Real Estate News

RESPA governs the amounts and types Homeowner’s insurance; property taxes; and mortgage insurance) of escrow purposes. (See my 12/3/2012 blog post regarding RESPA.)

This article How to tell if lender is overcharging escrow account was released and made me think about escrows.

Per my earlier post on May 4, 2012 (Who needs to pay Property taxes and homeowner’s insurance?), I addressed the fact that most lenders will require advanced payments at closing for future invoices for property taxes and insurance.

Some great tips to prevent burnout in the source article include planning and communication, but mostly from my experience, don’t let the good volunteers take all the work load and don’t put them under pressure to do everything.  Share the workload among several people and it will prolong their lives on the HOA and build harmony in the community.

Source:  http://realtytimes.com/rtpages/20111214_burnout.htm

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Oh great, look forward to DC writing more regulations. Top down approach hasn’t worked yet.

Two underlying problems with the servicing system as it currently exists are (a) lack of transparency and (b) lack of accountability.

Source: http://www.mortgagenewsdaily.com/04102012_mortgage_servicing.asp

Lenders worry about the consumer finance protection bureau rules regarding mortgages an rally against an overly narrow definition of “qualified mortgage” lending rules.

Source: http://bankcreditnews.com/news/mortgage-industry-growing-concerned-over-cfpb-lending-rules/3875/

Hey, I’m all for business and job growth, but some things need to be questioned.

What are “Opportunity Zones” and why do they exist?

Is the proposed move by the Atlanta Braves part of an “opportunity zone”?

Tax credits for businesses that already have made business decisions excluding the tax credits themselves…

Most businesses add employees to (a) increase revenue or (b) control costs better. The business does look at total cot and determine whether the marginal income is worth the marginal cost, but if $3,500 makes or breaks an employment decision, then it’s probably too close to call to make decision solely on the tax credit. So in other words, a business doesn’t need the tax credit since it makes the decision based on other costs anyway- it’s just a bonus that goes into the business owner’s pocket to pay for other cost increases.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Home Buyers and those refinancing, just don’t give mortgage approval a second thought – give it at least 3!

Please visit the mortgage loans page of my website to review the entire process.

Many Americans are still apprehensive and uncertain about qualifying for a mortgage and about navigating the home buying process, according to a new study by Wells Fargo and Ipsos Public Affairs.

Simple steps to the process:

(1) Before talking with any lenders, do a little homework yourself – take your latest pay stub, calculate your annual gross income, multiply that total by 35%, divide by 12 and that should be a rough estimate of your normal monthly mortgage payment including property taxes and homeowners insurance. Remember: Don’t stretch yourself too thin by a larger than normal mortgage payment.

Note: You may hear stories of documentation you’ll need to provide to the lender. Gather together documents that paint a picture of your current financial status such as income tax returns (past 2-3 years), W-2’s (past 2-3 months), 2+ year history of employment, bank statements (past 2-4 months), personal and retirement investment account statements, your history of residence in past 5 years, credit card statements (up to 12 months), active personal, auto, and student loan statements, child support paperwork, alimony agreements and divorce decrees, or bankruptcy paperwork just to name a few.

(2) Next, check online for mortgage calculators such as this calculator to plug in different dollar amounts of loans.

(3) After you have an idea of what you can afford, talk with several lenders (no less than 3) to verify amounts and types of loans available to fit your financial needs. Get a feel for which lender pays attention to your needs. Yes, you can take advice from people you know who just bought homes, even call their lender if they recommend you to do so. Note: Please use my lender comparison worksheet when talking with lenders.

(4) Understand your options (including pros, cons, and closing costs, etc,.) under Conventional, FHA, and other loans.

(5) Discuss what you learned with your real estate agent to discuss more questions and help find answers.

A recent article stated 5 major components of mortgage approval:

1. Your debt to income ratio (are you underwater?);
2. the Loan Amount to Market (appraisal) Value of property;
3. your credit history (been paying your bills…on time);
4. types of properties (single family/condo/townhome); and
5. mortgage programs (FHA/VA/Conventional/Special)

Source:  http://blog.homes.com/2012/02/5-major-components-of-a-mortgage-approval/

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Just wondering how this program is working out…

Per a 2010 press release, U.S. Department of Housing and Urban Development – FHA Short Refinance option enables lenders to provide additional refinancing options to homeowners who owe more than their home is worth.

Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA, non – Fannie & Freddie borrowers – i.e., some of those “creative financing deals-sub prime/Alt A/stated loans”  that were prevalent (from 500,000 to 1.5 million) who are current on their existing mortgage (this seems to contradict some news that lenders advise people to get behind 2+ payments so they can help them with HAMP) and whose lenders agree to write off at least ten percent (10%) of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage. (Note:  This program doesn’t apply to Fannie Mae or Freddie Mac loans.)

Write downs:  First & Second mortgage liens need to be written down to less than 115% of home’s value (probably determined by appraisal).

About 11 million borrowers (about 25% of households with loans) owe more than their home is worth.

About $14 billion of the unused TARP funds earmarked for housing assistance will be used to buy the “lower balance” loans….Let’s hope it’s not as “generous” as the FDIC’s 80% of book loss.

Some problems:  Possible lawsuits by investors whose money from the write downs and lack of incentive by investors to write down unless there is high probability of borrower default.

Some benefits: 

(to Lenders/Investors) – get rid of loans that were already modified and maybe headed there again.

(to Borrowers) – obviously get a lower mortgage and monthly payment, but will the 90% reduction be filed as a lien.

NOTE:  Doing the math…if there is only $14 billion available, then at $200,000 per loan, then only 70,000 borrowers could be helped…even using $100,000 loan balance, than only means 140,000 borrowers – a far cry from 500,000 – to 1.5 million borrowers that the Obama Administration wants to help.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them.

Georgia Department of Community Affairs provides comprehensive counseling for Housing needs.

The Georgia Department of Community Affairs (DCA) is responsible or the use of almost $300 Million each year from state and federal funds dedicated to community development, economic development financing and housing activities for the State of Georgia. It was created in 1977 to serve as an advocate for local governments, but merged with the Georgia Housing and Finance Authority (GHFA) in 1996. Today, the DCA operates a host of state and federal grant programs; serves as the state‟s lead agency in housing finance and development; promulgates building codes to be adopted by local governments; provides comprehensive planning, technical and research assistance to local governments; and serves as the lead agency for the state‟s solid waste reduction efforts. In Fiscal Year 2009, GHFA provided comprehensive housing counseling services to about 4,200 Georgia clients and through its network of housing counseling agencies, funded and served 14,374 clients.

You can find various useful information on its website such as the “Georgia Landlord Tenant Handbook”; any down payment assistance programs the state is authorized to support; and other Government housing related programs.

Website: http://www.dca.state.ga.us/

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

This is often just a real estate Broker’s opinion of the future sales price of a real estate property.

Many times, when banks are ready to sell a real estate property (that is already foreclosed, or currently in a short sale status), they will not know the current relative market value of it and would like a local real estate agent/broker to render a guess or “opinion” of what should be their asking price of the property.

Source: http://www.realestatebriefings.com/the-market/what-is-a-real-estate-bpo/

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Operating under the names of builders such as Centex, DiVosta Homes, DelWebb, and Pulte Homes, the PulteGroup is relocating their corporate office to Atlanta, GA from Detroit Michigan area.

As of the time of this writing, Pulte exceeds DR Horton in revenue, but not in unit sold.

Source: 5-31-2013 WSJ page B2

In addition to your monthly mortgage payment (which includes loan principal, interest, property taxes, homeowners insurance, and perhaps mortgage insurance), check out these other real costs of home ownership before you purchase a home to see if you really can afford to buy and maintain a home and you’re prepared to take the “home maintenance” challenge!

Here’s a good article from Zillow on costs to consider that you might not normally think about.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.