If You Are Waiting To Buy – Think Again! By C.J. Coury Most prognosticators agree that home prices have somewhat stabilized from the days of annual double-digit deflation – others predict continued downward movement in home prices. No matter which group you chose to believe there is one absolute certainty – interest rates have increased substantially and are likely to continue their upward trend as inflationary pressure continues. The impact of rising interest rates on your monthly payment is even more impactful than a decrease in the purchase price of the home, even if they should continue to fall a […]
Increase Sales With Underused Loan Products By C.J. Coury With the tightening of mortgage loan underwriting criteria we have experienced a much higher percentage of cash buyers than at any time since the creation of Fannie Mae. This phenomenon will continue to forestall the housing recovery for months to come unless we work harder to find ways to provide financing to those buyers who do not have the ability to pay cash. One way to help combat the effects of the increased difficulty in obtaining financing is to look beyond the standard mortgage loan products to some of the less […]
Will The New FHA Short Refinance Program Help Stem The Foreclosure Tide? By C. J. Coury Many of you have asked me what I expect the market impact to be of the newly released government program that calls for some principal reduction on the part of the lender. This is the FHA Short Refinance Program and here are the highlights of it: Program dates are 9/7/2010 to 12/31/2012 Borrower must owe more on their first mortgage than the property is worth Program is for primary residence occupancy only Mortgage being refinanced must be current Borrower’s […]
Appraisals 2010 Seminar Series Continues. Real estate professionals who are losing real estate deals because of bad home appraisals will benefit from a series of appraisal seminars scheduled for the fall.
Communication Is Key By C. J. Coury Now more than ever it is critical to communicate with your buyers who are purchasing with the assistance of mortgage financing. Mortgage lenders have developed many new processes with the intent of eliminating as much fraud as possible. This increased scrutiny includes the utilization of electronic resources to help verify much of the information contained in the loan application. It is therefore paramount that the mortgage applicant is as honest, open and thorough as possible with the lenders Loan Officer. It is also imperative that the Loan Officer take the time to conduct […]
Getting Sound Appraisals In Today’s Market. In today’s uncertain real estate climate, it is not unheard of to receive a property appraisal that is less than the buyer is willing to pay, essentially killing the deal for the seller. Real estate professionals agree that part of the problem is the use of appraisal management companies
C.J. Coury And HomeBanc To Sponsor “Appraisals 2010” Seminar Series. Realtors, homebuyers and homesellers who are losing real estate deals because of low-ball appraisals from out-of-town appraisal management companies will benefit from a series of appraisal seminars sponsored by HomeBanc.
Mortgage Underwriting Guidelines Beginning To Ease By C. J. Coury I have been looking forward to writing about this topic for months now – the time has finally come! Over the past 2 years or so we have been witnessing the end of a much too liberal lending era. Unfortunately, the change in direction went too far and stayed too long. To quote the top mortgage professional Penny Hill “the pendulum has swung too far in the other direction and is stuck on stupid”. I am pleased to announce that it is finally beginning to swing back to the level […]
Improved Short Sale Process By C. J. Coury The Short Sale phenomenon that has been escalating over the past few years has reached the point where some drastic changes are needed. Today’s most prominent process model for these transactions requires that an offer to purchase be presented to the servicing lender prior to any action being taken to obtain investor approval of the reduction in their pay-off. This, coupled with servicers being woefully understaffed, has had an enormously negative impact on all parties involved in the transaction and has, in fact, contributed to a reduction in the median sale price […]
Refinance Now By C.J. Coury Although it is certainly more challenging to obtain a new mortgage loan in today’s market you simply must make the attempt if you have an interest rate above, at or near 6%. It is widely believed that rates will begin to rise this spring and could increase as much as 1% or more from today’s historic lows, eliminating the opportunity to realize the benefits of refinancing for many. While it is true that many loans today are being scuttled by evaluations and qualifying documentation, it is also a fact that there are options available to […]
FHA OK’S Finance Of Qualified Flips By C. J. Coury In an effort to speed up the resale of foreclosed properties the FHA has announced that it will begin to insure loans on properties that were re-sold within 90-days of purchase by the seller. This change will allow lenders to offer FHA financing to buyers who are attempting to purchase these quick re-sales between 2/1/10 and 1/31/11. While this will help a great number of buyers there are certain restrictions that will apply. The primary intent of this easing is to allow investors to purchase, rehab and resell these properties […]
Financing “As-Is” Properties By C. J. Coury A rarely used loan product, the FHA 203(k), is fast becoming one of the hottest topics on the training front. The renewed interest in this evolving product is due to the high number of distressed properties on the market and the declining amount of “cash” buyers to sell it to “as-is”. There are numerous misunderstandings about this product that I would like to help clarify: 1. The maximum loan amount is currently $417,000 2. There is no maximum sale price for the property 3. There is no maximum amount for the repairs or improvements 4. The improvements […]
RESPA/Regulation X Changes Information Courtesy Of C. J. Coury The U.S. Department of Housing and Urban Development (HUD) has announced significant revisions to the lending requirements under RESPA/Regulation X. These changes impact the Good Faith Estimate (GFE) and HUD Settlement Statements (HUD-1 and HUD-1A) and will be effective with new first mortgage applications taken on or after January 1, 2010. These important regulatory changes will place new requirements on lenders to ensure that borrowers are better positioned to understand their mortgage transaction. Following is an overview of the four key changes associated with the new Regulation X requirements. 1. Good Faith […]
Monday, March 14, 2011
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