I read a great tip today I wanted to share. Max Sacks International is a sales training group and they had this bit of knowledge....

the SIX most important words: "I ADMIT I MADE A MISTAKE"

The FIVE most important words: "YOU DID A GOOD JOB"

The FOUR most important words: "WHAT IS YOUR OPINION?"

The THREE most important words: "WOULD YOU PLEASE?"

The TWO most important words: "THANK YOU"

The ONE most important word: "YOU"

 The LEAST important word : "I"

I found myself thinking about this as I went through my last two days..... trying to keep the "I" to a minimum and the "YOU" to a maximum. It was amazing to listen as other people talked and to watch the reactions when people focused on "YOU". It makes a difference in selling. In today's market it could mean the difference in retaining or getting a customer/ client or losing one. It's always the simple things that make the biggest difference! Here's to a great day in sales!

I am getting more calls on 1031 exchanges lately. I thought I would add this to my blog. The key to a 1031 going smoothly is the qualified intermediary knowing the business inside and out.

Time Frames:

This is one area the Treasury Department has given very clear instructions on its regulations. Exchangers must be VERYaware of the 45 day identification period and the 180 day exchange period. I have had customers lose their exchange due to this. No fun to say the least.

The IRS requires that replacement property be identified by the 45th day after closing of the relinquished property. This ID must be in writing and in the hands of your Qualified Intermediary.

The three ways to identify potential property are:

1. Up to THREE PROPERTIES may be identified without restriction as to value or any requirement to acquire more than one of those properties identified. One, two or all three properties may be acquired in the exchange.

2. Any number of properties may be identified as long as the aggregate fair market value does not EXCEED 200% of the value of the property sold. Any number of these properties may be acquired in the exchange.

3. Any number of properties of any value may be identified as long as 90% of the value of all properties identified are acquired. this is known as the 95% rule and is seldom used.

the acquisition of one, sevceral or all identified properties must be completed by the 180th day after the closing of the relinquished property.  These dates are not negotiable or extended due to holidays or weekends.

Did you know it's impossible to have a perfect score (850) on your credit score unless you have had an account open for at LEAST 15 years?

Credit Scoring Calculations:

Credit performance                 35%

Credit Utilization                    30%

Length of Credit                    15%

Type of Credit                       10%

Inquiries                              10%

you can see that your performance on paying your bills has the largest effect on your credit score. Followed by utilization. If someone is trying to raise their scores a easy way to do so (assuming they are paying their bills on time and cannot make a large payment to bring down balances) would be to ask their creditors to actually RAISE their credit limits. this lowers the utilization and actually raises their scores. Yes...amazing! Take on additional credit limits and increase your score! One of the best ways to keep your scores high is to make sure you use less than 30 percent of your available credit.

It was mentioned before that it can actually lower your score by closing accounts. Again this affects your Utilization calculations.

Consumers who don't understand their credit report and score are at a severe disadvantage when it comes time for a mortgage loan. Some preliminary work on their part can increase their score and can save themselves money on a loan! 

Going on a trip or vacation? Need to hold your mail?  

Make It Easier with the Internet

Awhile back ywhen you wanted to have the post office hold your mail, you had to make the trip to the post office, stand in a long line.....This could eat up a large amount of your time. Now you can notify the Post Office to hold your mail in two minutes flat without even leaving your house. Just hit this link, and you can quickly fill out the form  on line: USPS Mail Hold. If your area isn't served  on line , simply call 1 800 ASK USPS (1 800 275 8777) and a representative can assist you.

Great way to save something that everyone seems to have less and less of these days....... your time!

Many borrowers call and ask me "How can I remove that mortgage insurance payment from my loan"?

Mortgage Insurnace is required on loans with loan to value ratios (LTVs) higher than 80 percent.  Here are some guidelines on what your mortgage servicer is going to ask you in order to remove this monthly fee. Remember, it is up to the INVESTOR if they will remove MI.

- Borrower Initiated Cancellation Based on ORIGINAL VALUE:

1. The pay history must not have any 30 to 60 day delinquencies

2.  The loan must be paid down to a LTV ratio of 80% or less

3.  An appraisal or Broker Price Opinion (BPO) must be performed, at the borrwer's expense to verify the property value has not declined.

Upon verification of all the criteria listed above , the borrower will be contacted confirming deletion of PMI from the loan investor (not the servicer)

- Borrower Initiated Cancellation based on CURRENT VALUE:

1. The borrower must not have any 30 or 60 day delinquencies.

IF THE LOAN IS LESS THAN 2 YEARS OLD

1. Appraisal is required

2. the appraisal miust support a new LTV ratio of 75% or less, AND evidence of substantial improvement (additional living space, complete remodel of kitchen  with new fixtures, cabinets, counter tops etc). Landscaping or pool do not qualify for substantial improvements

IF THE LOAN IS 2-5 YEARS OLD:

1. An appraisal or BPO is required (ordered by the servicer of the loan)

2. The new appraisal/ BPO must support a new LTV of 75% or less. Because the loan is greater than 24 months old, the requirement for substantial improvements is not needed.

IF THE LOAN IS GREATER THAN 5 YEARS OLD:

1. An appraisal or BPO is required.

2. The appraisal or BPO must support a new LTV ratio of 80% or less. Because the loan is greater than 24 months old, the requirement for substantial improvements is not required.

Please consult with your loan servicing company for their exact requirements as your actual investor will make final determination. If your current loan falls into these categories definitely call your servicer and start the process to remove MI and start saving yourself money!