What the sellers need to know in this market is that NOW is the time to sell. It boils down to the right timing in the market, and that would be now for Summerlin homes for sale. Summerlin residential areas are perfect for the down payment assistance programs talked about by the governmental agencies. Thus creating a plethora of buyers so the sellers have no problems getting offers quickly on their homes. This really is a crazy Vegas housing market, and we’re loving it… so are our summerlin homeowners!]]>
BofA, over all, has been a slow progress, yet steady, with their short sale processes for Summerlin and Mountains Edge homeowners. Many realtors find tremendous help when utilizing a short sale processing firm like CSSP to process the file and increase their odds of closing the deal. Buyers and Homeowners are more comfortable when knowing the agent has a processing team behind them to ensure a successful outcome.]]>
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.]]>
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!”
With the downgrade to Fannie and Freddie from Moody’s and Standard and Poor’s downgrade to AA+ for our country… emotions are running high with this economy as many fear the future as seen by the DOW tanking last week and this week. The biggest fears we face as realtors, businessmen and women, and Americans is that of the “unknown.” For what we reported today were “the top 10 reasons the U.S. will not see a double dip recession” and the same day we found another report of “the top 10 reasons a double dip recession has already begun.” So who does one believe? Opinions are spewing from every direction but, the correct one.
What Mark and I know is just this; regardless of what might be ringing in your ears from whats babbled on T.V., if it’s to be, it’s up to me to make my own economy! We feel strongly about this country STILL being the best country in the world with the best opportunity in the world! So when you find yourself being frustrated, or depressed because of your circumstance, change your attitude and put yourself to work by being innovative, creative and driven! Every economy, good or bad, has created new lines of work. Jobs today were never dreamed of 20 years ago. So make your mark by doing something about it.
We believe that as Americans, most of the world can’t fathom what it’s like to have true freedom of speech. Although we see our freedoms eroding with legislation chopping away at the base of Free Speech every year. It’s a blessing to have what we have, yet in the Real Estate community, to be able to speak freely could get you in a lot of hot water. So be mindful of what and how you say things to a client when discussing houses, communities, areas and certain streets. This is one area where freedom of speech is limited, unfortunately. We just hope that the “Fairness Doctrine” gets vanquished each time it’s brought before congress. Remember, our Forefathers defected from a tyrannical government to escape the coerced silence of intellect. As we understand the pros and cons of each argument, it’s more damaging to allow government to stifle free speech. That is when tyranny defeats freedom and the voice of the people become unheard, unwanted and meaningless. Should that ever occur in this land, God so help us!]]>
Now don’t get me wrong as I’m not sympathizing with the banks/lenders/investors on this issue. We all know they started this mess by lowering their standards of loan qualifications beginning back with the Community Reinvestment Act of 1970’s under Carter. But that’s another blog for another time. The banks however, should not have to adhere to a judges ruling who clearly has ruled on an issue that is unlawful. Turn the tables to an entrepreneur who has loaned $200,000 to an individual for the purchase of a home. In the mortgage industry he is called a private investor, or hard money lender as the terms of the note are usually much more expensive to the borrower with higher interest rates and abnormal discount points as fees. Is it fair that a hypothetical borrower agrees to specific terms of a loan with a private citizen on his primary home and now needs to file chapter 13 bankruptcy and his judge rules in favor of the borrower that the private citizen that lent the money to the borrower now has to forgive $50,000? Or reduce the contracted interest rate of 12% down to 2%. Or extend his term of 5 yrs for a full payoff to anything longer than that? This is ludicrous. This can bankrupt private investors and banks. Not sure we as Americans are interested in more banks going bankrupt. But if these rogue judges continue ruling unlawfully and nobody stops them…. I can only see the slippery slope to a no win situation for our banking.
View news clip: http://www.renewschannel.com/2011/05/03/bankruptcy-judges-going-rouge/]]>
TO VIEW THE REAL ESTATE NEWS CHANNEL UPDATE, CLICK HERE.
The channel with REOs is the loss severity each the investor experiences when foreclosing on a home. Loss severity is essentially, the percentage of principle the investor will lose through liquidation. The rate of loss severity is expected to increase by 10% in 2011, further motivating investors to look at short sale transactions as a better liquidation strategy.
If you want to get back to what you love about being a Realtor, give our Director of Sales, Steve Pace a call at 949-295-5483 and he will walk you through the process of getting your first transaction in our system. You will be assigned a personal processor for each file, who will serve as your personal assistant in getting the transaction approved and ready to close. You will be automatically updated every time your file is touched in any way and you will not be charged a dime (where allowed by law. Almost every state qualifies for free processing, but verify with Steve.)
We look forward to working with you soon to bring your short sale transactions to a close!
Trent from CSSP]]>
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