http://money.cnn.com/2008/09/02/real_estate/pick_a_poison/index.htm?postversion=2008090311

http://money.cnn.com/2008/08/25/news/economy/existing_home_sales/index.htm?postversion=2008082514

http://www.cnbc.com/id/26316092

http://money.cnn.com/2008/08/15/news/economy/industrial.ap/index.htm?postversion=2008081510

http://money.cnn.com/2008/08/07/news/economy/housing_funds/index.htm?postversion=2008080712

Q - The client has a adjustable rate mortgage. They have been offered a loan modification with a fixed rate for three years. However, at the end of the three-year period the rate will begin adjusting again. Can they refinance at the end of the three-year period and shop for a fixed rate or will they have to wait a certain amount of time.

A - There are different ways to modify a mortgage and your lender would not take such a step unless you had demonstrated that the current arrangement will lead to foreclosure - and loss for the lender.

Traditionally, borrowers have been able to refinance, loans at any time. However, in recent years lenders have created stiff prepayment penalties to discourage refinancing during the first few years of the mortgage term. With the brief background in mind, several points stand out.

First, the lender's offer is better than the alternative,foreclosure now and the loss of the home.Even the lender is plainly working in the best interest, in this case it is also taking a step which can be enormously helpful to you. Many lenders are not offering modifications.

Second, you should do everything possible to re-establish credit and bulk-up savings. Three years is not far away.

Third, what is the new interest rate? New Payment? Is there a prepayment penalty during the modification period. If so, how much?

Fourth, if at all possible do not wait three years to refinance. Instead, look for a fixed rate loan, perhaps somrthing insured by the FHA.

Fifth, also look into seling the property and moving to a home with lower monthly costs. If you can do this when not facing foreclosure your negotiating position will be much stronger.

Your lender has given you a window of opportunity. Since the lender does not have to offer a modification you should take advantage of the situation you have.

Best Regards,

Joseph V. Scorese

MAC Investment Company

http://activerain.com/action/referrals/joemacinvest

joemacinvest@yahoo.com

Toll Free - 877-263-4881

Office - 484-221-9277

Direct - 908-967-4064

Fax - 610-351-0903

http://money.cnn.com/2008/07/31/real_estate/mortgage_rates/index.htm?postversion=2008073111

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080103718.html

Cashflow Worksheet

Cashflow Formula: Rent - Expenses = Cashflow

Terms:

and other appraisal tools.

Refi

the property after it has been rehabbed.

Rent

from the rent.

MDS

loan.

Taxes

annual payment.

Insurance

annual payment.

PM

manager of your property. (Generally Between 6%-10%)

I met with a developer in regard to this development opportunity. which is
located is south west Baltimore City. The development will be about
20 minutes drive from Fort Meade. The development is comprised of
17 lots- 16 semi-detached homes and 1 detached home which can or can not be
part of the development depending on how the deal is structured.
The estimated resale/sale value of each semi detached home would be
in the region of $275,000. They are 3 bedroom/2.5 bathroom homes
all with off street parking. The planning and zoning is already in
place, the infrastructure is not. The front foot fees have already
been registered with the city.
There are several opportunities available here.
1. An investor can purchase the development outright for
$1,100,000 - the developer can stay on as a consultant for a fee or
not depending on the terms of the sale.
2. An investor can join in a joint venture with the current
developer for a yet to be determined investment. The realty office
I am affiliated with would then list and sell units following
construction or offer them in a presale.
3. The current developer can build the units and realty office I am
affiliated with will offer those for sale at $275,000 per unit.
If you know anyone who might be interested in any of these scenarios
please put them in touch with me.
Thanks.
Best Regards,

Joseph V. Scorese

MAC Investment Company

http://activerain. com/action/ referrals/ joemacinvest

joemacinvest@ yahoo.com

Toll Free - 877-263-4881

Office - 484-221-9277

Direct - 908-967-4064

Fax - 610-351-0903