Upside Down on Your First House? Just Buy a Second One!
Filed under: Advice, Financing
Oddly, the best way to deal with being upside down on your home mortgage may be to just go out and buy a second house.
As housing values spiral down and people increasingly owe more on their loans than their homes are worth, many start to look longingly at a different house — perhaps something smaller and cheaper and that better reflects their new financial reality.
But can you even consider buying another house while you need a snorkel on the first one? Surprisingly, the answer is a strong “probably.”
1. Your Credit
If you have continued to make your mortgage payments and pay all your other bills on time, your credit is untarnished. In order to get a loan for the house you hope to buy, you will need untarnished credit.
2. Your Income Stream
You need a job that pays you enough money to cover the debt of a new mortgage as well as your other existing expenses. If you are self-employed, you need two years of income tax filings showing a profit.
You probably are among the millions of people who can afford one house — in your case the upside down one — but not a second home. One way around this is to convert your existing home into an income property where you collect rent. That will boost your income stream.
3. Assets and Debts
Lenders will look at your assets and debts. Your upside-down house is not an asset and your mortgage on it is a debt. The answer is to have other assets — such as your savings, stocks and bonds, 401(k), IRA., your paid-off cars, boats. Yes, we all wish that we had more equity in our homes, but those days are gone.
4. Cash
To buy another house, you will need cash to put down, which is where the rub comes in for a lot of people. Do you have enough money to put down what the lender will require, figure 20 percent of the purchase price?
With good credit, money for the down payment, a steady job and assets outside the ownership of your underwater home, your chances of being able to buy another house are good.
Once you close escrow on your new home, you might try for a loan modification or a short sale on your first property. Both of those actions will tarnish your credit, so wait until the ink dries on your new place before starting down that road. Short sales will render you unmortgageable for about two years, say experts.
Another way to avoid those credit dings would be to embrace your accidental landlord status. Renting out your first home can cover or at least help offset the expenses and comes with a whole set of tax advantages that you should speak to your accountant about. This would buy you some time for the market to recover and for you to again be building equity in your home instead of being upside down. The less optimistic crowd says that might be when hell freezes over, but you probably know your local market better than they do.
More on AOL Real Estate:
How Much Down Payment Do Homebuyers Need?
No-Money-Down Mortgage Can Still Be Found in Small Towns
New Credit Score Will Tell Lenders More About You
Viewpoint: Obama’s Drop-in-the-Bucket Idea for Housing
%Gallery-131160%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/26/upside-down-on-your-first-house-just-buy-a-second-one/
lien condominium government loan (mortgage) judgment maturity margin tenancy in common
Upside Down on Your First House? Just Buy a Second One!
Filed under: Advice, Financing
Oddly, the best way to deal with being upside down on your home mortgage may be to just go out and buy a second house.
As housing values spiral down and people increasingly owe more on their loans than their homes are worth, many start to look longingly at a different house — perhaps something smaller and cheaper and that better reflects their new financial reality.
But can you even consider buying another house while you need a snorkel on the first one? Surprisingly, the answer is a strong “probably.”
1. Your Credit
If you have continued to make your mortgage payments and pay all your other bills on time, your credit is untarnished. In order to get a loan for the house you hope to buy, you will need untarnished credit.
2. Your Income Stream
You need a job that pays you enough money to cover the debt of a new mortgage as well as your other existing expenses. If you are self-employed, you need two years of income tax filings showing a profit.
You probably are among the millions of people who can afford one house — in your case the upside down one — but not a second home. One way around this is to convert your existing home into an income property where you collect rent. That will boost your income stream.
3. Assets and Debts
Lenders will look at your assets and debts. Your upside-down house is not an asset and your mortgage on it is a debt. The answer is to have other assets — such as your savings, stocks and bonds, 401(k), IRA., your paid-off cars, boats. Yes, we all wish that we had more equity in our homes, but those days are gone.
4. Cash
To buy another house, you will need cash to put down, which is where the rub comes in for a lot of people. Do you have enough money to put down what the lender will require, figure 20 percent of the purchase price?
With good credit, money for the down payment, a steady job and assets outside the ownership of your underwater home, your chances of being able to buy another house are good.
Once you close escrow on your new home, you might try for a loan modification or a short sale on your first property. Both of those actions will tarnish your credit, so wait until the ink dries on your new place before starting down that road. Short sales will render you unmortgageable for about two years, say experts.
Another way to avoid those credit dings would be to embrace your accidental landlord status. Renting out your first home can cover or at least help offset the expenses and comes with a whole set of tax advantages that you should speak to your accountant about. This would buy you some time for the market to recover and for you to again be building equity in your home instead of being upside down. The less optimistic crowd says that might be when hell freezes over, but you probably know your local market better than they do.
More on AOL Real Estate:
How Much Down Payment Do Homebuyers Need?
No-Money-Down Mortgage Can Still Be Found in Small Towns
New Credit Score Will Tell Lenders More About You
Viewpoint: Obama’s Drop-in-the-Bucket Idea for Housing
%Gallery-131160%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/26/upside-down-on-your-first-house-just-buy-a-second-one/
homeowners warranty comparable sales conventional mortgage joint tenancy amortization Veterans Administration (VA) deed-in-lieu
House of the Day: Living Large at the Jersey Shore

Thought Snooki and her partners cornered the market on conspicuous consumption? Then you haven’t seen this Jersey Shore mansion. With 22 rooms, a 15-car-garage and 650 feet of beachfront (provided Hurricane Irene didn’t do any re-landscaping), the place gives the reality-TV cast a run for their booze-soaked bills.
Located in Mantoloking, an uber-ritzy community “down the shore,” the home, listed at $16 million, has eight bedrooms, five bathrooms, and stunning views from multiple porches and decks, as well as a brick patio, pool and 200-foot dock.
%Gallery-131930%
Robert Schwartz of Van Sciver Realtors has the listing.
Click on the pictures below to see some other mouth-watering residences in Mantoloking, N.J.:
See more Houses of the Day and other homes for sale in Mantoloking, N.J. on AOL Real Estate.
Got a tip for House of the Day? Know of an exceptional or unusual property currently listed for sale? Please email ann.brenoff@huffingtonpost.com with your suggestions and be sure to include links to listing details and photos. (Due to the volume of response, we unfortunately are unable to respond to each submission.)
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See more celebrity real estate
Permalink | Email this | Comments
deed certificate of deposit lease purchase money transaction closing costs public auction servicing
After Slowdown, Foreclosures Rise Again
Filed under: Foreclosures
LOS ANGELES — More U.S. homes entered the foreclosure process in October than in the previous month, with Florida, Pennsylvania and Indiana registering among the largest monthly increases, new data show.
Some 77,733 properties received an initial default notice last month, up 10 percent from September, foreclosure listing firm RealtyTrac Inc. said Thursday.
The number of homes scheduled to be auctioned or repossessed by lenders also posted monthly increases.
All told, notices of default, scheduled auctions and bank repossessions – warnings that can eventually lead to a home being lost to foreclosure – hit a seven-month high in October.
The numbers are further evidence foreclosure activity is picking up.
The activity slowed a year ago after problems surfaced with the way many lenders were handling foreclosure documentation, namely shoddy mortgage paperwork comprising several shortcuts known collectively as robo-signing. Many of the nation’s largest banks reacted by temporarily ceasing all foreclosures, re-filing previously filed foreclosure cases and revisiting pending cases to prevent errors.
But banks appear to be moving past those problems now and starting to tackle a swelling backlog of homes with mortgages that have gone unpaid – something that lenders are seeing more of as the economy struggles and unemployment remains high.
The rate that homeowners were 60 or more days late on their mortgage payment rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion.
The credit reporting agency said 5.88 percent of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82 percent in the second quarter of 2011.
The number of U.S. homeowners underwater on their mortgage, or owe more than their homes are worth, represent another potential source of trouble for lenders.
As of June 30, some 22.5 percent of all U.S. homes had a mortgage that was under water, according to CoreLogic. That’s 10.9 million properties. Another 2.4 million borrowers had less than 5 percent equity in their home, the firm said.
Industry experts say a housing market turnaround isn’t likely to occur as long as there remains a glut of potential foreclosures hovering over the market, so October’s increase in foreclosure activity means a potentially faster revival for housing.
“We all know that there is an underlying amount of properties that need to go into foreclosure and the sooner we clear that the sooner we can get housing to a normal level,” said RealtyTrac CEO James Saccacio.
In some states, the number of homeowners put on notice by banks for missing payments far exceeded the national average for October.
Florida posted a 28 percent jump in October from September in homes receiving an initial default notice. Pennsylvania saw a 50 percent increase and Indiana registered a 61 percent gain, according to RealtyTrac.
In some cases, though, government intervention is slowing lenders down.
Take Nevada, where a law went into effect Oct. 1 requiring that foreclosure documents must be filed in the county where a property is located and a lender must provide a notarized affidavit detailing their legal right to proceed.
Saccacio said the law helped cause a 75 percent drop in initial default notices in Nevada last month versus September, bringing defaults to the lowest level since June 2006 at the peak of the housing boom.
“It’s like a rain delay,” Saccacio said. “We’ll eventually see foreclosure processing go up.”
Despite registering a 34 percent drop in foreclosure activity overall, Nevada still registered the highest foreclosure rate in the nation for October, with one in every 180 households receiving a foreclosure-related notice, RealtyTrac said.
In all, 230,678 U.S. homes received a foreclosure-related warning last month, up 7 percent from September, but down nearly 31 percent from October 2010.
Foreclosure auctions rose 8 percent from September, but climbed by more than 35 percent in several states, including Florida, Minnesota and Illinois.
Lenders took back 67,624 properties in October, up 4 percent from the previous month, but down 27 percent from a year earlier.
Bank repossessions increased by a far larger margin in several states. In Oregon they climbed 45 percent, while in New Jersey they posted a 48 percent jump. Indiana registered a 73 percent increase.
Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
Also see:
‘Mortgage Prof’: 5 Reasons Banks Would Rather Foreclose
The Mortgage Fix That Can Save the Economy
5 Foreclosure Flip Tips From the ‘Flip Men’
%Gallery-133958%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/10/after-slowdown-foreclosures-on-the-rise-again/
depreciation merged credit report second mortgage qualifying ratios easement PITI adjustable-rate mortgage (ARM)
House of the Day: Where the Deer and Antelope Play
Filed under: News, Buying, Investing

While it doesn’t carry a price tag quite as mind-blowing as its neighbor (nearby Jackson Land and Cattle Ranch is listed at $175 million), this $100-million ranch near Jackson Hole, Wyo., known as “Walton Ranch,” still is certainly one of the most expensive properties on the American market.
The 1,848-acre property nestles between Yellowstone and Grand Teton Parks, and plays host to a rich array of wildlife. Elk, bear, moose, mountain goats, bighorn sheep, antelope and deer roam its expansive woodlands and meadows, which stretch along three miles of Snake River. And even with all that nature at hand, the ranch affords residents easy access to world-class ski resorts and vibrant nightlife — it’s just five miles to Jackson Hole.
%Gallery-129689%
To protect the property’s pristine environment, the former owners placed it under conservation easement in 1983. That distinguishes it from neighbor Jackson Land and Cattle Ranch, whose heftier price stems partly from the fact that it has 35 separate lots open for development. Walton Ranch is a functioning cattle ranch and hay farm with a two-story main house and manager’s complex containing two homes, bunkhouse outbuildings, sheds, barns, and, of course, corrals.
Ranch Marketing Associates is handling the property.
Got a tip for House of the Day? Know of an exceptional or unusual property currently listed for sale? Please email ann.brenoff@huffingtonpost.com with your suggestions and be sure to include links to listing details and photos. (Due to the volume of response, we unfortunately are unable to respond to each submission.)
See more Houses of the Day and other homes for sale in Wyoming on AOL Real Estate.
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/08/08/house-of-the-day-where-the-deer-and-antelope-play/
eminent domain collateral quitclaim deed rate lock fair market value common law cap
Cutoff Date for Relief Loan Applications Fast Approaching
Filed under: News, Refinancing, Credit
Washington is acting to rescue tens of thousands of beleaguered homeowners by offering interest-free loans, some of which will ultimately be “forgiven” if borrowers follow the rules.
But the pre-screening deadline for applicants is July 22, so interested homeowners must move fast. Click here to get started.
Coming out of the budget of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the $1 billion allotted for the Emergency Homeowners’ Loan Program is expected to help about 30,000 of them, reports The Washington Post.
But qualifying for the relief program is not easy. Among other conditions, applicants must be unemployed or underemployed, 90 days behind on mortgage payments and have received a foreclosure notice.
Homeowners who qualify for the program — which is offered only in 32 states — receive a loan enabling them to meet up to two years or $50,000 worth of mortgage payments. The loan requires no payments for five years, as long as borrowers contribute 31 percent of their income or at least $150 to their mortgage payments. After that, the magic starts: The government reduces the loan balance by 20 percent each year until, poof — no more loan.
MSN Money offers a more thorough breakdown of the program.
For more on mortgages and related topics see these AOL Real Estate guides:
- Stop Foreclosure Scammers Before They Scam You
- How to Get a Low Mortgage Rate
- Mortgage Jargon in Simple Terms
- Foreclosure Help: What a Housing Counselor Can Do
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/07/05/cutoff-date-for-relief-loan-applications-fast-approaching/
construction loan PUD (Planned Unit Development) recording prepayment penalty multidwelling units Treasury index Realtor®
Credit Scores for Home Buyers in 2011
Filed under: Credit
Consumer lending is still tight, and your credit score will still be a major factor in 2011 if you want to get the best mortgage interest rates. Even if you don’t have a top score, you may still be able to get a government-backed loan, such as an FHA, VA or USDA, at a decent rate.
To get the best rate on the market, you’ll need to have a FICO credit score of at least 760. But if your credit score is between 700 and 759, your interest rate will be just 0.2 percent higher. That means your mortgage payment on a $200,000 loan will be about $20 more per month. You’ll pay about $10,000 more over the life of the loan on a 30-year fixed-rate mortgage at about 5.06 percent. The lowest interest rate for top scorers is 4.86 percent this week.
If your credit score is between 680 and 699, you can still probably find a bank that will consider you for a mortgage, but you may be able to find a better rate by applying for an FHA, VA or USDA loan. Your best best is to work with an independent mortgage broker who is not tied to a particular bank; that way the broker can find you the bank that will offer you the best deal depending on your credit score.
If your credit score is as low as 620, you may still be able to find a lender that will offer you a government-backed loan, but you’ll have to do some searching. Most banks will only offer an FHA, VA or USDA loan to people with credit scores of at least 640, but some smaller banks will consider applications at 620.
Even though FHA’s official rule is that you can qualify for a 3.5 percent down mortgage with a credit score as low as 580, banks are not offering mortgages to people with credit scores that low. If your credit score is below 620 you’ll need to work on increasing your score first, as well as save more cash. If you’re able to put down more than 20 percent, you may be able to find a bank that will offer you a mortgage.
So what should you do to improve your credit before applying for a mortgage?
Know Your Credit Score:
There’s no better time to get your credit score!
Get It Now: See Your 2011 Credit Score
Step 1: Check your credit report.
Your first step should be to get your credit reports from all three credit bureaus (Equifax, Experian and Transunion). You can order them for free at the government-run website Annual Credit Report.com. This is the only website that offers free credit reports with no strings. (Other sites might offer you a free credit report but require you to sign up for monthly services.)
Step 2: Challenge any errors on your report.
When you get your report, if you see any errors follow the instructions sent with the report for correcting errors. The credit reporting agency has 60 days to respond to you and will send a corrected report. If it’s still not correct, be persistent and send another letter disputing the report. You may find you need to dispute reports several times before they are correct, but it’s worth the effort to improve your score.
Step 3: Reduce credit card debt.
If you’re carrying large balances on your credit cards, pay them down. To get the best credit score you need a credit utilization ratio of 10 percent to 20 percent. You can calculate the ratio by dividing your total outstanding debt by your total available credit. For example if you have $2,000 of total debt on two credits cards that each has a $5,000 credit limit, your credit ratio would be 20 percent (2,000/10,000).
Step 4: Monitor your credit score.
While you’re working through the process of correcting your credit reports and paying down your debt, you can check what’s happening to your score for free at CreditKarma.com.
Step 5: Order your credit scores.
Once your report is accurate, you’ve paid down your debt and you think you’re ready to apply for a mortgage, order your credit scores at myFICO.com. That way you will see what your potential lenders see. if your score is over 640, most banks will approve a VA or FHA loan. If it’s below 640, you’ll need the help of a specialized broker. If your score is over 680 you’ll be able to consider both government-backed loans and private loans. Look at the numbers and see which one makes the most financial sense given your situation.
If your scores are too low, you may want to see if a parent or other family member will sign as nonoccupant co-signer. If you do plan to work with a co-signer, be sure to inform the broker that up front so he can steer you to the lenders that will approve a loan with a co-signer.
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/01/07/credit-scores-for-home-buyers-in-2011/
lease option chain of title mortgage insurance (MI) secondary market home inspection lock-in period trustee
Beware the Latest Mortgage-Relief Scam!
Like debt consolidation scams, homeowners who are struggling to stave off foreclosure have been prime targets for scams in the recent years. Now, the Better Business Bureau is warning consumers of yet another new twist on mortgage relief scams. The BBB reported that homeowners have been receiving official-looking letters from out-of-state law firms that invites [...]
Source: http://feedproxy.google.com/~r/TruthfulLendingDotCom/~3/ckeC0RpGU6s/
planned unit development (PUD) down payment subdivision community property eminent domain collateral quitclaim deed
Real Estate Investing: Learn What the Pros Know
There were plenty of people to blame for the housing bubble — our politicians, the big banks, average American homeowners, and of course, the investors and the speculators. Many acted like the market would keep climbing forever, ignoring the reality that was staring us in the face all along — fundamentals matter.
I mention this because I’m here to talk to you about real estate investing, and to do so without reminding you about the dangers of ignoring the fundamentals would be remiss of me.
For over six years now I’ve run an online real estate investing community called BiggerPockets.com where I’ve heard thousands of stories of success and failure. I’ve seen new investors who’ve been wildly successful and some very experienced ones make truly poor decisions. The main reasons that people fail is that they either don’t fully understand the fundamentals of what they are doing or they ignore them.
Real estate investors are now responsible for purchasing a significant portion of homes on the U.S. market. This trend will increase as we continue to struggle as a nation.
What does that mean for you?
Real estate investing isn’t for everyone; there are plenty of other investment vehicles that people can and should explore. But there are few other strategies that will allow someone as much control over their financial future as real estate investing.
Many new, starry-eyed investors are seduced by the hope of getting rich quickly through real estate. And while some will, most won’t. Like anything else, sustained success in real estate investing comes from hard work.
With education, effort, time, planning and, hopefully, the support of your friends and family, you can become extremely successful in real estate, and my goal is to help you to do just that.
Each week, Bigger Pockets will bring AOL Real Estate readers insights from a wide range of experts. My hope is that these men and women who spend their days in the trenches of real estate will be able to give you the tools you need to become a successful real estate investor.

More From Bigger Pockets:
- Are You Getting Ready to Get Ready to Invest in Real Estate?
- Make Sure You Know ALL the Costs to Flip that House
- The Real Estate Investor’s Realtor: What Should You Expect?
Also See:
College Town Real Estate Investments Score High Marks
Top 10 Towns for Working Toward Home Ownership
Will Baby Boomers Rock the Housing Market?
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Joshua Dorkin is the founder and CEO of BiggerPockets.com, the country’s premier real estate investing community. He has been investing in real estate for more than 10 years and built BiggerPockets to change the way real estate investors do business.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/09/16/real-estate-investing-learn-what-the-pros-know/
real estate agent title company principal, interest, taxes, and insurance (PITI) earnest money deposit flood insurance liabilities liquid asset
Purchase Offer Accepted
After looking at a slew of short sales and foreclosures, and having a full price cash offer rejected, our buyers are ecstatic …  celebrating royally right now.  Their offer on a townhouse was accepted, and they are closing next month. Cash offers often give a seller a level of confidence that home purchases requiring lender approval (and an appraisal – in this rather [...]
Source: http://feedproxy.google.com/~r/MiamiRealEstateCafe/~3/qtdJ2XxmIOM/
liability insurance equity notice of default eviction fee simple estate Certificate of Reasonable Value (CRV) homeowners insurance
FHA Mortgage Loan Limits To Rise Again
Filed under: News, Economy, Financing
WASHINGTON — Congressional bargainers have agreed to increase the size of mortgages insured by the Federal Housing Administration in a compromise being hailed by the housing industry but criticized by conservatives.
Under the deal by House and Senate negotiators, the FHA would be able to insure mortgages worth up to $729,750 in the most expensive regions of the U.S. for the next two years. The ceiling had been raised to that level during the financial crisis, but by law it dipped down to $625,500 on Oct. 1.
However, in a bow to conservatives, the bargainers would not increase the current $625,500 limit on mortgages that can be backed in expensive communities by Fannie Mae and Freddie Mac, the government-controlled mortgage giants, and by the Veterans Affairs Department.
Realtors and home builders had lobbied hard to raise the loan limits for all four entities, arguing that the last thing the country’s stubbornly weak housing market needs is stricter limits on government-backed mortgages. They were backed by members of Congress of both parties from areas where housing costs are high, like Southern California and New York.
“We’d have liked broader language, but the FHA is still an important part of the puzzle,” Jamie Gregory, a lobbyist with the National Association of Realtors, said Tuesday.
‘Beyond Ridiculous’
Conservatives and a majority of House Republicans oppose the increase, saying the government should reduce its involvement in subsidizing housing in hopes that the private market would step up.
In a written statement, the president of the conservative Club for Growth called increasing FHA’s loan limits “beyond ridiculous” and said his group would note how lawmakers vote on the issue when they rate members of Congress seeking re-election. He said raising the limits does the opposite of reducing the federal role in housing markets — something that many conservatives and the Obama administration say they want to strengthen the private market and protect federal taxpayers.
It has so far cost the government about $170 billion to rescue Fannie and Freddie, which nearly collapsed in 2008 because of risky loans in their portfolios.
The size of loans that federal agencies can back is based on a formula that includes a region’s median housing cost. More than a fifth of the country’s roughly 3,100 counties would be affected by the higher FHA loan limits.
Helping Buyers With Small Down Payments
FHA insurance is often used by buyers who put down small down payments. The agency has insured more than 40 million homes since it was established in 1934, and last year three quarters of those it insured were first-time buyers.
“It’s good news for the more than 600 counties that faced loan limit decline,” said Robert Dietz, an economist for the National Association of Home Builders. “FHA is important for first-time homebuyers, so that will help support housing demand.”
The provision was included in a bill financing the departments of Housing and Urban Affairs, Commerce, Justice, Transportation and several other agencies for the rest of the government’s fiscal year, which began Oct. 1. It would also keep all other federal agencies functioning through Dec. 16 as lawmakers continue working on permanent spending bills.
The Democratic-run Senate had voted to increase the loan limits in its housing bill, but the version approved by the Republican-led House left the ceilings alone.
The House and Senate are expected to approve the overall compromise legislation later this week.
Also see:
Fannie, Freddie Execs Score $100 Million in Bonuses
Community Rescues Vet From Foreclosure After TV Story Airs
%Gallery-139176%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/
executor mortgage life and disability insurance prepayment mortgage insurance premium (MIP) credit history escrow lien
Viewpoint: Is Housing Crisis Just a State of Mind?
Filed under: News, Advice, Buying, Economy, Financing, Renting, Selling
Is it possible that the housing crisis is really just a problem caused by our state of mind, not the state of the economy? Is the thing stopping people from buying houses nothing more than their perceptions? Apparently, to some extent, yes.
We are having what, if economists talked like this, could be described as an irrational fear of commitment.
The facts: The recession is considered over, the country’s gross domestic product is growing, unemployment is down and consumer spending is up. Yet, the housing market remains comatose. The only explanation is that we are either all still unemployed and not being counted or we’re scared out of our boots.
Want some more evidence that we’re just one giant anti-anxiety pill away from fixing what ails the housing market?
1. The number of applications for mortgages is down.
It’s becoming a broken record: Interest rates are at all-time lows yet nobody is applying for loans. Yes, lending standards are tighter now — tight enough to put the kibosh on almost 16 percent of all home deals that open escrow – but the bigger problem is that potential buyers are afraid to even try to get a loan. Loan applications for home purchases were down 10 percent in a week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Buyers are just plain scared that banks won’t approve their loan. This is the grownup equivalent of hiding in the playground bushes during recess because you think the cool kids won’t pick you for their team.
2. People don’t believe the worst is over.
They are afraid that home prices might fall further. They are afraid that they could lose their jobs tomorrow. They are afraid of looking like a chump, buying when nobody else is buying.
Without question, the days of house-flipping are over. If you are buying, you are buying for the long haul. Remember this: Rents will most certainly go up — that’s why investors are buying properties like mad nowadays; but mortgages that are locked into the current record-low rates will not. If you are planning on staying put, doesn’t it make sense to buy?
As for losing your job tomorrow, ask yourself this: Really? Do you really think that’s likely? While new jobs aren’t being created with anything close to wanton abandon, neither are they being eliminated with the gusto of three years ago. Do you really want to put your life on hold while you wait to see if The Man sneezes in your direction?
Looking like a chump is a tough one. No one wants to be the last soldier killed before the war ends and no one wants to be a homebuyer who bought when prices were still falling. But that gets back to the long-term strategy. You aren’t buying for now, you are buying for the many years to come.
Fear can be paralyzing, but so can group-think. If you read how nobody is buying, you figure all those nobodies must know something. Yeah, they know how to be lemmings.
3. Consumer confidence has plunged, yet we are spending again — just not on houses.
A recent Nielsen poll found that nine of 10 Americans think the country is still in a recession. The memo went out a while ago that the recession officially ended in June of 2009. Pain and misery have clearly lingered and depressed consumers don’t spend money. But if we’re all so depressed, how do you explain why consumer spending rose in the third quarter by 2 percent. We’re even back to our old ways regarding charging and not saving: Consumer credit is back up to 2009 levels and our savings rate has dropped to 3.6 percent, the lowest level in four years. I see our old ways creeping back, don’t you?
We may not be happy, but we’re spending again. I have but one question: If you are willing to hit Macy’s with enthusiasm, why not the housing market?
%Gallery-139870%
Also see:
Survey: Most Boomers Would Cover Kids’ Down Payment
Will FHA Be the Go-To Source for High-Cost Mortgages?
When It Comes to Mortgages, Women Don’t Shop Enough
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/
assumption HUD median income homeowners association escrow analysis encumbrance vested call option
See you in 2012!
We’re coming to the end of another wonderful year. It has been such an extraordinary pleasure to work with each of you in 2011, and I am looking forward to what next year will bring for us. I have never been more sure that this company is built on quality, not quantity, than when I [...]
Source: http://www.hassonblog.com/2011/12/see-you-in-2012/
joint tenancy amortization Veterans Administration (VA) deed-in-lieu biweekly mortgage repayment plan credit report
FHA Mortgage Loan Limits To Rise Again
Filed under: News, Economy, Financing
WASHINGTON — Congressional bargainers have agreed to increase the size of mortgages insured by the Federal Housing Administration in a compromise being hailed by the housing industry but criticized by conservatives.
Under the deal by House and Senate negotiators, the FHA would be able to insure mortgages worth up to $729,750 in the most expensive regions of the U.S. for the next two years. The ceiling had been raised to that level during the financial crisis, but by law it dipped down to $625,500 on Oct. 1.
However, in a bow to conservatives, the bargainers would not increase the current $625,500 limit on mortgages that can be backed in expensive communities by Fannie Mae and Freddie Mac, the government-controlled mortgage giants, and by the Veterans Affairs Department.
Realtors and home builders had lobbied hard to raise the loan limits for all four entities, arguing that the last thing the country’s stubbornly weak housing market needs is stricter limits on government-backed mortgages. They were backed by members of Congress of both parties from areas where housing costs are high, like Southern California and New York.
“We’d have liked broader language, but the FHA is still an important part of the puzzle,” Jamie Gregory, a lobbyist with the National Association of Realtors, said Tuesday.
‘Beyond Ridiculous’
Conservatives and a majority of House Republicans oppose the increase, saying the government should reduce its involvement in subsidizing housing in hopes that the private market would step up.
In a written statement, the president of the conservative Club for Growth called increasing FHA’s loan limits “beyond ridiculous” and said his group would note how lawmakers vote on the issue when they rate members of Congress seeking re-election. He said raising the limits does the opposite of reducing the federal role in housing markets — something that many conservatives and the Obama administration say they want to strengthen the private market and protect federal taxpayers.
It has so far cost the government about $170 billion to rescue Fannie and Freddie, which nearly collapsed in 2008 because of risky loans in their portfolios.
The size of loans that federal agencies can back is based on a formula that includes a region’s median housing cost. More than a fifth of the country’s roughly 3,100 counties would be affected by the higher FHA loan limits.
Helping Buyers With Small Down Payments
FHA insurance is often used by buyers who put down small down payments. The agency has insured more than 40 million homes since it was established in 1934, and last year three quarters of those it insured were first-time buyers.
“It’s good news for the more than 600 counties that faced loan limit decline,” said Robert Dietz, an economist for the National Association of Home Builders. “FHA is important for first-time homebuyers, so that will help support housing demand.”
The provision was included in a bill financing the departments of Housing and Urban Affairs, Commerce, Justice, Transportation and several other agencies for the rest of the government’s fiscal year, which began Oct. 1. It would also keep all other federal agencies functioning through Dec. 16 as lawmakers continue working on permanent spending bills.
The Democratic-run Senate had voted to increase the loan limits in its housing bill, but the version approved by the Republican-led House left the ceilings alone.
The House and Senate are expected to approve the overall compromise legislation later this week.
Also see:
Fannie, Freddie Execs Score $100 Million in Bonuses
Community Rescues Vet From Foreclosure After TV Story Airs
%Gallery-139176%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/
merged credit report second mortgage qualifying ratios easement PITI adjustable-rate mortgage (ARM) replacement reserve fund
Viewpoint: Is Housing Crisis Just a State of Mind?
Filed under: News, Advice, Buying, Economy, Financing, Renting, Selling
Is it possible that the housing crisis is really just a problem caused by our state of mind, not the state of the economy? Is the thing stopping people from buying houses nothing more than their perceptions? Apparently, to some extent, yes.
We are having what, if economists talked like this, could be described as an irrational fear of commitment.
The facts: The recession is considered over, the country’s gross domestic product is growing, unemployment is down and consumer spending is up. Yet, the housing market remains comatose. The only explanation is that we are either all still unemployed and not being counted or we’re scared out of our boots.
Want some more evidence that we’re just one giant anti-anxiety pill away from fixing what ails the housing market?
1. The number of applications for mortgages is down.
It’s becoming a broken record: Interest rates are at all-time lows yet nobody is applying for loans. Yes, lending standards are tighter now — tight enough to put the kibosh on almost 16 percent of all home deals that open escrow – but the bigger problem is that potential buyers are afraid to even try to get a loan. Loan applications for home purchases were down 10 percent in a week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Buyers are just plain scared that banks won’t approve their loan. This is the grownup equivalent of hiding in the playground bushes during recess because you think the cool kids won’t pick you for their team.
2. People don’t believe the worst is over.
They are afraid that home prices might fall further. They are afraid that they could lose their jobs tomorrow. They are afraid of looking like a chump, buying when nobody else is buying.
Without question, the days of house-flipping are over. If you are buying, you are buying for the long haul. Remember this: Rents will most certainly go up — that’s why investors are buying properties like mad nowadays; but mortgages that are locked into the current record-low rates will not. If you are planning on staying put, doesn’t it make sense to buy?
As for losing your job tomorrow, ask yourself this: Really? Do you really think that’s likely? While new jobs aren’t being created with anything close to wanton abandon, neither are they being eliminated with the gusto of three years ago. Do you really want to put your life on hold while you wait to see if The Man sneezes in your direction?
Looking like a chump is a tough one. No one wants to be the last soldier killed before the war ends and no one wants to be a homebuyer who bought when prices were still falling. But that gets back to the long-term strategy. You aren’t buying for now, you are buying for the many years to come.
Fear can be paralyzing, but so can group-think. If you read how nobody is buying, you figure all those nobodies must know something. Yeah, they know how to be lemmings.
3. Consumer confidence has plunged, yet we are spending again — just not on houses.
A recent Nielsen poll found that nine of 10 Americans think the country is still in a recession. The memo went out a while ago that the recession officially ended in June of 2009. Pain and misery have clearly lingered and depressed consumers don’t spend money. But if we’re all so depressed, how do you explain why consumer spending rose in the third quarter by 2 percent. We’re even back to our old ways regarding charging and not saving: Consumer credit is back up to 2009 levels and our savings rate has dropped to 3.6 percent, the lowest level in four years. I see our old ways creeping back, don’t you?
We may not be happy, but we’re spending again. I have but one question: If you are willing to hit Macy’s with enthusiasm, why not the housing market?
%Gallery-139870%
Also see:
Survey: Most Boomers Would Cover Kids’ Down Payment
Will FHA Be the Go-To Source for High-Cost Mortgages?
When It Comes to Mortgages, Women Don’t Shop Enough
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/
acceleration clause cash-out refinance depreciation merged credit report second mortgage qualifying ratios easement
Army Sergeant Battles Mortgage Servicer — and Wins
Filed under: News, Foreclosures, Credit
A Georgia homeowner was awarded $21 million in a lawsuit against one of the largest mortgage servicers in the nation. The homeowner, David Brash, a U.S. Army sergeant, claimed that PHH incorrectly reported his account as “seriously delinquent,” when payments had been made on time through automatic deductions from his paychecks. The hefty judgment, according to the plaintiff’s attorney, was necessary to get the mortgage servicer’s attention. Huffington Post Business reporter Yepoka Yeebo has the full story:
A federal jury has awarded a Georgia man more than $21 million in a lawsuit pitting the homeowner against one of the nation’s largest mortgage servicers.
U.S. Army sergeant David Brash was awarded the damages in March, after a Columbus, Ga., jury found that PHH Mortgage, the country’s eighth largest mortgage servicer, had incorrectly reported Brash to credit score companies as “seriously delinquent” despite the fact that all his mortgage payments had been automatically deducted from his paycheck.
According to court documents, Brash sent letters to the mortgage company that went unanswered, violating federal laws. When he called his mortgage company to find out why his payments were not going through, his attorneys said, he was repeatedly routed to overseas customer services staff who couldn’t answer his questions.

See the full story on Huffington Post Business.
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/04/07/georgia-homeowner-awarded-21-million-in-mortgage-lawsuit/
second mortgage qualifying ratios easement PITI adjustable-rate mortgage (ARM) replacement reserve fund deed
Hey, Foreign Investors: Buy a House, Get a Visa!
Filed under: News, Buying, Investing, Selling
It’s no secret that one of the few bright spots in the housing market today comes from all-cash buyers, many of whom are foreign investors. But a new bipartisan bill in the Senate aims to take this trend to its most logical (and controversial) end — buy a house and you’ll qualify for a resident visa in the U.S.
The bill, proposed by Sens. Chuck Schumer (D-N.Y.) and Mike Lee (R-Utah), seeks to lure foreign buyers by offering a resident visa in exchange for a cash purchase of at least $500,000 on a single-family home, condo or townhouse, according to The Wall Street Journal.
The proposal takes its cue from the “EB-5″ program (formally known as the Immigrant Investor Program), in which foreigners who invest in job-creating projects that are worth at least $500,000 in high-unemployment areas are granted green cards.
The bill is not, however, without its detractors. Richard Smith, CEO of Realogy, the parent company of realty heavies like ERA, Century 21 and Coldwell Banker, told The Wall Street Journal that it’s an unnecessary measure — even without the incentive, foreigners are already snapping up American property.
And he may be right. Of the $1.07 trillion spent on existing home sales between March 2010 and March 2011, about $41 billion changed hands thanks to foreign investors, according to the National Association of Realtors. Additionally, all-cash sales accounted for 30 percent of all purchases — much of which is generated by foreign investors facing favorable exchange rates.
On the other hand, Sen. Schumer told the Journal, the proposal is a quick way to shore up demand for the country’s housing overstock without costing the federal government anything. Until first-time homebuyers overcome the hurdles at the banks, and repeat buyers find ways to unload their current homes, increased sales to foreign investors may be the best way to absorb some of the nation’s enormous inventory of homes.
The investor visas would not leapfrog current waiting lists, which should prevent wealthier foreigners from jumping ahead of other immigrants. The bill also requires investors to apply for a separate visa to work in the U.S, says the Journal.
Readers, what do you think? Would such a bill help or hurt the U.S. economy?
Also see:
Viva Las Vegas! Sin City Now Bargain City
When It Comes to Square Footage, the U.S. Is Cheap
Require 20% Down on a House? Hong Kong Tried That
Pity the Homeowner Who Tries to Sell in These 10 Cities
%Gallery-135214%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/20/hey-foreign-investors-buy-a-house-get-a-visa/
jumbo loan principal balance 401(k)/403(b) fixed-rate mortgage partial payment homeowners warranty comparable sales
5 Foreclosure Flip Tips From the ‘Flip Men’
Filed under: News, Advice, Foreclosures, Investing, Lifestyle
AOL Real Estate asked Utah-based real estate investors Doug Clark and Mike Bard, whose show “Flip Men” premieres this week on Spike TV, for tips on how to flip a foreclosed home. Here’s what they had to say to novice investors:
1. Pick a property that is well within your means.
Don’t allow yourself to get too overextended on the property. Way too often, we have seen people show up at a foreclosure auction and then after one bad deal, their own house is in foreclosure. Everything will take more time and money then you anticipate, so don’t bite off more then you can chew.
2. Prepare to break in.
Foreclosed homes don’t come with keys or contracts. It is up to you to find a way in. Our favorite methods are: Slip the lock with a credit card, lift a window, lift the garage, put your hand through a doggy door and unlock the door from within, climb on the roof and look for an open window.
Get creative and have fun with this step! If you want a set of keys to your new property you need to make your own or call a locksmith and pay $150 to get the job done. Make sure you research the local laws regarding abandoned property. You may have to store any items you find in the house for a period of time before they are yours. Former owners almost never come back for their items, so it’s not out of the question to find cash, furniture, collectibles, firearms and even vehicles.
3. Check everything.
Most foreclosures were abandoned. These homes have many issues, so check all the systems thoroughly. The last thing you want is to find out that the roof is bad or the furnace needs to be replaced the day before closing.
A great tip: Speak to the neighbors. You would not believe how much they know about the houses around them. Don’t avoid disclosing bad news with the house, because the people you sell to will notice everything. Budget for contingency items because they are always there, especially in foreclosures.
4. Tour other houses for sale.
Take an afternoon and tour two or three homes similar to the one you hope to flip. This is your direct competition, so view it that way. How is the curb appeal, paint colors, smell, clutter, layout, backyard, etc. This is especially important if you are new to the business and don’t have the same reference points that a professional flipper does.
5. Price aggressively.
It’s easy to overprice a listing, it’s difficult to under-price one. If you under-price the property, you will get a lot of attention and showings fast, and people will compete for the house. Set the price to move. If you are not getting showings and no one is calling to see the house, then it is priced too high. If you are getting a lot of attention and people are walking through but no offers are being made, then the price is right, but there is something wrong with the house. Call the agent for details and don’t be afraid to ask why the buyers are passing on your house.
| SPIKE | ||||
| Sneak Peek – Meth House | ||||
|
||||
Also see:
Mansion or Meth House? Flip Men Want to Know
Viewpoint: Feeling Guilty About Buying a Foreclosure?
‘Mortgage Prof’: 5 Reasons Banks Would Rather Foreclose
Tempted to Invest in Real Estate? Read This First
%Gallery-131160%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/25/5-foreclosure-flip-tips-from-the-flip-men/
real estate agent title company principal, interest, taxes, and insurance (PITI) earnest money deposit flood insurance liabilities liquid asset
5 Staging Tricks for a Quick Sale
Here are some tips I used when staging my San Francisco condo. This unit sold within a month and a half for just below asking price. The exact same (unstaged) unit, located one floor down, never even got an offer. So there you have it.
1. Clear it all out. I mean it, girlfriend, move every single thing out of your place. That goes for your beloved troll doll collection, leopard skin rug and the couch that your mom claims you were born on. As sentimental as these things might seem to you, buyers want to be able to imagine themselves in your space; seeing clothes in the closet, family photos and random tchotchkes prevents them from doing so. Then put back only necessary furniture, keeping in mind that you want the space to look BIG, CLEAN, SPACIOUS and UNCLUTTERED. This isn’t supposed to be a functional room. Nope. As I did in this living area (pictured above), you can lose the TV, stereo, side tables and ottomans if it creates more room.
2. Freshen up the style. You may be a diehard Shabby Chic follower, but even Rachel Ashwell would agree that not everyone is. Aim for a style that most buyers would like, even if it’s not your cup of tea. Furnishings that seem homey and comforting — yet fresh and contemporary — give an aura that your home is updated and well-cared-for. Neutrals work best; just add colorful touches here and there. For this office (above), I used a bright rug to punch in some color and pattern to an otherwise boxy white room. The clear console stands in for a desk. (If buyers saw my real desk stacked with papers and dirty coffee mugs, they’d run for the hills). Curtains hide the closet doors and soften the hard walls. Stick-on mirrors from IKEA reflect light and space.
3. Mirror, mirror on the wall. Who’s the fairest one of all? Your room, that’s who. Use mirrors liberally to make your area look bigger, lighter, brighter, and encourage sunlight to bounce all over the walls. In this small dining area (above), the mirror even adds color by reflecting the painting that’s hanging in the living area. How’s that for working double duty?
4. Don’t forget the details. Set the table. It’s easy to do and makes a big impact. Buyers walk in and instantly feel welcome, as if they’re coming over for dinner. Light clean and unscented candles, place plush towels and fancy soap in the bathrooms, a breakfast tray on the bed, and a pretty book on the coffee table. If all goes as planned, they’ll want to stay over forever.
5. Play with texture. Wallpaper, pillows, rugs, blankets, baskets, and other tactile accessories can play up texture in a room. It’s an easy way for anyone, even my colorblind husband, to add warmth to a blah room. Try grass cloth wallpaper on plain walls that need a little oomph, such as in this master bedroom (right), where buyers expect to see a little more luxury and style.Houzz is a leading online community for home design enthusiasts, bringing together homeowners and design professionals of all disciplines. The Houzz site and mobile apps feature over 175,000 high quality interior and exterior photos, thousands of highly-engaging articles written by design experts, product recommendations, social tools to manage the remodeling and decorating process, and more than 25,000 design professionals who can help turn ideas into reality.
More from Houzz:
20 Finds for Staging Your Home
Find a Home Stager Near You
Browse Inspiring Kitchen Designs
See also:
- Home Staging Mistakes Sellers Should Avoid
- Home Staging Tips for Every Season
- Home Staging: Hire a Pro or Do It Yourself?
More on AOL Real Estate:
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
See celebrity real estate
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/06/5-staging-tricks-for-a-quick-sale/
first mortgage assessor exclusive listing negative amortization condominium conversion 401(k)/403(b) loan remaining balance
Where Are the Real Home Bargains? Not Where You Think!
Filed under: News, Advice, Buying, Financing, Foreclosures, How To, Investing, Renting, Selling

What if you could buy a house for $25,000 in a neighborhood that wasn’t a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?
If you said Phoenix, Las Vegas or south Florida, you’d be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.
Here’s a hint to the place Habibi thinks is the hottest investment around.
Yep, Habibi is humming “Kansas City” right along with Wilbert Harrison, Fats Domino and the 50 or so other recording artists who covered that tune. As for a real estate investment, Habibi says Kansas City, Mo., is ripe for the picking.
Habibi’s approach to real estate deals is not for novice investors, but it is for those who can tolerate some risk and buy into a statistician’s mind. He’s developed a matrix that filters the top 30 MSAs (metropolitan statistical areas) through their projected growth rates (increasing population is good), unemployment (the lower, the better), and whether the city has a diversified job platform (Silicon Valley won’t get his money).
He also rejects places where other investors have already scooped up the bargains (forget Florida and Las Vegas). Phoenix, popular with many investors, also fails his litmus test. It was built as a retirement community and lacks a job infrastructure for future growth, he says. And those Texas cities that everyone bandies about — Dallas, Austin, San Antonio — while their prices have remained flat and they seem to have escaped relatively unscathed from the recession, there are so many investors already there that they’re tripping over one another.
Kansas City is just about perfect, said Habibi, whose company recently concluded its first phase of buying 32 single-family homes there in “C-level” neighborhoods for a price point of $25,000 each, spent $5,000 to $10,000 on repairs and now rents them out for about $750 each. He expects to double or triple his holdings in Kansas City with his second investment fund, for which there is a minimum buy-in of $100,000 for accredited investors to participate.
Kansas City’s population grew at a faster-than-national average pace from 2000 to 2010. With an unemployment rate of 8.7 percent, it falls below the national level of unemployment of 9.1 percent. The city has a diversified industry base that includes Sprint Nextel Corporation, Hallmark Cards, the Fort Leavenworth military base, UPS and a Ford assembly plant. Google has selected the city for its ultra high-speed broadband network project. Plus Kansas City has a business-friendly reputation for encouraging retention of companies.
Habibi discourages individual investors without much experience or tolerance for risk to try to fly solo. He credits much of his success from having an infrastructure in place — people to scout and inspect the homes, screen for tenants, manage the properties on-site and swiftly deal with eviction issues.
For those who don’t want to listen to the expert, click on the images below of some homes for sale in the Kansas City area that are worth checking out:
See other homes for sale in the Kansas City area at AOL Real Estate.
Also see:
College Town Real Estate Investments Score High Marks
Upside Down on Your First House? Just Buy a Second One!
Viewpoint: Why No New Houses May Be a Good Thing
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/
secured loan convertible ARM mortgagee clear title no-cost loan refinance transaction two- to four-family property
Home Equity Loan a Good Option for Cash-Strapped Retirees
Filed under: Home Equity
Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC). For more than half of all U.S. households, home equity — the
Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC).
For more than half of all U.S. households, home equity — the value of a home minus the debt owned — accounts for at least 50 percent of net wealth, according to the Survey of Consumer Finances, published by the Federal Reserve. Statistics also reveal — according to an annual government report, A Profile of Older Americans — that the over-65 population is swelling and an increasing number of retirement-age Americans are being forced back to work. More money problems are on the way, with half of U.S. households in jeopardy of being able to sustain their lifestyle through retirement, says the Center for Retirement Research of Boston College.
Home equity loans were traditionally used has a last resort for retirees, but a growing number of seniors are tapping their home equity earlier, either as a financial buffer, to sustain income security, or to improve debt management.
How can retirement-age homeowners tap into their home equity in a responsible and fruitful way?
For retired Americans who have a small mortgage or no mortgage and low levels of debt, leveraging the equity in their home — either through a home equity loan or a second mortgage — is a way to free up immediate cash.
“It would be cheaper than taking out an unsecured loan, where the rates are generally higher,” said Clifton Thomas, a CPA in San Francisco, though he cautioned that this be determined on a case-by-case basis and is not a viable route if monthly payments cannot be covered.
Increased longevity has many over age 65 worrying that they may outlive their retirement resources. For those who do not have income from employer-sponsored pension plans, longterm financial security may be unusually challenging. Some financial planners recommend deferring Social Security payments and taking out a term home-equity loan or reverse mortgage to help fund expenses for a few years, when they will qualify for maximum Social Security benefits.
Another common fear of older Americans is having to spend their last years in a nursing home. But better overall health and the growth of community living has drastically reduced that risk. Today, most people would prefer to live in their homes for as long as they can. As a result, preserving the value of one’s home has become more important — and having a financial cushion helps older homeowners make repairs such as faulty furnaces and leaky roofs before they become more serious. A HELOC, which requires borrowers only to pay interest on the amount they use from the loan, is well-suited for this purpose.
As older Americans struggle to pay rising household expenses, their use of credit cards has expanded, according to the Survey of Consumer Finances. Today, nearly 50 percent of families aged 55 to 64 carry credit card debt. Debt consolidation may be a good way to fend off personal bankruptcy. Shifting credit card debt to a HELOC is a good way to lower monthly expenses, since interest rates for home equity debt are much lower than than those for credit cards.
For those seniors with existing mortgages, monthly payments make it hard to enjoy later life. In this case, a home equity loan or reverse mortgage can allow homeowners to defer monthly mortgage payments on a conventional mortgage.
Experts say that it’s never too late to make a financial plan that will access your current assets and expenditures, and project your future cash flow. Michael Gray, a CPA in San Jose, Calif., recommends that seniors hire a fee-only financial advisor rather than one who is commission-based, who may (or may not) benefit from clients moving money in and out of different investments.
For qualified homeowners, a home equity loan and a HELOC will likely be among the options recommended. As part of a responsible retirement plan, both may provide financial security that previously seemed unobtainable.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2010/12/09/home-equity-loan-a-good-option-for-cash-strapped-retirees/
asset application common area assessments cost of funds index (COFI) loan origination hazard insurance construction loan
Viewpoint: Obama’s Drop-in-the-Bucket Idea for Housing
Filed under: News, Advice, Economy, Financing, Foreclosures, Refinancing
Let’s hold off blaring the triumphant trumpets just yet for President Obama’s plan to allow holders of underwater loans to refinance at a lower rate through revisions in the Home Affordable Refinance Program.
What this change does is amend the loan-to-value ratio in a refinance. By removing the cap on how upside-down you can be, it will allow more people to avail themselves of the lower interest rates out there. You still will owe more than your house is worth, but you can pay less for the privilege.
Here’s what the proposed plan doesn’t do:
1. Reach many people.
The only homeowners who will qualify are those who are current on their underwater loans and have loans that are backed by Fannie Mae and Freddie Mac. (No jumbo loan holders or those with mortgages backed by the FHA or the USDA.) That’s an estimated 800,000 homeowners who can avail themselves of this. To put things in perspective, most experts say there are between 8 million and 9 million people in the foreclosure pipeline — and some put that number as high as 11 million. So 800,000 is hardly a game-changing number.
It is, perhaps somewhat ironically, about the same number of homeowners that HARP has helped to date. When the program was announced in 2009, we were told it would help 4 to 5 million underwater borrowers. To date, just 838,000 homeowners have been able to refinance through HARP. So even if this new tweak doubles the number of people helped, it’s still just a fraction of the number of people in trouble.
2. Reach the people who need it the most.
To qualify, you can have missed only one mortgage payment in the previous year and none in the past six months. The group being targeted here are those who are potential strategic defaulters — folks who go to sleep at night calculating whether it makes financial sense for them to just walk away. They have demonstrated that they can afford the loan because they are current on their payments.
The people who are not being helped here are the ones who can’t afford their mortgages anymore. These are the people at risk of losing their homes because of job loss, income reduction, illness, divorce or adjustable rate loan resets.
So to recap: If you are heading for foreclosure because you choose to be, this could change your mind. If you have no choice in heading for foreclosure, tough noogies to you.
3. Reduce anyone’s principal loan amount.
If your house is worth $200,000 and your loan amount is $250,000, you will still owe the bank $250,000 — just at a lower interest rate than what you originally signed up for. The underlying assumption here is that the housing market will recover sufficiently so that in a few years you will no longer be upside down on your loan — or if that doesn’t turn out to be the case, Obama won’t be running for re-election anymore and you become the next guy’s problem.
4. Help the unemployed.
The days of stated income — or no doc — loans are long gone. Consider them something you’ll tell your grandkids about, along with cell phones without cameras. To qualify here, you’ll need pay stubs, W-2s, tax returns and other documentation. And of course if you don’t have a job, you won’t likely be able to refinance your home into a lower-rate loan.
Here’s a little salt in the wound: Many long-term unemployed keep themselves afloat by working multiple freelance jobs. This puts them in the self-employed category — and even if they’ve managed to stay current on their mortgage, qualifying for the HARP relief would prove difficult because of their fluctuating income.
So the bank would rather keep them at a higher interest rate and wait for them to stumble than let them refinance into a lower interest rate. The fact that they have been making their payments faithfully doesn’t matter. The tweaks to HARP don’t tweak in the direction of the unemployed.
5. Pump more money into the economy.
The underlying logic behind this measure is that the money that those 800,000 lucky homeowners aren’t spending on their mortgage each month is money they’ll spend on other things — eating out, traveling, shopping — and that such spending is good for the economy.
Sorry, but this one has me laughing all the way to the credit union, which is where I suspect most of those homeowners will be headed too. First of all, their numbers are just too thin to make a statistical difference. This isn’t a “jump-start the economy” measure by a long shot. At best, it will allow a proverbial handful of homeowners to splurge on the occasional Friday night pizza, assuming there is enough left over from the “windfall” savings after they pay their health insurance and grocery bills.
Also see:
Obama’s Refinance Plan Explained
The Mortgage Fix That Can Save the Economy
Republican Candidates: Short on Housing Policy, Long on Houses
%Gallery-135214%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/24/viewpoint-obamas-drop-in-the-bucket-idea-for-housing/
default right of ingress or egress Federal Housing Administration (FHA) note bankruptcy third-party origination revolving debt
Mansion or Meth House? ‘Flip Men’ Want to Know
Filed under: News, Foreclosures

Remember “Flipping Out,” the Bravo series that brought us high-strung house flipper Jeff Lewis and his high-end portfolio of properties? Well, you can wipe that image from your mind. The new reality of the housing market brings us a new breed of wheeler-dealers: the Flip Men. And what kinds of properties do these guys flip? Why, foreclosures of course.
Mike Baird and Doug Clark buy foreclosed properties at auction, sight unseen. And what they’ll find when they get inside — usually by busting down the door or shimmying through a window, since “when you buy a house at auction, the auctioneer isn’t usually handing you keys and giving you a big kiss,” Baird says — is anyone’s guess.
So … meth house or mansion? Watch the video below to find out. And check out the “Flip Men’s 5 Foreclosure Tips” on AOL Real Estate. “Flip Men” premieres premieres Oct. 25 at 10:30 p.m. (9:30 p.m. CDT) on Spike.
Sneak Peek – Meth House
Get More: Sneak Peek – Meth House
Also see:
Viewpoint: Feeling Guilty About Buying a Foreclosure?
‘Mortgage Prof’: 5 Reasons Banks Would Rather Foreclose
Tempted to Invest in Real Estate? Read This First
%Gallery-131160%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/25/mansion-or-meth-house-flip-men-want-to-know/
mortgage jumbo loan principal balance 401(k)/403(b) fixed-rate mortgage partial payment homeowners warranty
10 Home Fixes That Require a Pro
Filed under: News, Home Improvement, How To

We’re all for empowering homeowners to take on their own house improvements. You save money, gain confidence and get the satisfaction of custom tailoring your home with your own hands. But when it comes to certain tasks — plumbing, for instance — we draw the line. Although these 10 jobs might be within the scope of a very experienced owner, for most of us, they require help from someone who handles them for a living.
1. Foundation repair. If your foundation is in trouble, so is the rest of your house. Wall cracks, sagging ceilings or floors, lopsided doorways and other red flags add up to one solution: a call to a foundation contractor. It’s worth investing in professional help to ensure your house remains on sure footing.
2. Electrical wiring. We haven’t yet met a builder who thinks that wiring is a DIY job. That doesn’t mean you can’t replace an old ceiling fan or install a garage door opener — we’re talking about serious, behind-the-walls electrical work. Not only do you need thorough knowledge of the most updated building codes, but the worst-case scenarios are really, really bad (house fire, injury, death). Hire a licensed electrician for your own safety and peace of mind.
3. Removal of a load-bearing wall. Knocking out a wall sounds simple, right? Well, if it’s load bearing, meaning it carries and distributes weight, things get a lot more complicated. Eliminating such a wall wipes out support for the ceilings, floors and other structural elements that rest on it — and that can have disastrous consequences for the entire home. Plus, the wall could contain wiring or ductwork that you don’t want to disturb. Leave this tricky and time-consuming job to a remodeling contractor.
4. Major plumbing. Two words: water damage. You can probably install a new faucet, a showerhead or even a toilet, but when it comes to the bigger stuff, pro is the way to go. Pipe connections and other trouble spots can spring leaks that may cost you dearly in the long run. Here’s a good rule of thumb: If it involves work behind the walls, don’t try to handle it on your own.
5. Natural gas lines. Remember the worst-case scenarios with electrical work? Same with gas. It may sound simple to run a gas line directly to your grill or fire pit, but it isn’t. Call the gas company and thank us later.
6. Tile and tub resurfacing. Although this is an affordable alternative to ripping out and replacing dated tile or an old bathtub, don’t be tempted to save even more by trying it yourself. From the chemicals used to strip off the old finish to the delicate technique of applying a new one, it’s a specialized job that calls for specialized help.
7. Roofing. Besides the fact that roof goofs can wreak costly havoc if they leak, balancing on a steep slope of shingles with a toolbox is dangerous, especially if you’re not properly trained. Hire a roofing pro to be sure that the job gets done right and that you won’t face a treacherous fall.
8. Tree removal. Smaller trees (say, 10 or 15 feet high) are OK to cut down on your own, but anything larger should have you speed-dialing the tree service. First, amateurs and chainsaws rarely mix well. Then there’s the art of gauging where the tree will fall — miss the mark, and it could hit a power line or crush a wing of your house. And trying to balance up high while you saw off limbs is an ER visit waiting to happen.
9. Stripping old paint. Don’t take a chance with this one. Paint that dates from the late 1970s or earlier could contain lead, and breathing in the dust as you scrape it off may lead to health problems. Protect yourself and your family by turning the job over to a licensed lead-abatement contractor.
10. Wood-burning stove or fireplace installation. Fire safety is the biggest concern, but this also is an extremely complex job that requires an understanding of special considerations beyond the fireplace itself, such as insulation. Attempt it yourself, and you’re literally playing with fire. And you know what they say about that!
See the original story over at Houzz.
More on Houzz:
Browse 380,000+ Inspiring Home Photos
Houzz News: Remodeling Heats Up
Find the Right Architect or Designer for You
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2012/03/30/10-home-fixes-that-require-a-pro/
call option acceleration clause cash-out refinance depreciation merged credit report second mortgage qualifying ratios
Home Builder Turns Trash into $10,000 Green Homes
Filed under: News, Home Improvement
Dan Phillips is one of the most unconventional home builders you’ll ever find. In fact, he’s more an ecological social messiah than a home builder (see video below). For $10,000, he builds affordable homes for low-income people that are attractive, energy-efficient and save landfills. Most builders purchase building materials — piles of wood, sheet rock, nails, bricks, and tiles — that are used in construction and then, when the house is finished, the waste is discarded to the dump. Phillips, 66, salvages those materials, hauling them from the trash or even picking them up on the road, to build or remodel homes for low-income buyers.
He says he’s just doing what people have been doing for years — using whatever they can scrounge up to to build shelter.
“And if you ponder what could be used,” says the Huntsville, Tex., resident, “then building materials are everywhere.”
Phillips himself has been “everywhere”: He worked as an intelligence officer in the Army, then as a dance instructor, an antiques dealer and a puzzle maker. Fourteen years ago he started a new career: Creating affordable homes for low-income families out of trash. He is a self-taught carpenter, electrician and plumber. His motivation came from the disparity he saw between
landfills overflowing with discarded building materials and a lack of affordable housing. He started Phoenix Commotion, a for-profit company that hopes to solve the world’s social problems associated with housing.
Phillips builds homes for as little as $10,000, making them energy-efficient with tight insulation, solar hot water and even a rainwater catchment system. He hires unskilled workers, teaches them marketable construction skills and then helps them find jobs when the project is complete. He keeps the landfills shallow by using truckfuls of leftover building materials such as lumber, tile and granite. Locals even hand off their old fixtures and doors to Phillips when they remodel, which he keeps in a warehouse and distributes free to low-income and needy people and organizations.
Huntsville officials say he is saving costs as well as Mother Earth. In fact, his materials warehouse has inspired a spin-off in Houston, the nation’s third largest metropolitan area. The Houston warehouse opened in October, 2009 and within the first six months diverted 200 tons of building materials.
So far, Phillips has built 13 homes that are highly unusual, especially in Huntsville, a town of
35,000 north of Houston whose main industry is the huge high security prison that houses Texas death row inmates.
There’s the “Bone House,” which features a stairway made of bones, floors covered in wine corks and beer bottle caps, and a skylight made from — are you ready? — a Pyrex baking dish.
There’s the Storybook House that has that medieval Hansel and Gretel feel. There’s the Budweiser House with an exterior of red, white and blue. There’s the 600-square-foot Doll House, built for Gloria Rivera, a doughnut-shop cashier who put her own thumbprints in the bright yellow stucco walls, which was constructed of almost 100 percent salvaged, donated or recycled materials.
To Phillips’s dismay, about half the homes he has built in Huntsville have been lost to foreclosure. As he told the New York Times in 2009, “You can put someone in a new home, but you cannot give them a new mindset.”
Undaunted, he is continuing to spread the story of what he does to others and preach his philosophy: You may not save the world anytime soon, but you can help tidy up your own backyard.
See photos of other amazing green homes here.
%Gallery-120434%
For more green coverage, visit the Huffington Post Green section.
Candy is an award-winning, Dallas-based real estate reporter, blogger, and consultant. She’s the gal who brought House Porn to the Bible Belt! Read more at SecondShelters.com. and send story ideas and tips to CandyEvans@secondshelters.com.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/04/25/home-builder-turns-trash-into-green-homes-for-10-000/
title search collection contingency first mortgage assessor exclusive listing negative amortization
Consumer Watchdog Agency Eyes Discriminatory Lending

The Consumer Financial Protection Bureau has announced its intention to crack down on discrimination by lenders against women and minorities.
On Wednesday the agency — a centerpiece of President Barack Obama’s attempt to reform the nation’s financial system — sent a letter to lenders, which it called “Fair Notice on Fair Lending.” In the letter, the CFPB explains that the Equal Credit Opportunity Act “makes it illegal for a creditor to discriminate against any applicant because of race, color, religion, national origin, sex, marital status, age [or] receipt of income from any public assistance program.” Credit availability “often determines an individual’s effective range of social choice and influences such basic life matters as selection of occupation and housing.” Without discrimination-free access to credit, in other words, many consumers will be prevented from accessing housing on equal terms.
The agency goes on to warn lenders of its plans to enforce existing regulations and to act against even those lending policies that may not be discriminatory in intent, but nonetheless have adverse effects on protected groups.
“It is important to recognize that this subtle but powerful form of discrimination creates damages that are no less direct than the kind of overt and blatant discrimination that, we hope and assume, is increasingly a relic of a bygone era,” said CFPB Director Richard Cordray in a speech to the National Community Reinvestment Coalition, according to Reuters.
“Our economy is in the process of recovering from the worst financial crisis since the Great Depression,” Cordray said. “We cannot afford to tolerate practices that either price out or cut off segments of the population — such as women, the elderly, or communities of color — from the credit markets.”
See also:
Foreclosures Put 8 Million Children At Risk, Study Says
1st Gay-Friendly Public Housing Project Planned in Philadelphia
Fair Housing Group Sues U.S. Bank Over Foreclosures
%Gallery-153399%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2012/04/19/consumer-watchdog-group-eyes-lending-discrimination/
chain of title mortgage insurance (MI) secondary market home inspection lock-in period trustee effective age
Viewpoint: Obama’s Drop-in-the-Bucket Idea for Housing
Filed under: News, Advice, Economy, Financing, Foreclosures, Refinancing
Let’s hold off blaring the triumphant trumpets just yet for President Obama’s plan to allow holders of underwater loans to refinance at a lower rate through revisions in the Home Affordable Refinance Program.
What this change does is amend the loan-to-value ratio in a refinance. By removing the cap on how upside-down you can be, it will allow more people to avail themselves of the lower interest rates out there. You still will owe more than your house is worth, but you can pay less for the privilege.
Here’s what the proposed plan doesn’t do:
1. Reach many people.
The only homeowners who will qualify are those who are current on their underwater loans and have loans that are backed by Fannie Mae and Freddie Mac. (No jumbo loan holders or those with mortgages backed by the FHA or the USDA.) That’s an estimated 800,000 homeowners who can avail themselves of this. To put things in perspective, most experts say there are between 8 million and 9 million people in the foreclosure pipeline — and some put that number as high as 11 million. So 800,000 is hardly a game-changing number.
It is, perhaps somewhat ironically, about the same number of homeowners that HARP has helped to date. When the program was announced in 2009, we were told it would help 4 to 5 million underwater borrowers. To date, just 838,000 homeowners have been able to refinance through HARP. So even if this new tweak doubles the number of people helped, it’s still just a fraction of the number of people in trouble.
2. Reach the people who need it the most.
To qualify, you can have missed only one mortgage payment in the previous year and none in the past six months. The group being targeted here are those who are potential strategic defaulters — folks who go to sleep at night calculating whether it makes financial sense for them to just walk away. They have demonstrated that they can afford the loan because they are current on their payments.
The people who are not being helped here are the ones who can’t afford their mortgages anymore. These are the people at risk of losing their homes because of job loss, income reduction, illness, divorce or adjustable rate loan resets.
So to recap: If you are heading for foreclosure because you choose to be, this could change your mind. If you have no choice in heading for foreclosure, tough noogies to you.
3. Reduce anyone’s principal loan amount.
If your house is worth $200,000 and your loan amount is $250,000, you will still owe the bank $250,000 — just at a lower interest rate than what you originally signed up for. The underlying assumption here is that the housing market will recover sufficiently so that in a few years you will no longer be upside down on your loan — or if that doesn’t turn out to be the case, Obama won’t be running for re-election anymore and you become the next guy’s problem.
4. Help the unemployed.
The days of stated income — or no doc — loans are long gone. Consider them something you’ll tell your grandkids about, along with cell phones without cameras. To qualify here, you’ll need pay stubs, W-2s, tax returns and other documentation. And of course if you don’t have a job, you won’t likely be able to refinance your home into a lower-rate loan.
Here’s a little salt in the wound: Many long-term unemployed keep themselves afloat by working multiple freelance jobs. This puts them in the self-employed category — and even if they’ve managed to stay current on their mortgage, qualifying for the HARP relief would prove difficult because of their fluctuating income.
So the bank would rather keep them at a higher interest rate and wait for them to stumble than let them refinance into a lower interest rate. The fact that they have been making their payments faithfully doesn’t matter. The tweaks to HARP don’t tweak in the direction of the unemployed.
5. Pump more money into the economy.
The underlying logic behind this measure is that the money that those 800,000 lucky homeowners aren’t spending on their mortgage each month is money they’ll spend on other things — eating out, traveling, shopping — and that such spending is good for the economy.
Sorry, but this one has me laughing all the way to the credit union, which is where I suspect most of those homeowners will be headed too. First of all, their numbers are just too thin to make a statistical difference. This isn’t a “jump-start the economy” measure by a long shot. At best, it will allow a proverbial handful of homeowners to splurge on the occasional Friday night pizza, assuming there is enough left over from the “windfall” savings after they pay their health insurance and grocery bills.
Also see:
Obama’s Refinance Plan Explained
The Mortgage Fix That Can Save the Economy
Republican Candidates: Short on Housing Policy, Long on Houses
%Gallery-135214%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/24/viewpoint-obamas-drop-in-the-bucket-idea-for-housing/
public auction servicing FHA mortgage Equal Credit Opportunity Act (ECOA) default right of ingress or egress Federal Housing Administration (FHA)
Foreclosures to Continue a ‘Slow, Steady Burn’
Filed under: News, Foreclosures

The housing market faces several more years with 800,000 to 1 million new foreclosed properties per year, according to Rick Sharga, an executive vice president with Carrington Mortgage Services.
Sharga recently left RealtyTrac, where he helped build a network that tracked foreclosure filings across the country. Recently, analysts at Bank of America Merrill Lynch estimated REO sales would peak until 2013 when nearly 1.5 million properties would be sold.
According to RealtyTrac, there have been 8.9 million homes lost to foreclosure since 2007, the height of the credit crisis.
Sharga said based on lender behavior, he doesn’t see a spike happening, rather a slow, steady burn in order to spare home prices from further reductions. Today, roughly 4 million homes sell per year. If 1.5 million REO sold, that would be almost 40 percent of the market, which would be double the current market share of these properties.
Read the full story at HousingWire.
Also see:
When Renters Get Snared in Foreclosure’s Web
Houston Family Foreclosed On Through No Fault of Their Own
‘Mortgage Prof’: 5 Reasons Banks Would Rather Foreclose
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/01/foreclosures-to-continue-a-slow-steady-burn/
remaining balance condominium hotel commission private mortgage insurance (MI) leasehold estate no-cost loan mortgage banker
5 Staging Tricks for a Quick Sale
Here are some tips I used when staging my San Francisco condo. This unit sold within a month and a half for just below asking price. The exact same (unstaged) unit, located one floor down, never even got an offer. So there you have it.
1. Clear it all out. I mean it, girlfriend, move every single thing out of your place. That goes for your beloved troll doll collection, leopard skin rug and the couch that your mom claims you were born on. As sentimental as these things might seem to you, buyers want to be able to imagine themselves in your space; seeing clothes in the closet, family photos and random tchotchkes prevents them from doing so. Then put back only necessary furniture, keeping in mind that you want the space to look BIG, CLEAN, SPACIOUS and UNCLUTTERED. This isn’t supposed to be a functional room. Nope. As I did in this living area (pictured above), you can lose the TV, stereo, side tables and ottomans if it creates more room.
2. Freshen up the style. You may be a diehard Shabby Chic follower, but even Rachel Ashwell would agree that not everyone is. Aim for a style that most buyers would like, even if it’s not your cup of tea. Furnishings that seem homey and comforting — yet fresh and contemporary — give an aura that your home is updated and well-cared-for. Neutrals work best; just add colorful touches here and there. For this office (above), I used a bright rug to punch in some color and pattern to an otherwise boxy white room. The clear console stands in for a desk. (If buyers saw my real desk stacked with papers and dirty coffee mugs, they’d run for the hills). Curtains hide the closet doors and soften the hard walls. Stick-on mirrors from IKEA reflect light and space.
3. Mirror, mirror on the wall. Who’s the fairest one of all? Your room, that’s who. Use mirrors liberally to make your area look bigger, lighter, brighter, and encourage sunlight to bounce all over the walls. In this small dining area (above), the mirror even adds color by reflecting the painting that’s hanging in the living area. How’s that for working double duty?
4. Don’t forget the details. Set the table. It’s easy to do and makes a big impact. Buyers walk in and instantly feel welcome, as if they’re coming over for dinner. Light clean and unscented candles, place plush towels and fancy soap in the bathrooms, a breakfast tray on the bed, and a pretty book on the coffee table. If all goes as planned, they’ll want to stay over forever.
5. Play with texture. Wallpaper, pillows, rugs, blankets, baskets, and other tactile accessories can play up texture in a room. It’s an easy way for anyone, even my colorblind husband, to add warmth to a blah room. Try grass cloth wallpaper on plain walls that need a little oomph, such as in this master bedroom (right), where buyers expect to see a little more luxury and style.Houzz is a leading online community for home design enthusiasts, bringing together homeowners and design professionals of all disciplines. The Houzz site and mobile apps feature over 175,000 high quality interior and exterior photos, thousands of highly-engaging articles written by design experts, product recommendations, social tools to manage the remodeling and decorating process, and more than 25,000 design professionals who can help turn ideas into reality.
More from Houzz:
20 Finds for Staging Your Home
Find a Home Stager Near You
Browse Inspiring Kitchen Designs
See also:
- Home Staging Mistakes Sellers Should Avoid
- Home Staging Tips for Every Season
- Home Staging: Hire a Pro or Do It Yourself?
More on AOL Real Estate:
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
See celebrity real estate
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/06/5-staging-tricks-for-a-quick-sale/
pre-approval lender bill of sale Truth-in-Lending line of credit assessed value note rate
6 Ways to Get a Great Mortgage Deal
Filed under: Advice, Financing, Credit
By Ismat Sarah Mangla,
Money Magazine
Finding an affordable house is no longer a problem but qualifying for a mortgage can be. Here are six tips to getting a mortgage and a good rate.
1. Put your credit on ice.
The higher your credit score, the lower your rate: The best rates go to those with a 760 or more, says credit-score expert John Ulzheimer.
So keep that plastic in your wallet (and don’t apply for new cards or other loans) for at least three months before you go loan shopping. One large balance — even if it’s paid off at the end of the month — can ding your score by 20 points or more.
2. Ask for time.
Most sales contracts give you only 10 days to nab a loan or the seller can move on. Negotiate for an additional five to 10 days to give you some room to shop around.
3. Get at least six quotes.
Rates on a 30-year fixed conforming loan can vary at least as much as a quarter of a percentage point. Get quotes from national lenders at mortgagemarvel.com and find out what your local credit union or regional bank is offering as well. Inquire about fees; while lenders aren’t required to give you a good-faith estimate of closing costs (which average 2 percent of the loan balance) until you actually apply, some will provide it if you ask.
4. Match the lock period to the loan.
You now need 60 days or more to close a loan, says Wharton professor and mortgage expert Jack Guttentag of mtgprofessor.com, and getting an extension on a lock will cost at least a couple of hundred dollars. Ask your lender how long it’s taking to close loans like yours — and don’t lock for less.
![]()
5. Opt for an ARM.
If you know you’re not going to be in a house for more than seven years, adjustable-rate mortgages can mean big savings, says Guttentag. The monthly payment on a $300,000, seven-year ARM at the recent rate of 3.23 percent is $1,302, vs. $1,455 for a 30-year fixed at 4.13 percent.
6. Talk to a broker.
Those who need a jumbo loan or have an unusual situation (say, you’re self-employed) will get the best deal from a mortgage broker who has access to and experience with a lot of lenders. Find a fee-only one at upfrontmortgagebrokers.org.
Read more on CNNMoney:
Best deal on remodeling
America’s cleanest cities
It’s safe to sell your home again
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.
%Gallery-145835%
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2012/04/30/6-ways-to-get-a-great-mortgage-deal/
sale-leaseback judicial foreclosure two-step mortgage original principal balance delinquency lease option chain of title
Require 20% Down on a House? Hong Kong Tried That
Filed under: News, Buying, Credit

As U.S. regulators fool with the idea that homebuyers should put 20 percent down on home purchases, they need only look across the sea to see what happen when a similar plan was put in place in Hong Kong recently: Sales at 10 of the island-nation’s largest home developments fell almost 60 percent the week after the government raised the minimum down payments and deposits for foreign buyers.
Anyone need further proof that requiring $60,000 cash to buy a $300,000 house is going to further dent buyer enthusiasm? At least in Hong Kong, the measure was intended to slow the pace of sales — something we surely don’t need more of here. The Hong Kong government has made several attempts to curb the inflation of home values, including raising mortgage interest rates. This most recent measure was aimed specifically at foreign buyers; about a third of luxury home transactions in the first quarter of this year came from overseas or mainland China.
But the results do provide a good indicator of what the U.S. housing market can expect if the 20 percent rule — part of the 376 pages of proposed changes known as the Qualified Residential Mortgages package or QRM — kicks in: Buyers go away.
The proposal made this spring by a group of federal agencies would require a 20 percent down payment, limit to one-third a borrower’s debt payment and extend the most-favorable loan rates to only those with excellent credit. Regulators reason that if borrowers had to put down 20 percent of the home’s value, they would have more “skin in the game” and be less likely to walk away from the loan.Perhaps what they didn’t reason was that just fewer people would be able to buy a house. Public reaction to the 20 percent down requirement was swift, and negative; public comment was extended to Aug. 1.
“If we require 20 percent down payments to get a loan, we will ensure broad swaths of working- and middle-class people will not be able to get a loan,” John Taylor, chief executive of the National Community Reinvestment Coalition, told the Washington Post. The NCRC advocates an extension of credit to low- and moderate-income borrowers.
The QRM is an overreaction to the mortgage crisis caused primarily by toxic loans — the so-called “liar loans” and optional adjustable rate mortgages that put people into homes they couldn’t afford, said David Berenbaum, Chief Program Officer for the NCRC. The default rate for 30-year fixed rate loans has been less than one percent, regardless of the size of the down payment. And of all the loans written in 2009, only 30.5 percent would have met the new proposed standards.
| Yes. | |
|---|---|
| No. | |
| That’s still not enough. |
For more insight on mortgages these AOL Real Estate guides:
- Mortgage Jargon in Simple Terms
- How to Get a Low Mortgage Rate
- Want a Mortgage? Don’t Make These 8 Mistakes
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/06/14/require-20-down-on-a-house-hong-kong-tried-that/
purchase agreement no cash-out refinance seller carry-back planned unit development (PUD) down payment subdivision community property
Where Are the Real Home Bargains? Not Where You Think!
Filed under: News, Advice, Buying, Financing, Foreclosures, How To, Investing, Renting, Selling

What if you could buy a house for $25,000 in a neighborhood that wasn’t a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?
If you said Phoenix, Las Vegas or south Florida, you’d be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.
Here’s a hint to the place Habibi thinks is the hottest investment around.
Yep, Habibi is humming “Kansas City” right along with Wilbert Harrison, Fats Domino and the 50 or so other recording artists who covered that tune. As for a real estate investment, Habibi says Kansas City, Mo., is ripe for the picking.
Habibi’s approach to real estate deals is not for novice investors, but it is for those who can tolerate some risk and buy into a statistician’s mind. He’s developed a matrix that filters the top 30 MSAs (metropolitan statistical areas) through their projected growth rates (increasing population is good), unemployment (the lower, the better), and whether the city has a diversified job platform (Silicon Valley won’t get his money).
He also rejects places where other investors have already scooped up the bargains (forget Florida and Las Vegas). Phoenix, popular with many investors, also fails his litmus test. It was built as a retirement community and lacks a job infrastructure for future growth, he says. And those Texas cities that everyone bandies about — Dallas, Austin, San Antonio — while their prices have remained flat and they seem to have escaped relatively unscathed from the recession, there are so many investors already there that they’re tripping over one another.
Kansas City is just about perfect, said Habibi, whose company recently concluded its first phase of buying 32 single-family homes there in “C-level” neighborhoods for a price point of $25,000 each, spent $5,000 to $10,000 on repairs and now rents them out for about $750 each. He expects to double or triple his holdings in Kansas City with his second investment fund, for which there is a minimum buy-in of $100,000 for accredited investors to participate.
Kansas City’s population grew at a faster-than-national average pace from 2000 to 2010. With an unemployment rate of 8.7 percent, it falls below the national level of unemployment of 9.1 percent. The city has a diversified industry base that includes Sprint Nextel Corporation, Hallmark Cards, the Fort Leavenworth military base, UPS and a Ford assembly plant. Google has selected the city for its ultra high-speed broadband network project. Plus Kansas City has a business-friendly reputation for encouraging retention of companies.
Habibi discourages individual investors without much experience or tolerance for risk to try to fly solo. He credits much of his success from having an infrastructure in place — people to scout and inspect the homes, screen for tenants, manage the properties on-site and swiftly deal with eviction issues.
For those who don’t want to listen to the expert, click on the images below of some homes for sale in the Kansas City area that are worth checking out:
See other homes for sale in the Kansas City area at AOL Real Estate.
Also see:
College Town Real Estate Investments Score High Marks
Upside Down on Your First House? Just Buy a Second One!
Viewpoint: Why No New Houses May Be a Good Thing
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/
credit encroachment certificate of deposit index appraiser title transfer of ownership remaining term
Viewpoint: Is Housing Crisis Just a State of Mind?
Filed under: News, Advice, Buying, Economy, Financing, Renting, Selling
Is it possible that the housing crisis is really just a problem caused by our state of mind, not the state of the economy? Is the thing stopping people from buying houses nothing more than their perceptions? Apparently, to some extent, yes.
We are having what, if economists talked like this, could be described as an irrational fear of commitment.
The facts: The recession is considered over, the country’s gross domestic product is growing, unemployment is down and consumer spending is up. Yet, the housing market remains comatose. The only explanation is that we are either all still unemployed and not being counted or we’re scared out of our boots.
Want some more evidence that we’re just one giant anti-anxiety pill away from fixing what ails the housing market?
1. The number of applications for mortgages is down.
It’s becoming a broken record: Interest rates are at all-time lows yet nobody is applying for loans. Yes, lending standards are tighter now — tight enough to put the kibosh on almost 16 percent of all home deals that open escrow – but the bigger problem is that potential buyers are afraid to even try to get a loan. Loan applications for home purchases were down 10 percent in a week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Buyers are just plain scared that banks won’t approve their loan. This is the grownup equivalent of hiding in the playground bushes during recess because you think the cool kids won’t pick you for their team.
2. People don’t believe the worst is over.
They are afraid that home prices might fall further. They are afraid that they could lose their jobs tomorrow. They are afraid of looking like a chump, buying when nobody else is buying.
Without question, the days of house-flipping are over. If you are buying, you are buying for the long haul. Remember this: Rents will most certainly go up — that’s why investors are buying properties like mad nowadays; but mortgages that are locked into the current record-low rates will not. If you are planning on staying put, doesn’t it make sense to buy?
As for losing your job tomorrow, ask yourself this: Really? Do you really think that’s likely? While new jobs aren’t being created with anything close to wanton abandon, neither are they being eliminated with the gusto of three years ago. Do you really want to put your life on hold while you wait to see if The Man sneezes in your direction?
Looking like a chump is a tough one. No one wants to be the last soldier killed before the war ends and no one wants to be a homebuyer who bought when prices were still falling. But that gets back to the long-term strategy. You aren’t buying for now, you are buying for the many years to come.
Fear can be paralyzing, but so can group-think. If you read how nobody is buying, you figure all those nobodies must know something. Yeah, they know how to be lemmings.
3. Consumer confidence has plunged, yet we are spending again — just not on houses.
A recent Nielsen poll found that nine of 10 Americans think the country is still in a recession. The memo went out a while ago that the recession officially ended in June of 2009. Pain and misery have clearly lingered and depressed consumers don’t spend money. But if we’re all so depressed, how do you explain why consumer spending rose in the third quarter by 2 percent. We’re even back to our old ways regarding charging and not saving: Consumer credit is back up to 2009 levels and our savings rate has dropped to 3.6 percent, the lowest level in four years. I see our old ways creeping back, don’t you?
We may not be happy, but we’re spending again. I have but one question: If you are willing to hit Macy’s with enthusiasm, why not the housing market?
%Gallery-139870%
Also see:
Survey: Most Boomers Would Cover Kids’ Down Payment
Will FHA Be the Go-To Source for High-Cost Mortgages?
When It Comes to Mortgages, Women Don’t Shop Enough
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/
no-cost loan mortgage banker bond market servicer appraisal owner financing due-on-sale provision
Winter Gardening: Plants that Provide Beauty All Year Round
Winter Gardening: Plants that Provide Beauty All Year Round
Published: December 15, 2011
Just because your garden is dormant for the winter doesn’t mean you should snooze, too. Experienced gardeners do their dreaming — and planning — when the snow flies. So while you’re thinking of blossoms and butterflies, be sure to add trees and shrubs that look great even in snow.
It’s all about structure
Three-season landscapes concentrate on blooms and foliage, but winter gardens need structure to provide visual interest. When you choose plants and trees in spring, consider varieties that provide a pop of color in winter — shrubs that set berries, and trees that reveal interesting bark when the leaves are gone. “The bark on crape myrtle looks like statuary,” says Caldwell, “and the way the weeping form of Japanese maple holds snow is beautiful.” Not only do ornamental trees look great, but for a $50 to $100 investment, they’ll add to thevalue of your property. Berry bushes also attract birds, which give your yard flashes of color and movement. Ornamental grasses, with tall, slender stalks that sway in the wind, put on a winter ballet. (Note: You can leave them all winter, then cut them down in the spring to promote new growth.) Plant these for winter wonder Here are some popular varieties that provide a winter show. (Make sure you check the plant’s Cold Hardiness Zone before buying.)- Ilex (holly): Shiny green leaves and berries that change color with the temperature make Ilex a winter favorite. Plant male and female shrubs together to produce lots of berries. Some popular varieties are Winter Gold, which sets cluster of yellow berries in fall, and Jersey Delight, which sports bright red berries. (Zones 4-8)
- Cornus (dogwood): Branches of some dogwood species have wonderful colors that dazzle in winter. The Red Twig dogwood is a compact shrub that sports dark red stems in winter; the Yellow Twig dogwood shows off bright yellow stems. (Zones 3-7)
- Camellia japonica: This shrub maintains dark green leaves year-round, but some species delight home owners in winter with a profusion of blossoms. The Alba Plena variety has white winter blossoms, while the Bob Hope sports magenta blossoms with yellow stamens. (Zones 8-10)
- Hamamelis (witch hazel): A wide range of blossoms appear on bare twigs throughout winter, making this plant a dazzling sight in hedges. A lovely fragrance makes witch hazel a good shrub to plant near doorways. (Zones 5-9)
- Miscanthus: White plumes of this 5-foot ornamental grass sway in the wind throughout winter, peeking above snow blankets and giving your landscaping varied height and visual interest. (Zones 6-9)
- Helleborus: This compact plant delivers blossoms above green, lance-shaped leaves from January to March in many regions. Some popular winter varieties include: Winter’s Bliss Lenten Rose (cream), Mardi Gras Bicolor Mix Lenten Rose (shades of pink), and Pine Knot Select Strain Lenten Rose (purple and lavender). (Zones 4-9)
Last-minute color
If you didn’t think about winter color when you planted in spring, here’s how you can add some 11th-hour pop to your winter landscape.
- In beds and containers, plant hearty ornamental heirloom vegetables, such as varieties of Swiss chard, kale, and cabbage
- Hang bird feeders to attract wild birds that stay around throughout winter. Birds are always searching for water during cold months, so add a heater to bird baths, too.
biweekly mortgage repayment plan credit report fixture bridge loan origination fee rent loss insurance
Selling Your House? Get Out the Paint Roller
Filed under: News, Home Improvement, How To
If you’re trying to sell your house, the first thing a Realtor will tell you is to break out the paint roller. A fresh coat of paint is the quickest and least expensive way to lighten, brighten and perk up a home’s interior. It’s also a job you can tackle yourself–if you do it right. In today’s “DIY Diagnosis,” our friend Brie Dyas at DIYLife tells you how to paint a room for great results.
The arrival of a new season always triggers a need to change up the wall colors in my home. And when I want a change, I want one now. But when it comes to painting a room, it’s easy to get swept up in getting the job done instead of getting the job done right. Here’s a handy list of common problems that can come up, why they did and how you can stop ‘em.
- A dark hue looks faded. This happens when you paint over a light color with darker one. To prevent this from happening, apply a gray-tinted primer coat in between. This will stop the lighter hue from bleeding through the bolder one, and will create a neutral base that’ll let bold hues look their best.
– A random shiny spot appears a week after painting. When a flat paint is applied to a high-traffic area, a glossy spot can appear where hands (or a sponge) frequently comes in contact with the painted surface, rubbing off the matte finish. So, when it comes to high-traffic areas where you know you’ll have to do some cleaning, go for a semi-gloss.
For the rest of the tips, read the full story at DIYLife.
Want more interior painting advice? These AOL Real Estate guides can help:
- Painting Tips for Home Staging
- Top Tips for Interior Painting Projects
- Sell Your Home With These Paint Colors
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/06/07/selling-your-house-get-out-the-paint-roller/
mortgage insurance premium (MIP) credit history escrow lien condominium government loan (mortgage) judgment
When It Comes to Mortgages, Women Don’t Shop Enough
Filed under: News, Advice, Financing, Refinancing
There’s a surprising new finding that says women get lousier mortgage rates than men, but not because of gender discrimination. It’s because instead of shopping around for cheaper loans, they rely on the recommendations of friends.
To recap: When it comes to mortgages, women don’t shop enough.
The report published in the Journal of Real Estate Finance and Economics set out to explain why women were 32 percent more likely to get a subprime mortgage than men in a 2006 study. According to a team of researchers led by Florida Atlantic University’s Ping Cheng, the answer wasn’t discrimination because of gender or even income disparities.
Women pay higher rates because they are more likely to listen to friends’ recommendations, whereas men are more likely to shop around for the best deal.
“Our empirical test confirms that search effort is rewarded in marketplace, and suggests that gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills,” the report summarizes.
It makes sense to Daily Finance columnist Laura Rowley. “It’s not surprising, because mortgage shopping can be incredibly complex, so we look to people we can trust to help make the decision,” says Rowley. “But this is one area where you don’t want to get by with a little help from your friends.”
Instead, she advises, call two mortgage brokers and a direct lender, preferably a local small or mid-size bank, and try the following script: “Hi, my name is ____ and I’m in the market to buy a $____ house, and I’m going to put down ____ percent. I’m getting three written estimates, and then I’m going to choose. Can you email me a cost-estimate worksheet stating all the fees and the interest rate?”
Be sure to get the estimates on the same day, as rates can change quickly. Also, don’t ask for rates and fees by phone; unscrupulous brokers will simply low-ball their estimate to get you in the door, says Rowley.
For more tips on shopping for a mortgage, see these AOL Real Estate guides:
How Much Can You Afford [Video]
How to Get a Low Mortgage Rate
Mortgage Jargon in Simple Terms
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/18/when-it-comes-to-mortgages-women-dont-shop-enough/
loan servicing legal description Fannie Mae (FNMA) credit encroachment certificate of deposit index appraiser
Mortgage Principal Reduction on Freddie Mac Loans?
By Jon Prior
Freddie Mac CEO Charles “Ed” Haldeman gave a strong signal Friday that new incentives from the Treasury Department may be enough to start principal reduction on mortgages backed by the government-sponsored enterprises.
In January, the Treasury said it would triple incentive payments to mortgage investors who allow principal reduction in Home Affordable Modification Program workouts. The payouts ranged between six and 21 cents to the investors for each dollar forgiven under HAMP, but that will grow to between 18 and 63 cents.
“I have to say recently the Treasury sweetened the program and tremendously increased the incentive payments in their offer to us,” Haldeman said at HousingWire’s REThink Symposium. “We will reevaluate that to see what may be in our economic best interest. If there are very large incentive payments — which could be 50 percent of what you could write down — it may be in our economic self-interest to participate in that.”
There are currently 11.1 million borrowers who owe more on their mortgage than the house is worth, according to CoreLogic. Of that, estimates show roughly 3.3 million of those mortgages belong to Fannie and Freddie.
The GSEs and their regulator, the Federal Housing Finance Agency, long shunned principal reduction. Their biggest fear is moral hazard — that borrowers who are still current on their underwater loan would strategically default in order to get principal written down.
“We thought principal reduction could have unintended, secondary consequences on other borrowers seeking the same kind of reduction,” Haldeman said.
One previous analysis showed the GSEs would take significant credit losses if a wide-scale program was put in place. A new analysis from the FHFA, which would cover the new HAMP incentives, is expected to be released in the coming weeks.
NPR and ProPublica reported Friday that the analysis will show a reversal, that principal reduction will work for the GSEs under the new version of HAMP.
“As we complete the review, the public should understand that Fannie Mae and Freddie Mac continue to offer a broad array of assistance to troubled borrowers and have continued to implement HARP 2.0 to enhance refinancing opportunities for underwater borrowers,” FHFA said in a statement.
Treasury Secretary Timothy Geithner told a House panel this week he and FHFA Acting Director Edward DeMarco were working out their differences.
Haldeman, who announced in October that he would leave his post at Freddie, said the principal reduction verdict will ultimately reside with DeMarco, but he isn’t operating on his own.
“At the end of the day, we are in conservatorship, and he is the conservator. But the way it works on a day-to-day basis is that it’s a very close collaboration. It is extremely rare that I had a different point of view than Ed DeMarco,” Haldeman said.
Read more on HousingWire:
Fannie and Freddie could reverse course on principal reductions
Negative equity gap nears $4 trillion
BofaA offers distressed homeowners a chance to stay in homes
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.
Permalink | Email this | Comments
credit repository loan servicing legal description Fannie Mae (FNMA) credit encroachment certificate of deposit index
BofA to Offer Principal Reductions of More than $100K
Some Bank of America borrowers may be in for principal reductions in amounts exceeding $100,000, according to the latest developments in the settlement the bank and four other large servicers made with state and federal regulators.

Of the five servicers participating in the settlement, BofA is set to pay the largest portion of the total $25 billion settlement. The bank will pay $3.24 billion to the government and $8.58 billion to borrowers.
Of BofA’s total, $1 billion is part of a separate settlement regarding loan origination issues for Countrywide, which BofA acquired in 2008.
While the other four servicers in the national settlement are being required to diminish principal so underwater borrowers have loan-to-value ratios of 120 percent or less, BofA will be reducing principal for about 200,000 homeowners to fall in line with current market values.
For some deeply underwater borrowers, this may result in reductions of more than $100,000.
The expanded principal reductions may prevent BofA from paying $850 million in penalties, according to the Wall Street Journal.
Fitch Ratings responded to the news stating that the 200,000 principal reductions will be “neutral to negative for some RMBS bondholders and potentially beneficial for the bank.”
Fitch suggests the loans most likely to qualify for the extended principal reductions will be those originated between 2005 and 2007.
“Because the bank has already reserved for penalties, any reversals could help BAC’s income going forward,” Fitch stated. “While the agreement will help the bank reduce the amount of penalties it owes over time, the aggregate best case benefit is moderate from a financial perspective.”
private mortgage insurance (MI) leasehold estate no-cost loan mortgage banker bond market servicer appraisal
Are Low Mortgage Rates Killing the Housing Market?
Filed under: News, Advice, Buying, Economy, Financing, Investing, Selling
This may fall under the category of “too much of a good thing,” but there is growing sentiment that the historically low interest rates on mortgages are actually fueling the stagnation of the housing market.
By keeping rates low, the hope was that more people would be motivated to buy homes. And when that didn’t happen, fingers of blame were pointed in the direction of more stringent lending standards. People can’t qualify for loans, can’t avail themselves of the low rates — so went the bank-bashing.
But along came some numbers that tell a different story. Yes, lending standards are making it tougher to qualify for loans now, but the reality is that fewer people are even trying. The national Mortgage Bankers Association, which tracks new mortgage applications weekly, says those applications were down 14.9 percent last week from one week earlier. The group expects to see mortgage originations fall from an estimated $1.2 trillion in 2011 to $900 billion in 2012.
Could it be that when Federal Reserve Chairman Ben Bernanke announced that the low interest rates would be around through 2013, buyers just plopped back on their couches waiting to see if the housing prices would fall even further?
The ‘Luxury of Waiting’
“By keeping rates low for two years, you gave buyers the luxury of waiting to see if the market is at the bottom,” says Paul Habibi, professor of real estate at UCLA’s Anderson School of Business Management. “Why wouldn’t you wait if you were a buyer?” he asks. “There are no expectations of home value appreciation, so all that low interest rates have done is create a big holding pattern in buyer behavior.”
So should we be praying for rates to start creeping up?
“Rising rates are absolutely a better motivator than falling ones,” says Dan Green, loan officer with Waterstone Mortgage, who runs the award-winning TheMortgageReports.com website. He notes that for the second straight year, low rates sparked a boom in refis, but did little to help the purchase market.
It’s kind of maddening for mortgage guys like Green who underscore that a 1 percent mortgage rate drop, like the one we’ve had since last year, translates into an instant 11 percent increase in purchasing power.
“Falling mortgage rates do more to help home affordability than falling home prices,” he says. Yet still no one is buying.
Which leads to the next line of thinking: If lower interest rates immobilized buyers, might not rising rates serve as a cattle prod? A few good pokes in the bellies of reluctant buyers might just get them off the couch and back into the game.
Also see:
Want a Mortgage? Avoid These 8 Mistakes
Upside Down on Your First House? Just Buy a Second One!
Mortgage Mod Hell: Trapped Between Lenders, Collectors
%Gallery-137795%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/10/31/are-low-mortgage-rates-killing-the-housing-market/
common law cap right of first refusal loan-to-value (LTV) appraised value escrow account grantee
Where Are the Real Home Bargains? Not Where You Think!
Filed under: News, Advice, Buying, Financing, Foreclosures, How To, Investing, Renting, Selling

What if you could buy a house for $25,000 in a neighborhood that wasn’t a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?
If you said Phoenix, Las Vegas or south Florida, you’d be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.
Here’s a hint to the place Habibi thinks is the hottest investment around.
Yep, Habibi is humming “Kansas City” right along with Wilbert Harrison, Fats Domino and the 50 or so other recording artists who covered that tune. As for a real estate investment, Habibi says Kansas City, Mo., is ripe for the picking.
Habibi’s approach to real estate deals is not for novice investors, but it is for those who can tolerate some risk and buy into a statistician’s mind. He’s developed a matrix that filters the top 30 MSAs (metropolitan statistical areas) through their projected growth rates (increasing population is good), unemployment (the lower, the better), and whether the city has a diversified job platform (Silicon Valley won’t get his money).
He also rejects places where other investors have already scooped up the bargains (forget Florida and Las Vegas). Phoenix, popular with many investors, also fails his litmus test. It was built as a retirement community and lacks a job infrastructure for future growth, he says. And those Texas cities that everyone bandies about — Dallas, Austin, San Antonio — while their prices have remained flat and they seem to have escaped relatively unscathed from the recession, there are so many investors already there that they’re tripping over one another.
Kansas City is just about perfect, said Habibi, whose company recently concluded its first phase of buying 32 single-family homes there in “C-level” neighborhoods for a price point of $25,000 each, spent $5,000 to $10,000 on repairs and now rents them out for about $750 each. He expects to double or triple his holdings in Kansas City with his second investment fund, for which there is a minimum buy-in of $100,000 for accredited investors to participate.
Kansas City’s population grew at a faster-than-national average pace from 2000 to 2010. With an unemployment rate of 8.7 percent, it falls below the national level of unemployment of 9.1 percent. The city has a diversified industry base that includes Sprint Nextel Corporation, Hallmark Cards, the Fort Leavenworth military base, UPS and a Ford assembly plant. Google has selected the city for its ultra high-speed broadband network project. Plus Kansas City has a business-friendly reputation for encouraging retention of companies.
Habibi discourages individual investors without much experience or tolerance for risk to try to fly solo. He credits much of his success from having an infrastructure in place — people to scout and inspect the homes, screen for tenants, manage the properties on-site and swiftly deal with eviction issues.
For those who don’t want to listen to the expert, click on the images below of some homes for sale in the Kansas City area that are worth checking out:
See other homes for sale in the Kansas City area at AOL Real Estate.
Also see:
College Town Real Estate Investments Score High Marks
Upside Down on Your First House? Just Buy a Second One!
Viewpoint: Why No New Houses May Be a Good Thing
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/
replacement reserve fund deed certificate of deposit lease purchase money transaction closing costs public auction
Mortgage Principal Reduction on Freddie Mac Loans?
By Jon Prior
Freddie Mac CEO Charles “Ed” Haldeman gave a strong signal Friday that new incentives from the Treasury Department may be enough to start principal reduction on mortgages backed by the government-sponsored enterprises.
In January, the Treasury said it would triple incentive payments to mortgage investors who allow principal reduction in Home Affordable Modification Program workouts. The payouts ranged between six and 21 cents to the investors for each dollar forgiven under HAMP, but that will grow to between 18 and 63 cents.
“I have to say recently the Treasury sweetened the program and tremendously increased the incentive payments in their offer to us,” Haldeman said at HousingWire’s REThink Symposium. “We will reevaluate that to see what may be in our economic best interest. If there are very large incentive payments — which could be 50 percent of what you could write down — it may be in our economic self-interest to participate in that.”
There are currently 11.1 million borrowers who owe more on their mortgage than the house is worth, according to CoreLogic. Of that, estimates show roughly 3.3 million of those mortgages belong to Fannie and Freddie.
The GSEs and their regulator, the Federal Housing Finance Agency, long shunned principal reduction. Their biggest fear is moral hazard — that borrowers who are still current on their underwater loan would strategically default in order to get principal written down.
“We thought principal reduction could have unintended, secondary consequences on other borrowers seeking the same kind of reduction,” Haldeman said.
One previous analysis showed the GSEs would take significant credit losses if a wide-scale program was put in place. A new analysis from the FHFA, which would cover the new HAMP incentives, is expected to be released in the coming weeks.
NPR and ProPublica reported Friday that the analysis will show a reversal, that principal reduction will work for the GSEs under the new version of HAMP.
“As we complete the review, the public should understand that Fannie Mae and Freddie Mac continue to offer a broad array of assistance to troubled borrowers and have continued to implement HARP 2.0 to enhance refinancing opportunities for underwater borrowers,” FHFA said in a statement.
Treasury Secretary Timothy Geithner told a House panel this week he and FHFA Acting Director Edward DeMarco were working out their differences.
Haldeman, who announced in October that he would leave his post at Freddie, said the principal reduction verdict will ultimately reside with DeMarco, but he isn’t operating on his own.
“At the end of the day, we are in conservatorship, and he is the conservator. But the way it works on a day-to-day basis is that it’s a very close collaboration. It is extremely rare that I had a different point of view than Ed DeMarco,” Haldeman said.
Read more on HousingWire:
Fannie and Freddie could reverse course on principal reductions
Negative equity gap nears $4 trillion
BofaA offers distressed homeowners a chance to stay in homes
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.
Permalink | Email this | Comments
common law cap right of first refusal loan-to-value (LTV) appraised value escrow account grantee
After Slowdown, Foreclosures Rise Again
Filed under: Foreclosures
LOS ANGELES — More U.S. homes entered the foreclosure process in October than in the previous month, with Florida, Pennsylvania and Indiana registering among the largest monthly increases, new data show.
Some 77,733 properties received an initial default notice last month, up 10 percent from September, foreclosure listing firm RealtyTrac Inc. said Thursday.
The number of homes scheduled to be auctioned or repossessed by lenders also posted monthly increases.
All told, notices of default, scheduled auctions and bank repossessions – warnings that can eventually lead to a home being lost to foreclosure – hit a seven-month high in October.
The numbers are further evidence foreclosure activity is picking up.
The activity slowed a year ago after problems surfaced with the way many lenders were handling foreclosure documentation, namely shoddy mortgage paperwork comprising several shortcuts known collectively as robo-signing. Many of the nation’s largest banks reacted by temporarily ceasing all foreclosures, re-filing previously filed foreclosure cases and revisiting pending cases to prevent errors.
But banks appear to be moving past those problems now and starting to tackle a swelling backlog of homes with mortgages that have gone unpaid – something that lenders are seeing more of as the economy struggles and unemployment remains high.
The rate that homeowners were 60 or more days late on their mortgage payment rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion.
The credit reporting agency said 5.88 percent of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82 percent in the second quarter of 2011.
The number of U.S. homeowners underwater on their mortgage, or owe more than their homes are worth, represent another potential source of trouble for lenders.
As of June 30, some 22.5 percent of all U.S. homes had a mortgage that was under water, according to CoreLogic. That’s 10.9 million properties. Another 2.4 million borrowers had less than 5 percent equity in their home, the firm said.
Industry experts say a housing market turnaround isn’t likely to occur as long as there remains a glut of potential foreclosures hovering over the market, so October’s increase in foreclosure activity means a potentially faster revival for housing.
“We all know that there is an underlying amount of properties that need to go into foreclosure and the sooner we clear that the sooner we can get housing to a normal level,” said RealtyTrac CEO James Saccacio.
In some states, the number of homeowners put on notice by banks for missing payments far exceeded the national average for October.
Florida posted a 28 percent jump in October from September in homes receiving an initial default notice. Pennsylvania saw a 50 percent increase and Indiana registered a 61 percent gain, according to RealtyTrac.
In some cases, though, government intervention is slowing lenders down.
Take Nevada, where a law went into effect Oct. 1 requiring that foreclosure documents must be filed in the county where a property is located and a lender must provide a notarized affidavit detailing their legal right to proceed.
Saccacio said the law helped cause a 75 percent drop in initial default notices in Nevada last month versus September, bringing defaults to the lowest level since June 2006 at the peak of the housing boom.
“It’s like a rain delay,” Saccacio said. “We’ll eventually see foreclosure processing go up.”
Despite registering a 34 percent drop in foreclosure activity overall, Nevada still registered the highest foreclosure rate in the nation for October, with one in every 180 households receiving a foreclosure-related notice, RealtyTrac said.
In all, 230,678 U.S. homes received a foreclosure-related warning last month, up 7 percent from September, but down nearly 31 percent from October 2010.
Foreclosure auctions rose 8 percent from September, but climbed by more than 35 percent in several states, including Florida, Minnesota and Illinois.
Lenders took back 67,624 properties in October, up 4 percent from the previous month, but down 27 percent from a year earlier.
Bank repossessions increased by a far larger margin in several states. In Oregon they climbed 45 percent, while in New Jersey they posted a 48 percent jump. Indiana registered a 73 percent increase.
Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
Also see:
‘Mortgage Prof’: 5 Reasons Banks Would Rather Foreclose
The Mortgage Fix That Can Save the Economy
5 Foreclosure Flip Tips From the ‘Flip Men’
%Gallery-133958%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/10/after-slowdown-foreclosures-on-the-rise-again/
Treasury index Realtor® late charge grantor amortization schedule pre-approval lender
Home Equity Line Adds New Option to Refinancing
Filed under: Home Equity
If you’re looking to refinance your mortgage but you also need some extra cash, there may be a few options out there you haven’t considered. Today’s re-fi rates are low, but to get the best deal overall, your best bet may be to refinance your principal loan at the lowest rate you can find and then to apply for a home equity line for the cash. That way, with today’s low home equity rates, you’ll
If you’re looking to refinance your mortgage but you also need some extra cash, there may be a few options out there you haven’t considered. Today’s re-fi rates are low, but to get the best deal overall, your best bet may be to refinance your principal loan at the lowest rate you can find and then to apply for a home equity line for the cash.
That way, with today’s low home equity rates, you’ll get the best interest rates for both portions of your financing.
The other main option is a cash-out refinance, in which the borrower takes additional cash above the loan amount. But that usually means an additional 0.5 percent or more in interest, which can add up to thousands of dollars over the course of a 30-year loan. Instead, simply refinance the balance of your mortgage, and then apply for a home equity line for the rest.
Right now, home equity rates are at prime or prime plus 0.5 percent to 1.0 percent, a lot better than almost any other kind of loan out there, including personal loans and credit card debt.
Cash-out refinancing is not a real option for homeowners who are underwater and need to borrow more than 80 percent of the value of their home. And while there are 95 percent loan-to-value mortgages out there, you can’t be living in a declining market such as Arizona, California, Florida, Michigan and Nevada. Also, if your credit score is below 680, you’ll need to turn to the FHA for the refinance if you want anything more than a 90 percent loan-to-value mortgage.
Generally in today’s market, even if you don’t live in a declining market, you probably won’t be able to get an equity line if it means going above 90 percent loan-to-value. And even that could be difficult, unless you have a credit score over 760. Therefore, home equity lines are a better choice for smaller projects, like making needed repairs on your home.
Also, think twice before paying off credit card debt with a home equity line. While you may be paying a high price for credit card debt, transferring credit card debt to an equity line means you are exchanging unsecured debt (debt that is not guaranteed by an asset) for secured debt (in this case debt that is secured by your home). That means, if for some reason you can’t make the payment on your equity line, the lender has the right to foreclose on your home. You can learn more about how equity lines work in the Federal Reserve’s pamphlet “What you should know about Home Equity Lines of Credit.”
Millions of people put their homes at risk because they used the equity in their homes as a piggy bank and borrowed to levels that are now higher than what their homes are worth. Some have walked away from these homes because the combined mortgage and equity line is higher than what the home’s value is expected to be for 10 or 20 years.
But if you need the cash, and it will put you in a better position financially, you’re better off choosing an home equity line than a cash-out refinance.
Lita Epstein has written more than 25 books including The Complete Idiot’s Guide to Personal Bankruptcy and The Complete Idiot’s Guide to Improving Your Credit Score.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2010/12/09/home-equity-line-adds-new-option-to-refinancing/
construction loan PUD (Planned Unit Development) recording prepayment penalty multidwelling units Treasury index Realtor®
Curb Appeal Is Still King
Filed under: News, Home Improvement
Curb appeal counts: If you’re looking to invest some money in your house, look no further than the front door. For the second year in a row, curb appeal projects remain at the top of the list of high-value home improvements, according to just-released data from Remodeling’s 2010-2011 Cost vs. Value Report.
In fact, an entry door upgrade is the curb appeal project that returns the most at resale — and the only one surveyed to recoup its entire cost, at 102 percent payback. Other big returners are a replacement garage door, an upgrade to fiber-cement siding and a wood deck addition.
This year’s edition of the annual survey covers 35 exterior and interior improvements, with data on project costs and resale value nationally and by region. As you might expect, home improvement returns overall have taken a hit in recent years, with project costs escalating while home prices have stagnated. This year, for the first time since 2006, the cost of remodeling projects started to come down–but resale values declined even more precipitously.
To read the full survey, visit Cost vs. Value’s official site.
For help making smart home improvements, check out these AOL Real Estate guides:
Improvements That Get Your House Sold
Top 10 Home Improvements That Pay You Back
Home Improvements Sellers Should Avoid
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2010/12/15/curb-appeal-is-still-king/
legal description Fannie Mae (FNMA) credit encroachment certificate of deposit index appraiser title
Americans More Confident About Personal Finances
They may not be hopeful that the U.S. economy will rebound any time soon, but most Americans are optimistic about the future of their own personal finances. A newly released national survey conducted by KRC Research for the Certified Financial Planner (CFP) Board of Standards, Inc. finds that 83 percent of the 1,011 adults polled [...]
Source: http://feedproxy.google.com/~r/TruthfulLendingDotCom/~3/_IoLIckZHow/
prepayment mortgage insurance premium (MIP) credit history escrow lien condominium government loan (mortgage)
Federal Housing Agency Says No to Principal Forgiveness
Filed under: News, Foreclosures
While the Obama administration may be pondering the idea of helping underwater homeowners through principal write-downs, Federal Housing Finance Agency Director Edward DeMarco said there is no current consideration for principal write-downs on underwater home loans.
DeMarco told C-SPAN in an interview that the FHFA has already assisted borrowers through principal forbearance programs and loan modification tools that have helped borrowers reduce their monthly payments. He said the other balance the FHFA has to strike is making sure home aid efforts do not afflict taxpayers with additional losses since public funds hold up the quasi-federal housing agencies. He placed write-downs on principal in this camp and suggested the FHFA is not going in that direction.
“Principal forgiveness does not accomplish our conservator mandate,” DeMarco said on CSPAN while speaking to reporters from Reuters and The Wall Street Journal. He added,”the borrower still has a responsibility and an obligation for the repayment of the loan.”
Read the full story at HousingWire.
Also see:
Viewpoint: Where’s Housing in the ‘Occupy’ Protests?
Mortgage Mod Hell: Trapped Between Lenders, Collectors
The Mortgage Fix That Can Save the Economy
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/01/federal-housing-agency-says-no-to-principal-forgiveness/
subdivision community property eminent domain collateral quitclaim deed rate lock fair market value
FHA Mortgage Loan Limits To Rise Again
Filed under: News, Economy, Financing
WASHINGTON — Congressional bargainers have agreed to increase the size of mortgages insured by the Federal Housing Administration in a compromise being hailed by the housing industry but criticized by conservatives.
Under the deal by House and Senate negotiators, the FHA would be able to insure mortgages worth up to $729,750 in the most expensive regions of the U.S. for the next two years. The ceiling had been raised to that level during the financial crisis, but by law it dipped down to $625,500 on Oct. 1.
However, in a bow to conservatives, the bargainers would not increase the current $625,500 limit on mortgages that can be backed in expensive communities by Fannie Mae and Freddie Mac, the government-controlled mortgage giants, and by the Veterans Affairs Department.
Realtors and home builders had lobbied hard to raise the loan limits for all four entities, arguing that the last thing the country’s stubbornly weak housing market needs is stricter limits on government-backed mortgages. They were backed by members of Congress of both parties from areas where housing costs are high, like Southern California and New York.
“We’d have liked broader language, but the FHA is still an important part of the puzzle,” Jamie Gregory, a lobbyist with the National Association of Realtors, said Tuesday.
‘Beyond Ridiculous’
Conservatives and a majority of House Republicans oppose the increase, saying the government should reduce its involvement in subsidizing housing in hopes that the private market would step up.
In a written statement, the president of the conservative Club for Growth called increasing FHA’s loan limits “beyond ridiculous” and said his group would note how lawmakers vote on the issue when they rate members of Congress seeking re-election. He said raising the limits does the opposite of reducing the federal role in housing markets — something that many conservatives and the Obama administration say they want to strengthen the private market and protect federal taxpayers.
It has so far cost the government about $170 billion to rescue Fannie and Freddie, which nearly collapsed in 2008 because of risky loans in their portfolios.
The size of loans that federal agencies can back is based on a formula that includes a region’s median housing cost. More than a fifth of the country’s roughly 3,100 counties would be affected by the higher FHA loan limits.
Helping Buyers With Small Down Payments
FHA insurance is often used by buyers who put down small down payments. The agency has insured more than 40 million homes since it was established in 1934, and last year three quarters of those it insured were first-time buyers.
“It’s good news for the more than 600 counties that faced loan limit decline,” said Robert Dietz, an economist for the National Association of Home Builders. “FHA is important for first-time homebuyers, so that will help support housing demand.”
The provision was included in a bill financing the departments of Housing and Urban Affairs, Commerce, Justice, Transportation and several other agencies for the rest of the government’s fiscal year, which began Oct. 1. It would also keep all other federal agencies functioning through Dec. 16 as lawmakers continue working on permanent spending bills.
The Democratic-run Senate had voted to increase the loan limits in its housing bill, but the version approved by the Republican-led House left the ceilings alone.
The House and Senate are expected to approve the overall compromise legislation later this week.
Also see:
Fannie, Freddie Execs Score $100 Million in Bonuses
Community Rescues Vet From Foreclosure After TV Story Airs
%Gallery-139176%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/
judgment maturity margin tenancy in common sale-leaseback judicial foreclosure two-step mortgage
Your Facebook Status: Foreclosed
Filed under: News, Economy, Financing, Foreclosures, Other, Credit
Foreclosure via Facebook? With roughly 4 million foreclosures in the pipeline in this country, some legal experts say it’s just a matter of time until lenders win the right to serve foreclosure documents through the giant social network.
That day has already come for one couple in Australia. When they defaulted on a six-figure loan and couldn’t be found via a physical address or email, the lender’s enterprising lawyers located them on Facebook. The lawyers were able to verify the couple’s identities by matching up their names and birthdates — and, of course, the fact that they had “friended” each other.
Australian courts upheld the lender’s right to send foreclose notices via Facebook, citing the fact that the couple didn’t enable privacy protections on their Facebook accounts and were frequent enough visitors to the site that they would “reasonably receive notice as a result.”
While Marc Rotenberg, president of the Electronic Privacy Information Center in Washington, says he is unaware of Facebook being used in the U.S. to deliver legal notifications, but “it’s bound to happen,” he said. “The real concern the courts have is whether it’s a fair notice that the person actually receives.” According to Bloomberg BusinessWeek, courts in New Zealand, Canada and the U.K. already have adopted the Australian example to avoid having cases stall when people can’t be located and served in person.
“There are people who exist only online,” Joseph DeMarco, co-chair of the American Bar Association’s criminal justice cyber crime committee, told the publication. The ability to serve documents by social-media networks would be useful, he said.
Facebook has taken heat before about its policies protecting the personal data of its 694 million users worldwide. Following the case in Australia, which happened in 2008, company spokesman Barry Schnitt said the company was pleased to see the Australian court validate Facebook as a reliable, secure and private communication medium. (Facebook did not respond to messages left by AOL.)
Is it appropriate to use social networks to find people and deliver legal papers to them via the network?
“No one likes to receive a legal service,” said Rotenberg. Legal service, after all, usually isn’t good news: Someone wants you for something. And yes, he adds, “There are going to be privacy concerns, but in some respects they’re almost inescapable.”
Email, by contrast, is generally not considered by courts to be a safe or reliable way to deliver legal notices. We get too much email, much of it winds up in spam and we don’t always open everything in our in-boxes. Legal notices delivered this way can easily be discounted with a simple “I didn’t see the email.”
But Facebook, said Rotenberg, is different. If you don’t have thousands of friends and you regularly post status updates indicating that you are active on the site, you lose the excuse that you likely overlooked the notice. Of course not everyone with a Facebook page visits the site regularly, but save it for the judge whether you’re one of them.
Bottom line: It’s probably going to be determined to be legal, just not likely to be popular. And should use of Facebook as an electronic process-server escalate as a norm, you can expect it would have some adverse impact on the site’s participation levels. In the meantime, if you don’t want the banks to find you, the best defense is enabling your privacy settings on Facebook and be mindful of the personal data you post.
For more on mortgages and related topics see these AOL Real Estate guides:
- How to Buy Foreclosures
- Spot Foreclosure Scammers Before They Spot You
- Foreclosure: What it Means for Renters
- Foreclosure Help: What a Housing Counselor Can Do
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/06/17/your-facebook-status-foreclosed/
condominium government loan (mortgage) judgment maturity margin tenancy in common sale-leaseback
Obama State of the Union Plan Inadequate for Housing?
Filed under: News, Refinancing
By Jon Prior
Even if the promising mortgage refinancing plan that President Obama announced Tuesday night passes Congress, critics say it will fall short of solving the deepest housing problems.
The White House did not release great amounts of detail, but the plan would help homeowners current on their mortgage to refinance down to a lower rate and save an average $3,000 a year on payments. The plan widens the Home Affordable Refinance Program to include mortgages not guaranteed by Fannie Mae and Freddie Mac and would tax banks to raise funding.
Analysts said Wednesday morning that the program could cost as much as $10 billion and could reach between 2 million to 3 million borrowers.
Read the full story on HousingWire.
Also see:
Bernanke: Fed Should Help Turn Foreclosures Into Rentals
Principal Reduction Better Than Short Sales, Report Says
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2012/01/25/obama-state-of-the-union-plan-inadequate-for-housing/
maturity margin tenancy in common sale-leaseback judicial foreclosure two-step mortgage original principal balance
Where Are the Real Home Bargains? Not Where You Think!
Filed under: News, Advice, Buying, Financing, Foreclosures, How To, Investing, Renting, Selling

What if you could buy a house for $25,000 in a neighborhood that wasn’t a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?
If you said Phoenix, Las Vegas or south Florida, you’d be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.
Here’s a hint to the place Habibi thinks is the hottest investment around.
Yep, Habibi is humming “Kansas City” right along with Wilbert Harrison, Fats Domino and the 50 or so other recording artists who covered that tune. As for a real estate investment, Habibi says Kansas City, Mo., is ripe for the picking.
Habibi’s approach to real estate deals is not for novice investors, but it is for those who can tolerate some risk and buy into a statistician’s mind. He’s developed a matrix that filters the top 30 MSAs (metropolitan statistical areas) through their projected growth rates (increasing population is good), unemployment (the lower, the better), and whether the city has a diversified job platform (Silicon Valley won’t get his money).
He also rejects places where other investors have already scooped up the bargains (forget Florida and Las Vegas). Phoenix, popular with many investors, also fails his litmus test. It was built as a retirement community and lacks a job infrastructure for future growth, he says. And those Texas cities that everyone bandies about — Dallas, Austin, San Antonio — while their prices have remained flat and they seem to have escaped relatively unscathed from the recession, there are so many investors already there that they’re tripping over one another.
Kansas City is just about perfect, said Habibi, whose company recently concluded its first phase of buying 32 single-family homes there in “C-level” neighborhoods for a price point of $25,000 each, spent $5,000 to $10,000 on repairs and now rents them out for about $750 each. He expects to double or triple his holdings in Kansas City with his second investment fund, for which there is a minimum buy-in of $100,000 for accredited investors to participate.
Kansas City’s population grew at a faster-than-national average pace from 2000 to 2010. With an unemployment rate of 8.7 percent, it falls below the national level of unemployment of 9.1 percent. The city has a diversified industry base that includes Sprint Nextel Corporation, Hallmark Cards, the Fort Leavenworth military base, UPS and a Ford assembly plant. Google has selected the city for its ultra high-speed broadband network project. Plus Kansas City has a business-friendly reputation for encouraging retention of companies.
Habibi discourages individual investors without much experience or tolerance for risk to try to fly solo. He credits much of his success from having an infrastructure in place — people to scout and inspect the homes, screen for tenants, manage the properties on-site and swiftly deal with eviction issues.
For those who don’t want to listen to the expert, click on the images below of some homes for sale in the Kansas City area that are worth checking out:
See other homes for sale in the Kansas City area at AOL Real Estate.
Also see:
College Town Real Estate Investments Score High Marks
Upside Down on Your First House? Just Buy a Second One!
Viewpoint: Why No New Houses May Be a Good Thing
%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.
Permalink | Email this | Comments
Source: http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/
mortgagor secured loan convertible ARM mortgagee clear title no-cost loan refinance transaction










