This just in from The Federal Housing Administration Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down-payment.
This is a huge step in the right direction!!!
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Secretary Donovan said that important changes, which the National Association of Realtors®has been calling for, will help consumers purchase a home. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down-payment," Donovan said. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Donovan said the Obama administration plans to further stabilize the housing market. "I do think we have some early signs hat the market overall is stabilizing," said Donovan. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said, "As the leading advocate for housing issues and home-ownership, NAR continues to take a leadership role in promoting ideas for improving our economy by stabilizing the housing and real estate markets. Today we have the best of the best to begin a dialogue, develop solutions and initiate action toward real estate and economic recovery."
There is a short window of opportunity here for you to use the 8,000 towards your down-payment, and this program could be removed at a moments notice. I have been mentioning on previous blogs the time is now to buy, well it is for sure the time to buy with the 8,000 going towards your down-payment. What are you waiting for???
Home Seller Assist Program, so what is this program all about?
Do you know?
Frequently Asked Questions
What is Home Seller Assist?
Home Seller Assist is a program, which markets a seller financing option to homeowners. It includes two websites and training. You also are able to bring other people into the business through a website just like this one. You earn through both systems.
I'm from another country. Can I join Home Seller Assist?
Yes! Home Seller Assist welcomes members from all around the world. This system can be used from anywhere with the use of the internet and phone access. The seller financing is completed on homes in the US.
I'm a Real Estate Agent, is there a conflict of interest and can I legally earn on a note sale as well as my real estate commission?
Agents and Brokers have helped their clients using note buying for many years. Use our written disclosures with your client to insure proper and complete disclosure and you should have no problems in your state. We suggest you get approval from your broker before using the program.
Are there any hidden fees?
Absolutely not. There are no monthly fees either.
How and when do I get paid?
You get paid right after closing on your own sales and on sales from your team members. You get paid immediately and directly from one of our payment processors on Gold and Platinum sales.
Can I have more than one account?
Yes. You may have as many as you like, but you only need one.
Will I be able to see my referrals or change my details?
Yes. Just login to our members area anytime. You can view and email your entire team at once.
Do you provide support?
Yes. We provide unlimited customer support (within reason).
How long will this take to set up?
Just a quick payment from within your backoffice, and you're ready to start. Click the "Click and Try" it Button to instantly create your backoffice and make payment.
Do I need a domain or web hosting account?
No. Your site will appear on http://www.weprovidethecash.com/, with your ID to track your sales, so all payments go directly into your payment processor accounts. You simply promote your website to make sales.
Do I have to join all of the payment processors you offer?
No. If you only have one, your site will only show the one payment option when people get to the payment stage, however we recommend using at least 2. Each one is FREE to join. We have all the sign up links ready for you when you join.
Can I get a refund?
Your membership is non-refundable after 72 hours. All sales are final. The reason for this is due to the nature of our instant payments to our affiliates. We cannot refund money to you that has already been paid out to our affiliates. We never even handle that money - it is paid directly to our affiliates.
SEARCHING FOR REALTORS, MORTGAGE BROKERS, ENTREPRENEURS...AS a matter of fact anyone who is willing to get ahead in life and truly work at a business in the real estate industry, you need to take a look now, at what this business offers as we know most Realtors, and Mortgage Brokers are facing hard times.
WHAT IS THE DEAL WITH THIS SITE? DOES ANYONE KNOW FIRST HAND? I'm seeing advertising ALL OVER THE PLACE!!! WE Buy SHORT SALES/REO'S WITH NO MONEY DOWN OR CREDIT!!!!!!
AM I missing something here, or is this for real???? Please respond if you know, and only if you know..
1. Commissions get discounted by the lenders; 2. That they need an offer to send to the banks and do not have one; 3. That when they send the package without an offer and the bank doesn't want it; 4. That when they find a buyer, the short sale process takes too long and the buyer walks and 5. That it's a waste of time to negotiate when they should be promoting themselves and their properties
This is what I will do:
" I'll put in the offer if it meets my criteria " I have a negotiator who will handle the negotiating " Either I or my BPO agent will conduct the BPO appointment " My private lender will provide funds for closing " My title company will close both transactions
" I'll buy the house
The Agent's Role: 1) Do what good agents do well... Find deals and find buyers 2) I need a buyer's agent that can get involved in training the listing agent as to how we work. Get the leads, train the listing agent and get paid.
Please contact me and I will explain the whole process to make both of us profit, deal after deal after deal!!! We have a proven track record of getting escrow closed and you paid.
If you run across commerical deals(does not have to be in foreclosure either, just a seller that can not sell) PLEASE, PLEASE GET IN TOUCH WITH US.....
I'm getting the feeling that this is about as much as can be done to stabilize our housing/credit markets. If taking over FNMA/FHLMC isn't enough to stabilize things, we're in for some really rough sailing. Mortgage rates have reacted very favorably to the news so if you've got borrowers waiting for better rates, NOW is the time. As long as your borrowers are committed and value is solid,
I suggest get those files in and lock up that rate! Pricing always seems to swing on a pendulum with major news so I wouldn't be surprised to see rates inching back up tomorrow.
In regards to guidelines for FNMA/FHLMC products, it looks like 95 LTV is on its way out FOR A FEW BANKS and max to 90 LTV. As of today there is still coverage to 95, but it appears to be going away soon. Perhaps as early as October. Bottom line, super high LTV's are not here for long. (with the exception of FHA)
Homecomings - GMAC Homecomings Financial bailed out of the wholesale and retail markets last week, however GMAC (homecomings parent company) is still a strong player in the correspondent side.
Agency-Jumbo - We've seen a couple investors moving to DU/DO findings for Agency-Jumbo products and it looks like everyone else will follow suit. Keep in mind, DTI is still maxed at 45%, but we will be able to follow DU recommendations for documentation. CitiMortgage - now allows 2 unit properties on Agency-Jumbo product. Primary residency only, 6 months reserves. (manually underwritten only)
Disclosures - Just to make sure you're aware, DRE now requires use of the following disclosures. (and these are NOT in Point) · When the loan being proposed to the borrower is a "traditional" loan product - i.e., a loan product that does not allow the borrower to defer repayment of principal or interest and the proposed loan: http://www.dre.cahwnet.gov/pdf_docs/forms/re882.pdf
· When the loan being proposed to the borrower is a "nontraditional" loan product and is secured by a one to four unit residential property whether owner or non-owner occupied. Pursuant to Commissioner's Regulation 2842 a "nontraditional" loan product is "a loan that allows borrowers to defer repayment of principal or interest. http://www.dre.cahwnet.gov/pdf_docs/forms/re885.pdf
MI coverage - MI companies are changing guidelines as often as lenders so order your MI certs as soon as you possibly can. We will be happy to order the mortgage insurance coverage for you with a 1003/1008, credit & appraisal along with a written request for MI. Please also provide the program type and the document type. Keep in mind that if there are ANY changes to the loan terms after the initial cert is issued - The MI coverage is subject to change.
Consequences of Housing and Economic Recovery Act of 2008 - Just a few of the changes coming October 1st: · Effective 10/1/08, all FHA loans will pay the same upfront MI premium, 1.75% · Monthly MI premium: .50% up to 95 LTV; over 95 LTV = .55% · Minimum borrower funds required increased to 3.5%
Did You Know? Random FHA guidelines and News: · Down payment assistance programs no longer allowed · Jumbo may exceed 31/43 DTI with AUS approval · TBW has been temporarily removed from available lenders; we hope to have them back soon. · Appraisal must show exterior pictures front and rear at opposite angles to show all sides of the dwelling. In other words, from a diagonal so that front and side plus rear and other side of property are both shown. · Married borrowers may apply in only one spouses name but debt from both spouses still counts towards DTI.
Realtors, and mortgage professionals, you have a few weeks to try and close as much as you can, because it is going to get very difficult come October 1, 2008, as if it wasn't a cake walk now....
I hope this information finds you well, as this might be one of my last mortgage blogs, as I will be making a transitional change to residential real estate....
I heard Barry Habib from Mortgage Market Guide speak about the new provisions for The HR 3221 Bill, and how it will effect your business.
Realtors, right now is the best time to get your borrowers off the fence, because they might not be able to buy a home, here in the next couple of months.
I wanted to give you the highlights of his interview.
FHA Changes:
To use Seller Funded Down Payment Assistant (DPA, Nehemiah), final underwriting must be completed by September 30, 2008. This type of DPA will not be available after September 30. Two out of every three FHA loans are currently using Seller Funded DPA so it is important to act now!
FHA minimum cash investment requirements are increasing to 3.5%, from 3%.
MIP will increase after October 1, 2008. HR 3221 increased the cap on MIP from 2.25% to 3%. Per FHA policy, FHA has filed the amount they want the cap to be with the Office of Management and Budget (reported to be between 2.25% and 3%, but closer to 3%). This is another reason to act now!
Visit www.Hud.gov for FHA loan amounts in your area.
OPPORTUNITY: The main message to communicate to Realtors, renters, and prospects is to act now! For a short time longer, they can still take advantage of seller down payment assistance and lower minimum cash investment requirements. They also may be able to get double advantage with the new tax credits (see below). This is the perfect time to position yourself as an expert!
Tax Credits:
First-time buyers and people who have not owned a home in the past three years will get a $7,500 tax credit if they purchased a home on or after April 9, 2008 or if they purchase one before July 1, 2009.
Income limitations are:
Married couples with incomes less than $150,000 qualify for the entire tax credit. The tax credit phases out for married couples with incomes between $150,000 and $170,000. Couples with incomes exceeding $170,000 do not qualify for the tax credit.
Singles with an income less than $75,000 qualify for the entire tax credit. The tax credit phases out for singles with incomes between $75,000 and $95,000. Singles with incomes exceeding $95,000 do not qualify for the tax credit.
The tax credit is really an interest-free loan from the government that must be paid back over fifteen years, in increments of $500 a year.
If you die, your heirs do not have to pay back the remaining balance.
If you sell your home before fifteen years have passed and your home's appreciation is less than the amount you have to pay back, the loan is forgiven.
If you turn your home into a rental or investment property, you must pay back the balance due.
OPPORTUNITY: People who have been on the sidelines can take advantage of this tax credit by acting now. Share this information with:
•1. listing agents so they can put it on open house flyers.
•2. divorce attorneys since the liability for the loan goes to whoever gets the home.
•3. past clients who purchased a home on or after April 9, 2008 and who qualify for this tax credit.
Conforming Jumbo Loan Limits:
The floor for Jumbo Loans will remain at $417,000, despite the depreciation in home prices.
The ceiling for Jumbo Loans will decrease from $729,750 to $625,500 as of January 1, 2009.
OPPORTUNITY: Jumbo homebuyers in some markets have retained the ability to finance at lower interest rates. Inform listing agents, buyer's agents, and prospective homebuyers in applicable markets of the upcoming change to the Jumbo Loan ceiling.
Hope for Homeowners:
The bill helps homeowners who are currently upside down on their homes and owe more than their homes are now worth.
Mortgages must have been originated prior to January 1, 2008.
Borrowers must:
•1. Certify that they did not default intentionally (there is penalty of jail if they are found to lie here).
•2. Have had a DTI ratio over 31% as of March 2008.
The lien holder will work with the borrower to write down the mortgage to no more than 90% of the appraised value. For example, if a borrower owes $300,000 but the home is worth $250,000, the borrower will receive a new loan for 90% of $250,000, which equals $225,000. The $75,000 difference is forgiven.
The lender shares equity in the property going forward, on a sliding scale:
•1. If the home is sold within one year, the lender receives 90% of the appreciation and the home owner receives 10%.
•2. If the home is sold within two years, the lender receives 80% of the appreciation and the home owner receives 20%.
•3. If the home is sold within three years, the lender receives 70% of the appreciation and the home owner receives 30%.
•4. If the home is sold within four years, the lender receives 60% of the appreciation and the home owner receives 40%.
•5. If the home is sold after five years, the lender receives 50% of the appreciation and the home owner receives 50%.
OPPORTUNITY: There's a big opportunity to educate clients and strategic partners. By adding value and positioning yourself as an expert, you build trust, strengthen your relationships, and pave the way for future business. Also, informing clients and partners of this information will help strengthen home values and the economy overall.
Licensing:
SAFE Mortgage Licensing Act was created to "encourage" a nationwide licensing and registry system. In the next few years, individual states will:
•1. Establish a minimum net worth for recovery fund requirements.
•2. Require originators to register with the National Registry and obtain a unique identifier number. This will help regulators track individuals and prevent originators who receive complaints in one state from starting a new origination practice in another state.
•3. Develop a state license program.
•4. Require pre-licensure education.
•5. Require eight hours of continuing education every year.
OPPORTUNITY: More bad actors out of the business and the ability for our industry to regain the public's trust.
We need all mortgage professionals to help out with this.
TAKE ACTION NOW
Downpayment Assistance Programs in Danger of Elimination!
The Department of Housing and Urban Development (HUD) has re-issued a proposed rule that would eliminate all private downpayment assistance programs.
As you know, Nehemiah has a long history of successfully protecting and advancing homeownership opportunities for homebuyers. For over 10 years, we have worked together to help more than 290,000 families achieve their homeownership goals. Together, we can defeat HUD's proposed rule.
Act Now! We Have One Month to Stop This Action
Speak up now! The proposed rule comment period ends on August 15, 2008. Making your voice heard is simple. Submit a comment through our website and let Federal housing officials and your congressional representatives know how you feel about preserving private downpayment assistance as an option for today's homebuyers. Your Trusted Source
Nehemiah will continue to be your trusted source of information on this important matter. Visit our website www.getdownpayment.com for up-to-date information and register to receive future email updates as they become available.
Thank you for your continued support. Should you have any questions, our Customer Service Department is available at 877-634-3642 from 9:00 a.m. - 8:00 p.m. EST to answer your questions.
Did you choose your niche? If you haven't, save this lesson and come back to it when you're ready. (Or just begin today with a niche you're considering. This exercise might help you decide if it's the right one for you.)
Today you begin to become an absolute expert in that niche. It is, of course, an ongoing process, so this is merely a starting point.
Begin with attending every broker open and/or every open house. If no one does those in your community, ask the listing agents for preview visits. Your goal is to know all you can about each home (or property) for sale in your niche.
Print out the MLS sheets and pick up the flyers for each one. Then attach a blank sheet for your own use.
As you well know, the MLS and the flyers don't begin to tell the truth about a house. Descriptions are vague or non-existent - if they're even correct. You'll need to take your own notes, paying careful attention to a few things that make a big difference in the final selling price:
Condition - hardly ever mentioned on flyers or in MLS but high priority for buyers
Location - and why it is desirable/undesirable for whom
Special features - special rooms - unusual amenities
Decor - neutral or dramatic?
Neighbors - tidy and quiet or a noisy mess?
Size of rooms - both living areas and bedrooms
Your goal will be to know so much about each house that when you want to use it on a CMA you will know - not guess, but know - if it actually compares to a property you want to list.
Next, keep a file on those homes. When a sold notice comes through, get out the flyer and write down both the selling price and the days on the market.
Since you'll want to use the freshest data possible for every CMA, you won't be using the information you gathered a year ago - but keep it! You will be able to use it to show market trends. Clients will ask you if the market is up or down - and the data you've saved will give you a true answer in place of a general feeling or a guess.
This information will help you with buyers as well.
When you set out to show homes your goal should be to zone in on the best choices for your buyers - not to waste your time and theirs showing them every single listing in their price range.
When you know every house for sale in your niche, you can do that. That is, you can do it if you take the time to really talk with your buyers before you put them in your car.
I want you to realize, that when you start out knowing what your buyers really want, you'll spend far less time showing inappropriate listings.
Your assignment for today: Choose 2 or 3 homes in your niche (or even the niche you're considering) and make arrangements to see them. Then print out the MLS information and anything that the listing agent may have on their website.
Devise a filing system so you can keep track of the information. Perhaps you'll want to set it up by subdivision, by street, or even by section, township, and range - but set it up so you can go back to the flyer when you need it.
By the way, if your research takes you to a house you believe is perfect for a buyer you've been talking with - stop and make a phone call. Tell them you may have just found their dream home, and ask if they'd like to see it.
If you've been using your tools well, the flyer will already be in their in-box, but as I said, may not tell them enough to spark their interest. They need your enthusiasm to get them excited about seeing it.
I was sitting here speaking to someone who said" Bernie how do you keep track of all your leads you get"?? I was a bit puzzled because apparently many real estate agents, and loan officers don't follow up with potential clients.
I asked her why do you not follow up with people, she said "laziness" WOW!!!! I was blown away, so here you go, please enjoy and let me know what you do to keep up with your prospects.
Never Give Up On a Lead!
You might wonder, "When is a lead no longer a lead?" A lead is always a lead until the person tells you to stop calling. The key to success in sales is professional persistence. Take time to earn the loyalty of prospects by showing them that you add more value to the equation than anybody else in your field. One critical element to remember about a successful lead follow-up campaign is that it should be easy to implement.
Build a series of letters (i.e., templates) and load them into your database management system. Whether you use Top Producer®, Microsoft® Outlook® or ACT!®* doesn't matter. The important thing is that with a few clicks of your mouse, you will generate an outbound correspondence that encompasses your prospective client list and helps them realize that you are sincerely interested in working with them. You must leave an indelible imprint in their mind, which will give you a competitive edge if they have not yet decided with whom they will work. You must rouse prospective clients to wonder:
"What will I miss out on if I don't work with this person?"
Once you motivate the prospect to ask that crucial question, your battle has been won. How can you prompt prospects to ponder this question? It's simple: Teach them! People instinctively want to learn, especially when it comes to "big ticket" transactions like purchasing real property and financing homes. The more you teach them, the more they will want to work with you, so it is important to establish yourself as a consultant.
Many subtle changes occur regularly during real estate transactions that can make buyers feel vulnerable and anxious. They're filled with all types of questions and they look to you as the expert. How do you read an appraisal? What are key components of a home inspection report? What are the various non-recurring fees associated with buying a home? What is tax deductible during the loan process? What are some characteristics to look for when selecting a skilled real estate agent? The list never ends. Draft documents that address consumers' concerns before they even ask.
By maintaining contact with your prospects on a weekly basis using a drip campaign that contains valuable educational material, you will have made yourself invaluable to them. You'll be amazed by how much your conversion ratio from prospect-to-client will skyrocket!
Lehman Brothers released a report saying that "Although there has been a significant improvement in markets since the turmoil of March, conditions are still "far from normal." The Fed's actions to date have resulted in significantly lower borrowing costs for non-financial borrowers, but we think much of this is due to a rationing-out of lower quality borrowers. We expect the crunch to intensify and spread. Securitization markets are still impaired, and banks are in no shape to pick up the slack, in my view." A sobering and scary statement!
Rates this morning are almost unchanged from Friday, with the 10-yr wallowing around 4.02% and mortgage prices a tad better. You may recall that on Friday, the Michigan Consumer Sentiment Index fell to a 28-year low, but the Chicago Purchasing Managers index rose to 49.1 in May, higher than forecast, from 48.3 in April. Although we have the unemployment data on Friday, it is relatively quiet this week economic news-wise.
The Institute for Supply Management's (ISM) manufacturing index comes out later this morning, and is a measure of manufacturer sentiment. Analysts are expecting to see a 48.0 reading in this month's release, meaning that sentiment slipped slightly during May (a reading below 50 means that more surveyed manufacturing executives felt that business worsened during the month than those who felt it had improved).
Tomorrow we have the Commerce Department's release of April's Factory Orders data, the revised 1st Quarter Productivity and Costs report will be released Wednesday morning along with the Institute for Supply Management's services index. Thursday we have Jobless Claims, and then on Friday the Labor Department will post May's Employment data. Analysts are expecting to see the unemployment rate climb to 5.1% with approximately 52,000 jobs lost during the month.
I have been writing about this on other social networking sites.
It's payback time - The Wall Street Journal is reporting that mortgage lenders are now facing the music, as loose lending practices are coming back to them in the form of buy-backs. These loan disputes, according to Journal reports, are centering on bogus appraisals, inflated borrower incomes and other misrepresentations made during the loan originations. "Some of the disputes are spilling into the courtroom, and the potential liability is likely to hang over lenders for years." In a recent conference call, Fannie Mae told analysts that it is reviewing every loan that defaults and triggering buy back provisions on those that did not meet quality guidelines when originated. Bond insurers are also weighing in. According to the Journal, MBIA and Ambac Financial Group are examining mortgage pools that were supposedly composed of home equity loans and credit lines made to borrowers with good credit. An MBIA official said, "there are a significant number of loans that should not have been in these pools to begin with." Countrywide Mortgage represents a slice of what's to come. It is reported that in a May securities filing, Countrywide estimated its liability for investor's claims approached $935 million as of the end of March. They took a 1Q 08 charge of $133 million for claims paid. The mortgage crisis is an economic iceberg just exposing its tip. . Last week, Boston Fed President Erich Rosengren said, while the U.S. housing market is a small part of the GDP it has substantial impact, which may last longer than anticipated. "Previous periods of real estate problems have taken significant time to be worked out; with foreclosures remaining elevated well after their peak... The current foreclosure problem has been exacerbated by the difficulties related to many of the problem loans being held in securities." Commenting on the Fed's monetary actions, Rosengren said, "These policies will likely result in some pick up in the economy activity in the second half of this year, which should help stabilize the housing market."
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Lakewood, California
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