Home buyers! Are you being forced to use a particular lender or title company in order to get your purchase contract accepted by the seller? There is a trend going on where buyers are being forced to jump through hoops, apply for loans with the seller's lender of choice or a bank who holds a REO property forcing the buyer to obtain financing from them in order to get an accepted contract. THIS IS ILLEGAL. If you have experienced something that is wrong " Google"FTC Guide to the Antitrust Laws or RESPA Section 9
In the movie classic Network, Howard Beal, played by Peter Finch in one of the iconic moments in movie history gives us the classic line: "I'm mad as hell and I'm not going to take this anymore!"
I'm wondering when we as Realtors and our clients as consumers are "not going to take this anymore!"
Those of you who believe that the banks/lenders who control the REO properties are going to negotiate fairly and protect your client's interest, can probably stop reading here.
If you think, your job is to protect your client's best interest and negotiate the best possible terms for them, might want to read on.
If you haven't heard about it yet, you will. Chase Bank in a memo to its Asset Managers, announced the Chase Finance Initiative. In an attempt to capture more of the loans that are being done on their REO properties, Chase is encouraging their asset managers to promote Chase financing.
Problem is, they are in violation of RESPA and FTC guidelines and more importantly putting your clients at a serious disadvantage in the negotiation process.
I'm going to quote directly from RESPA Section 9 and FTC Guidelines for Antitrust Laws, so bear with me if it's a little dry. I'm also going to quote directly from the Chase memo that outlines their Chase Finance Initiative.
RESPA Section 9 - "Section 9 prohibits home sellers from requiring home buyers to purchase their settlement services from a particular company either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times for all charges made for the title insurance." "Settlement service means any serive provided in connection with a prospective or actual settlement including but not limited to any one of the following: Origination of a federally related mortgage loan...Rendering of services by a mortgage broker..."
FTC Guide to the Antitrust Laws - "For competitive purposes, a monopolist may use forced buying, or "tie-in" sales to gain sales in other markets where it is not dominant and to make it more difficult for rivals in those markets to obtain sales. This may limit consumer choices for buyers wanting to purchase one ("tying") product by forcing them to also buy a second ("tied") product as well. Typically, the "tied product may be a less desirable one that the buyer might not purchase unless required to do so, or may prefer to get them from a different seller. If the seller offering the tied products has sufficient market power in the "tying" product, these arrangements can violate the antitrust laws."
Refusal to Deal - Sometimes the refusal to deal is with customers or supplier, with the effect of preventing them from dealing with a rival: "I refuse to deal with you if you deal with my competitor".
Chase's plan?"3. Sell the fact that buyers are more likely to receive seller assistance with closing costs by using Chase financing""8. In multiple offer situations, advise the agent that the seller will generally put more weight" on an offer with Chase financing than any other offer."
As a Realtor, you're really going to like this section from the Chase Finance initiative: "With Chase as our primary client, (asset manager name withheld) must work with Realtors who understand the importance of Chase financing on Chase owned properties and we will begin to limit our relationships to those who can adhere to these guidelines."
I'm sure there are more examples but here are three brief ones, that amplify the disadvantage your clients would have when negotiating with Chase:
1) The lender selected by your client has a more favorable interest rate than Chase, but in order to get their offer accepted, they will have to take the higher rate by using Chase.
2) Your client asks for closing costs to be paid by Chase, but in reviewing your client's financials determines your client has the ability to pay them, and Chase counters accordingly.
3) Your client makes an offer on a Chase home that is priced below the maximum amount for which they qualify. Even though your buyers are making a prudent financial decision, Chase can counter to a higher amount solely because they know your buyer can qualify for the higher price. Think your buyers might accept the higher price if they've already written 20 offers?
This probably isn't something that can be won in a court of law, but perhaps it can be won in "the court of public opinion".
Pass the word, reblog, protest, make t-shirts, just do something. As other banks follow this lead it will be more difficult for us to best represent your client's interest.
As Howard Beal said: "I want you to get up right now! and go to the window, open it, stick your head out and yell I'M MAD AS HELL AND I'M NOT GOING TO TAKE THIS ANYMORE!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Last Friday my clients closed on a beautiful short sale. Unfortunately changing the locks was not at the top of their list since they were not moving in right away.
I always advise my clients to change the locks after closing because you never know who has a key. In the case of these buyer's the previous owners son still had a key and was unaware that the property had been sold.
Thinking his parents still owned the home he decided to throw a huge house party, DJ and all. The neighbors called the police on the 30-40 party goers, but since the young man had a driver's license with that address the police did nothing.
The next day my clients received a phone call from the HOA president notifing them of the incident. It appeared the son didn't want his parents to find out about the party and the house was spotless. This situation could have turned out much differently.
This is a reminder to change your locks immediately after closing.
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
This is just WRONG! Big companies who offer no personal attention to their clients OR employees. Makes me ask, "What is this world coming to?" My friend, who works for one of the big banks says that she was scared because she lives alone and wondered if something happened to her at home, how would anybody know. She said at her job, if someone was missing from work more than a few days, nobody called them to see if they were okay, instead the company sends out a form letter dismissing them from employment. How impersonal and uncaring.
The bigger companies may have the money to advertise and offer low rate programs but for some folks there is greater value in customer service and actually having a real person (not someone in a call center) who "remembers who you are" to listen to your needs and take care of your transaction.
I have always enjoyed the relationships built through helping clients with their real estate transactions. Seeing a family get into their new home, is rewarding and in a way I always felt just as excited for them as they were.
This is an interesting piece by a fellow Active Rainer.
Clients are making the shift. Big box lenders are so big that they're collapsing on top of their own clients.
I'm dealing with a top three lender rignt now...
As an Attorney!
I've been contacted by the client. The lender had been accepting the mortgage payments, cashing them in and, oh yes.....reporting to the credit bureaus that they hadn't made a payment for nine months and therefore the big box lender began the foreclosure process.
I've spent hours upon hours with the client getting disconnected repeatedly. I'm an attorney looking to help my client, but many disconnections....we called again and again and the bank representative gave us their name and number. Each time we'd call back and invariably each extension was invalid, or surprisingly enough, "Crystal doesn't work at this extension."....can you say....
C'mon now!!!!
I call the president of our company and told him of the fiasco. He found a high up contact in that top three fortune 500 mortgage company to investigate the my client's allegations. What's such an paradox is that they're suing a client for foreclosure claiming that she's failed to make payments. In the mean time she's provided all the statements and cancelled checks to prove that she's never been late with them. As an attorney, I've told her that she has a cause of action against this mortgage company since they they're destroying her credit by reporting he not only as late, but also in foreclosure when the proof is contrary.
But Now??? How about an Update!!!!!
The latest as of this week???? This big box today agreed....to an extent and said the following...
We acknowledge that you've made your payments and made the payments on time. We just don't know where the money is within our company.
Are You Friggin Kidding Me!!!!! That's one caring mortgage company.
"We acknowledge that you've paid on time, but we're not ready to clear your credit or stop the mortgage foreclosure until we can figure out what we did with your money?"
There's a Major Shift Gooing on with Consumers now!!!!
Mortgage Companies are shooting up the list of the top 100 even in a market when big box lenders are collapsing and more are poised to collapse, great companies are rising to the top. Why? Because consumers are begging for someone to care about them.
It used to be that consumers wanted the lowest rate on the block. Now they want a good rate, a really good rate, but for the biggest financial transaction of their lives, they'll trade a little rate to have qualified people investing in their families. They want a relationship. They don't want crappy service for a lower rate.
There are a lot of great companies out there that offer great rates and exceptional service. They might not be the lowest rate in town, but they're fair and they will create a relationship with the client that will inevitably end up with a client for life. Big box???? Transactional, not relational. I'm sorry, I'll take relational over transactional any day. It may not be the cheapest rate in town, but to the client, it's a lot more cost effective. And with the biggest investment in your life isn't it good to have a relationship as well as a point of contact?
Larry Bettag - Regional Vice President, Midwest Region
Illinois FHA Specialist
630-417-7172
An Illinois Residential Mortgage Licensee
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
One of the things I love about the "Fall" season is a good soup simmering on the stove. It really makes a house feel like a home.
My son, who is 19, is living two hours away while he's in school and now calls me to ask for recipes. It made me think about documenting some of them to pass along to him.
So tonight for dinner we had something I'm calling "Almost Chicken and Dumplings." I made soup but didn't want to stand there rolling dough for dumplings so I added a little bit of potato and rice and it gave a really nice texture and flavor. The first time I made this recipe I put in a little too much rice and it turned into a rice dish so I tried it again tonight with less rice. I used 1/4 cup of rice and it was just on the verge of being too thick so next time maybe 1/3 cup of rice will make it just right.
This is a very basic recipe: It's simple and can be modified - instead of rice, make dumplings if you're up to it. The rice absorbs the broth, expands and softens. My husband didn't realize it WAS rice. LOL!
Cook time is going to be two sets of 45 minutes and one set of 20 minutes before it is ready to eat so plan accordingly. It smells wonderful while it's cooking. Makes you feel all warm and cozy. Great for those cold winter days.
Ingredients:
One bunch of green onions (about 8)
Leeks are better but seem to be rather expensive these days so I have been using green onions for my soups and they seem to give it the sweetness and taste similar to leeks.
2-3 good sized stalks of celery. I also like to use the inside stalks with the leaves as it gives great celery flavor.
Chop fine. I don't like to bite into celery so the finer the better.
Fresh garlic. I like a lot of garlic so I use about 4 or 5 cloves crushed in a garlic press.
One 32 oz container of Chicken broth. I use Trader Joe's Organic Free Range broth because it has a strong flavor and isn't clear and watery like some brands.
One teaspoon sea salt
One teaspoon Poultry seasoning
One bay leaf
One teaspoon fresh ground pepper corns
3 tablespoons butter (you can also use olive oil)
Put chopped onions, celery and garlic in pan with butter and saute (stir constantly) just until it starts getting glossy and you can see it is cooked but not browned. Paula Deen says, "Everything tastes better with a stick of butter." So if you are cooking healthy use the olive oil. If you want the rich sweetness use butter.
Add broth and one cup of water. (if I have extra broth on hand I substitute by adding an extra cup of broth in place of the water, makes the soup have more flavor.)
Add a handful of chopped parsley, poultry seasoning, salt, pepper and bay leaf.
Bring to boil and add:
Chicken
I use the boneless chicken breast that I buy at Trader Joe's in the frozen section.
Baby Carrots
Small bag or about 2 cups worth
Potatoes
3-4 small potatoes. Don't want to cut them too small because they will fall apart. I cut them in half or leave them whole (depends on how small.)
Directions:
Stir and bring to a nice soft boil and then set the stove temperature to low. On my electric stove, I set it to "3'. Cover pot with lid and set timer to 45 minutes. Let the soup simmer with a light boil. Return after 45 minutes to check on soup and stir. Cover again and set the timer for another 45 minutes.
After the second 45 minutes are up, check on the soup. Stir a little then add about 1/3 cup of uncooked long grain rice. You don't want to add too much rice because it will expand and absorb some of the liquid and adding too much rice will turn your soup into a rice pilaf. So unless you are looking to make rice pilaf, don't add too much rice. I learned the hard way.
After you add the rice, stir the soup and bring to a boil again. Not a raging boil but a soft boil. Stir once more and then set the burner temperature back to low. #2 or 3 on my stove. Cover pot and set timer to 20 minutes. Check and stir to see how the rice is cooking after time is up. You don't want it stuck to the bottom of the pot. It should be cooked after 20 minutes so once it looks done you can add 1 cup of half and half to the soup. You can also use cream but I rarely have it handy. I use half and half for coffee so we usually have it on hand. Milk will work also but be extra careful not to curdle it.
*IMPORTANT: Cream can take boiling, but milk will break. Don't let the soup come to a boil once the milk is added. Add the milk at the end and just heat it. If it does curdle it will still taste good but will look yucky.
You should have a flavorful, lightly rich chicken soup. The rice gets really soft as it absorbs the juice and will offer the thickness and satisfaction of noodles or dumplings without actually making dumplings. If you are up for it, then make dumplings instead of adding rice. Wild rice would be good too. I'm thinking of adding mushrooms and wild rice. There are many ways to experiment with this basic soup recipe.
The above photo had 1/4 cup of rice added and is thicker.
This time, I used only 1/3 cup of rice and liked it much better. I also cut up the chicken into bite sized pieces after it was cooked.
Bon Appetit!
*One way to save a soup or sauce if you accidentally curdle the milk is to add a binder such as a roux (made from flour and butter) or a slurry (made from cornstarch and water). Add a little as a thickening agent and it should bind the milk so you don't have the curdles.
I'm not endorsing or getting paid to talk about any products, just mentioning the ones I use because I like them best. Hey, I'm a huge Trader Joe's fan. They are right in my neighborhood; the employees are always friendly and helpful. I love the familiar, family, local merchant feel. Plus they have great prices! If you go into my kitchen you will see Trader Joe's brand on just about every food product. I like them. What can I say? You find a product or service you like and you stick with it. That's how I roll.
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Whether chains are rattling, the floor is shaking or there is simply the knowledge that an evil deed was committed on the premises, you could possibly be dealing with a haunted house, or a "stigmatized property" sale.
Since liability issues on these types of transactions vary from state to state - what is the guiding principal for selling a haunted house?
In 1991, a case in New York provided some legal precedent on the matter.
Stambovsky v. Ackley
The owner of a house, Helen Ackley had reported the existence of numerous poltergeists in her home and had, in fact, publicized these occurrences in Reader's Digest and a local newspaper on three occasions. As a result, the home was placed in a five-home walking tour in the city and received an enormous amount of publicity. She even referred to the home in a article as a "Riverfront Victorian with ghosts."
Some of the interactions Ms. Ackley described to reporters included ghosts waking her each morning by shaking her bed. When spring break arrived she loudly proclaimed to the spirits that she did not have to wake up early anymore. On this, she insisted that they listened to her requests and the bed immediately ceased all shaking.
Despite the local notoriety, an unknowing buyer, Jeffrey Stambovsky signed a contract to purchase the home. On an agreed upon price of $650,000 he made a $32,500 down payment. Since Mr. Stambovsky was not from the area he claimed to have ignorance of the widely known haunting tales.
When the buyer subsequently learned of the haunting stories, he filed for a request of the rescission of his contract for the sale and also sued for damages citing fraudulent misrepresentation on the part of Ackley as well as the Realtor®.
In ruling on this case, the court stated that since the existence of ghosts in the home had been widely reported, as a matter of law, the house was haunted.
However, the court dismissed the fraudulent misrepresentation action and stated that the Realtor® had been under no obligation to disclose the haunting to any potential buyers. The court affirmed that the law of caveat emptor (let the buyer beware) applied in this case so the buyer did not prevail.
Mr. Stambovsky subsequently appealed the case and won a reversal.
On appeal, the court stated that a "haunting" was not a condition that a buyer could fairly be able to ascertain through even the most thorough of home inspections. In this case, "the most meticulous inspection would not reveal the presence of poltergeists at the premises or unearth the property's ghoulish reputation in the community."
It further stated that the seller had taken unfair advantage of the buyer's ignorance. Since she had taken it upon herself to inform the community at large of numerous spirits roaming rampantly throughout the home, she owed no less to her perspective buyer.
The judge then rendered a somewhat entertaining opinion using the following phrases:
"In his pursuit of a legal remedy for fraudulent misrepresentation against the seller, plaintiff hasn't a ghost of a chance,"I am moved by the spirit of equity," "In this instance - who you gonna call?" and "The notion that a haunting is a condition which can and should be ascertained upon inspection of the premises is a hobgoblin which should be exorcised from the body of legal precedent and quietly laid to rest."
I have no knowledge of whether or not the parties in question had any appreciation of the judge's sense of humor.
However, Mr. Stambovsky was finally let out of the deal and had his deposit fully refunded.
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Often people want to ignore the truth and get what they want when they want it and they want it NOW! LOL!
This article is definately worth a re-blog! We all need to work together as team to get to the finish line. It's not us against them which sadly seems to be the climate between some professionals in this industry. Ultimately we want what's best for the client and we want to get paid for our time. If we all do our job it's win/win for everybody.
Ancient Mortgage Proverb: No deal is ever 100% certain until the loan is completely paid off.
There exists a chasm in communication, familiarity and point of view between agents and loan officers. Sometimes we try to act like it does not exist and we really wish it was not so. I know this chasm exists, just as you do for many reasons, because I have had real estate agents - very good agents - try to convert to loan officer at my companies and I have seen this chasm immediately appear. Sales are fairly and generally black and white, go or no-go, yea or nay. Either the seller accepts the offer, counters or declines. Every agent I have seen try to become a loan officer has had a difficult time adjusting to the different levels of approval.
There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don't understand them. Otherwise you're going to continue driving the loan officer (me :) nuts and forcing the weaker ones to lie to you or avoid you. Let me help you not contribute to their delinquency by briefly explaining some of the levels of loan approval and addressing how I handle them individually.
First please recognize the average loan has many human and non-human touch-points. It's not just the loan officer or just the loan officer and the underwriter. There are also as many as dozens of other humans plus automated systems involved. If the loan application is not approved by each and every one of these processes as required by the lending or insurance (mortgage insurance) guidelines the application will be denied and the deal will be done.
I don't care who the loan officer is, where they work or what they say - these are constants and work the same way at every lender/bank/broker unless the person you are talking to has the money in their personal checking account and are personally making the loan - something a loan officer does not have the authority to do for any lender.)
[See the edit notes at the end of this post.]
Application Approval - these are generally worthless. These are generally called a pre-approval and sent on a letterhead from the bank, lender or broker. These are often given only after accepting the application and examining the credit history of the applicant(s). At this point nothing has usually been verified or even documented such as income, assets and job history. (I do give these and I explain this is a CREDIT ONLY pre-approval and I have verified nothing except credit and payment history.)
Credit Only Approval - see above.
Automated System Approval (Application Stage) - this is also generally worthless. The loan officer generally has not verified income, assets and job history at this point. This is where most "approval letters" are issued on that official looking FNMA Pre-Approval sheet. (I give these as well and explain I still need all the documentation and several verifications of documenation from the appropriate source.)
Underwriter's Opinion Pre-Approval - again basically worthless for the same reasons. (I give these ocassionally when there is a borderline issue as in tax returns for example.)
Underwriter's Conditional Approval - this is where the loan officer should have a very good idea if this application will be approved. There can be as many as 3 or more weeks between the Application Approval and this date because this is the first time anyone has looked at the complete application package which will include: income documentation (pay stubs, tax returns, etc.), asset documentation (bank statements, retirement account statements, letters of verification), employment verification, rent/mortgage verification, appraisal, insurance documentation, inspection (if required), fully executed and legible purchase agreement, and whatever else is needed. THIS IS STILL NOT AN APPROVAL! There will be conditions and until the conditions are satfisfied this is not a loan.
Clear to Close (or Cleared to Close) - this is it. This is the first time ANYONE can assure this will be a finalized transaction and it does have an expiration - usually 7 to 10 days after the approval.
-Side note about conditions. I had a first time home buyer ask me about "Conditions" the other day. He's a young and single man so I used an illustration I thought he could easily understand. I said, "Suppose you finally get up the courage and ask that pretty girl out on a date. She tells you she will go out with you if you drive a red sports car, pick her up at exactly 7PM and take her to the most expensive restaurant in town." I needed to offer no further explanation of conditions.
The bottom line is this: If you do your job right, the loan officer does their job right, the title/escrow agency does their job right, the appraiser does their job right, the inspector does their job right, the insurance company does their job right, the buyer's employer does their job right, the buyer's current mortgage company or landlord does their job right, the person giving the gift (if there is a down payment gift) does their job right, the IRS does their job right, the borrower's accountant/CPA does their job right, the seller does their job right, the appraiser does their job right, the HOA does their job right, the inspector does their job right, the processor does their job right, the underwriter does their job right, the closing co-ordinator does their job right, the funder does their job right, the seller's agent does their job right ... that's most of them ... then within a few days to a few weeks we'll meet at the closing table. Until then NOTHING is certain.
Now do you still want my opinion or do you want to wait for the truth?
[Edit notes: When I write the pre-approval is worthless I mean as far as the actual final approval - go to the bank and cash your check. Nobody's pre-approval means the application and entire transaction will be approved. A true mortgage professional will follow protocol and verify as much information as possible before issuing a pre-qualification. I was trained to do it that way many years ago and have trained all my staff members to do so as well. However, there are dozens of moving parts outside of our control. The pre-approval, even the best one, simply means there is no reason at that point in time not to proceed with the process of the application.]
Ken Cook - Nationwide Specialist - Information/Marketing - FHA Home Loans 678-439-8683
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Many homeowners are finding themselves in financial distress these days as a result of bad loans and unemployment. They are asking, "How do I refinance when I owe more than my property is worth?" or "How can I get a loan modification?" With property values in decline many homeowners owe much more on their homes than the property is worth which makes refinancing impossible. Selling the home seems out of the question because the sales price would not pay off the loans that they owe on the home. Foreclosure may seem the only action which will cause catastrophic effects on the home-owner's credit.
Homeowners are in a query of what to do to save their homes from foreclosure and are reaching out grasping straws to find ANY solution that will save them from this awful situation. Sadly, many become victims of rescue foreclosure scams in a desperate effort to save their homes.
There are some alternatives. Don't ignore phone calls or letters from your lender. Contact your lender to see if you can get a loan modification. If you find you are getting nowhere with your lender, contact a HUD approved counseling agency. You can find on at www.hud.gov. You should not have to pay for a legitimate housing counselor.
Beware of loan modification companies popping up everywhere. Contact an attorney if you can afford one or contact a local law school. In Sacramento there is the McGeorge Law School.
Another alternative to foreclosure is a short sale. In a short sale, the owner/debtor sells the property for less than the outstanding balance owed on the loan. A short sale will remain on a person's credit report for seven years but has less of an impact and is less costly as a foreclosure. Usually the a person can still purchase another home within 1 to 3 years after a short sale. The lender must approve the short sale based on their own criteria and the debtor must prove a financial hardship. Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have a pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price OpinionBPO or BOV).(abbreviated
Don't let the name fool you. A short sale is not a "quick sale." It does sound like it should be quick but it's far from it. I wonder whose bright idea it was to call it a short sale. =) I was pre-qualifying a buyer the other day and she mentioned that she would like to buy a "Quick short sale" property. It made me realize that not everyone understands or knows about terms that are used in the real estate and loan industry. I read the mortgage and real estate news daily because it is my job but the majority of the public only reads this stuff when it has to do with them personally. It is my job to educate and protect the best interest of those who come to me for help. Though I do get a little chuckle out of how the terms are comprehended at times. Shows how important it is to explain.
Photos courtesy of bigstockphoto.com
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Zero points does not necessarily mean lower cost for the loan. I know this but many consumers don't. This is an execellent example of how it plays out. Great article written by a fellow Rainmaker.
Rates - APR - Points - Fees: How the Playing Field is Still "Crooked"
I talked to a client today who was shopping me against some other lenders. I don't blame people, and frankly if I think someone else has a better offer and they are legit, I advise "my client" so and have no hard feelings.
In the scenario today, said client was offered 4.5% with no points. I told him it wasn't possible, but lest I be ignorant, I dropped by this other lender's website. Indeed, the lenders website quoted 4.5% with no points and an APR of 4.878%. The website gave the assumed loan amount and purchase price. So I went and did the math. What did I find out? To make the rate and APR accurate, I had to add 2.25% in points ON TOP OF all of the regular fees (title, appraisal, etc.).
In other words, even though the quote was 4.5% with zero points, the TRUE cost was 4.5%, plus typical closing costs, PLUS 2.25% in additional fees/costs.
Please send me your Goofy Good Fake Faith Estimate!
There are several issues with this scenario
APR is supposed to HELP consumers, not confuse them. Clearly this bank (a large bank at that) is charging hefty fees instead of points. This brings us to our next point ...
Points are tax deductible costs - most other fees are not. Charging high fees in lieu of points is an injustice to the consumer. We see rates quoted with NO POINTS to make them look better to consumers. However the total cost is ultimately higher than a lender that is straight forward, charging the same dollar amount but in the form of points. A loan with the same cost in points (versus fees) is a far better deal, saving a consumer hundreds or thousands in tax deductible costs.
APR is "pliable" - Certain fees are calculated into the APR calculation, others are not. Do not assume lenders don't play with the "names" of fees to artificially lower their APR's. That doesn't seem to be the case in the above example, nonetheless keep this in mind.
Lastly, said bank WOULD NOT give the buyer a good faith estimate without having him apply for a mortgage. OK, not so crazy, but the good faith estimate would not be given for 3 days. And if the bank charged an application fee? That would just be another deceptive way to lure a consumer in and tie them to the bank.
Any lender should be able to offer you a good faith estimate (GFE) in a fairly short amount of time, 24 hours or less, allowing some time for when a lender is very busy. Assuming the lender is honest and accurate with their fees, you should be able to see the true cost of their offered rate. You should be able to see, as in the above scenario, that their rate of 4.5% with no points really has a lender fee of $4,119 (Actual additional cost based on their APR). This same week I had another rate shopper send me a goof good faith estimate with 1% in points and $2,100 in application fees. THIS IS NOT NORMAL or fair to you as a consumer, especially on a purchase loan.
I am not angry for losing business, because I didn't lose business. I am however angry because of the lenders and loan officers that mislead and decieve consumers who are just looking out for themselves by rate shopping. What we often see, is that many consumers that search the world over for the lowest rate, actually end up paying much higher costs via deceptive lenders. Consumers can be blinded by a low rate, not allowing them to see the true cost.
Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in;
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Renting vs owning. Renting works fine for some people. In some areas rent prices have begun to come down. How does that effect the difference between the cost of home ownership over the cost of renting? I don't think there is one right or wrong answer when it comes to the question, "Is it better to rent or own a home?" There are pros and cons to both sides.
Owning a home is no longer a get rich quick type of investment. Home ownership allows a set price for a house payment. While the interest rates are lower than they have been in years, taking advantage of getting in on a fixed 30 rate allows the home owner to live in the home without the price adjusting upwards in the coming years. Renting gives no guarantees to the amount of rent you'll be paying ten years from now for the same size home. Home ownership does build equity, over time. If you plan to live in the home for awhile, chances are good that when you sell it you will get back what you put into it and then some.
Home ownership is very emotional for the homeowner. Home owners have the advantage of upgrades and renovations. How many people tune in to HGTV? You won't get this with a rental. If I were renting I might paint a room (with the landlord's permission, of course) but there's no way I would invest in upgrading somebody else' property.
Home ownership has tax advantages. Renting has no tax advantages.
Real estate is a fickle industry. Housing prices have dropped but how low will they go? Are we at the bottom yet? And what happens when we do bottom out and prices begin to rise again? Nobody will know that until the time comes. By the time we know, it will be too late for those who didn't take advantage when the time was right. That is how real estate seems to flow. All anyone can do is educate themselves and make the choice that works out best for their own situation.
I was looking at a townhouse the other day. It is a three bedroom two bath 1300 sqaure feet with a two car garage. It was listed at $77,000. I did a quick mortgage calculation based on a VA loan with no downpayment and including taxes and insurance the mortgage payment was less than $600/month. In Sacramento the average rental on a one bedroom apartment is around $695/month.
Does it make more sense to rent or to buy? What do you think?
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
Unfortunately there are “Slick Willies” in this world. But not all sales people are “Slick Willies.”
Some sales people need an attitude adjustment. Slick Willies abound!
I was shopping for a new cell phone service. I do not like the forced contracts that most cell phone carriers impose on customers. They rope you in with the new phones but you must agree to a contract with a hefty fine if you change your service. Service? They call THAT service?
I went online and looked at several of the major companies who offer no contracts. I did my research on each company and what they had to offer. Service prices, prices on phones, etc. I did my comparison shopping. I did not want a company with a contract, however, if you don’t get a contract, you have to pay full retail for the phone. I could have ordered my phone and gotten my service online but instead I chose to go to several of the local stores in my area and see what they offered.
The first store I visited had a young guy working at the counter and when I walked in he had an arrogant attitude. As if I were taking up his precious time and he casually pointed over to the phones on the wall and blurted out prices and what phones came with it. When I looked at the phones they were way more expensive than the ones I had seen online. I told him that I had seen the phone offered online for a lot less that what his company was offering. He told me that the service that I saw online was no longer available with that company and that I had to buy one of those phones and I would get one month free of the “higher” service price. He acted like he was bored and didn’t want to spend any time waiting on me if I wasn’t going to buy one of the more expensive brands. It was bad enough that I was looking for an affordable priced phone. He just wanted to get rid of me. Wow, now I'll remember that guy everytime I pass by that store.
Well stick a fork in me, I'm done. LOL!
I felt lower than a toad stool. Like I was nothing and the only way to redeem my self was to BUY, buy, buy... the more expensive phone. Then maybe this guy would stop being such an a**. Thankfully, I got myself out of that store promptly. That’s what I call intimidation. Feeling judged. So what if I’m trying to save money and we ARE on a budget. And no, I don’t have an IPhone. So what? Actually, I would love an expensive toy to play with and surf the net with. Man that would be handy. I realize that for some folks this is a priority or needed for their business. As a loan officer, I don't need all of that right now. I refuse to be pushed into something I don't need. My ego can do without the fancy phone for now. I,m not the only person concerned about being more frugle with our economy in the state it is in. Sorry, Mr. Slick! I ain't buying what you're selling.
There is still hope! Great sales people DO exist!
I didn’t let the first sales guy's rudeness discourage me and I went yet to another store. This time when I walked in I told the new sales guy (his name is Allen) exactly what I needed and what I wanted to pay. He walked right over to the phone he thought would work for me, showed it to me and explained why it would be the best fit for my needs. He was not judgmental or rude and he was not treating me like I was wasting his time. He really understood what my needs were and listened with an open heart. I didn’t feel ashamed because I wasn’t buying a fancy phone with all the bells and whistles. Which is what the guy at the first store I went to made me feel like. I remembered this guy's name and was so greatful for his help.
Also, there were the same phones that I saw at the first store that the sales guy (now referred to as Slick Willy) was pushing on me with the higher prices and telling me that the service I had seen online didn’t exist. Guess what? Slick Willy was lying. The second store had them with the lower price and the service I had been looking at WAS available.
Moral of the story. Don’t feel ashamed if you have to live on a budget. Most people do. Shop around for services and if you run into a “Slick Willy” who makes you feel bad, move on. Keep looking. You will find a decent sales person, like Allen, who will listen to your needs and help you find a suitable product for your individual situation.
Attitude shows and the customer feels it.A good sales person accommodates the needs of the customer. It isn't all about what you can get but what you can give that brings back referrals. Many people now days are learning to live within their means and there is absolutely nothing shameful about being careful how you spend your hard earned money.
Just keep on saying no!
Another recent occurance is a company who keeps calling me because I purchased a domain name. They want to sell me a service that I don't want or need. I get a canned speech where the same sales guy (I recognize him but he has called too many people to realize he has called me before) inserts my name all over the place which is annoying in itself and then proceeds to ask me if I intend on being found on the internet or if I am not interested in being found. Yeah, insult me and then I'm going to want to buy from you.
Ah, the Slick Willies are out there! Beware!
Photos courtesy of BigStockPhoto.com
Keep Moving Forward!
Experienced and ready to guide you through your next real estate loan transaction! Consistently learning and evolving with the new trends in the market since 1985.
Specializes in helping people with financing of Single Family Homes, Condos, Townhomes, and Income Properties, in Sacramento. Sacramento mortgage consultant, Chrystina Tovani, assists home buyers with affordable purchase loans and refinances, reverse mortgages, VA insured loans and conventional loans. For loan information or to apply securely online, please visit my website. Call me today at 916-761-1882 Email me with your Real Estate Loan questions.
Subscribe to my blog
Please note that all information is time and date sensitive. The real estate and mortgage industry changes daily. All thoughts and opinions expressed on my blogs are not necessarily those of my past or present brokers. All information is deemed reliable but not guaranteed.
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.
Last Friday my clients closed on a beautiful short sale.
ig box lenders are so big that they're collapsing on top of their own clients
After you add the rice, stir the soup and bring to a boil again. Not a raging boil but a soft boil. Stir once more and then set the burner temperature back to low. #2 or 3 on my stove. Cover pot and set timer to 20 minutes. Check and stir to see how the rice is cooking after time is up. You don't want it stuck to the bottom of the pot. It should be cooked after 20 minutes so once it looks done you can add 1 cup of half and half to the soup. You can also use cream but I rarely have it handy. I use half and half for coffee so we usually have it on hand. Milk will work also but be extra careful not to curdle it.
Whether chains are rattling, the floor is shaking or there is simply the knowledge that an evil deed was committed on the premises, you could possibly be dealing with a haunted house, or a "stigmatized property" sale. 
There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don't understand them. Otherwise you're going to continue driving the loan officer (me :) nuts and forcing the 
Many homeowners are finding themselves in financial distress these days as a result of bad loans and unemployment. They are asking, "How do I refinance when I owe more than my property is worth?" or "How can I get a loan modification?" With property values in decline many homeowners owe much more on their homes than the property is worth which makes refinancing impossible. Selling the home seems out of the question because the sales price would not pay off the loans that they owe on the home. Foreclosure may seem the only action which will cause catastrophic effects on the home-owner's credit. 
In the scenario today, said client was offered 4.5% with no points. I told him it wasn't possible, but lest I be ignorant, I dropped by this other lender's website. Indeed, the lenders website quoted 4.5% with no points and an APR of 4.878%. The website gave the assumed loan amount and purchase price. So I went and did the math. What did I find out? To make the rate and APR accurate, I had to add 2.25% in points ON TOP OF all of the regular fees (title, appraisal, etc.).
Any lender should be able to offer you a good faith estimate (GFE) in a fairly short amount of time, 24 hours or less, allowing some time for when a lender is very busy. Assuming the lender is honest and accurate with their fees, you should be able to see the true cost of their offered rate. You should be able to see, as in the above scenario, that their rate of 4.5% with no points really has a lender fee of $4,119 (Actual additional cost based on their APR). This same week I had another rate shopper send me a 
impose on customers. They rope you in with the new phones but you must agree to a contract with a hefty fine if you change your service. Service? They call THAT service?
I didn’t let the first sales guy's rudeness discourage me and I went yet to another store. This time when I walked in I told the new sales guy (his name is Allen) exactly what I needed and what I wanted to pay. He walked right over to the phone he thought would work for me, showed it to me and 
now days are learning to live within their means and there is absolutely nothing shameful about being careful how you spend your hard earned money. 
;)
;)
