Michelle 's Blog

Darlington, SC: 2/1 Double Wide Fixer Upper! Great Price!! $21,900

Michelle Braet (Econohomes, LLC) — Fri, 04 Dec 2009 16:39:59 -0600

Wholesale Foreclosure: 345 DOVESVILLE HWY, Darlington, SC 29540

HOME TYPE: (1 Story, 2 Bedrooms/ 1 Bath, Single Family Double-Wide Mobile Home)

EXTERIOR DESCRIPTION:
Light brown double –wide mobile home with white trim and accented with green decorative shutters located on large lot with grassed front and side with highly treed section in back. Roof is metal tin construction and appears to be functional as no leaks were noticed during inspection. Soffits and Eves again are covering in aluminum siding and flashing respectively and in good condition. Exterior composition is aluminum siding over prefabricated wood frame on steal foundation all in good repair although skirting around back of trailer needs to be replaced. Has covered carport with dirt flooring in back in fair condition that is an add-on addition to trailer made of wood 4x4 mounted in dirt and roofing is tin.

INTERIOR DESCRIPTION:
Home has some damage to walls and electrical throughout from what looks like partial or attempted vandalism although it is not as bad as one could expect from this type of activity most is small spot or limited to few places. Living room has nice green carpet, and ceiling is in great condition however needs damaged repair to wall were electrical was attempted to be removed. Dining room again has nice green carpet, flower wallpaper, and wall needs repair. Large Family room has fireplace, nice green carpet, custom cabinets, ceiling looks good and has ceiling fan. Kitchen looks very good and appears intact has nice flooring, wallpaper/paint, dishwasher, electric stove, cabinets, double stainless sink, and wiring all look good expect for small spot near sink in wall. Has laundry room with washer and dryer hookups inside home. Master bedroom has large full emersion bath and separate standup shower, vanity sink, and toilet all appear intact and functional. Bedroom#1, Bedroom#2 and Bedroom#3 all are very similar and are located down hallway they have good; windows, carpet, ceilings, and closets however some minor wall damage was also noted in them. Has full common bath with intact tub/shower, toilet, and sink with good décor located close to bedrooms.

MECHANICALS:
Home has whirlpool water heater intact and a partial furnace unit missing blower motor; also missing from HVACs system is ac condenser however all ductwork and electronic controls remain. Homes plumbing appears to be intact and is modular PVC. Electrical as noted needs complete overview and repair including patching walls were damaged occurred.

For more information and pictures, call 512-696-1997 x 518.

Campbell, OH: 2/1 Great Investment OR Move In Opportunity! $7750

Michelle Braet (Econohomes, LLC) — Fri, 04 Dec 2009 15:37:33 -0600

Wholesale Foreclosure: 80 Sixth St, Campbell, OH 44405

Exterior:

This is a stone home that’s yellow with white trim. The asphalt roof is in good condition as well as the soffits and eaves. The gutters and downspouts are intact. The foundation is cinder block. There is a cement slab porch in front of the house. Also, to the right hand side of the house is a shared driveway.

Interior:

This is a fully carpeted house. The living room has a drop ceiling and paneled walls. The dining room also has a drop ceiling. There are two bedrooms upstairs. They both have paneled walls and a drop ceiling. The bathroom is located on the first floor. It has a ceramic tiled floor, drop ceiling, and a standing shower instead of a washtub. Lastly, there is a full basement.

For more information and pictures, call 512-696-1997 x 518.

Middletown, OH: 2/1 ~ Great Investment Opportunity! $4900

Michelle Braet (Econohomes, LLC) — Fri, 04 Dec 2009 14:41:35 -0600

Wholesale Foreclosure: 915 Garden Ave, Middletown, OH 45044

Exterior:
Light yellow cream house with white trim; Landscaping - nice lot with treed canopy has nice vines on fence and wildflowers planted along fence line. Roof looks good with little age on tiles. Soffits and Eves most are covered in aluminum. Aluminum siding exterior- recent addition some sloppy and some good work done - might need some tightening up. Windows are mostly newer Vinyl replacement - double pane; however some glass damage. Foundation is concrete Slab and block mixed foundation - solid and secure no settling. Porch is front -raised cement slab in front - 11 x 7ft; Rear - 13 x 12 slab ground level (fair) cracked and un-level.

Interior:
Living room ceiling is very good, paint is good, has ceiling fan and a linoleum threshold. Kitchen is large -gas equipped for range-plumbed sink & cabinets. Ceiling good and paint good. Need to redo or fix floor. Ceilings in Living and Kitchen are painted and have raised impression - very good job. Bath has tub, toilet and vanity/sink intact and plumbed; closet; has hole in roof (daylight) ? Note the bath is add-on and roof was not redone with rest of house. Basement ??Partial? low ceilings 6ft - has window damp and has draft - cellar walk down entrance from utility/laundry room which is plumbed and wired for wash and dryer - has outside entrance & window.

Mechanical:
Water heater is Enviro-Temp Energy Saver - good condition. Furnace is Ducane Model# MOGA050B3A 50,000 BTU -appears "like new" unit. Duct work for furnace is in fine condition and present. Plumbing older but appears intact no leakage - galvanized, cooper and PVC mix. Electrical appears updated within last few years - not new but newer update.

For more information, call 512-696-1997 x 518.

3/2 at a GREAT Price! Bring Your Offers! $33,500

Michelle Braet (Econohomes, LLC) — Thu, 03 Dec 2009 16:58:15 -0600

Wholesale Foreclosure: 306 E Wood Ave, Raymondville, TX

Exterior:
Single story home with white stucco siding and green accents. The homes siding is in good condition, the roof is asphalt shingle and has no leaks. Concrete driveway on the front left side of the home in decent shape. There appears to be a garage on the left side of the home, garage is boarded up. House sits on a large lot and is heavily shaded with mature trees and bushes. There is also a large shed/garage in the back of the home and ample parking. The garage /shed is in fair condition.

Interior:
Living room is large and has purple carpet, built in shelving and a working fireplace. Walls are wall papered and in decent shape. Living room has acoustic ceilings and a ceiling fan. There is a nice dining room with linoleum floors and half wood paneled walls and wallpaper. The kitchen has linoleum floors and includes cabinets, counter tops and a double sink. Home has three bedrooms; the first bedroom has brown carpet and wood paneled walls and a nice sized closet. The second bedroom has a nice large window and red carpet, white wood wall paneling. The master bedroom includes a bathroom that is complete, tub, toilet and tub. Master bed has red carpet, red wood paneled walls a closet and ceiling fan, all rooms are in good condition. The common bathroom includes nice linoleum floors, sink, toilet and tub. The home does include a furnace, no other mechanics were found.

Mechanics:
Furnace

For more information, call 512-696-1997 x 518.

Inkster, MI: 2/1.5 in Need of Rehab. Priced to Sell FAST! $7900

Michelle Braet (Econohomes, LLC) — Thu, 03 Dec 2009 11:29:36 -0600

Wholesale Foreclosure: 27530 Avondale St., Inkster, MI 48141

Exterior:
The roof appears to be in good condition with no signs of leakage. Vinyl windows throughout appear to be in good condition. The outside of the house could use fresh paint. There is an enclosed porch that is also in good condition. The partial wood fence has been knocked over, and there is a gravel driveway on the side of the house.

Interior:
Living room, dining room and bedrooms all need new carpet. Kitchen is in tact with cabinets, counter tops, sink and dishwasher all present. There is a stand up shower, sink and toilet in the bathroom, pvc plumbing. The ductwork appears to be in good working order. The electrical all appears to have been updated.

Mechanicals:
Water Heater (missing copper connects), Furnace

For more information, call Michelle at 512-696-1997 x 518.

Detroit, MI ~ 2 Bed/1 Bath ~ Cute Fixer Upper! Priced to Sell FAST! $3900

Michelle Braet (Econohomes, LLC) — Tue, 20 Oct 2009 17:30:13 -0500

18516 Joseph Campau, Detroit, MI 48234

Exterior:
This house is a cream color with white trim. The front yard is small however, the back is huge. The roof has asphalt shingles that are in fairly good condition. This house has a brick foundation that’s in good condition. This house has a wood framed porch that’s in good shape. There is no driveway or garage but it dose have a detached shed outback.

Interior:
The living room is 13x11.5 with a hardwood floor, and a high ceiling. The dining room 13x11.5 is carpeted it also, has a high ceiling. The kitchen is 13x13 with a vinyl tiled floor and wood cabinets. The base cabinet for the sink is new and has not yet been installed. Both bedroom are 14x9 and have wood floors. They can use being repainted. The bathroom is 9x5 is in fairly good condition it has a vinyl tile floor and of its fixtures are in tact. There is some minor damage to the wall in the bathroom. The basement is unfinished.

For more information and pictures, call 512-696-1997 Ext 518.

Chicago, IL: 2 Units 3/1 and 3/1 ~ Asking only $10,500!

Michelle Braet (Econohomes, LLC) — Tue, 20 Oct 2009 16:58:46 -0500

11629 S Lafayette Ave, Chicago, IL 60628

Exterior:
Tan aluminum siding home with stone front. Windows are completely boarded on both the bottom and top levels. Landscaping has one large tree in front. Yard in front is fairly small but the back yard a decent size. Windows are a mixture of wood framed and vinyl replacement, most of them will need to be replaced. Stone foundation is showing no major signs of shifting. Home has enclosed front and back porches. Wooden privacy fence, wrought iron, and chain link all boarder the back side of the property.

Interior Downstairs:
Living and dining rooms have thick texture on the walls. Nice crown molding and baseboards present. Kitchen has natural wood cabinets. Countertop and sink needs to be replaced. Bedroom #1 is painted white with baby blue trim. Windows are intact here. Bedroom #2 is also adjacent to the dining but there is no closet here. Perhaps it could be used as a study. Bedroom #3 needs the window replaced and a fresh coat of paint. Bathroom ceiling has heavy water damage perhaps from bath upstairs. Toilet, tub, and sink are intact.

Interior Upstairs:
Living and dining rooms upstairs have nice, brown crown molding, trim, and baseboards. There is a large coat closet adjacent to the dining room. Kitchen upstairs has a smaller counter top then downstairs, but this leaves enough space for nice longer windows. All three bedrooms are around 9x9 and will need a fresh coat of paint. Bathroom has toilet, tub, and nice pedestal sink intact, however, the walls are in need of repair.

Mechanicals:
No water heater or furnace in the bathroom, however, there is a small heating unit located upstairs with duct work in place. The duct work, plumbing, and electrical have all been disconnect and are in need of servicing.

For more information and pictures, call 512-696-1997 ext. 518.

Grand Bay, AL ~ 3/2 Double Wide With Pool! Asking $48,900

Michelle Braet (Econohomes, LLC) — Tue, 20 Oct 2009 16:23:30 -0500

10280 B Oak Ln, Grand Bay, AL 36541

Exterior:
Double Wide Trailer, sits on a very large and beautiful lot. Home has vinyl siding that is in great shape and an accented rock skirting around the bottom of the home. The skirting is missing a few areas and will need to be replaced. The roof is 3-tab shingle and no leaks are apparent inside the home. The house does include a handicapped ramp to the entrance as well as a massive wood porch off the back. The porch is in excellent shape and the home includes an above ground pool.

Interior:
This home has a large sized living area that is full carpeted. The room is in great shape. Walls a re white as well as ceilings and wood paneling in good condition. A small walled area with wood paneling separates the dining room. The dining room is carpeted and paneled with textured ceilings. The Kitchen comes complete with an island bar, will need countertops, dishwasher double sink and cabinets. The kitchen floors are vinyl tile and have some imperfections; there are also a small pantry area for storage. There are three bedrooms, the master bedroom is carpeted includes a bathroom with tub, toilet and upright shower. The second bedroom has vinyl floors and a closet. The third bedroom is carpeted and has white walls and ceilings. The common bathroom does not include any appliances, no tub, no toilet and no sink. There was no hot water heater found on site. No furnace was found on the property. The home appears to be Central air but no compressor was found either.

Mechanics:
None

For more information and pictures, call 512-696-1997 ext 518.

2/1 Kansas City Property ~ Asking $8,900

Michelle Braet (Econohomes, LLC) — Tue, 20 Oct 2009 15:51:55 -0500

1017 Mildred, Kansas City, KS 66104

Single Story - 2 Bed / 1 Bath Home

Exterior: This is a grey wood siding house with red brick around the bottom and grey trim. There is a small single car driveway in the front but no garage. Lots of shrubs and bushes line the front and large trees shade the entire property. The roof is a three tab and will need extensive work. There is a chain link fence along either side in the front and the back is completely fenced in.

Interior: The living room is carpeted and has a large window facing the front of the property. The kitchen has a small area that could be used as a breakfast room and may need minor repairs. The dining room and den both have drywall damage to the ceiling but otherwise are in good condition. The master bed room is carpeted and has drywall with no cracks. In the bath room the shower, sink, and toilet are all intact. There is debris throughout the house that will need to be removed.

Mechanical: The water heater has been removed and will need the be replaced. The furnace is intact along with the ductwork and appears to be in working condition. Some of the copper pipe has been removed along with some electrical so this will need a little work as well.

For more information and pictures, call 512-696-1997 Ext. 518.

3/1 in Blue Rapids, Kansas: Great Investment Opportunity! Asking $9,900

Michelle Braet (Econohomes, LLC) — Mon, 19 Oct 2009 15:08:47 -0500

309 E 3rd St., Blue Rapids, KS 66411

Exterior:
Two story home with Blue and White aluminum siding that’s is fair condition, house sits on a corner lot and has nice curb appeal. This home looks great form the outside, home may need some landscaping. The roof is shingle based and leaks were found inside the home. The foundation is stone and mortar; there is some shifting in this home.

Interior:
Living room has older carpet and wood paneled walls, or wallpaper. The dining are has the same walls and carpeting. The kitchen has vinyl floors and includes cabinets and a sink. The bedrooms and bathroom are upstairs; the bathroom includes a sink, tub and toilet. It appears that some of the water damage may be due to a leak in the bathroom. The master bedroom is large with red carpet and blue colored walls. The second bedroom has hardwood floors and a small closet. The third bedroom carpet and vaulted ceilings. A Hot Water Tank was found as well as a furnace.

Mechanics:
Furnace and hot Water Tank

For more information or pictures, call 512-696-1997 ext 518 or email michelle.braet@econohomes.com.

Campbell, OH: 2 Bed 1 Bath. Asking $7750 for a GREAT STONE HOUSE!

Michelle Braet (Econohomes, LLC) — Wed, 23 Sep 2009 13:52:48 -0500

80 Sixth Street, Campbell, OH 44405

Exterior:

This is a stone home that’s yellow with white trim. The asphalt roof is in good condition as well as the soffits and eaves. The gutters and downspouts are intact. The foundation is cinder block. There is a cement slab porch in front of the house. Also, to the right hand side of the house is a shared driveway.

Interior:

This is a fully carpeted house. The living room has a drop ceiling and paneled walls. The dining room also has a drop ceiling. There are two bedrooms upstairs. They both have paneled walls and a drop ceiling. The bathroom is located on the first floor. It has a ceramic tiled floor, drop ceiling, and a standing shower instead of a washtub. Lastly, there is a full basement.

For more information or pictures, call 512-696-1997 ext 518 or email michelle.braet@econohomes.com.

Middletown, OH: Great little 2/1 house! Only asking $4,900!

Michelle Braet (Econohomes, LLC) — Wed, 23 Sep 2009 13:39:18 -0500

915 Garden Ave, Middletown, OH 45044

Exterior: Light yellow cream house with white trim; Landscaping - nice lot with treed canopy has nice vines on fence and wildflowers planted along fence line. Roof looks good with little age on tiles. Soffits and Eves most are covered in aluminum. Aluminum siding exterior- recent addition some sloppy and some good work done - might need some tightening up. Windows are mostly newer Vinyl replacement - double pane; however some glass damage. Foundation is concrete Slab and block mixed foundation - solid and secure no settling. Porch is front -raised cement slab in front - 11 x 7ft; Rear - 13 x 12 slab ground level (fair) cracked and un-level.

Interior: Living room ceiling is very good, paint is good, has ceiling fan and a linoleum threshold. Kitchen is large -gas equipped for range-plumbed sink & cabinets. Ceiling good and paint good. Need to redo or fix floor. Ceilings in Living and Kitchen are painted and have raised impression - very good job. Bath has tub, toilet and vanity/sink intact and plumbed; closet; has hole in roof (daylight) ? Note the bath is add-on and roof was not redone with rest of house. Basement ??Partial? low ceilings 6ft - has window damp and has draft - cellar walk down entrance from utility/laundry room which is plumbed and wired for wash and dryer - has outside entrance & window.

Mechanical: Water heater is Enviro-Temp Energy Saver - good condition. Furnace is Ducane Model# MOGA050B3A 50,000 BTU -appears "like new" unit. Duct work for furnace is in fine condition and present. Plumbing older but appears intact no leakage - galvanized, cooper and PVC mix. Electrical appears updated within last few years - not new but newer update.

For more information and pictures, call 512-696-1997 ext 518 or email michelle.braet@econohomes.com.

Appraisal Agreement to be Delayed

Michelle Braet (Econohomes, LLC) — Wed, 22 Oct 2008 08:05:39 -0500

Agreement on appraisal reform to be delayed up to 3 months, regulator says

WASHINGTON (AP) -- An agreement to reshape the appraisal industry is being delayed up to three months, a federal regulator said Thursday.

James Lockhart, director of the Federal Housing Finance Agency, told the House Financial Service Committee that the agreement with New York Attorney General Andrew Cuomo is still being worked out

Lockhart said the agreement will be delayed by one to three months from it's original Jan. 1 start date. While the agreement should be finalized in the coming weeks, "it's taken us longer than we expected to do it," he said.

Widespread complaints of problems with the appraisal process and its impact on the nation's housing market led Cuomo to reach a deal in March with Fannie Mae and Freddie Mac, which are regulated by Lockhart.

The agreement will create a watchdog -- the Independent Valuation Protection Institute -- to monitor the appraisal business. Fannie Mae and Freddie Mac will spend $24 million to create the institute, which will accept complaints from consumers and appraisers. It will also monitor the enforcement and report to Cuomo's office.

Earlier this year, federal bank regulators and mortgage industry interests protested the agreement, saying it violates federal law and could have an unintended negative impact on the mortgage industry.

How USDA Loans Saved the Market

Michelle Braet (Econohomes, LLC) — Wed, 01 Oct 2008 17:42:34 -0500

Let's be honest! USDA loans can't really save the market; however, they do have a place in today's mortgage market. My office has been abuzz about USDA loans for the past couple of months-a program that has become, as of October 1, the only affordable zero-down loan program available (other than VA loans, for which only veterans qualify). USDA loans are filling the void created by the elimination of FHA seller-funded DPA (down-payment assistance) and no-down- payment conventional loans. The strange effect that we are seeing is that demand for homes outside Austin's city limits has been affected by this loan program.

A USDA loan is geographically restrictive, and inside Austin's city limits does not qualify. However, bedroom communities like Leander, Hutto, Kyle, Buda, and Wimberley do qualify; and borrowers who have little or no down payment are refocusing their searches in these areas.

So, what is USDA, and what makes this program better than other programs that offer a low down payment? Over the last 12-14 months we have seen a fundamental change in (1) the way that mortgage loans are underwritten, (2) how their interest rates are set, and (3) how mortgage insurance (MI) premiums are determined.

In the past, the rate the bank set was the same regardless of the borrower's score-580 or 800. Over the last few months Fannie Mae and Freddie Mac have instituted a credit score and LTV (loan-to-value) tier system for setting interest rates. Having a 680 score rather than a 770 score will now net a higher interest rate. Fannie and Freddie have also put into effect an LTV tier system; 90 percent LTV rates are higher than 80 percent LTV rates.

Fannie Mae, Freddie Mac, and FHA have drastically scaled back their liberal underwriting standards; and we have seen an increase in the rate of loan denials. As previously noted, Fannie and Freddie have eliminated their zero-down payment loans and instituted a minimum requirement of 3 percent down. FHA has eliminated the seller-funded DPA, which allowed the seller to pay for the buyer's down payment. They have also raised the buyer minimum from 3 percent to 3.5 percent starting January 1, 2009.

Mortgage insurance has always been that dirty little phrase in mortgage lending. MI is insurance for the lender in case the borrower defaults on the mortgage, with the insurance covering losses based upon the coverage amount. In the past, if you were putting down 3 percent on a $225,000 home, the monthly mortgage insurance payment would be $174.60, regardless of your credit score. Since MI companies have started using a tiered premium model, that same monthly payment is now $254.25 per month.
So, what about USDA? What makes this loan better than the ones I have just discussed, and what is the downside? First of all, and probably most importantly, USDA loans are FIXED-rate mortgages with 30-year amortizations. Most of the problems that we are seeing in the financial markets today have been caused by ARMs (adjustable-rate mortgages) and hybrid loans (loans with negative amortization). USDA loans are fully amortized FIXED-rate mortgages, which provides for a stable payment over the life of the loan, thus giving the borrower security.

USDA loans DO NOT have a monthly MI payment! As pointed out earlier in this article, MI payments can be a burden on the borrower in making his monthly payments; therefore, this is a huge advantage for him. The following examples compare conventional , USDA, and FHA loans with a minimum allowed down payment, a credit score of 640, and $175,000 purchase price :

As you can see, USDA loans provide the most affordable option in financing- low payments, fixed rates, NO mortgage insurance, and little or no money out of pocket.

What is the downside of a USDA loan? USDA loans are geographically restrictive, meaning that in certain areas properties are not eligible for USDA financing. To find out which homes in Central Texas qualify, go to www.usdanow.com. Typically, towns with a population above 25,000 do not qualify for USDA financing; however, the best place to check is this website. USDA loans are also income restrictive. Income limits are based on the total projected income for ALL adults living in the household and varies by the number of persons who will reside in the household and the location of the property. Applicants may have an income of up to 115 percent of the median income for the area. Area income limits can be found here, and I have listed the Austin/Round Rock MSA below.

As you can readily see, the income limits are fairly liberal; and a majority of borrowers can and do qualify for this program.

In the opening paragraph I mentioned that borrowers are starting to focus their attention on the bedroom communities that surround Austin. These buyers are choosing this loan program over others, and in doing so they are adding to the demand for these communities. Not many lenders carry this program, and even fewer real estate professionals and buyers are aware of the USDA loan. I believe that this loan program will continue to gain traction and that we will see a move towards more of these. As lending guidelines tighten and borrowers look for alternative options, this program will be in ever greater demand. LOW PAYMENTS, FIXED RATES, NO DOWN PAYMENT, and NO MONTHLY MORTGAGE INSURANCE-this may not save the market; but it is a viable, affordable option for many borrowers

John McClellan, Branch Manager, Supreme Lending

House Rejects $700 Billion Financial Bailout

Michelle Braet (Econohomes, LLC) — Wed, 01 Oct 2008 16:57:53 -0500

The U.S. House rejected on Monday a proposed $700 billion financial bailout package supported by the Bush administration, the Federal Reserve and the congressional leadership of both parties. The vote was 205 for and 228 against. The rejection of the plan could mean disruption in financial markets and another attempt by officials to craft a compromise plan that will get a majority vote. The administration had been pushing for quick movement on the bailout, which officials have warned is necessary to avert serious consequences for markets and the economy. Some critics said the plan was a giveaway to the very companies that created the crisis, while others said it amounted to socialism.

FHA Responds To Buy & Bail Transactions

Michelle Braet (Econohomes, LLC) — Fri, 26 Sep 2008 06:12:19 -0500

Here are the 7 things you need to know about these changes:

1. This is a temporary change, and effective as of September 19th, 2008.

2. The borrower must be relocating to a new job location.

3. The new home must be outside reasonable commuting distance from the current residence (UW's discretion).

4. The borrower must have a fully executed lease with at least a 1-year term from the closing date of their new mortgage.

5. The borrower must document receipt of the security deposit and/or first month's rent.

6. Current residence must have an LTV of 75% or less.

7. The value of current residence can be proved with the following:.

Appraisal no more than 6 months old, or
Original HUD-1 and current bank statement.

Michelle Braet, Mortgage Consultant, Supreme Lending, 512-524-8320, Michelle.Braet@SupremeLending.com, www.MortgageMichelle.com

Wild Markets, The Fed and Opportunities

Michelle Braet (Econohomes, LLC) — Thu, 25 Sep 2008 20:44:02 -0500

Uncertainty in Financial Markets Could Cause Dramatic Rise in Existing ARMs at Next Adjustment
If you or anyone you know has an Adjustable Rate Mortgage, this is an important point to consider. Many ARM loans are tied to the London Interbank Offered Rate (LIBOR). In fact, there are six million loans in the United States that use LIBOR to determine the interest rate and as the name suggests, many banks use this rate to lend money to each other.

But, today, banks lack confidence that the money they lend will be paid back. In light of what has happened with Lehman Brothers, IndyMac Bank and others, as well as AIG, banks are requiring much higher rates on LIBOR to offset the added risk.

The Federal Reserve Left Rates Unchanged but...
The Federal Reserve met yesterday leaving the target rate unchanged at 2.00% but just like LIBOR the actual rate being charged by banks to each other is closer to 6.00%. This again suggests that those with ARM loans should consider a refinance into historically low fixed rates.

What Happened?
Financial companies have been under attack. IndyMac was the largest bank to falter in twenty years. What brought IndyMac down was their exposure to defaulting loans. This sapped investor confidence and drove down the stock price until they filed for bankruptcy.

Following IndyMac, we saw Fannie Mae, Freddie Mac, Lehman Brothers and Merrill Lynch succumb and were either forced into conservatorship, to close their doors, or to sell themselves. AIG, the world's largest insurance company was also impacted, forced to make a deal with the U.S. government to stay in business.

What You Can Do Now?
I'd be happy to go over your loan situation and help you understand how the recent events may affect you, and how you can best be protected. Additionally, chaotic times like these often present opportunities. I look forward to hearing from you.

Michelle Braet, Mortgage Consultant, Supreme Lending, 512-524-8320, Michelle.Braet@SupremeLending.com, www.MortgageMichelle.com

What the Heck is going on in the World today?

Michelle Braet (Econohomes, LLC) — Tue, 23 Sep 2008 20:36:20 -0500

The owner/founder of Supreme Lending sent this email out to all of the employees last week. Below are just some of the many reasons that I have chosen this company and why I believe it is better than any other. (He gave me permission to post this.)

Hello everyone,

For all of you that are new to Supreme Lending this email may be something new, but to those of you that have been here for a while I try my best to send out what is best described as a musing on a quarterly basis that describes my opinions, thoughts, ideas, etc., on what I see going on in the market as well as the happenings of Supreme Lending. You see, I think it important during times of uncertainty or even during times of certainty to constantly communicate within an organization as that is truly the only way we all know what is going on. I think we promote a company here at Supreme where thoughts, ideals, respect, and willingness to listen are concepts that constantly need to be cultivated in order for the organization as a whole to present itself to the public in the positive light that we all want to be seen in. With this being said, I encourage you to grab a cup of coffee or tea whichever you fancy and enjoy the reading herein, as I tend to be a little long winded in my opinions. Hope you enjoy and as always your comments, and feedback are always welcome!

Obviously the economy along with the stock and bond markets are in one of the worst perils we have seen in a very long time, and possibly ever since the great depression of 1929. With that being said, how does a company sustain itself during this time period and possibly even grow? I was reading this morning a link in the wake of what happened to Lehman Brothers yesterday on their history and found it quite interesting that during our last great depression is a time when they grew their most (see http://www.lehman.com/who/index.htm ) as it is quite interesting. What I gathered from this is that during times like this it becomes even more critical to keep the lines of communication open and make sure that as a company we are sound, solid, and prepared for the uncharted waters that are in front of us.

Since we are embarking on these most tumultuous times, I thought that I would give you all a quick synopsis of what Supreme has done to ensure that we remain a solid and stable company and what we will continue to do to ensure all of your stability. I also want to preface this email with the fact that this email is sent out to everyone to reassure you of where we stand as a company from where I see it. I have read so many letters from owners of company's on ml-implode, etc., where they try their best to reassure their employee's only to go under a month later and that is NOT my intent herein. I am trying to be completely honest with everyone and let you all know that we are probably more stable and stronger as a company now than we have ever been in our history since inception in June of 1999.

That may seem like quite an odd statement given the fact that every time anyone of you goes to a dinner party or to church and tell people that you are in the mortgage industry they somewhat grimace and say things like: "oh sorry, are you o.k?", or "wow, that must really be tough?" or the classic "how are you even still in business?" as I constantly hear these statements and I always go back to my basic belief. If you do good loans, then you will be fine and possibly even thrive! I know that sounds like an overly simple statement, but the bottom line is that Supreme Lending has never made it a practice of doing bad or risky loans and never will. Again, I realize that is an overly simplified statement especially given that today our product mix is about 70-30% Govt., to conventional respectively. But, today is not where the problems that we are now facing began. They began in my humble opinion about three years ago when we had a massive run up of stated income programs along with a plethora of Alt-A, and B-paper borrowers that should have never been able to get a mortgage. Albeit, home ownership is the crux of our national economy and the lifeline of all our existence, so I must admit that amidst all the hype and frenzied state of mortgage during this time we were very tempted to get into this business model as the money just seemed to continue to roll in from these entities. I had to continually listen to loan officers and branch managers tell me how lender X and Y will do this or that type of loan and how bad Supreme was for not wanting to do them. It was definitely a challenging time for me and Supreme. Ironically, it was the steadfast belief in good loans (actually it was from my wife as she was a former underwriter and didn't want us to do them) that I owe most of the credit for this decision. So, I know that sounds pretty basic, but in a nut shell we have always done good loans, and will continue to do good loans. Yes, I know at times we lose business and loan officers, and branches, but we keep our doors open and that is most important to all of us.

O.K., now on to other things that are probably more pressing like how specifically is Supreme doing from a plethora of perspectives. I will bullet point questions herein that I would like to ask if I was a loan officer and hopefully this will address many of the things that you would want to know.

1. How are we from a warehouse capacity standpoint? We are in excellent shape on this regard. We are funding at about 70% of our current capacity and I have requested an additional 10% in anticipation of Rodney Anderson joining our team and other branches that we add on a consistently monthly basis.

2. How solid are our financials? I can say that each warehouse bank that we have our credit lines with along with our auditors have told me that we are one of, if not the most solid company they have ever seen. That doesn't mean we have the largest balance sheet of all of them, but what it does mean is that we don't have any debt and we have a solid cash position.

3. Do we have bad loans that can come back to haunt us? We currently have two law suits pending and they are both from brokered loans that we sent to wholesale lenders back in 2004. They aren't a lot of money, but we believe vehemently that we are right on these issues and are fighting their justification for repurchase. Just a note to all, as this is the reason we don't like to broker as the agreements are one sided and terribly onerous to Supreme.

4. Do we have many bad loans our investors have asked us to repurchase? We currently have one loan that we had to repurchase in Ohio and it is under contract to be sold and is only $30,000 sale price, so not much in this arena.

5. Are loans going to be around any more for non-banks? From what I can see the correspondent channel (which is what we are) is the most solid and healthiest channel for most of our investors, so I anticipate that it will be here for a long time to come.

6. What about brokering loans will that be around? Given that our current production is 95% banked business, and the fact that most of the lenders that are going out of business are wholesalers, I suspect that this trend will continue and wholesaling will be done. We still do offer it, but on a limited basis.

7. What is Supreme doing for our future growth to ensure we will stay in business? Wow, this is a question that I could go on for hours and hours about what we are doing, but in short we are improving our technology daily, adding staff to handle the growth, putting policies and procedures in place to mitigate risk, continuing to put money back into the company for a rainy day, and overall trying to make prudent business decisions on the forward looking direction for the company.

So, in closing I hope that this email will convey the message to all of you that first and foremost, it is my belief and intention to let everyone know that Supreme is a viable and stable company. We have made good decisions in the past and now are reaping the benefits of these decisions in increased production, great warehouse lines, and good relationships with our investors. We will continue along the same path and hope that you all continue to support the company in the terrific manner that you have for so many years now. We all must remember that times certainly are challenging, but it is at times of great challenge that the true leaders and pioneers in any industry advance well beyond the norm.

A great quote to close this email and illustrate this point is by: Jerome P. Fleishman.

"Always there will be, along the sidelines of life, inferior souls who throw mud at those whose attainments they do not quite understand. The man who really accomplishes doesn't pay attention to such detractors. If he did, he'd be on their level. He keeps an eye singled on the higher goal and the mud never touches him"

~Scott Everett" Michelle Braet, Mortgage Consultant, Supreme Lending, 512-524-8320, Michelle.Braet@SupremeLending.com, www.MortgageMichelle.com

Fed Stands Still and the New Housing Bill, How Do You Benefit?

Michelle Braet (Econohomes, LLC) — Sat, 16 Aug 2008 15:09:45 -0500

Fed Stands Still - Time to Make Your Move

The Federal Reserve held the line on Tuesday-leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.

Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%-above the Fed's desired range of 1-2%.

Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.

What Does This Mean to You?
Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.

If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act-especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:

Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we'll have to talk about some income parameters and payback terms. But if you're a new home buyer - or know someone who is renting or in the market to buy - this is a huge benefit that we should discuss.

Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended-with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.

Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.

Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.

Call today to discuss your situation and set up a time to talk.

Michelle Braet, Mortgage Consultant, Supreme Lending, 512-524-8320, Michelle.Braet@SupremeLending.com, www.MortgageMichelle.com