report

The Equifax fraud line is 1-800-525-6285

The Experian fraud line is 1-800-397-3724

The Transunion fraud line is 1-800-680-7289

Remember that you only need to call one.

I need information about credit reports

What happens if Fannie Mae and Freddie Mac go under?

What would happen if Fannie Mae and Freddie Mac go under? If Fannie and Freddie were to fail, the real estate market would have a big problem on its hands. Cheap mortgage loans would probably dry and thus causing the real estate values to plummet. If you did want to get a home, the interest rate that you would pay would be a lot higher. Fannie Mae and Freddie Mac buy over half of all mortgage loans originated in the United States. If the government would not let Bear Stearns crash I can't see how they could let these two mortgage giants fail.

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How do you get Free Money

How do you get free money? You can get free money to buy a home from the Ameridream corporation. You can get up to a 10% gift of the purchase price. You never get it back and its yours to keep. All you need to do is ask you loan officer to enroll you in the Ameridream program. It is that easy. The only kicker is that it will only work for an fha loan.

How do I get free money

How do I get rid of PMI?

How do I get rid of PMI? If you have mortgage insurance or private mortgage insurance you will need to keep it for at least two years. If you pay down your mortgage to 80% of the original purchase price and you are past the two year mark, the lender has to take it off. I would call your bank and ask them for what their policy is for for getting rid of the mortgage insurance. The other option is to have your home at a 78% LTV. This means that the mortgage is 78% of the value. Well why wouldn't I do it at 80%? If you didn't put a lot of money down on the property and the value went way up in a two year period, you would not have to personally pay it down to the 80% level. The real estate market can help you get to a level that a bank will let you get rid of the pmi. You can either pay it down to 80% or let market appreciation get you to 78%. Either way this will help you get rid of the pmi. Getting rid of that extra payment each month will be very nice.

Additional information on how to get rid of pmi

Ameridream may be going away - ameri dream

Hud is trying to impose a new rule to get rid of the charitable down payment assistance programs like Ameridream. Tell Hud that that would be a disaster in todays real estate market. Anything we can do to stimulate the real estate market would be a good thing. Taking dpa away would cut out 200,000 housing opportunities a year. Imagine what this would do to an already sluggish housing market. Tell Hud they have it wrong. Tell Hud that they need to support Ameridream and other down payment assistance programs. Go to Support Home Ownership to leave your comments.

What is Ameridream

What is Ameri Dream?

What is Ameri Dream? Ameri Dream is a down payment assistance program to help low and middle income people buy homes. You can get up to a 3% down payment gift through the Ameri Dream non profit foundation. You can also get an additional 3% assistance for closing costs. So you can buy a home with no money down and no money out of pocket with Ameri Dream. The best part is that you can move into your new home with an immediate 3% equity. This is even a better deal than the Fannie Mae My Community loan program. On the My Community loan program you could get in for no money down but you would not have any equity if you did the 100% loan.

What is Ameri Dream?

Mortgage Education

instant credit builders

Instant credit builders will be more interesting to you if you need to get your credit scores up fast. The first thing you want to do is to see if you credit bureau is even reporting correctly. Over 90% of all credit reports have errors. These errors could be pulling your score down. If there are errors on your credit report, you will need to write the credit bureau about having those items taken off. If your credit card has a zero balance, don't close it. If you close your credit card, all of your credit history goes with it. A good portion of your credit score is determined by your credit history.

Credit Report Tips

Instant-Credit-Builders

Lynx Gas Grill - Keep your summer AC bill down

The Lynx_Gas_Grill will help you keep your summer air conditioning bills down. Cooking inside only heats up your home, thus running your air conditioning more which will raise your bill. Using the Lynx-Gas-Grill is fun as well. There is nothing better than a beer in one hand while flipping burgers with the other. It's also a great excuse to have a party. Don't delay pick up your Lynx Gas Grill today and start saving.

Lynx_Gas_Grill

Credit Builders - What will work to raise my credit score

Credit Builders that can help raise my fico score. If your credit score is low, you may want to know some of the best ways to increase your credit score. The simplest way to increase your credit score is to pay your bills down to 30% of the available credit on them. Once you go over 30% of the available credit balance, you start to show up on the credit bureaus screen and they penalize your score. Pay your bills on time. Late payments are a killer to your credit score. One late payment can drop your score up to 100 points or more. Besides you don't want to start getting hit for late fees.

Tip to improve my credit score

E Loans Free Credit Score Offer - Is it useful

E Loans free credit score offer will give you a CreditXpert credit score. It is not a score from the three credit bureaus, those being experion, equifax and transunion. The credit score that you get from ELoan will not be useful to you for getting a mortgage at any other mortgage company. The only place the E Loan Free Credit Report will work will be at ELoan. (What is the E Loan credit report offer)

How do I raise my credit score?

How do you dispose fluorescent light bulbs? Answer: Home Depot

How do you dispose fluorescent light bulbs? The worlds largest home improvement retailer Home Depot announced today a program to forward favorable environmental protection. They will be launching a national in store consumer compact fluorescent or CFL bulb recycling program at all 1973 Home Depot locations. The bulbs must be unbroken. Just bring them in and Home Depot will dispose of them properly.

How can I go green?

What is FHA Secure?

What is FHA Secure? FHA Secure is for homeowners that are behind, getting behind or have had recent late payments on their mortgages. The government stepped in and created this program to give relief to homeowners. Many of these homeowners have subprime mortgages that are going to adjust. Many of these homeowners will be unable to afford the new payments when their ARM loans adjust.

If you are concerned about your mortgage adjusting or the payment is too high contact any lender or mortgage officer. FHA Secure is offered across the entire country. Do not delay if you are in trouble. The sooner that you act the better.

What is FHA Secure

How do you get an FHA loan?

How do you get an FHA loan? It's actually very easy. The majority of mortgage brokers, banks and lenders can arrange an FHA home mortgage for you. FHA allows people to buy homes with lower credit scores. You can even have collection accounts. Ask your loan officer to see if the can pre qualify you. It should not take very long and there should not be a fee to do this. You may also want to ask about the Ameridream gift program. You can get up to a 3% gift of equity with this program so be sure to ask. A seller has the option to pay all of your closing costs as well. So technically you can buy a home with an FHA loan with no money down and and no money out of pocket.

FHA information

When is my mortgage payment due?

When is my mortgage payment due? Your mortgage payment most likely due on the 1st of each month. Most lenders do their accounting with mortgage payments being due on the first. There are a few lenders like World Savings can have their due date on a different day of the month. My old World Savings loan was due on the 15th of the month. Like I said earlier, your payment will most likely be due on the first of the month. It will be late after the 15th of the month and will show up as late on your credit report once you go over 30 days. So the late that is going to be bad for your credit report will show up after 30 days from the due date have passed.

To be on the safe side, just get your payment in on the 1st of each month.

When is my mortgage payment due?

Mortgage interest rates hit the bottom

GetPrequalified.com is making its official statement that this is the bottom of the mortgage interest rates. Rates wont be going any lower. If you have been waiting to refinance your home or buy a home, you may not want to wait any longer. If you are waiting for lower rates, you may be disappointed by getting higher rates in the future.

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Wilmington Finance closes its doors - Another one bites the dust

Wilmington Finance will be closing its doors. Another dead body of the mortgage crisis. Wilmington Finance was known for Alt A and some sub prime products. My guess would be the losses just started to pile up to high.

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energia solar - solar energy, now is the time to act

Energia solar when translated to English simply means solar energy. Solar energy is what we need to be seeing more of as the cost of gasoline and fossil fuels keeps rising. In the southwest where there are over 300 days of sunshine every year, energia solar just makes sense. I think government needs to get in with mandates and incentives for people to start installing solar devices on their homes. Anything we don now will impact our future greatly. Fossil fuels will not be able to carry the day in the future. We need to act now. (solar energy articles)

E Loans Free Credit Score Offer - Useful For A Mortgage?

E Loans Free Credit Score offer does not give you your real credit scores. To get them, like so many other free credit report and credit scores you have to pay for them. On FreeCreditReport.com you will get a free credit report, but you will also be enrolled in a credit protection program to get the free credit report. The credit protection program cost money. So it's not really free. Just be sure to read the fine print before you sign on the dotted line for a free credit report. (Free Credit Report Information update)

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Fortuna Murcia Property Spain - Real Estate Investing

Real Estate Investing in Fortuna Murcia Property Spain could be a smart thing to do in 2008. Regions in Spain have huge inventories including Fortuna and Murcia. (The real estate market in Fortuna Murcia Spain)

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Servamatic Solar Hot Water Heaters - Low cost solar solutions

Servamatic Solar Hot Water Heater Systems are cheaper then PV systems and they are nearly maintenance free. Convert your hot water to solar. Solar hot water heaters can provide year round hot water in most climates. (Servamatic Solar Hot Water)

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Solar Panel Narrowboat Conversion - Becoming More Popular

Solar Panel Narrowboat technology reduces environmental damage caused by running on diesel and reduction of noise pollution. Save money, make a difference and convert to solar. Solar solutions may be the best chance we have to reduce greenhouse emissions. (Solar Panel Narrowboat article)

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Property Lanzarote - Some interesting tips for buying in Lanzarote

Lazarote is an island that is about 80 miles off the coast of Africa on the Atlantic Ocean. It is part of the Canary Islands. It is the fourth largest as well. If you are buying property there you need to be aware of the sellers unpaid bills. If you buy a home in Lanzarote and there are unpaid bills, the new buyer inherits them. You need to have a solicitor check the record to make sure that you are not getting more than you bargained for. The other thing is that no one agent lists a home for sale. It is possible for a property to be listed for sale by more than one agent in Lanzarote. It pays to speak with a few agents about a particular piece of property that you are interested in.

Additional inforomation on Lanzarote

Property Tax Consultants - 1031 tax deferred exchanges

Property Tax Consultants can help you save a fortune in deferring capital gains on your investment property. A 1031 Tax Exchange is a great way to defer capital gains taxes on sold real estate investments. There are some rules to follow - learn the basics. (What is a 1031)

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Fortuna Murcia property Spain - it could be a great time to buy real estate in Spain

Real Estate Investing in Fortuna Murcia Spain Property could be a smart thing to do in 2008. Regions in Spain have huge inventories including Fortuna and Murcia. Real Estate markets never stay the same. Now could be a great time to purchase property in Fortuna Murcia Spain. (Fortuna Murcia Property Spain)

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You may not be able to use disability income to qualify for a mortgage

On a loan that I was working on for someone, I ran into a bit of a snag when it came time to verify the disability income with Social Security. To be able to count an income stream for conventional financing, you must be able to demonstrate payments for 3 consecutive years. That's fine, but the social security administration will not provide a letter stating that they plan on making these payments out to the beneficiaries. I asked someone there why and I was told that their position is that everyone is rehab able. From this standpoint anyone can get better, therefore no 3 year letter.

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What is Debt Negotiation?

What is debt negotiation? Debt negotiation is an alternative to bankruptcy. If you are behind on your credit cards and unsecured debt, you do have options. Often times you can settle your debt for pennies on the dollar. The average debt negotiation settlement will range anywhere from 40-60 cents on the dollar. Once the debts are settled with you creditor, your credit score will go up. You will no longer have negative trade lines reporting on your credit report. If you are having financial trouble, debt settlement is a great option but it still may not be appropriate for you. You still may want to speak with an attorney just to see what the ramifications are of your financial condition. Do your homework before making your decision. Getting out of debt is one step at a time.

Get me out of Debt

Mortgage Rates could be in for a bumpy ride

The stock market has been on a wild ride of late. Mortgage interest rates have also been along as a passenger with the market. I have seen .25% swings in one day. If you are in the market for a new mortgage, you need to pay attention to the stock market. I recomend being in close communication with your mortgage broker or mortgage banker about locking. One hour can make a big difference if the market decides to take a tumble or surge. You need to be ready to act quick because mortgage rates don't seem to stay in one place for very long.

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What is the BBB?

The BBB stands for the better business bureau. The BBB is designed to help you find trustworthy and responsible business and charities. It gives you information about a company before you do business with them. It can also help you resolve a complaint that you have with a business. It will also alert consumers to bad business and advertising practices. If a company wont cooperate with the BBB they will be eliminated from the rating system.

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What is a secured loan?

A secured loan is a loan that is collateralized by an asset. For example a home and a car are secured by the home or the car. If you stop paying on them, they will be foreclosed or repossessed. The bank or finance company will hold on to the deed or title until the loan has been paid off in full. Secured loans are the best way to get large amounts of money fast. A lender is not likely to loan a large amount of money to you without some skin in the game.

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What is APR?

APR is also referred to as the annual percentage rate. It is a figure used to disclose the cost of credit. It is the yearly amount a borrower must pay for getting a loan or other type of consumer credit. By law, lenders are required to disclose this number to consumers. The function of the APR is to allow consumers to compare the costs of financing from different financial institutions. The APR makes it more difficult for banks and lenders to hide fees.

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What is Freddie Mac

Freddie Mac stands for the Federal Home Loan Mortgage Corporation or FHLMC. It is a federal controlled organization designed to support the secondary mortgage market. It was originally chartered by Congress to increase the supply of funds that mortgage lenders, banks, mortgage brokers, credit unions and savings and loans to consumers to make home purchases. Freddie Mac was started in 1970, and is a business that buys mortgages from lenders and packages the mortgages into securities and then sells the securities to Wall Street. The proceeds of the sale of the securities is used to issue more loans.

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What is Fannie Mae

Fannie Mae stands for the Federal National Mortgage Association. It is referred to as Fannie Mae, Fannie, FNMA or Fanny. Fannie Mae provides the secondary market for home mortgages. Fannie Mae has a specific criteria for mortgages that it sells. The loans are then put into mortgage pools and then are sold to Wall Street and other investment entities. Fannie Mae only deals in conforming loans. Currently a loan is conforming if it below a certain amount. For example in Maricopa County Arizona, the conforming loan limit is $417,000. Anything about this amount would be considered a Jumbo Loan and would have a different set of lending criteria.

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What is a 1031 exchange?

If you hear people talking about doing a 1031, they are referring to Section 1031 of the IRS code that allows real estate investors to sell an investment property and to buy another one with out paying capital gains taxes. To do a 1031, you do have to follow certain rules as prescribed by the irs tax code. The new properties that are going to be purchased must be Like Kind and must be identified within 45 days of closing of the initial property. All of the proceeds from the initial sale must be used to buy the new investment property and must be turned over to an intermediary or a Qualified Intermediary. The funds will be held in escrow until they are need to complete the next purchase. For the rules of doing a 1031 exchange, contact a title company. Most title companies have departments that specialize in handling 1031 exchanges. They can answer all of your questions.

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What is a FSBO

The acronym FSBO simply means For Sale By Owner. The term is predominantly used in the world of Real Estate. When someone sells their home without the use of a real estate agent they are selling their home on their own or they are For Sale By Owner. The benefit of being a seller and being a FSBO is that you don't have to pay a real estate agent a commission to sell your home and you can put more of the equity in your pocket at the time of closing. Buyers assume that since no commission is being paid to a Realtor they can get a better price. This assumption may not always be true since the seller probably isn't going to pass the benefit on to you as the buyer. It is mainly held to be more of a benefit to the seller of real estate and not the buyer.

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What is Ameridream

AmeriDream is a 501(c)(3) charitable organization that is committed to helping those who want to purchase affordable and suitable housing and need financial assistance with their down payment and closing costs. As a buyer you can negotiate with a home seller to give you a 3% down payment and cover all of your closing costs. This give you the ability to buy a home with no money down and move in with a little equity. To find out more about the Ameridream down payment assistance program, contact your Realtor or Loan Officer.

Additional info on Ameridream

What is Amortization?

A mortgage loan that is amortized has a fixed payment over a fixed period of years. Each payment has a portion of the payment going towards interest and principal. The longer the loan goes the higher the amount of the payment goes towards principal and a lower amount is charged to interest. Most of the interest paid on an amortized loan is paid in the beginning of the loan. In fact on a 30 year loan you don't even own half of your home until the 24th year. Your best bet is to pay as much as you can in the beginning of the mortgage to save yourself thousands of dollars.

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What is a balloon payment for a mortgage?

A balloon payment would be the amount of money that is due at the end of a loan. Not all loans are 30 years. Some mortgage loans allow you to pay a lower payment for a short period of years with a balance that is due at the end. Typically these types of mortgage loans are 5 to 7 years in length. They differ from adjustable loans in that and adjustable loan will have a rate adjustment at the end of the fixed period versus have the entire balance due like on a balloon payment mortgage.

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What is a wrap or wraparound loan?

Commonly referred to as a wrap, carry, carry back or wrap around loan, This type of financing is when a buyer takes over the payments for the seller. This allows the buyer to get a loan without qualifying. The only catch is that most residential mortgage loans have a due on sale clause. What this would mean for a wrap loan is that once the title is transferred to a new owner, the loan should be paid off. Most lenders don't have a habit of checking on the status of the title. The banks main concern is the the mortgage instrument is being paid. As long as it is not deficient they usually don't care.

If you are considering doing a wrap or wraparound loan, I would recommend speaking with an attorney first. This type of loan does come with some concerns that need to be addressed.

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Free money to buy a home

No I'm not crazy. With the Ameridream program you can get a seller to contribute 3% of your down payment for your home purchase. If you don't have any money, the fha will also allow a seller to pick up all of your closing costs. Effectively you can still buy a home with no money down and have equity in the property. The key is to find a seller that is willing to provide you this funding. With the real estate market the way it is, sellers have to be more aggressive in the marketing of properties. A seller can give you up to a 6% concession on an FHA loan. In a buyers market, you should be able to find a seller that is willing.

Get me gift money

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What is Chattel?

Chattel is a term used in the real estate world to refer to personal property. In a residential transaction, the purchaser is buying the real estated or everything nailed down to the property. If it is not nailed down, it is assumed to go with the seller. A refrigerator that is not nailed down is assumed to be the property of the owner and will go out the door with the seller. It is considered chattel. Unless there is a written agreement to the contrary, the refrigerator will go with the seller.

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What does Abeyance mean?

The term Abeyance is a french word that when translated means "gaping". An abeyance refers to property where there is an absence of clear ownership or title to a piece of real estate. Abeyance also carries the expectation that the ownership issue will be resolved in a quick and reasonable period of time.

During an Abeyance the property is not allowed to be sold. There must be owner of record for a property to be sold. Once the Abeyance is resolved, the person who is determined to be the owner will be responsible for the taxes.

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What is a REIT?

In short, the term REIT stands for Real Estate Investment Trust. A REIT is a company that owns and most often will manage income producing real estate. The US Congress established the REIT back in the late 1960s to give small investors the opportunity to invest in large income producing real estate. Most REIT stocks are traded freely on most major stock exchanges.

There are over 180 REIT entities today. Most REITs focus on one particular type of real estate. Others handle the management and the maintenance of real estate.

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What you don't know about Jumbo Loans may kill you

If you are trying to sell a home that would require a jumbo mortgage you may be in for a shock. What most people don't know is that their is a big difference between conforming loans and jumbo loans when it comes to interest rates. Jumbo rates can be as much as 3% higher than conforming loan limits. Some Jumbo mortgage interest rates are 9% or more. This is bad news if you are marketing a luxury home. These higher rates makes the pool of buyers much smaller. The best bet obviously is if they can pay cash. If not, you may need to wait it out or be very patient when trying to find a buyer. It is just going to take longer to get these properties sold. I think most people don't realize how much jumbo mortgage rates have jumped. This is just the banks way of hedging their bets right now. Banks have more exposure when it comes to jumbo loan. With all of the turmoil due to the credit crunch, many lenders are just skid dish now.

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Will Global Warming impact property values in the Southwest?

I have been hear more conversations in the media regarding the impact of global warming on property values. I just saw a story in Florida about owner that are concerned about their beach front properties being less desirable because of hurricanes and rising sea levels. A similar conversation has started in the Southwest in some of the most arid areas such as Arizona, Nevada and parts of California. Hot summers now would be unbearable if it were another 5 degrees warmer. I can't imagine anyone wanting to move to Phoenix with temperatures a constant 120 degrees in the summer. What do you think?

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There are no Stated Income Jumbo Loans

I have had two calls this week from self employed people who want stated income jumbo loans. To set the record straight, there aren't any anymore. If you are self employed and want to buy a home, you will have to start reporting your income. I just spoke with a gentleman who needed a refi on a $600,000 mortgage. He had equity in the home for it was worth over $1,500,000. I got his tax returns and he is reporting just over $50,000 in come. This was a well to do individual who was belligerent in his assertion that he should have no problem in getting a loan. Well the truth is the banks don't care who you are anymore, they are going by the book these days. If you don't have documentable income, then no loan for you. Stated income loans help people skirt the issue of declaring income. I don't blame people for wanting to reduce their tax burden, but it is time to pay the piper now.

What is Ameridream?

Ameridream is a non profit company that helps low to moderate income individuals or families by a home by providing down payment assistance. The Ameridream dpa program has been setting the standard for which all other down payment assistance programs strive to be. To get the Ameridream cash assistance, you must find a seller that is willing to participate in the program. The seller pledges money from the proceeds of the sale to the Ameridream foundation. In exchange Ameridream will gift the buyer the down payment needed for the FHA financing. Typically it is 3%.

More info on Ameridream

Interest Rates may have hit bottom according to the Federal Reserve

The fed made it's quarterly speech yesterday. It appears they are taking the stance of no further rate cuts. The market is now on its own. If you are waiting for interest rates to go any lower, they wont. If you think Obama is going to win the election you better refi now. I don't think interest rates are going to go any lower at this point.

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Is The Real Estate Market Ever Going To Come Back?

May 21, 2008

Is The Real Estate Market Ever Going To Come Back?

I hear it everyday… Will this real estate market ever come back? How long is this going to last? Have we hit the bottom yet? Well, the honest answer is, no one knows for sure. If you were to line up ten educated and seasoned real estate analysts, you’d surely get a 50/50 split in the opinions. Some say we’ve already hit bottom, other’s say we won’t see it until Spring 2009. It certainly seems like the newspapers do all they can to keep a negative spin on current conditions! I recently came across this excerpt from the Wall Street Journal, one of the finest of all newspaper publications. For once, a newspaper, more importantly, the WSJ offers a more positive spin which gives homeowners and consumers hope. Read on…

May 16, 2008 (Wall Street Journal) Home construction turned up unexpectedly in April and showed surprising vigor, making the biggest increase in two years, while building permits also rose, a sign of optimism for the sickly housing sector. Housing starts increased 8.2% to a seasonally adjusted 1.032 million annual rate, driven higher by a surge in apartment buildingconstruction, the Commerce Department said. Starts plunged by a revised 13.8% in March to 954,000. Economists expected April starts to drop by 1.4% to a 934,000-unit annual rate.

Written By: Dan Blew, Propertynut.com (with contribution from the Wall Street Journal)

Can I still buy a home with no money down?

Easy answer is yes. FHA has some great options available. With an FHA mortgage you are allowed to have a seller pay all of your closing costs and provide a down payment. You must find a seller that is willing to do this because all of this money comes out of their proceeds. But in a down market sellers are more willing to do this if they are motivated to sell their property. My advice is to find a Realtor this is familiar with FHA financing knowledge to help you work out a no closing cost home purchase.

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Your Realtor may ask you for money upfront due to high gas prices

With gas approaching $4 a gallon this summer, don't be surprised if your real estate agent asks for money up front before showing you property. It used to be that one of the perks of using a real estate agent was getting shown property on the agents nickel. I am now hearing reports of agents getting a fuel retainer to cover costs in looking at property. It is also a great way see if a buyer is really serious about looking for property or are they just tire kickers.

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How Do I Advertise My Property Online - PropertyNut

Need to rise above the competition with selling your home, or your property listings? Find out why PropertyNut.com is a great service in helping 1000's of houses for sale to get sold! (click for Full Story)

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PropertyNut.com Sell My Home

Get to Know the Power of FSBO - For Sale By Owner

If you are considering selling your home on your own, aka For Sale By Owner, or FSBO you should read this article. It is gratifying to sell your own home, but there are some things you ought to know before you set out on this journey.

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Real Estate Sales Contract - Unique Items To Observe

If you are selling your own home, you will need to be prepared. Read this article to get tips on what you need to know about the real estate sales contract click for Full Story)

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Need To Sell Your Home - Look Online For A Listing Agent

There are a ton of real estate agents, but not that many of them know how to effectively advertise homes on the internet. Most agents rely on their office to upload properties on the MLS and hope that the word gets out about their listings. This is not sufficient - Look Online For A Listing Agent


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How To Write An Ad For A Home On The Internet

There are many websites to sell a home online. And there are many homes for sale online. The key to getting your home found online is your ad. Write your ad for the home buyer - the searcher. Find more about how to write your ad to sell your home online.


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Credit Report companies do not allow Affiliate Marketing with credit repair companies

If you are a website owner and offer credit repair content on your website, credit reporting companies such as transunion, equifax and experion will not allow you to sell a credit pulling product on your website. Seems odd that the credit reporting agencies do not want you to get information that might help you improve your credit score. I saw this information on commission junction. I was interested in offereing people the ability to pull their tri merge credit report on my website.

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Foreclosures continue to rise in April

The new numbers on new foreclosures are out and they are not good. Compared to last years numbers, foreclosures are up 65%. Nationwide over 240,000 households received at least one foreclosure filing. This is up from just over 147,000 as compared to last years numbers. This is according to Realty Trac. The hardest hit states for foreclosure are Nevada, Arizona, California and Florida.

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Is debt consolidation right for me

Is debt consolidation right for me? It depends. If you have been late a few times and your rates have been raised to where your can't afford the payments anymore. You may want to consider a debt consolidation program. Typically we are talking about consumer credit counseling. It is no longer a dirty word. It used to be that in a CCCS program you could not get a mortgage. It was looked at as a chapter 13 bankruptcy. Now you can buy a home even if you are in a consumer credit counseling program. The history shows that people in a consolidation program are no more likely to default than people that are not in a program. One nice thing that a negotiation program can do for you is to stop rolling lates and over the limit fees. This can be a real killer for people.

Before you sign up for any program, check online with the rip off report and the Better Business Bureau.

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Debt Negotiation may be cheaper than filing a Chapter 13 bankruptcy

I just had a client that was interested in doing a debt negotiation program. They checked with their attorney to see what the monthly payback would be and it worked out that it was cheaper to do a debt negotiation program than a chapter 13 bk. From my understanding it is that the laws for bankruptcy have gotten a lot tougher so it may be cheaper to do a debt settlement program. If you are considering a bankruptcy, you may want to check with a debt negotiation company just to compare what the payments would be.

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Debt Negotiation

Realtors beware, your clients down payment could be disappearing

Many people use their home equity lines as down payments. If you are a Realtor you need to be aware that banks are pulling back and canceling many of them. I have had mine canceled in recent days. I would advise you to tell your client to pull the money out now and not when they need it. Because when they need it, it may not be there.

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The best real estate deal if you are buying a home is Ameridream

If you are a low to moderate income buyer and are looking to buy a new home, then you might want to get a gift of equity to buy your home. AmeriDream is a charitable company who is committed to people being able to buy a home who need down payment and closing cost assistance.

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There are no real estate appraisers in Ireland

When I was in Ireland I learned that they do not have real estate appraisers. Over there the estate agent or real estate agent does the property evaluation. One of the issues being covered in the news while I was over there was that some agents were inflating some of the values by as much as twenty percent.

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Why it's bad news that millions of home equity lines are bing cancelled

From the previous post I reported on my home equity line of credit or heloc was cancelled by National City. This is bad news for the economy because millions of home owners were tapping there home equity lines to make purchases, buy cars, make home improvements or just go on vacation. With these credit lines no longer available, this only means less money being put into consumer spending and the economy. My guess would be that it will take a few years to get the economy turned around. Hopefully lenders will loosen their lending guidelines which will make it easier for people to get money. This would help.

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National City cancelled my home equity line

Be on the look out for a letter in your mailbox alerting you to the fact that your home equity line has been reduced or canceled. This is my second one that I have received in the last 30 days. The line on my rental property from Washington Mutual was reduced $20,000 and now my line on my home of $60,000 was completely taken away by National City. They may not honor any checks that were written so you need check on that. To answer the question, a bank can do this on a second mortgage? It is definitely in the provisions of their notes to reduce or suspend any credit line.

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We are getting hosed in the US on our Savings account interest rates

Another thing that I noticed on my trip to Ireland is that we are getting hosed on our savings account interest rates. My HSBC account pays me just over 3%. If I had a Halifax account I could get up to 7.25%. The US just can't compete in the equities market anymore. I wonder why nobody is covering this. I think it would be good information to know. I wouldn't mind putting my money in Euros or Pounds. US currency is going down the hole based on what I saw overseas.

Check out the Halifax.ie rates. It will piss you off.

Halifax Rates

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Ireland and the UK is feeling the fallout from the mortgage mess in the US

I just returned from a trip to Ireland. I live in Arizona and coming from the desert I was in for a real shock. It just wasn't the weather or all the greenery. One thing I noticed from city to city was the amount of real estate for sale signs everywhere. This was even the case in the Isle of Man where I saw tons of Chrystals signs all over. There were Sherry Fitzgerald signs on every corner in Ireland. Sherry Fitzgerald is one of the biggest real estate companies in Ireland. I was told that Ireland is always six months behind of whatever the United States is doing. If this is the case they are in for a bumpy ride. I know that in Arizona this is still a huge inventory that needs to be dealt with before the market can turn around here.

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You can still do 100% financing in Ireland

I am currently in Ireland and saw a bank advertising 100% financing. I think they are about to learn the same lessons there as we are currently learning in the states. I was told that these are about to go away just like they did in the state. They should get them to go away as fast as possible.

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Debt Negotiation as an alternative to a Bankruptcy

Debt Negotiation has been given a bad rap. My experience has been that a lot of people have been mis represented about how the process works. Debt Negotiation is playing hard ball with your creditors. Your credit will be negatively affected, you may get calls from your creditors and you can get sued. A good negotiator can help you navigate through these waters and save a ton of money. On average people can settle for about 50% of what they owe. Anyone who boasts a higher amount is probably not able to provide this.

A debt consolidation might be a better route to go if you are still current on your bills. Bottom line use an attorney if you are going to do a debt negotiation program. You have recourse and your money is safe in their trust account. They are accountable to their state bar for how the account is managed.

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How to Avoid Bank Fees

Banks now make a big piece of their revenue from those little fees they charge you here and there. A savvy consumer can get out of paying them. Most banks are making much of their money from inconvenience or convenience. More than a third of bank revenue now is generated from fees on consumer accounts. A wise customer can take advantage of the services banks are offering without paying fees.

Typically most of the heavy fees will show up on your checking account. You can negotiate with the bank to remove them. They do not want to lose you as a customer. So speak up you have nothing to lose. Worst case you can go to another bank.

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LendingTree mortgage files hacked, is your information at risk?

I just read an article that former employees from Lending Tree helped unauthorized mortgage companies hack into its database to steal customer information. This occoured from 2006 to 2008. This just goes to show you how aggressive the industry is for mortgages and what lengths people will go to for a buck. A good mortgage lead can sell for up to $75 or more. We are probably talking about millions of dollars worth of stolen leads.

If you were a LendingTree.com customer during this time you may want to put a fraud alert on your credit report.

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How to Lower your second mortgage at National City

I just spoke with a client of mine who I did a second mortgage for at National City Home Equity. He told me that he paid them $50 to recast his mortgage again after he had already set it. National City heloc second mortgages came with a feature that allowed you to lock it in. He had a home equity line of credit which is typically variable, however they allow you to fix it in on an interest only payment for 7 years. He had locked it in a few years ago and had made it a fixed. He just called them and they are allowing him to drop it again. I had never heard of that. He was able to drop his rate over 3%.

If you have a National City loan and have already fixed it in, you may want to call them again to see about a recasting fee and get a lower rate.

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What is the Ameridream program?

AmeriDream was established in 1999 as a 501(c)(3) charitable group creating home buying opportunities for qualified low to moderate income individuals and families to purchase affordable homes. AmeriDream provides a wide range of programs to benefit the individuals and families its serves including foreclosure prevention, providing financial support through privately-funded down payment assistance and home buying education.

The AmeridDream Downpayment Assistance Program was created to overcome the greatest obstacle to owning a home which is usually the downpayment. The downpayment gift never has to be repaid. The program has helped over 400,000 qualified homebuyers become home owners. AmeriDream is recognized as the most trusted and valued name in the gift assistance arena.

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What's the deal, Wamu cut my credit line

The home equity fairies were at it again. Sadly they cut into my own heloc. I had a home equity line of credit with an original line of $27,500. Wamu just sent me a letter stating they are cutting my line to $8300. Second mortgage companies are positioning themselves against potential future loses. If you have a credit line now, don't count on it being there in the future. There are no guarantees that you will have it in the future. They can do this, it is written into their mortgage notes.

Don't be surprised if you find a letter in your mailbox stating that your line has been cut down. I have a rental property with a line from National City on it. I guess I will be getting a letter from them soon as well.

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Is FHA the best loan right now to buy a house?

FHA mortgage loans are right now the best way to buy a home for no money down. If you live in an area where Fannie Mae or Freddie Mac has deemed a declining market, your appraisal will be reduced by 5%. This means that that 100% financing program you were trying to get will require you to bring in 5% down payment now. So what is a buyer to do? You should apply for an FHA loan. You can buy the home with none of your money. You will still need to have 3% of your own money in the transaction but you can get that in the form of a gift or the Ameridream program.

The Ameridream program is basically legal money laundering that the government has set up to get home buyers their down payment. The seller can also give you the money through the Ameridream foundation. They don't directly give it to you, the Ameridream Foundation will pass it through to you at closing. Either way it works. You will need to provide your full income documentation including tax returns and pay stubs. You will not need to have any reserves in the bank and there is no minimum fico or credit score requirement.

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Stated Income and No Doc mortgage loans appear to be going away fast

Many home mortgage lenders including First Horizon and ING have eliminated their no documentation or stated income mortgage loans. This is a reaction to the mortgage meltdown that we are experiencing. If you want a mortgage now you will have to show your tax returns and w-2 statements. I actually think this move will bring stability in the long run to the housing industry. Too many people abused the system which led us into the mess that we are currently experiencing. FHA is probably the best way to go if you want to get a great mortgage without a big down payment.

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The John Adam Show KXAM 1310 has GetPrequalified.com as a guest

I just wanted to thank The John Adam Show for having me on as a guest today. Your program is terrific for entrepreneurs who want to stay motivated for the game. It was great to hear from Amilya Antonetti who was a guest on the show as well. Amilya has been seen on The Big Idea with Donny Deutsch, CBS Morning Show, People Magazine, Time Magazine and Oprah.

I will provide a link to the taped show once it is on the website.

Thanks again to The John Adam Show and Tom Perry...

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Mortgage Paradigm Shifts on Capital Hill

There is a new movement on Capital Hill regarding help for distressed homeowners. What is happening is that Republican efforts to block homeowners with mortgage assistance is coming to an end. The worry over helping people who made poor buying choices went out the back door with the $30 billion push to prevent a Bear Stearns BK. It has also been clear that for months the FHASecure program has not produced the relief for home owners.

The final legislation is not finished yet, but it appears that thee will be ten billion dollars for states to make loans to homeowners. The states will be able to use several billion to convert at risk mortgages into fixed rate loan programs with better than market rates. This can only happen if the lenders are willing to take a loss. The lender loss will be 15 percent of the mortgage balance. This may be a better deal than what the banks would get if they were to go it alone.

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GetPrequalified.com articles are now in syndication

GetPrequalifiedarticles.blogspot.com goes live to syndicate the articles on GetPrequalified.com. If you submit an article to us it will automatically be put into syndication. For more information please email dmmason@getprequalified.com.

The John Adam Show on KXAM 1310

I just wanted to let my loyal readers know that I will be on The John Adam Show this Sunday at 1:15pm talking about GetPrequalified.com and the unique software we have developed to support our business. Thankyou for all of your support and let me know what you think.

The Dollar Menu a sign of a recession?

If you are hungry and don't have any money you are in luck. Fast food companies like McDonalds and Burger King are looking for ways to attract consumers in a sluggish economy. With rising commodity prices and lowering prices, the margins on foods sales are shrinking. I'm sure that it will give somewhere. If the fast food restaurants don't see a large volume of traffic this strategy will fail.

One thing I can count on is Americas appetite for fast food.

Hud Chief Alphonso Jackson Resigns

Another one bites the dust. The Bush administration's senior housing official threw in the towel on Monday amid a criminal investigation and a lawsuit over alleged favoritism in how government contracts were awarded. The Democrats in Congress were up in arms demanding his resignation. The allegations come from on of Jackson's friends who was paid over $390,000 by Jackson's department as construction manager in New Orleans after Hurricane Katrina. Jackson denies any wrong doing. This doesn't look good for Bush with all of the trauma of the current real estate and mortgage crisis going on.

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My Home Equity Line from Chase was just closed

I just wanted to report on a client of mine that just had their home equity line of credit closed. If you took out a high LTV or loan to value credit line or second mortgage you may be getting a letter shortly telling you that your line has been frozen or taken away. Banks that issued second mortgages are starting to get gun shy about leaving their credit lines open with declining property values and rising foreclosures. Do not assume that your line will always be there. If you are tapping into your equity every month to survive you may want to look for alternatives to get the cash that you need.

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Bush is ready to start Mortgage Aid Plan

The Bush administration is finishing the details of the plan to save thousands of homeowners who are at risk of foreclosure by helping them refi into more affordable mortgage programs. These mortgages will be backed by public funding. The program is aimed at helping homeowners who owe more than their home is worth due to decreasing home prices. The Federal Housing Administration is encouraging lenders to forgive a portion of those loans and issue smaller ones. This plan is similar to the legislation proposed about two weeks ago by Barney Frank who is the chair for the House Financial Services Committee.

Nearly 9 million homeowners currently have negative equity in their property. This is a serious problem. If a homeowner did have equity they could refinance. Current mortgage guidelines are prohibitive to finance a home that has negative equity.

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Debt Negotiation by an Attorney

I would be wary of using a third party debt negotiator to settle your debt for you. I would really advise to seek the services of an attorney to settle your old bills. An attorney is held to a higher standard. You always have the option of going to the state bar to complain about poor service. They are also accountable for monies that are deposited in their trust account. The best reason might be that a third party debt negotiator and an attorney will end up about the same in fees.

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Raise the conforming loan limit to help out the Real Estate market

Ben Bernanke lowering the federal reserve rates every few weeks wont be enough to put life back into the real estate market. The problem as from what I can see it is that the conforming loan limits in most areas are to low for Fannie Mae and Freddie Mac. I live in Maricopa County where the conforming loan limit is $417,000. If you live in Scottsdale your home may sit for awhile on the market due to the fact that housing prices are much higher in these areas. The problem is that once you go over the $417,000 threshold you get into jumbo mortgage rates. Rates on Jumbo Loans can be 2% or more higher than for a comparable non conforming loan. This prices most people out of the market for higher priced homes, not to mention that you will need to bring in a heftier down payment to be able to qualify. We must get these limits down to get the mid level properties moving again.

Mortgage Articles

Tip for doing a Verification of Deposit with Wells Fargo

When doing a VOD with Wells Fargo you may want to consider mailing it in rather than trying to fax it in. I just had a very miserable experience when trying to send a Verification of Deposit to Wells Fargo over their 900 number service vod line. They charge you $20 for every fax you send them. You also get charged $20 even if you get a busy signal. I got a bill for over $430 for what should have been $60. It took hours of frustration to get it sorted out. The third party billing company is Billing Solutions Inc. You will get a bill from them months later without any description of what the service really is. It was a nightmare to get the bill straightened out. Wells Fargo did just about nothing to help get the bill resolved.

My advice mail it in. Dealing with Wells Fargo and Billing Solutions Inc. was a total disaster.

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Wal Mart to offer a pre paid debit card

If you have bounced checks, bad credit or just can't get credit, Wal Mart has good news for you. Wal Mart will be rolling out a pre paid debit card. You can use it just like a credit card, the only difference is that you will need to have cash in your account for the charges to go through. The card will have fees so you will need to pay attention. There is a $4.64 reload fee every time you put money into your account. If you have direct deposit this is waived. If you use an ATM machine you will be charged $1.95 and if you want to cash a check it will run you $3. Requesting a paper statement will cost you $2 and the activation fee is $8.94.

If you don't have any credit, this is a great way to start establishing some. Just make sure in your agreement that they will report to all three credit bureaus which are experian, transunion and equifax.

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Bear Stearns may be worth More after all, stocks surge

Bear Stearns stock may be worth more after all. JPMorgan ups its bid for Bear stock to $10 per share. The net effect on the stock market has been a nearly 200 point rally in the stock market. So my question is are we in a recession or an inflationary period or can you have both. The experts say that we are in a recession yet interest rates keeps rising. I don't get it. Can anyone shed some light on this?

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CreditCards.com TV Commercials are pounding the air waves

CreditCards.com TV commercials are hitting the airwaves hard theses days. Credit Cards are not bad only the people that use them irresponsibly are bad. Remember, when you are out using your credit cards, the day will come when you have to repay the credit card companies for all of your purchases. If you can't pay your balances in full, the lie begins. The lie that you can actually afford your purchases. Once you are in debt, they own your ass and your life will become about paying your bills back. All of the money that you are paying in interest to the credit card companies could be going into your savings account or IRA. It does cost you. The lie is that you say to yourself that it doesn't matter. The truth is all of those pennies do add up.

If you are going to use a credit card, use it responsibly. Don't spend what you can't pay back at the end of the month. If you can use a debit card. There will be no bill at the end of the month it is just like spending cash.

Get a Credit Card and be responsible

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GetPrequalified.com presents at Lucky Napkin

GetPrequalified.com was honored to be able to present our unique marketing opportunity to The Lucky Napkin board. Not only does GetPrequalified.com have the best name in the Real Estate and Mortgage industry but we also have developed our own tools for organizing and optimizing large amounts of content for the internet search engines such as Google, yahoo, msn and others. We can create organic search traffic for little or no cost. The best part is that you don't even have to be a programmer to use or technology. So the net effect is we can reach our clients at a low cost.

We look forward to further developments with Lucky Napkin and look forward to posting updates.

Why Federal Reserve Rate Cuts wont help you

The Federal Reserve cut their discount rate to lenders by 75bps this week. Notice that I said to lenders and not consumers. Rates did not drop by .75% for mortgages. They went down about .25%. The only group that really benefits from this type of activity are the financial institutions. The move really allows lending institutions to make more money to try and sure up any liquidity issues.

Don't be lured by sneaky advertising trying to make you think that mortgage interest rates have dropped like a rock. The truth is that they haven't. All that I am saying is Caveat Emptor.

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Fed cuts their rate 75bps on March 18, 2008

The federal reserve did it again lowering their funds rate 75bps. I still think it is going to take more stimulus action than just fed rate cuts to get the credit markets running smoothly again. At this point why not just drop it to zero.

Are Fed Rate Cuts Helping the Economy?

The Federal Reserve rate cut that is expected this afternoon may help stimulate a sluggish economy. However it may do little to break open the troubled credit markets and hands down the mortgage market.

I think with the amount of work that the fed has done already, it should be clear that more measures other than the fed may be needed. It's hard to believe that the fed alone could bail out our economy and sluggish mortgage market. Senator Charles Schumer, chairman of the Economic Policy Subcommittee, told CNBC Tuesday, "Everyone knows we need to do more to stabilize housing." I would concur, I think peoples biggest fears right now are those over home prices and the real estate market. Senator Schumer also called for easing up of capital requirements for Fannie Mae and Freddie Mac and threw out the idea of tax credits for homebuyers.


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Fed Drops the fed funds rate by an quarter of a point

The Federal Reserve Chairman Ben Bernanke announced today on a Sunday meeting that the central bank rate will be lowered a quarter of a point to 3.25% from 3.5%. The action was meant to provide additional liquidity to banks and lending institutions. The JPMorgan merger with Bear Stearns was also announced as well.

Should we just let the market handle the mortgage meltdown or should the government continue to act?

Hold on to your hats, this may not have any impact on mortgage interest rates at the consumer level. If you look at what this years fed cuts have done for mortgage interest rates, you will see that there really hasn't been any significant lowering of rates at all. Don't get lured into any fancy advertising that alot of the banks and lending institutions will be running.

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Bear Stearns bailout causes Stocks to Tank

Bear Stearns which is one of the biggest financial services company has received interim financing from the Federal Reserve Bank of New York to help boost liquidity. The share price of Bear Sterns stock plunged over $23 a share to $33.78.

Bear said it was talking with JPMorgan Chase about permanent financing and other solutions. I think that this should raise an eyebrow as to the liquidity of other banks that were heavily into mortgage back securities. Hopefully we are nearing the end of the subprime loan issues.

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Foreclosure Forgiveness and Deficiency Judgements for primary residences

If you own a primary residence and are facing a foreclosure, you will not be issued a 1099 for a taxable event once the property forecloses. The tax laws were recently changed regarding this matter. This law does not apply for second homes or investment property. If you foreclose on a second home or rental property, you will have a deficiency judgment to contend with as well as a taxable event for your personal income tax.

If you are facing a foreclosure on a primary residence, this is probably the best time to do it. Not that facing a foreclosure is a fun thing to deal with, but in terms of the tax laws it has never been a better time to do it. You can get a clean start and not have to worry about a taxable event to pay for.

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Is the FreeCreditReport.com credit report free?

I have been curious if in fact the FreeCreditReport.com credit report is actually free. I went to their website today to see what would happen when I order a credit report through them. I thought I might have a shot until they asked me for my credit card number on the second screen. It is free but you are automatically enrolled in their credit monitoring program for a free for 7 day trial. If you don't cancel, you will be charged a monthly fee.

Below are the terms for the program taken right off of their website.

When you order your free report here, you will begin your free trial membership in Triple Advantage^SM Credit Monitoring. If you don't cancel your membership within the 7 day trial period, you will be billed $14.95 for each month that you continue your membership. If you are not satisfied, you can cancel at any time to discontinue the membership and stop the monthly billing; however, you will not be eligible for a pro-rated refund of your current month's paid membership fee.

I'm not saying that it is right or wrong to to market a product this way, you just need to be informed about what is so with FreeCreditReport.com. Credit Monitoring is a useful product. So if you are looking to get credit monitoring, you might as well get a credit report as well to see if there is anything on there that is not supposed to be on there. So the answer is yes it is free with conditions.

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Can a pre payment penalty on a mortgage be good?

Pre payment penalties have been getting a bad rap lately in the media. I often hear or read stories about home owners that said they were unaware that their home loans had prepayment penalties until it was too late. Their loan officer slipped it in the closing documents or they were at the closing table and had to sign because their stuff was on a moving truck and they couldn’t delay any longer. Depending on who the lender is, a pre payment penalty can range from 6 months of interest to up to 5% of the unpaid loan balance. Typically they have been associated with sub prime and hard money loans. Now many A paper loans are offering prepayment penalties. If you choose a prepayment penalty on an A paper loan you can receive a lower rate of interest. Typically it will range from a .125%-.25% interest rate reduction. A lender will give you this perk because when they sell their mortgages on the secondary market, they can get more for them and they are able to pass this on to the consumer. The secondary market likes longer term notes. Pre Payment penalties don’t have to be trouble if you know how to leverage them. Either you have your loan or your loan has you. If you understand how they work and can effect you, a pre payment penalty can be leveraged for a financial benefit.

There should never be an instance that a borrower winds up with a prepayment penatly unknowingly. It is something that should be fully exposed by you loan officer or lender. There is a separate disclosure that you will need to sign in your closing papers to disclose that a pre payment penalty is part of your mortgage agreement. If you are not sure ask the title agent. It is there job to explain everything that you are signing. They will be able to point it out to you if in fact there is one.

Remember that until a mortgage is recorded you can back out. If you are unsure or uncomfortable with the terms of you loan don’t do it. Never make any financial decision that you are uncomfortable with.

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Does pulling your credit report hurt your credit score?

I have been in the mortgage business for nearly 7 years. One of the biggest misconceptions that I run into is that pulling your credit report numerous times will hurt a credit score. I find that sometimes new borrowers are reluctant to have their scores pulled because of this belief. They believe that their scores will drop considerably if everyone is pulling it. The reality is that you can pull your mortgage credit report unlimited times in a 14 day period from the first pull and it will count as one pull.

It is a known fact that borrowers will talk to a couple of different lenders prior to selecting a company to go with. It is just part of the research and fact finding process. It is a ploy by some lenders to tell their clients not to have other brokers pull their report. To a broker that has already pulled credit, this improves their chance of securing the loan instead of another broker. They scare the potential borrower into believing that their credit will be ruined if they have other people obtain reports, thus potentially risking the homebuyer’s ability to obtain a loan that serves the consumer versus one that serves the mortgage originator.

The problem with this is that a borrower may miss out on better loan terms and lower closing costs. If a lender tells you not to have anyone else pull your credit for these reasons, you may want to talk to someone else. They are not being honest with you. The end result is that it could cost you thousands of dollars over the term of your loan. An honest lender will give you this information. They are confident in their services and don’t have to rely of sleezy scare tactics to earn your business.

If you want to know what your score is, you can pull it yourself. If you pull it on your own it does not count as a pull. Be sure that you pull a mortgage credit report. This will be more accurate for assessing your ability to get a loan and the types of rates that you will be able to get. Most of the free credit reports online are consumer credit reports. They are similar but are not accepted as a valid report in the mortgage industry. You can go to Getprequalified.com to order a free credit report. You will also find other useful services to get started on the home buying process.

Dave Mason
Mortgage Broker

Countrywide to be bailed out by Bank of America

The rumors still continue to swirl about Countrywide heading towards filing bankruptcy. Bank of America stepped in with a 4 billion dollar bail out plan. The last thing this country needs is a big bank failure. This would only fuel more financial uncertainty in the current credit crisis in this country. The merger wouldn’t seem to have much that that the regulators could bark about. Well, there is one thing. The total deposits held by BofA is about 9.88% of all US deposits. The limit is 10%. If Bank of America takes Countrywide on, that would probably put them over the top. I think they may have to overlook it in this instance. To much in the credit markets is at stake.

What do you think Countrywide should do?

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The tide will come back in for the Real Estate Market

If you are worried that the Real Estate market is over, I think you need to draw on a simple metaphor. The tide goes out and the tide comes in. You need to trust that the tide will come back in. Nothing ever stays the same and something in the universe is always at work. The Real Estate market will come back. It has gone down before and come back, it will do it again. The savvy investor will be out buying, the rest will wait and see what happens. What will happen is that values will go up and the ones who were waiting to see what happened will wish they didn't.

Don't wait to buy real estate, buy real estate then wait.

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Property Nut a great way to sell or find a home online

I recently put my home on the market for rent. I have it listed in MLS as well as Craigs List. I was spending about 30 minutes a day reposting my ad to keep it fresh in the system on Craigs List. The longer it is on Craigs List, the lower it goes down the list and the less likely it will be seen. One of the benefits of using PropertyNut.com is that they do it for your everyday. In addition to Craigs List, your listed property will be distributed on backpage.com, oodle.com, hotpads.com, vast.com and google. Listing my one rental unit was $9.95 per month. They also have unlimited plans if you have multiple properties you want to sell.

It's a no brainer.

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Stopping Junk Mail from Bank of America

I have tried everything to get BofA to stop sending me their junk mail. I have literally been on the phone for hours. They are like a dumb animal. Seriously if you have any tips on getting Bank of America to stop sending me their crap I would appreciate it.

GetPrequalified.com

Late Payments on mortgages reach an all time high

Since the measure started being kept in the mid 80's, the number of mortgages that are currently late are over 7% of all existing mortgages. This is the highest number ever recorded. If you back out the home currently in foreclosure, the number is still over 5%. Since the news of this hit the market, the stock market has dumped over 1%.

For additional articles on housing, visit GetPrequalified.com

What Interest rates have to do with the current housing market

Over the last few weeks the Subprime mortgage market has been devastated if not killed off. We have seen multiple companies go out of business. Large players such as Novastar, New Century and even First Magnus have gone into bankruptcy. Even Countrywide the nation’s largest mortgage lender is teetering on financial disaster. We are now seeing the impact of these high risk loans play out in the real estate market as well as on Wall Street. The panic over the liquidity in the mortgage markets has definitely spilled over into the real estate market in a big way. If you look at the run the real estate market had in 2004 & 2005, the market force in the market was the availability of multiple loan programs and low interest rates. Low interest rates made it cheaper to buy a home than to rent. In this time many people were buying homes on first lien home equity lines. If you look at the prevailing rates for these home equity lines, they were around 4.25%. If you compare the same rate for that mortgage today you would be at 8.25%. Not only was money cheap but you could even buy a home with no money down and no proof of income, employment or assets. No documentation loans made it easy for anyone with high credit scores to obtain a mortgage. Many of these buyers had no business buying a home. They could buy because they could. The rules for lending have changed. That type of borrower will no longer be able to obtain this type of financing. You must now demonstrate your ability to repay your mortgage.

What does all of this mean to the current real estate market? Since the Subprime meltdown, mortgage companies have pulled back on the types and loan to values of mortgages they are offering. It is no longer enough just to show up at the closing table with your good credit score. You must demonstrate your ability to repay the loan. The no documentation or liars loans, as they are often referred to have disappeared. The 100% financing loans have also begun their recession. Borrowers will now have to have some skin in the game. Many of these high risk loans had borrowers bring no money down to the transaction. If things get bad, there is nothing to loose. Walking away from the situation is easy. It is true that you will end up with a foerclosure on your credit report, but the impact is still less than a bankruptcy. If you have put a down payment down on a property, a borrower would be more inclined to try to work it out and try to keep the property rather than to just walk away.

If I am selling my home what does this mean to me? What it means is that the pool of buyers has shrunk considerably. The tighter the lending guidelines get, the fewer buyers there will be to potentially buy your home. You might expect to see the value of your home drop as well. It is just simple economics. As demand goes down and the supply goes up, your home becomes worth less. If you don’t need to move don’t. If you do, you may want to consider renting. Real Estate cycles don’t last forever and it is likely market conditions will change in a few years.

If I am a buyer what does this mean to me? If you are in a position to buy, you may not have a better time to purchase a new home. With low interest rates, lower property values and anxious sellers abound, you may not find a better time to buy for years to come. There are still many programs that will allow you to buy with no money down. You may want to talk to your real estate agent about negotiating a seller to pay for your closing costs. Many Fannie Mae loan programs will allow a seller to pay for up to 6% of your closing costs. This would be enough to pay all of your costs and even buy your interest rate down to a more attractive rate. Sometimes the best time to buy is when nobody else is. The deals of a lifetime could possibly be right under your nose. At some point you need to give up the fact that this in not 10 years ago, it is now and these are the market conditions. You may kick yourself in another 10 years and say why didn’t I act then. Following the flock may not get you want and it may not be prudent. Trust you gut and make your move. Life is risky, but owning property over the long term is usually a winning proposition.

For more information on Fannie Mae 100% financing please visit GetPrequalified.com. While you are there you can check your credit and find other valuable financial services to assist you in the home buying process.

DebtFreeDave
Mortgage Broker

When is the best time to buy a new car

The best time to buy a new vehicle is in the last quarter of the year. You will find car dealers more eager to deal in order to make room for next years new car inventory. My recommendation is to go during the week and in the morning or afternoon. You will gain the upper hand then. Do not be in a hurry or be to anxious. If the dealer you are speaking to isn’t getting your the deal you want, you will have time to go to another dealer and see what they can offer you. You may also want to check some of the online services to see what the car you are looking at is going for. If you are going in with a trade in, you may want to go to kbb.com to get an idea of what your trade is worth. In most cases you can get more if you sell it on your own. If you do not want the hassle I would trade then. This will save you a lot of haggling time.

For additional Auto Buying articles visit GetPrequalified.com

Mortgage Brokers underfire, realtors are in jeopardy too - Congress is voting to limit your ability to buy a home

In a knee jerk response to the mortgage crisis, some really “smart” folks in Congress think they are doing the right thing by preventing home buyers from using the Yield Spread Premium to pay for closing costs, including origination fees that all mortgage folks use to get paid. Some members of Congress have proposed and now have the House of Representatives voting on HR 3915. This bill is also known as the “Mortgage Reform and Anti-Predatory Lending Act of 2007”. Enacting this bill will essentially force all mortgage brokers to charge you points to arrange a mortgage for you. This means that if you are going to use a mortgage broker to buy a home, or refinance, you’ll have to take more money out of your pocket to do so.

For more information on this topic go to: GetPreQualified.com

Debt FreeDave

Lending Tree three ring circus

LendingTree, When Lenders Compete You Win!!

When you fill out an internet form for LendingTree.com, you will have lenders competing but it may drive you crazy in the process. What you don’t hear about in the advertising is that you will be bombarded by aggressive sales people all trying to earn your business. Unless you like to talk to sales people in your spare time, the process will drive you nuts. In theory it makes great sense. Competition is great; you just want it to be the right kind of competition. In reality playing the multiple lender game can become a sales pitch nightmare.

What LendingTree doesn’t want you to know is that you can accomplish the same thing by dealing with just one reputable mortgage broker. A mortgage broker has dozens of mortgage wholesalers to get mortgage quotes from. An individual mortgage broker can get mortgage quotes from a variety of sources such as Bank of America, First Horizon, Ohio Savings, Washington Mutual, Wells Fargo, Countrywide, Citibank, Flagstar, World Savings, Chase and National City to name a few. A single mortgage broker can deliver you dozens of mortgage quotes from multiple lenders that they deal with. As long as you are comfortable and confident with the person that you are dealing with, they can save you hours of aggravation and pesky sales calls. The mortgage brokers for GetPrequalified.com can accomplish getting multiple lending quotes for you.

A bank on the other hand can only give you a rate quote on only the loan products that they have to offer. This can be limiting. This is probably why banks have been trying to get mortgage brokers wiped off of the lending landscape. A mortgage broker is not locked into any particular lender or money source. Interest rates change daily. A good mortgage broker can change with the fluctuations to deliver you the best interest rates offered by the different lending institutions. They will get you to the lowest interest rates because they get paid the same regardless of what lender they use. Get the picture?

The other piece of the lending puzzle most people don’t think about is using a local lender in the home buying process. When you use an internet lender, you may be speaking with someone thousands of miles away. If you have a problem with your loan, I’m sure you would want the option of getting in the car and going to visit with your mortgage broker in person so you can speak with them face to face. Problems do occour in a real estate transaction. Wouldn’t you feel more comfortable with someone you can sit across the table from? I am consistently shocked at how many potential borrowers know nothing about the person that is originating their mortgage. A mortgage may be one of the most important financial instruments that you will sign in your lifetime. You probably wouldn’t pick a stock broker in this manner, why would you pick your loan officer like this? Using an internet lender that you have never seen or met is gambling. There is no reason to do this. Work with someone that you know and trust.

Look for a lender that has been in the mortgage business for a minimum of 5 years. Ask them if they could have the phone numbers of the people that have closed loans with them in the last 30 days. There are a lot of people that drift into the industry looking to make a quick buck. The reality is that completing a mortgage takes expertise. You want someone that has spent the time to educate themselves in learning what it takes to fulfill the duties of completing the task. Someone who is professional has a great interest in making sure that you have a positive experience. They want referrals and their reputation is important to them. It should be easy to spot a slick salesperson from someone who is a consultant.

The internet is a powerful tool in the financial markets. Do your research. When it comes to business, personal relationships still rule. Talk to your friends that own property. Ask them if they would recommend the person that did their mortgage to you.

DebtFreeDave
Mortgage Broker

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