What's Wrong With This Description ? - 08/31/08 12:15 AM
                                      
Here goes :
This beautiful home is located on Poplar Avenue just within a stones throw of the University of Schmenge and only a few blocks to the west of the beautiful Plaza Shopping Center.
The local park is at your disposal for hours of fun for the family and your kids.
The area is full of great amenities including great shopping, and public transportation.
Saint John's Presbyterian Church is only a couple blocks away and is one of the finest schools in the region.
Don't miss this opportunity to own a great home at a great value, … (6 comments)

Once Again, Things That Affect Loans - 08/31/08 12:15 AM
                                          
Here goes ! Here's a list of stuff you can hang on the refrigerator with your designer magnet collection :
1. The income you have left after expenses to pay off the loan.
2. If there are any vacancies on the property if your financing a rental property as an investor.
3. The expenses in relation to your debt ceiling.
4. Whether or not there's any demand for the type of property you want to buy.
5. The size of the property and it's per square foot cost asessment.
6. The size of the loan your trying to get.
… (4 comments)

When the Balloon Pops - 08/31/08 12:14 AM
                                               
What is a balloon payment ?
Here goes !
A balloon payment is the payment of a sum of money that's become due and payable all at once.
Instead of taking out a mortgage in the customary way, such as amortizing the loan for a long time as in the 20 or 30 year variety, the principal amount of the loan becomes due and payable in a shorter period of time, such as anywhere between one and ten years although balloon payments can fall anywhere within that time frame, such as 3, 5, or 7 years.
Balloon payments can destroy a … (0 comments)

Did You Ever Hear of the "Shared Appreciation Mortgage" ? What ? - 08/31/08 12:12 AM
                                           
Is this thing of the past, or is it a thing of the future, oh grand mystic exalted keeper of the cash ?
This was hailed as a "creative" financing technique once upon a healthy economic climate.
We're talking about the coveted "Shared Appreciation Mortgage", more affectionately known as 'SAM".
This remarkable tool is said to have been used to lower even a normal interest rate for a borrower.
The sidebar to the deal is that the lender that gives the buyer this lower than normal interest rate also becomes entitled to a share of the profit when the … (0 comments)

Clauses : The Acceleration Clause - 08/31/08 12:12 AM
                                               
If you default on your loan, the loan can become due and payable in full, immediately. Simple !
The acceleration clause demands the performance of the contract in full from the buyer upon a breach of the contract.
For example:
The contract was for you to purchase Morningside from the seller for $200,000, to be paid in 10 monthly installments of $20,000.
If you makes the first three payments, but fail to make the fourth payment, an acceleration clause would require that you must immediately pay B the entire balance of $140,000, or lose your right to purchase Morningside.
You also … (0 comments)

Can a Real Estate Agent Refuse to Submit an Offer, and Under What Circumstances ? - 08/31/08 12:11 AM
                              
Can a real estate or buyer's agent refuse to submit an offer, and under what circumstances would they do such a thing ?
Is it ethical ? And when ?
Here are a few reasons that I've heard that agents will refuse to submit offers to purchase real estate. (Caution: Don't try these at home)
1. The agent wonders how he or she will get paid if they submit an offer that includes no earnest money.
2. They agent doesn't understand the offer the buyer wants to make because the agent doesn't consider the buyer's decision a normal way … (7 comments)

How To Register A Dispute With The Credit Bureau - 08/31/08 12:10 AM
                           
Well, to begin with, you should prepare your dispute for the bureaus you have the dispute with.
The Fair Credit Reporting Act doesn't require this, but the Federal Trade Commission has recommended that you submit all of your disputes in writing to have some levity.
You should include copies of your documents that challenge your credit files. Do not enclose the original letters. Copies please.
Don't forget to provide your name and address and remember to identify everything that you want to dispute very clearly.
Include a nice explanation of why you want to dispute the information contained in … (0 comments)

What Is A FICO SCORE ? - 08/31/08 12:10 AM
                                         Well, simply put, to the lender, and those guys and gals in the mortgage world, FICO, or Fair Isaac scores as they're affectionately know, can slam your chances of being approved for a loan into the dirt.
The FICO score can decimate you, pummel you, biff you like Raging Bull, smash you like a wrecking ball against the side of a house, blast your saucer, torpedo your hull, sink your ship, and wreck your world.
You better believe it !
Your FICO score is the difference between getting a good financing rate or a bad one. It's the credit reporting … (0 comments)

What Is A Credit Rating ? - 08/31/08 12:09 AM
                                                
We discussed the importance of the rating earlier. now it's time to focus ont eh importance of the rating itself.
The credit rating system is used to deetermine whether or not to give you a loan or issue you a credit card. That's the first thing we have to consider when examing the credit rating and it's impact on your effort to secure a loan.
The creditor's are going to examine your past credit history to determine whether or not you pay your bills on time.
Lot's of other things are examined when you apply for a loan such … (0 comments)

How Important Is Your Credit Rating ? - 08/31/08 12:09 AM
                                     
Does this question win the 'Active Rain Stupid Question of the Day Award' ?
It's you life line. Your bread and butter. The air you breath. The clothes you wear. The car you drive. The home you live in. The financial mechanics of the world and the society you inhabit. It's your credit.
Having good credit is also having a good name for many. It's like having money in your bank account when you need it so you can buy a home, a car, a resort property, make an investment, refinance your current mortgage, send you kids to school, … (4 comments)

What is "C" Credit ? - 08/26/08 12:30 AM
                                                      
"C" credit might equate to no credit for some in today's lending environment.
The borrower is facing considerably higher interest rates, Loan-to-value numbers come in at 75% to 80% of the appraisal, and it's just a tougher loan to risk, period.
Here are some additional factors to consider. If a borrower has a "C" on the report card they must have :
• Fair credit last 12 months.
• Job stability - one year in the same profession (can be six months for some lenders).

• Debt ratio (house payment, installment & revolving) not over 55% (probably much … (0 comments)

What is "B" Credit ? - 08/26/08 12:29 AM
                                                    

Lenders are beginning to push the real strict risk thresholds here.
This risk comes with a Higher Interest Rate, Loan-to-value is ususally at 80% to 85% of the appraisal, LTV might be as low as 75. And things are getting tougher by the minute.
"B" CREDIT Must Haves


• Fair credit last 12 months.
• Job stability . 18 months in same profession.
• Debt ratio (house payment, installment & revolving) not over 55% of gross income.
• Consumer credit - up to five 30-day late payments, one 60 and one 90.
• Mortgage credit - … (0 comments)

What is "A-" Credit ? - 08/26/08 12:28 AM
                                                 
Things get a bit stricter here, but it's safe to say that your still in good territory if you meet the following criteris.
I spoke with one of the local lenders and he told me that these are a few of the things that they look for generally if your considered an A minus type borrower.
• FICO is not a factor if you've had good credit for the last 12 months (although I'm not sure about this one, so help out mortgage folks)
• Job stability - two years in the same profession, on the job
• Debt … (0 comments)

What is "AX" Credit ? - 08/26/08 12:27 AM
                                                   
The difference in "A" and "AX" are that a few late payments are ok with this type of rating if your lender decides to brand you with it !
Here are a few of the fine points about the "AX" loan that I've discovered here and yonder.
"AX" CREDIT
 
• You have to have had Good credit for the last two years
• You need Job stability - two years in same profession
• Your Debt to income ratio (house payment, installment &
revolving) not over 55% of gross income
• Consumer credit - you may have up to … (0 comments)

What Is "A" Credit ? - 08/26/08 12:27 AM
                                                    
Just what exactly is "A" Credit ? Is this what the lender is looking for ?
Times are changing and so are the lending requirements, and it's getting tougher.
"A" CREDIT
 
• Excellent credit for the last two years
• Job stability - two years in same profession
• Debt ratio (house payment, installment &
revolving) not over 55% of gross income
• Consumer credit - two 30-day late payments
but no 60 or 90 day late payments
• Mortgage credit - no late house payments in the
last two years
• Liens, judgments or collections paid and … (0 comments)

Tips For Personal Safety : #1 Strangers - 08/24/08 12:11 AM
                                                 
I thought that it might be a nice thing to alert you to a few facts about watching your back when your out in the field.
This first tip is about dealing with strangers, and I'll make it brief.
Never think for a moment that we're unapproachable or inaccessible to crime and the destructive elements that accompany the slimeballs that lurk among us.
Everyone can become a victim of these diseased lunatics.
You have to remain vigilant. Especially in these tough days ahead.
Remember Sarah Walker, for starters.
Now, I'm not one to try to come off as … (4 comments)

Clauses : The Rollover Clause - 08/24/08 12:08 AM
                                                  
This is a clause that will alow a buyer to rollover a loan for a like period of time ( or perhaps a prescribed period of time) after the loan becomes due and payable in full.
This type of clause is really useful in the case of a balloon payment when it becomes due and payable.
Another use of the rollover clause has been a way to enable a seller to give the buyer notice (usually 48 hours) to confirm a contract. If the buyer is unable to confirm the seller may cancel the contract after the 48 hours has elapsed and sell to another … (0 comments)

Clauses : The Option Clause - 08/24/08 12:07 AM
                                                 
Basically, when a contract is wrtten for real estate two types of contracts are used.
1. The Specific Performance Type
2. A Receipt and Option Type
An 'earnest money' clause can define which is which.
When earnest money is put up we consider this a good faith deposit which is a pretty good indication that the buyer has honorable intentions of purchasing the property.
But let's say, as an example, that the buyer decidesto change his or her mind. The buyer has decided that they don't want the property. The buyer has decided not to go through with the … (0 comments)

Clauses : The Performance Clause - 08/24/08 12:07 AM
                                               
What a buyer, or better yet a seller-financed buyer gets with this type of clause is some confidence. More specifically, confidence that a buyer or an investor will have relying on a specific income ceiling if leasing a property.
As an example:
Let's say that your mortgage payments are 2000 dollars a month and your depending upon the mortgage payments to be tied to 75% the net operating income of a business.
As long as the net operating income of the business at least remains at $2,666.67, you'll see that 75% of the net operating income is two thousand dollars and will satisfy the mortgage payment requirement … (0 comments)

Clauses : The Subordination Clause - 08/24/08 12:06 AM
                                         
Subordination is a term that we're all familiar with.
If you have two mortgages on a property and you refinace one of the mortgages, the subordinate mortgage, the second mortgage, is going to move up in the servicable pecking order; in other words, mortgage hyponymy, class, position, rank and file.
As an example, if you have a first mortgage for 100 thousand dollars and have a second mortgage of 20 thousand dollars and you want to refinace the first mortgage to 200 thousand dollars, you have to pay off the first and second mortgages before you can refinace to … (0 comments)

Clauses : The Exculpatory Clause - 08/24/08 12:06 AM
                                                    
The word means to "clear from blame or remove guilt".
One of best things about the exculpatory clause is that it allows a buyer to purchase a property without any personal liability.
In an exculpatory clause, the liability may be limited to the property itself and may not extend beyond the liability which involves the property.
If a buyer defaults on a loan with an exculpatory clause and the seller of the lender forecloses and they take the property back, with the exculpatory clause that might be all they can take from the buyer.
A buyer's credit might be … (0 comments)

Clauses : The Weasel Clause - 08/24/08 12:05 AM
                                                
We're not talking about funny little furry,  creatures here.
We're actually talking about a little paragraph that you could actually insert into the body of your contract that could help you break the deal.
You might consider the weasel clause an obscure conditional statement that allows you to back out of a contract anytime prior to closing the deal.
Even though it might not be your intention to back out of the deal, with a weasel cluse you retain the option right up until the time your ready to sign the closing documents. Isn't that nice ?
With a weasel clause, … (0 comments)

27 Reasons to Disqualify You For A Loan : #27 Unable To Verify The Income As Stated - 08/24/08 12:03 AM
                            
If you tell the lender that you make 115 thousand dollars at the car wash and work four days a week somebody's going to start asking questions.
I suppose one of the most important things you can do is provide truthful details regarding your source of income, whether or not your employed, receiving public assistance or welfare, insurance payments for various reasons, support from your mother, or otherwise.
Remember, the Equal Credit Opportunity Act (ECOA) states that :
When Evaluating Your Income, A Creditor May Not...
Refuse to consider public assistance income the same way as other income. Be on … (0 comments)

27 Reasons to Disqualify You For A Loan : #26 No Credit File With The Bureaus - 08/24/08 12:02 AM
                                    
Hold on ! Whoa Nellie ! This is a biggie !
The lender might really have only one question if you don't have a credit file with the bureaus :
Who are you ?
Don't give up yet !
Maybe you can do something about it !
Can you start a file by asking the credit reporting agencies to add accounts to your file ?
Yes !
Your credit file may not reflect all of your credit accounts.
Most department store and bank credit card accounts can be included in your file, and not all creditors supply information to credit reporting agencies.
… (0 comments)

27 Reasons to Disqualify You For A Loan : #25 Problems With The Title - 08/19/08 02:11 AM
                                      
When you put together a plan to purchase real estate, especially for investment purposes, you might be looking for a bargain because of title problems which include:
1. Federal, state or local tax liens 
2. Mechanics Liens for work done on the property
3. Missing heirs with claims on the property
4. Boundary or survey problems
5. Other claims to ownership of the property
Before a loan can be made, however, these "title clouds" have to be corrected.The costs associated with correcting these problems could get pretty hefty.
The title company can really be of … (0 comments)

27 Reasons to Disqualify You For A Loan : #24 Located Out Of The Lender Or Bank's Service Or Trade Area - 08/19/08 02:01 AM
                                
The geographic trade area in which a bank will lend is usually defined as the trade area from which a high percentage, such as 75 or 80 percent, of their loan and deposit business takes place.
When the bank or lender defines it's trade area the lender will attempt to include all of the applicable levels of income and property eligible for servicing.
If a lender lends outside of their trade area these "out-of-territory" loans carry higher risks than do the loans that hit closer to home. and it would seem that the obvious reason for this is the problem of being able to … (2 comments)

27 Reasons to Disqualify You For A Loan : #23 Failure To Respond To Information Needed For The Loan - 08/19/08 01:40 AM
                             
Here's another one that just seems to summon that part of the mind that we refer to as common sense.
Usually, after the lender reviews your application, the lender will request additional information from you if they need it to assist the decision to grant you your loan, or deny it if that's the case.
Respond to any request for additional information without delay. Failure to respond could end the loan process for you and result in your denial.
Do you have anythng you'd like to add ?
Next: Located Out of the Service or Trade Area of the Lender
… (0 comments)

27 Reasons to Disqualify You For A Loan : #22 Excessive Accounts With The Lender or Bank - 08/19/08 12:19 AM
                                  
Excessive accounts might be like having excessive bad checks to a lender if those accounts are delinquent or mismanaged.
With a plethora of accounts on the books the lender might wonder whether or not all of those excessive obligations are going to spell disaster for you later on when it comes time to juggle your debt to income ratio. It might also spell real embarrassment for everyone later.
I suppose some of the logic behind the excessive loan thing is that the lender just doesn't want to take a back seat to anybody you owe money to. You know, that … (0 comments)

27 Reasons to Disqualify You For A Loan : #21 The Application Contains Misrepresentations - 08/19/08 12:19 AM
                              
Here are just a few:
1. Falsification of your employment record.
2. Falsification of your income.
3. False financial statements.
4. Intentional misrepresentation of your bank statements, funds or assets.
5. Falsifying information regarding your source of funds.
6. Undisclosed liens against your property.
7. False information about your collateral and undisclosed other financing types.
8. Falsifying your rent or current mortgage information.
9. Misrepresentations about your intent to occupy the house.
10. Failure to disclose any debts that may affect your ability to repay the loan.
Can you think of anything else ?
I'll have a series for you soon.....
 
… (0 comments)

27 Reasons to Disqualify You For A Loan : #20 Insufficient Or Unacceptable Co-Signer - 08/19/08 12:17 AM
                                
When someone else puts their name on that loan application with you, whether or not their putting their credit on the line for you, or just acting as a partner in the deal, the lender wants to know as much about the co-signer as they can and will put that co-signer through the same level of inquiry as they will a borrower that applies for the loan on their own.
Just as the primary applicant, this will involve verifying the co-signers:
1. Credit history 2. Employment history 3. Assets which include your bank accounts, stocks, mutual funds and retirement accounts … (0 comments)

27 Reasons to Disqualify You For A Loan : #19 Applicant Is Not Of The Legal Aqe Requirement - 08/19/08 12:17 AM
                             
There's not much to say regarding who's old enough to put their signature on a loan document and who isn't.
These requirements vary from state to state but are pretty much in agreement with each other.
As of 2008, the legal age for entering into a contract is 18 years of age in every state in the United States except the following: Alabama and Nebraska (19 years of age), and Mississippi and Puerto Rico (21 years of age). Please correct this in the comments section if you know of any changes as of this entry.
Usually, loan processing moves forward if the co-borrower satisfies the applicable state … (0 comments)

27 Reasons to Disqualify You For A Loan : #18 Credit Application Is Incomplete - 08/19/08 12:16 AM
                              
When your loan application has been received by the lender they'll start the loan approval process right away.
This will involve verifying :
1. Your Credit history 2. Your Employment history 3. Your assets which include your bank accounts, stocks, mutual funds and retirement accounts 4. Your Property value  Whatever your situation, additional documentation or verification may be required.
All of this information is required and should be included in detail, with as much accuracy as you can provide your lender. When something is left out of the loan application, which is required by the lender, you might get left out of the … (0 comments)

27 Reasons to Disqualify You For A Loan : #17 Unable to Verify Residency - 08/19/08 12:15 AM
                                   
If you say that your living at the Waldorf-Astoria but your actually living in a trailer, with your boyfriend, mother or in your car, there's going to be a problem.
Whan you apply for a big ticket item, the house or car, the lender wants to know where you live and so does the credit bureau or the bank that's putting the big money on the line for your deal.
The lender does not want you to have a good time at their expense, and not be able to track you down with the credit bloodhounds in case you decide to … (0 comments)

27 Reasons to Disqualify You For A Loan : #16 Length of Residency - 08/19/08 12:14 AM
                                 
This is an easy one. 
You could be turned down for the loan if you say you've been in the house for seven years and it shows on the deed of trust that you bought the home five years ago.
Maybe your landlords lease says that you signed the lease for the apartment six years ago, but you've reported on the loan application that it was eight years ago
Somebody's going to start asking you some questions.
I've heard it said that one of the most frequent misrepresentations on the loan document is the length of residency.
Don't forget !
Along with verifying your:
… (0 comments)

27 Reasons to Disqualify You For A Loan : #15 Excessive Unsecured or Revolving Credit - 08/17/08 08:04 PM
                                    
We all know that having a credit card is kind of like having a small personal loan that gives you a credit rating.
By demonstrating that you can pay off small amounts of credit over time, on time, demonstrates to lenders that you're responsible with the loan they've given you and that you're capable of managing your credit. When you get ready to make a purchase like a car or a house this unsecured credit history enables a lender to see that you're either reliable or uncreditworthy.
Well, if lots of these "little loans" show up in the Equifax, Trans Union, or Experian credit reports to your lenders they're going … (0 comments)

27 Reasons to Disqualify You For A Loan : #14 Insufficient Equity in the Property - 08/17/08 07:11 PM
                                            
You could compare insufficient equity in your property to having insufficient funds in your checking account, in a way
If you write a check on that checking account and it bounces, gets sent back, and you get slammed with overdraft fees, the banks not going to be happy, and neither are you
In the case of a home with insufficient equity, your house won't be worth enough money to cover the cost of the loan, which might include all of the associative fees of the loan that may be considered in processing it.      
If the market value of your home is less than what … (4 comments)

27 Reasons to Disqualify You For A Loan : #13 Inadequate Value, Collateral or Condition - 08/17/08 06:13 PM
                                      
Come on !
If the house isn't worth the amount of money your asking the lender to loan you, forget it !
The home might need lots of repairs.
The home might be in negative amortization, meaning that you owe more money on the home that it's worth.
The neighborhood might be stigmatized, have high crime, be obsolescent or the prices on the homes capsizing.
If single-family residences where the combined loans frequently exceed the market value of the home, in some cases by as much as 25 to 50 percent, the lender's got a red flag waving in front of … (4 comments)

27 Reasons to Disqualify You For A Loan : #12 Not Within The Lender or Bank's Policy - 08/17/08 06:11 PM
                                 
The banks and the lenders have specific guidelines under which they'll approve or deny a loan applicant.
Remember that lenders and banks have different policies in relation to the way they will or will not make a loan.
You should be absolutely clear with your lender about the purpose of your loan application, what it's intended for, how the funds will be used, and provide all of the information requested by your lender.
Some items involved in the loan process may not be elgible for the loan proceeds your applying for, such as certain repairs or some cosmetic needs for … (0 comments)

27 Reasons to Disqualify You For A Loan : #11 Unsatisfactory Credit Experience With the Bank Or Lender - 08/17/08 06:11 PM
                               
A history of not paying your debts or not paying them on time will blow your credit ship out of the water and sink your chances for obtaining a loan.
Lenders just won't buy a bad debt history !
Occasionally they'll stretch the debt to income ratio limit (which is usually a bad decision because it puts a strain on what you can afford) to try to help you out.
Not much needs to said here, but common sense will tell you that if you pay your bills on time, and stay current with your creditors, things are going … (0 comments)

27 Reasons to Disqualify You For A Loan : #10 Unable to Verify Employment - 08/17/08 06:10 PM
                                     
Simple process here that either confirms or abnegates your statement to the lender.
Your lender will attempt to determine if the information that you provide on the employment application is verifiable.
The lender will contact the employer, or employers provided, on the loan application and attempt to match up the information that you've provided them with. They'll compare the statements from the employers, that you've included in the application, with the information that you've provided about your employment history.
Remember:
If Verified:
A call will be placed to the references listed by the applicant. A form may also be forwarded to the employer. The lender will … (0 comments)

27 Reasons to Disqualify You For A Loan : #9 Length of Employment - 08/17/08 06:09 PM
                                 
When you tell your lender that you've only been on your job at the car wash for two weeks it might not look too good for you at loan decision time.
In addition to the necessity of verifying your assets, the lender will want to verify the employment information that you provide them with on the loan application. This is in addition to the verification process that's also undertaken to verify details related to the information you provide regarding your bank accounts, including your savings and checking accounts. The lender will notify your employer that your applying for a loan, possibly forward forms to the employer, and … (0 comments)

27 Reasons to Disqualify You For A Loan : #8 Insufficient Credit File and References - 08/17/08 06:09 PM
                                 
If your don't have any experience with credit, the chances are your not going to be approved for a big ticket loan such as a house or a car.
So, in a nutshell, there's not enough data in your credit history for the lender to make a decision as to whether or not they should grant you the credit.
The credit file is your credit history, and if it's a recent one, or doesn't go back far enough for the lender, or have few accounts on it, the lender won't have enough data available to make a proper decision on your behalf. 
So, the best defense, … (0 comments)

27 Reasons to Disqualify You For A Loan : #7 Excessive Inquiries On Credit Bureau Report - 08/17/08 06:08 PM
                                
One sure way to lower have your credit score lowered and louse up your chances of getting a loan is from excessive inquiries on your credit reports.
Every time you apply for credit or a new loan an inquiry is performed and your credit history is pulled by the lender. All of the lenders that have pulled your credit report recently will show up on the credit report.
This is information that will stay on your credit history for two years.
You can dispute the information regarding the inquiries and ask the credit bureaus to verify all of the … (0 comments)

27 Reasons to Disqualify You For A Loan : #6 Excessive Obligations - 08/17/08 06:06 PM
                                    
Excessive credit obligations will slam your efforts to get a loan in the dirt ! When a borrower assumes a loan or a revolving line of credit they've taken on some serious credit responsibility and they need to assure that their payments are made on time to their creditors.
When a borrower makes a late payment it shows up on on their credit history when it's reported to the credit bureaus. When they default on a loan they're not only placing their credit at risk, but they might also be setting themselves up for legal consequences that could have a devastating effect on their lives, now and in the future.
Don't forget, garnishments and bankruptcies … (2 comments)

27 Reasons to Disqualify You For A Loan : #5 Insufficient Income For The Amount Requested - 08/13/08 01:32 AM
                          
If you have insufficient income or insufficient funds for a down payment, your loan application will be rejected because your income is insufficient in relation to the price of the house, or you have insufficient funds for the closing costs or the down payment.
You could always consider a loan program for low-to moderate-income borrowers that have lower down payment requirements allowing you to afford a home within your budgetary restrictions.
Don't give up !
Find a lender that will work with you to put together a plan that will work, won't stress a borrowers income, and won't place the borrower in danger of default by pushing debt to … (3 comments)

27 Reasons to Disqualify You For A Loan : #4 Garnishment, Repossessions or Judgements - 08/13/08 01:31 AM
                               
If you're not paying your bills, your in danger of having your creditor get a court judgment against you and garnishing your wages or property.
If a creditor goes to court and wins the case against you will receive a court ordered judgement against you which is a court order explaining how much you owe the creditor and the interest rate you'll be responsible for paying on the unpaid amount you owe. All of this is explained in detail in the judgement.
The attorney representing the creditor can get a court order ordering you to appear at what's is referred to as "supplemental proceedings", to … (0 comments)

27 Reasons to Disqualify You For A Loan : #3 Bankruptcy or Wage Earner - 08/13/08 01:30 AM
                                     
Bankruptcy is a nasty thing.
It destroys families, causes divorce, illness, depression, cripples your creditworthiness, and can put you on the street.
Everyone loses in a bankruptcy:
The lender because the credit that they extended will not be repaid, and you because your credit is destroyed, at least for a few years until you're able to rebuild your creditworthiness, if your lucky enough to do so.
There are several types of bankruptcy, but for our purposes let's look at two of them:
1. Chapter 7 Bankruptcy, which is total bankruptcy, stays on your credit report for 10 years.
2. … (0 comments)

27 Reasons to Disqualify You For A Loan : #2 Unsatisfactory Credit Experience - 08/13/08 01:29 AM
                                         
Applying for, being approved for and responsibly meeting your debt obligations are the earmarks of integrity when it comes to the privilege of having credit.
The lender wants to see, in the bureau reports, in the requests for information about your accounts, how you manage money.
If there are no records demonstrating how you manage money than it stands to reason that the lender has no frame of reference to go by which will serve as an indication of your creditworthiness, and will deny your loan requests when it comes to the big ticket items, such as an automobile or a … (0 comments)

27 Reasons to Disqualify You For A Loan : #1 Delinquent Credit Obligations - 08/13/08 01:28 AM
                                  
Delinquent credit, in a nutshell, is the failure to make payments on any financial obligation when the lender or creditor says that it's due.
When your credit is delinquent it's usually stated in terms of being past due either thirty, sixty, or ninety days on the creditor's books, and the will include number of times for each delinquent occurrence.
Delinquent credit will slam your credit report into the dirt and negatively affect your credit score.
The more recent the delinquency is on the report and the more frequently a borrower becomes past due with their payments, the less likely it wll … (0 comments)

23 Procedures For Buying A New Home : #23 - 08/13/08 01:25 AM
                                       
Closing the real estate transaction is the last stage of the homebuying process.
When the closing date arrives, all parties come together to complete the details necessary to finalize the articles of the purchase contract between the buyer and the seller. and the ownership of the propert is handed over to the new owner, the buyer.
Here's what happens during the closing:
The buyer hands a check for the balance owed on the purchase price over to the seller. The seller signs the deed on the property over to the buyer, and gives him the keys to the house. A title … (0 comments)

23 Procedures For Buying A New Home : #22 Required Repairs - 08/13/08 01:24 AM
                                    
Repairs are an issue that not only have to meet the satisfaction of both the buyer in the seller during the negotiation process, but, in some cases, the repairs may also be required by the lender.
An example of a lender required repair is an FHA loan that might require a guard rail on the front porch stairs to make the front of the home accessible and meet the requirements of the Americans With Disabilities Act. A loan could be denied if these requirements aren't satisfied.
Review your documents carefully to determine what is actually required before you go the closing table. … (0 comments)

23 Procedures For Buying A New Home : #21 Scheduling and Performing the Appraisal - 08/13/08 01:24 AM
                       
It's time to establish value. The lender wants to know if the house the buyer is signing for is actually worth the dough that their about to lay on the line. That's why the lender wants an appraisal. And the lender wants an appraisal from someone who is licensed to perform an appraisal and not someone that has ANY INTEREST IN THE SALE OF THE HOME. And your buyer wants to know how much the home is worth based on the three approaches to value that the appraiser will commonly use, which include :
The Cost Approach The Sales Comparison Approach The … (0 comments)

23 Procedures For Buying A New Home : #20 The Home Inspection - 08/13/08 01:23 AM
                                      
The Buyer Orders A Home Inspection
The buyer or buyer's real estate agent is responsible for ordering a home inspection report, if they decide to have one performed. A home inspection usually costs around $350 for the average home, and maybe an additional fee if a termite inspection is included in the inspection. A home inspection tells the buyer if there's anything wrong with the property that's not evident.

When Should the Home inspection Be Performed ?
Right after the contract is signed, and should be completed 3-4 days before the option period has expired. This will give the buyer time to take care of any repairs that are … (0 comments)

23 Procedures For Buying A New Home : #19 Appraisal Ordered - 08/13/08 01:22 AM
                                          
The Appraisal Is Ordered
The mortgage company will order the appraisal after the buyer has been approved for the loan. The buyer has to pay for the appraisal. The smart buyer will ask the mortgage company to wait until after the home inspection to order the appraisal. This is to make sure that the buyer doesn't waste money on an appraisal for a house he or she may not want after receiving an inspection report that doesn't meet with their approval.in no event later than 10 days before closing. The appraisal report should be in the lender's hands at least in the … (0 comments)

23 Procedures For Buying A New Home : #18 Delivering the Contracts - 08/10/08 03:49 AM
                              
It's time to insure that all parties have all of the contracts and the information associated with them to begin the closing of the real estate transaction.
When the Offer to Purchase Contract is accepted and signed by the seller and delivered to buyer's agent, you, as the seller's agent, should record and promptly deposit buyer's earnest money in the company escrow account, review any under-Contract showing restrictions requested by the seller, deliver copies of the fully signed Offer to Purchase contract to seller, fax/deliver copies of the Offer to Purchase contract to the Selling Agent, fax copies of Offer to Purchase contract to lender, … (6 comments)

23 Procedures For Buying A New Home : #17 The Earnest Money - 08/10/08 03:48 AM
                                          
It's time to get serious !
The earnest money.
The money deposited by a buyer, which is given to the listing agent, demonstrates the buyer's serious intentions to proceed with the purchase of the home. (ya think?)
This is also a deposit which may be governed by the terms of the contract. This is money that may be applied to the purchase price of the home when the seller and buyer go to the closing table.
At the same time, this is money deposited in earnest towards the sale and purchase of the home which may be lost or defaulted if … (2 comments)

23 Procedures For Buying A New Home : #16 Written Contract Delivered to the Buyer's Agent - 08/10/08 03:48 AM
                                    
This is what the contract may include:
1. The terms of the sale and the sale price
2. Any legal descriptions required to accurately portray the characteristics of the land
3. A statement including the type of deed to be delivered by the seller to the buyer
4. A statement including the type of title to be taken and any associative conditions upon acceptance
5. The type of title evidence that is required at closing, who is responsible for providing the title evidence, and if there are any defects in the title that must be remedied and eliminated
6. A … (0 comments)

23 Procedures For Buying A New Home : #15 Offer Accepted - Contract Time - 08/10/08 03:46 AM
                                 
Once the offer has finally been accepted, and the aspirin bottle emptied, a promise is made by the offeree to become liable to the conditions and terms made by the offeror. This acceptance of the offer must be communicated to the offeror. If any aspect of the terms proposed by the offeror are rejected, it now becomes a new offer, or somebody walks away.
For our purposes here, the offer is accepted (yaaay !)
Now comes the contract.
Contracts are either one sided or two sided.
A one sided contract is known as a unilateral contract where one … (0 comments)

23 Procedures For Buying A New Home : #14 Buyer Accepts of Counters - 08/10/08 03:45 AM
                  
Pretty self explanatory at this stage.
We don't want to get stuck in a turnstile, but, if the home means that much, the buyer's going to put the wheels in motion and fire back with another offer, rejecting the seller's counter, which can't be accepted at this stage unless put back in motion by the original party.
What we're dealing with here is a simple case of offer and acceptance ; or the antithesis, rejection and counteroffer, which can really become a pesky, and rhetorical, device in the negotiation game.
Any changes proposed by the buyer will institute the … (0 comments)

23 Procedures For Buying A New Home : #13 Buyer's Agent Discusses the Counter With the Buyer - 08/10/08 03:45 AM
                                       
There are so many things can we can talk about here, but promptly discussing the counteroffer with the buyer is where we begin.
The numbers have to be reviewed in a realistic manner fairly reflecting the financial interests in the property. Reviewing the comparatives is a good thing to do at this stage because of the need to distinguish the sales figures, the numbers, the money, assess the movement of the market, look at the dollar and it's applicability and relationship to the house as a whole. Is the counteroffer realistic? Does it make sense when you compare your … (0 comments)

23 Procedures For Buying A New Home : #12 Seller's Counter Gambit : Not a Chess Game - 08/10/08 03:44 AM
                                  
We're not playing chess here. Most people don't like chess because they think it's boring, and so are the people who play the game. I've heard it said that the people who devote too much time to the game are insane (Bobby Fischer for instance). Chess is for people with too much time on their hands. We're playing business and it's real at this stage. If you want to play a game, go find yourself a toy, not a house.
The seller's not kidding !
The seller means business !!!
The buyer's offer has been rejected...but the seller took it seriously enough to … (0 comments)

23 Procedures For Buying A New Home : #11 Seller Accepts the Offer of Counteroffers - 08/10/08 03:43 AM
                            
Well, the buyer's made the offer so it's now up to the seller to either accept the offer or counteroffer.
If the seller decides to reply to the buyer's offer that's a pretty good indication that the seller knows that the buyer means business. The ball is in the seller's corner and the direction the seller takes from this position can send the buyer to the closing table or subject the house to another round of negotiations.
If the offer is countered, this is where a careful look at the sales comparisons might come into play to change the offer, and will help the buyer to determine what their … (0 comments)

23 Procedures For Buying A New Home : #10 Listing Agent Presents the Offer to the Seller - 08/10/08 03:42 AM
                       
After the buyer's agent presents the written offer to the listing agent the listing agent present the offer to the seller. How about that ?
You don't think that the listing agent would sit on the offer for a couple of days while trying to figure out a way to get the seller to refuse the offer because the listing agent thought that the buyer's offer was too low now, would you ? Why...that would be dastardly. And what could possibly be the motive for the listing agent to do such a thing ? Could it possibly be because … (0 comments)

23 Procedures For Buying A New Home : #9 Deliver the Offer to the Listing Agent - 08/10/08 03:39 AM
                              
Once you've considered all the comparatives, looked at the sales numbers, put the earnest money in motion, and have it in writing, the next logical step is to take the completed, written offer to the listing agent so that the listing agent can present the written offer to the seller.
We're not playing chess here....the buyer is playing with his or her future, money,  investment, and the elemental substances of life's dependancy.
If it's not in writing, it's pretty much not  ..... Simple !
Next: The Listing Agent Presents the Offer to the Seller
 
 
… (0 comments)

23 Procedures For Buying A New Home : #8 Making the Written Offer - With Earnest Money - 08/04/08 12:21 AM
                            
When the buyer makes the seller an offer they might want to include an "earnest money" deposit.  This is a little up-front money that tells the seller that the buyer is making an offer in good faith and that the buyer means business, and is being "earnest" about their intentions to purchase the home. The buyer should put up a deposit large enough for their offer to be taken seriously, usually anywhere from 1 to 5 percent of the purchase price of the house.
The earnest money is usually held in an escrow or trust account, managed by the … (5 comments)

23 Procedures For Buying A New Home : #7 Review The Sales Comparisons - 08/04/08 12:20 AM
                                                 
A buyer can do their own homework by looking up the recent sales of properties in the neighborhood here in Memphis. It's as easy as the click of a mouse button at this link :
Neighborhood Sales Search
It helps to have a real estate agent perform a comparative market analaysis to get more accurate and reliable data from recent, pending, expired, off-market, withdrawn or other data available in the multiple listing service. What we want to acheive is a fair and balanced perspective on the marketing considerations of the homes in the target area, including their respective sizes and … (4 comments)

23 Procedures For Buying A New Home : #6 Make A Choice - 08/04/08 12:19 AM
                                                      
Whether it's based on a house plan you put together yourself, had an architect design for you, the homebuilders new floor plan, a foreclosure or real estate owned by the bank, or just the usual deal when purchasing an existing home from a seller, the time has arrived to choose the home you want to live in (or invest in if you have other ideas).
It's a choice the buyer, and the buyer's agent, has to live with, although the agent doesn't have to live in it (although it might be prudent to consider the buyer's purchase as if it … (0 comments)

23 Procedures For Buying A New Home : #5 View Some Properties - 08/04/08 12:18 AM
                                                
It's real important to put together a plan for viewing properties. A real estate professional is crucial when it comes to identifying the stages necessary to insure a successful viewing plan for the buyer. We can help the buyer know what they should look for and what kinds of questions that they should ask the seller. We have to do our homework here and should try to find out as much about the property as we possibly can, including the area and location that it's in.
One good thing about having a real estate professional along for the ride when viewing a home is … (0 comments)

23 Procedures For Buying A New Home : #4 Meet With A Realtor To Discuss Specific Needs - 08/04/08 12:17 AM
                          
Let's look at some benefits to using a REALTOR®.
There aren't a whole bunch of fees that have to be paid, and even though a buyer doesn't need a real estate agent to complete a transaction, the advantages are many. We know that the real estate agent is paid by the seller of the property when the property is sold, We know that commissions are negotiated by the listing broker and commissions are split between the listing broker and the buyer's agent.
Here are some of the ways a REALTOR® can help a buyer or seller.
1. The REALTOR® has … (0 comments)

23 Procedures For Buying A New Home : #3 Get Pre-Qualified / Pre-Approved - 08/04/08 12:16 AM
                                      
Let's look at Mortgage Pre-Approval.
The pre-approval process, which may also be called Pre-Qualification, is when the mortgage professional is allowed to find out, by working with your buyer, what you they trying to purchase, what their goals are, and whether or not they're qualified to buy the home they're interested in, based on only the following factors:
#1 Credit Rating#2 Income and Financial State of Affairs#3 Desired monthly payment, property type, and other needs
A mortgage professional will try to find out what their desired monthly payment, property type, and other needs are by assessing:
What do they … (4 comments)

23 Procedures For Buying A New Home : #2 Get Referred To A Mortgage Company - 08/04/08 12:14 AM
                                 
Your client could really either deal with a broker or a banker. It's really up to them.
The local bank is usually what we would call a direct lender.  They offer their own specific loan programs established for people with average or better credit. 
The local bank can offer competitive interest rates, and the borrower also has the convenience of having a local branch near their home to make their payments at.
Mortgage Broker's, on the other hand, are independent businesses set up to create and develop relationships with many banks.  It's not unusual for Mortgage Brokers to sign … (0 comments)

23 Procedures For Buying A New Home : #1 Contact a Realtor - 08/04/08 12:11 AM
                                                     
The sellers need to know about the advantages of contacting a REALTOR®. It makes all of the differnce in the world. I guess you can say that listing a property with a REALTOR® makes it possible to sell a property with a great deal of confidence because you've got a professional (or rather, a team of professionals)  working on the seller's (and buyer's) side. It's also a safe bet that a property listed with a broker will move faster than one that isn't listed. Some common sense might be applied here. There's a lot of money involved in a real estate transaction and … (2 comments)

David Saks' Glossary of Real Estate and Mortgage Terms : The Z's - 08/04/08 12:09 AM
                                                                               
David Saks'
Glossary of Real Estate and Mortgage Terms
=================================================================
ZoningThe regulation of land by local government under its police powers. Zoning controls things as building height, size, use and the use of the land for public and private means.
Zoning ordinanceAny act by city or county authorities which regulate and controls the use of real estate for the health, safety and welfare of the general public.
If you have anything to add please feel free to add it in the comments section. Many thanks.
-David-
 
… (0 comments)

David Saks' Glossary of Real Estate and Mortgage Terms : The Y's - 08/04/08 12:03 AM
                                                                                 
David Saks'                                                                         
Glossary of Real Estate and Mortgage Terms
==========================================================
YieldThe interest earned on an investment by an investor or by a bank on money it's loaned. This may also be referred to as a "return on the investment".
Yield rateA rate of return on an investment expressed as a percentage which may be arrived at by taking the annual net income from a property and dividing it by the cost or the market value of the same property.
… (0 comments)

 
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David Saks

Broker

Memphis, TN

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The Real Estate Mart of Tennessee, Inc.

Address: 4040 North Watkins, Suite #4, Memphis, TN, 38127

Office Phone: (901) 357-4663

Cell Phone: (901) 217-4114

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The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

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