Why Are We Still Considered A “Declining Market”? By C. J. Coury Many of my Mortgage Loan Officers and REALTOR® acquaintances have asked me this question lately. The primary reason for their inquiry seems to be the fact that Fannie Mae and Freddie Mac eliminated this damaging and self-fulfilling moniker months ago. While that is true, the fact that these agencies no longer consider this classification a requirement in setting their loan to value ratios the problem persists. The primary enforcers of the “declining market” designation are the Mortgage Insurance Companies. This is why the additional 5% down payment requirement […]
We are all aware that the underwriting guidelines for purchase-money financing have become very restrictive due to the economic downturn and the subprime lending debacle. As difficult as it is to obtain financing in the current economic environment, purchase-money financing for condominiums has become particularly troublesome. This article will address some of the issues facing buyers of condominium units needing purchase-money financing.
I have been asked by many real estate professionals to clarify some of the key points of the new refinance mortgage loan available under the provisions of the Homeowner Affordability and Stability Plan (HASP). As all of you have customers who could benefit from this program it is important that you completely understand a few of the factors that determine eligibility.
Unless you live under a rock, you or someone you know has been affected by the process known as a short sale. Unfortunately, short sales have become a nightmarish process for the parties involved-the seller, buyer, attorneys, realtors, and short sale negotiation companies.
The proliferation of short sales and foreclosures have placed the servicing bank or lender in the position of seller. This dynamic has made setting a realistic closing date extremely difficult at the time of presenting an offer.
The stimulus plan that President Obama signed on February 17th contains a provision for first time home buyers that will make a HUGE impact on their purchase decision.
This article is a continuation of last month’s article regarding areas of concern in an REO Counter-Offer Addendum typically used by banks in connection with the sale of a foreclosed (“Bank Owned” or “REO”) property.
Representing A Buyer Purchasing A Bank Owned/REO Property By Steven R. Greenberg It should come as no surprise to you that there are a glut of foreclosed (“Bank Owned” or “REO”) properties on the market. Many Buyers are looking only for “foreclosed” or “short sale” properties to purchase since it is perceived by Buyers that these are the best bargains on the market. This article will focus on the Counter-Offer Addendum used by the banks in the sale of REO properties. It is critical that REALTORS® understand that the REO Counter-Offer Addendum supersedes all conflicting provisions of the Contract. There […]
Navigating Through Fannie Mae’s New Condo Guidelines By C. J. Coury On January 15th, Fannie Mae changed their requirements for the purchase of condominium mortgage loans in the state of Florida. While these changes are certainly going to make it more difficult to obtain financing on these purchases there are some things that you can do to help mitigate this obstacle. Below are the most significant changes as well as some helpful tips. Full Review of Existing Projects: Many lenders will have the ability to review and approve existing projects. This will save substantial costs ($1,200 + $30 per unit) […]
Help the Bank Appraiser to Avoid Valuation Issues! By C. J. Coury In today’s changing mortgage lending landscape the bank appraisal process has been totally redesigned. Lenders are no longer able to question, coach, prod or pressure the real estate appraiser in any way. In fact, loan origination associates are prohibited from even speaking with the appraisers. Although the reason for these new restrictions is sound they do create the need for a new way of approaching this component of the mortgage approval process for the REALTOR®. When contacted to set up the inspection appointment a listing agent should be […]
Reverse Mortgages – A Primer By Steven R. Greenberg A “reverse” mortgage is a loan against the borrower’s home that does not need to be paid back as long as the borrower lives there. There are several ways to get the cash out of a home with a reverse mortgage: 1. As a regular monthly advance; 2. All at once, in a single lump sum of cash; or 3. As a combination of these payment methods. In order to qualify for a reverse mortgage, the borrower must be at least 62 years of age. Furthermore, the borrower must seek […]
With the wave of short sales in the current real estate market, it is difficult, if not impossible for a REALTOR® to not be involved in a short sale transaction. This article will address some of the issues when representing a Buyer or Seller in a short sale.
Today, more than ever, it is critical to encourage your buyers to research their options for financing. As the credit markets have continued to tighten, many lenders have eliminated or suspended programs that may well still be available elsewhere. Some examples of this are condominium and second home financing with 10% down, no-income documentation loans for self-employed buyers, 95% loans on primary owner-occupied properties, even in so called “declining markets” and construction to permanent loans to name a few. This clearly illustrates the need for those in a position to direct buyers toward reliable lenders to expand their resources.
Over the last 2 years, loans insured by the Federal Housing Administration (FHA) have increased by over 265%! The year-to-date period ending June 30, 2008, when compared to the same period ending June 30, 2006, showed an average increase in FHA insured purchase money mortgages from 149 to 398 units in Sarasota and Manatee Counties. With the tightening, if not elimination, of the Alt-A market, the time has come to embrace these excellent loan programs.
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Wednesday, July 1, 2009
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