Archive for November, 2011

Short Sale vs. Foreclosure?

Many homeowners continue to be confused about whether or not they should sell their home as a short sale or just let it go to foreclosure.  The most challenging trial is when one is faced with the possible loss of their own home.  This, unfortunately, is commonplace in the state of Nevada.  Nevada’s city of Las Vegas has been the leader of distressed homes for sale with Short sales and foreclosures.  Areas affected the most in Nevada are communities like Aliante, Anthem, Mountains Edge and even some high end communities like Canyon Gate and Queensridge.  Summerlin short sales are growing to a level that, like a double edged sword,  is bad for sellers, yet, great for buyers.

Foreclosure expert and short sale attorney, Spencer Judd, has mentioned that most of the time (all depends on clients financial situation) the client should close their short sale before letting it go to foreclosure.  There are a few reasons that support his statement.  First,  a client becomes eligible to finance another home much sooner by having the short sale on their credit vs a foreclosure.  Plus, each bank has what they call “bank overlays” which are greater restrictions to the guidelines set forth from fanniemae, freddiemac or FHA.  Thus, a bank can add conditions to a loan as they see fit to protect the bank even if the guidelines do not call for it.  For example;  FHA may require a minimum of 580 FICO credit score to be eligible.  However, the bank may require and overlay of 640 FICO credit score to be eligible with that bank.

Overall,  typically the best for any distressed homeowner between short sale vs. foreclosure is usually to short sell their home.  Letting it go to foreclosure is the easy way out, but usually has much more serious repercussions.  We always suggest to each homeowner that they get legal counsel from a real estate attorney and tax advise from a tax attorney and/or CPA.

Friday, November 4th, 2011 Latest News No Comments

Differences between a Banker, Mortgage Broker or Mortgage Banker?? Posted on November 2, 2011 03:23 PM by Doug Yates When I was a youngster and knew everything imaginable about mankind, I became bewildered when my friend introduced me to a “Mortgage Broker.” I was intrigued with his title and confused at the same time when he explained that he was a loan officer and helped people secure a home loan for them in order to purchase a home. I had thought that if one wanted a loan for a home, you get it from the bank. Well, it was then that I had my eyes opened to a whole new world of employment opportunity and consumer selection. What is a Mortgage Banker? Mortgage Broker? Banker? Loan officers that work for a bank (i.e., Bank of America, Wells Fargo, Citi or Chase) typically have access to only the banks loan programs. They are restricted to what that bank offers and will not offer any other financing that does not fit into their “box” of loan programs. They control every step of the process from origination of the loan to processing, to underwriting for final loan approval, to funding the loan for final closing. A Mortgage Broker is a loan officer that works for a company that has very little control over the complete process of obtaining a loan. He is a middle man, someone who finds an invester/ bank to approve the loan, then fund the loan with another banks money. Brokers have the ability to shop several different banks and lenders for different loan programs and possibly more lenient guidelines in underwriting, but have no control over underwriting or funding of the loan. A Mortgage Banker tends to have the best of both worlds. He typically has lines of credit from the top banks which allow him to keep control over underwriting and funding of the loan. With access to the top banks, it opens up all the banks loan programs from each bank, thus offering the consumer many more loan programs to choose from. Not only does a mortgage banker control his clients file from inception all the way through to closing, he also has the ability to broker the loan to another bank for approval if needed. Therefore, he has access to all programs from bankers to brokers. The last eighteen years I experienced working as all three in one capacity or another thoughout my career. I can honestly state that the control and flexibility of a Mortgage Banker is by far the most efficient and effective when choosing a loan officer. I’ve always said, when purchasing the largest investment of your life, your home, you may as well choose the Mortgage Banker so you can “have your cake and eat it too!” 0 comments | Post a Comment Post URL: http://exitlvrc.com/Web/AR419786/Blog/post/?post_id=13734 Tags: Banker, mortgage broker, mortgage banker

Differences between a Banker, Mortgage Broker or Mortgage Banker??

Posted on November 2, 2011 03:23 PM by Doug Yates

When I was a youngster and knew everything imaginable about mankind,  I became bewildered when my friend introduced me to a “Mortgage Broker.”   I was intrigued with his title and confused at the same time when he explained that he was a loan officer and helped people secure a home loan for them in order to purchase a home.  I had thought that if one wanted a loan for a home,  you get it from the bank.  Well, it was then that I had my eyes opened to a whole new world of employment opportunity and consumer selection.

What is a Mortgage Banker?  Mortgage Broker?  Banker?  Loan officers that work for a bank (i.e., Bank of America, Wells Fargo, Citi or Chase) typically have access to only the banks loan programs.  They are restricted to what that bank offers and will not offer any other financing that does not fit into their “box” of loan programs.  They control every step of the process from origination of the loan to processing, to underwriting for final loan approval, to funding the loan for final closing.

A Mortgage Broker is a loan officer that works for a company that has very little control over the complete process of obtaining a loan.  He is a middle man,  someone who finds an invester/ bank to approve the loan, then fund the loan with another banks money.  Brokers have the ability to shop several different banks and lenders for different loan programs and possibly more lenient guidelines in underwriting,  but have no control over underwriting or funding of the loan.

A Mortgage Banker tends to have the best of both worlds.  He typically has lines of credit from the top banks which allow him to keep control over underwriting and funding of the loan.  With access to the top banks,  it opens up all the banks loan programs from each bank, thus offering the consumer many more loan programs to choose from.  Not only does a mortgage banker control his clients file from inception all the way through to closing,  he also has the ability to broker the loan to another bank for approval if needed.  Therefore,  he has access to all programs from bankers to brokers.

The last eighteen years I experienced working as all three in one capacity or another thoughout my career.  I can honestly state that the control and flexibility of a Mortgage Banker is by far the most efficient and effective when choosing a loan officer.  I’ve always said, when purchasing the largest investment of your life… your home, you may as well choose the Mortgage Banker so you can “have your cake and eat it too!”

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Wednesday, November 2nd, 2011 Latest News No Comments