Will 's Blog

Quotations: Do you have one?

Will Addo (REO Asset Solution, LLC) — Sun, 10 Aug 2008 03:38:06 -0500

In order to help us all see the world through the eyes of other people, I would like to begin a new thread consisting of famous quotes from various individuals throughout history who have influenced generations, inspired leaders, and pushed the envelop of theoretical thinking.

Each quote should be posted one at a time and include the name of the man or woman documented as having said it. Additionally, each quote should be one that has personal meaning to the poster and/or is intelligent, imaginative, or controversial.

Of course, dates such as births and deaths are optional, but do give the reader a better sense of timeline when the quote was made, which can ultimately shed light on the subject due to changing world events.

This is simply an attempt to open our minds to other people's ways of thinking and to see the world without personal prejudices and from different point of views.

Enjoy!

I'll start..

"Natural ability without education has more often attained to glory and virtue than education without natural ability."

-Marcus Tullius Cicero
Roman statesman, lawyer, scholar, and writer.
106-43 BC

Jumbo Loans Programs Are Still Alive and well

Will Addo (REO Asset Solution, LLC) — Thu, 07 Aug 2008 02:40:30 -0500

Looking for a plus-size mortgage? Whether you're buying a home or refinancing, if you need to borrow more than the conforming loan limit*, a jumbo or blended jumbo mortgage may be your best option. Jumbo mortgage programs can give you the extra borrowing power you need, but the costs and guidelines may differ from those that apply to standard mortgage loans.

Because of their size, jumbo mortgages are "non-conforming" loans. This means that they do not conform to the standard underwriting guidelines set by Fannie Mae and Freddie Mac, and therefore cannot be handled in the secondary market by these two industry giants.

Do jumbo mortgages cost more?

Jumbo mortgages usually carry a higher interest rate than conforming loans. Because of the larger loan amount, and because the loan can't be guaranteed by Fannie Mae or Freddie Mac, the lender absorbs a greater degree of risk. Also contributing to the lender's risk is the fact that homes secured by jumbo mortgages may be more difficult to sell than less-expensive homes.

Is there an alternative?

If the higher interest costs make jumbo mortgages unappealing, but you still need to borrow more than the conforming loan limit, you do have another option. One relatively common variation of the jumbo loan is known as a "blended jumbo" mortgage. This financing method allows you to take out a fixed-rate mortgage up to the conforming loan limit*, along with an adjustable-rate second mortgage to cover the difference. The resulting "blended" payment is often lower than what would be required for a jumbo mortgage of the same total amount.

While the lowest possible dollar amount of a jumbo loan is uniform among lenders, the highest possible amount is not as distinct. Different lenders are willing to absorb different levels of risk, and establish their own "ceiling" for jumbo mortgages. In addition to differentiating between conventional and jumbo loans, many lenders have a separate category for "super-jumbo" loans. Where the line is drawn between jumbo and super-jumbo, and how the costs and loan requirements differ, also depends upon the lender. Before you apply, ask what category your desired loan amount fits into.

Jumbo mortgages are among the wide variety of products offered by Wells Fargo Home Mortgage. For more information on jumbo mortgages, or for answers to any of your home financing questions, contact me today.

Why should you get a renovation loan?

Will Addo (REO Asset Solution, LLC) — Tue, 05 Aug 2008 10:02:14 -0500

Make Life Better with a Loan that Makes Sense Renovation financing gives you:

More money to work with. The amount you can borrow is based on the expected increased value of your home, after improvements are made.

Less Strain on Your Budget. You can pay for your renovation gradually and affordably, over the loan term of your mortgage.

Less to Pay at Tax Time. Unlike other credit options, the interest you pay on funds used for a renovation is tax deductible.

Less Hassle. You'll have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.

Is Renovation Financing for You?

It is, if you have any plans for minor or major renovations to your home in the next six to 24 months. If you're buying a house today and considering some home improvements next year, you may find it's cheaper and easier to have the renovations done now with your financing for the purchase and the renovation all handled in one transaction.

All Kinds of Needs Covered

You can finance any kind of improvement or repair to eligible properties. Moreover, I can customize a mortgage to your individual needs, drawing from one of the mortgage industry's broadest selections of products. In addition to all the conventional options, I provide special programs that overcome obstacles such as credit issues, hard-to-document income, or lack of savings. One of our most popular products is the Purchase & RenovateSM Program, which provides a single loan to cover both the purchase price of a less-than-perfect property and the costs of renovating it. The loan amount is based on the estimated value of your property after your planned improvements are made.

Its other advantages include:

More money. The loan finances both the purchase and the renovation Faster Completion. Renovation work can begin immediately after closing Low Monthly Payments. Improvement costs are spread out over the term of your loan Simplicity. One application, one closing, one monthly payment.

Our Refinance & RenovateSM Program provides similar advantages to homeowners looking to make improvements to their current home. Again, the amount you can borrow is based on the increased value of your home after improvements are made.

Give me a call today, and I'll get started on helping you find the right renovation financing solution for you.

Opportunity of a Lifetime for First-Time Buyers

Will Addo (REO Asset Solution, LLC) — Sat, 02 Aug 2008 02:51:41 -0500

For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.

But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.

First-Time Home Buyer Tax Credit at a Glance

The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Extreme Makeover’ house faces foreclosure

Will Addo (REO Asset Solution, LLC) — Thu, 31 Jul 2008 21:59:54 -0500

More than 1,800 people showed up to help ABC's "Extreme Makeover" team demolish a family's decrepit home and replace it with a sparkling, four-bedroom mini-mansion in 2005.Three years later, the reality TV show's most ambitious project at the time has become the latest victim of the foreclosure crisis.

After the Harper family used the two-story home as collateral for a $450,000 loan, it's set to go to auction on the steps of the Clayton County Courthouse Aug. 5. The couple did not return phone calls Monday, but told WSB-TV they received the loan for a construction business that failed.

The house was built in January 2005, after Atlanta-based Beazer Homes USA and ABC's "Extreme Makeover" demolished their old home and its faulty septic system. Within six days, construction crews and hoards of volunteers had completed work on the largest home that the television program had yet built.

The finished product was a four-bedroom house with decorative rock walls and a three-car garage that towered over ranch and split-level homes in their Clayton County neighborhood. The home's door opened into a lobby that featured four fireplaces, a solarium, a music room and a plush new office.

Materials and labor were donated for the home, which would have cost about $450,000 to build. Beazer Homes' employees and company partners also raised $250,000 in contributions for the family, including scholarships for the couple's three children and a home maintenance fund.

ABC said in a statement that it advises each family to consult a financial planner after they get their new home. "Ultimately, financial matters are personal, and we work to respect the privacy of the families," the network said.

Some of the volunteers who helped build the home were less than thrilled about the family's financial decisions.

This is something that I am sure upsets a lot of you to read. It seems some people just never have enough.

How does this make you feel?

Renovation Lending Process

Will Addo (REO Asset Solution, LLC) — Sat, 12 Jul 2008 21:23:16 -0500

Considering a home improvement loan? Here are the general steps for our renovation loans, which will improve your home and your financial outlook.

Let's Talk
The first step is to talk with me. As a renovation specialist, I can tell you everything you need to do and what documentation you'll need to have to get a quick loan approval.

Feasibility
At this time, I'll also help you determine if you should enlist the services of a HUD-approved consultant, home inspector or another third-party vendor for help in assessing renovation needs, getting a rough estimate of the costs and estimating the value of the property after the improvements. This will help give me a good idea of how much the renovation will cost, and how much you may need to borrow.

Selecting a Contractor
One of the most important steps in the renovation process is your selection of a contractor. It is advisable to get recommendations and price quotes from several reputable contractors. In most states, your contractor must be licensed and insured.

Your contractor will probably have questions about your financing and the loan guidelines. I'll help explain the process and provide the required documents that you and the contractor will need to complete throughout the project.

Hiring a Consultant
I'll also inform you of any inspections that are necessary, as well as how to order them, and provide you with the names of renovation specialists to serve as your renovation consultant. The consultant will inspect the property, assist and advise you on the needed improvements and the cost estimates for those repairs/improvements. The consultant will ensure that you're making all the necessary renovations and the desired improvements and will then itemize them in a document called a work write-up.

The Work Write-Up
The work write-up is a detailed scope of work that includes the necessary materials and a cost breakdown. It defines what is required to renovate the property to meet the customer's needs and program guidelines.

This document also ensures that all health and safety issues have been addressed and, most importantly, that the allocated funds for the project are sufficient to cover the required work for project completion. The consultant will also factor in a contingency reserve to be used in case of unforeseen deficiencies that may appear as work is being performed.

Most importantly, it provides an opportunity for all of the parties involved to understand and agree on the scope of work.

After the work write-up has been completed, I'll send it to an appraiser, who will use it to determine the after-improvement value of the property.

Download a free renovation guide by clicking here

Home Purchase Basics

Will Addo (REO Asset Solution, LLC) — Tue, 17 Jun 2008 20:54:14 -0500

Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you're a first-time homebuyer. Here's some information that will keep you on track.

In General ...
A home purchase may be the largest financial transaction in your lifetime, so it's important to make the right decisions and to keep an eye on the details. With the assistance of your real estate agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

Count on Your Real Estate Agent to:

Preview available homes that suit your needs as you've defined them.
Negotiate the best deal for you. Ask your loan officer for a pre-approval letter before submitting your offer. With a pre-approval letter from us in hand, your real estate agent will be able to demonstrate that you are a qualified and capable borrower. This may influence the seller, and may make the difference between the seller accepting your offer or someone else's.

Count on me to:

Help you understand the loan process and all of your loan options.
Assist you in selecting a loan to meet your personal situation and goals.
Provide you with a pre-approval letter.
Keep you informed of your loan status throughout the entire process.

Make Sure You:

Keep your real estate agent informed of any questions or concerns as they develop.
Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
Remain objective throughout the proces to ensure you making the business decisions related to your real estate transaction.
Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.

Wow, free information

Will Addo (REO Asset Solution, LLC) — Thu, 08 May 2008 21:19:43 -0500

Everybody likes information with out a price tag. So put your wallet away and get out those
pencils. We went out to find the best deals out there for the taking.

1: Free Samples

Let's face it...free stuff is the best stuff. You have to be careful
of free-product programs...your inbox may be flooded with ads or
there may be hidden fees. So read the fine print carefully.

Here's one Web site that connects manufacturers with consumers
who test products. That's http://www.startsampling.com/. You'll also want
to check out company Web sites directly like tide.com and olay.com
to sign up for discount coupons and new-product samples.

2: Free Phone Aid

We've all been charged for dialing 4-1-1, but now there's free
directory assistance. That number is 800-FREE-411. You will have to listen to a
few seconds of advertising. But you'll get your number at no charge.

And here's another handy phone tool...If you really want to get out
of a meeting...or a date, you can "receive" a fake call. Check out
popularitydialer.com. Set the time you need to receive the call and which excuse you want to
use ...(like the "return to the office" call), and voila! you'll receive a
"fake" call with a recorded message that demands you leave whatever you're
doing and go back to work.

3: Free Memory

If Post-its just aren't cutting it as your scheduling tool, there are
some free tools on the Web that can help. Check out memotome.com. You'll
never have to say a happy belated birthday again. Just put in your e-
mail, and program in the events and dates you need to be reminded of.
There's also birthdayalarm.com. Membership is free and you'll even get free
invites and party planning tools.

4: Free Books

If you're an avid reader, you may really love paperbackswap.com.
All you have to do is choose a book you'd like to read from a list
and you'll receive it in the mail.

At the same time, you list the books you want to get rid of. When
someone requests to read it, all you have to do is pop it in the
mail. You will have to pay for postage, but it's usually around $2.13.

5: Financial Planning

Before you invest in a financial planner, check out some of these
online tools. To figure out how much you'll need in retirement, check
out this calculator. All you have to do is punch in some basic info
about your income and savings. If you want to take a peek inside your
portfolio to see how your funds are doing, Morningstar.com has a great tool on
its Web site called Instant X-ray.

Preventing Foreclosure with FHA secure

Will Addo (REO Asset Solution, LLC) — Sat, 03 May 2008 16:59:57 -0500

FHASecure is an initiative that enables homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently "reset." It is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market.

The program allows homeowners to refinance even though they have become delinquent due to the increased mortgage payment following the reset. For homeowners who have demonstrated their ability to meet their mortgage obligations, this program permits them to refinance into a prime-rate, FHA- insured mortgage. In many cases, homeowners may be permitted to include mortgage payment arrearages into the new loan amount, subject to existing geographical statutory mortgage limits and FHA loan-to-value limits.

The FHASecure initiative, requires that the loan application be signed no later than December 31, 2008

Homeowners eligible for refinance under FHASecure

The mortgage being refinanced must be a non-FHA ARM with or without an interest-only feature. Homeowners current mortgage must be serviced by Wells Fargo in order for me to assist them. If the homeowners current mortgage is with another lender they can contact their lender to find out if they qualify for the FHAsecure.

If the existing mortgage is one of the following, it is not eligible for FHASecure:

• Conventional Fixed Rate Loans (including fixed rate interest only)

• Payment Option ARMs

• VA loans

• FHA loans

The requirements for eligibility are as follows:

• The mortgage being refinanced must be a non-FHA ARM that has reset.

•The mortgagor's payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments. The homeowner's mortgage payment history during the six months prior to the reset showed no instances of making mortgage payments outside the month due.

• If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments. See Maximum Loan Calculation later in this section.

• Under certain conditions explained below, FHA will insure first mortgages where the: o existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or o borrower obtains a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits.

I can provide assistance in all 50 states. If you are a homeowner or know of a homeowner that would need my assistance please give me call or shot me an email.

Benefits to Veterans Loan-Part 2

Will Addo (REO Asset Solution, LLC) — Thu, 01 May 2008 22:39:18 -0500

VA FINANCING - A GOOD DEAL FOR VETERANS

More than 25.5 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:

Most important consideration, no downpayment is required in most cases.
Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000.
Flexibility of negotiating interest rates with the lender.
No monthly mortgage insurance premium to pay.
Limitation on buyer's closing costs.
An appraisal which informs the buyer of property value.
Thirty year loans with a choice of repayment plans:

Traditional fixed payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage);
Graduated Payment Mortgage--GPM (low initial payments which gradually rise to a level payment starting in the sixth year); and
In some areas, Growing Equity Mortgages-GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan)

For most loans for new houses, construction is inspected at appropriate stages to ensure compliance with the approved plans, and a 1-year warranty is required from the builder that the house is built in conformity with the approved plans and specifications. In those cases where the builder provides an acceptable 10-year warranty plan, only a final inspection may be required.
An assumable mortgage, subject to VA approval of the assumer's credit.
Right to prepay loan without penalty.
VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.

Did you find this post informative?

Benefits of getting a Veterans Loan-Part 1

Will Addo (REO Asset Solution, LLC) — Thu, 01 May 2008 22:33:58 -0500

VA Loan Information

The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any downpayment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application.

Additionally, if the lender is approved under VA's Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.

FIVE EASY STEPS TO A VA LOAN

Apply for a Certificate of Eligibility.
A veteran who doesn't have a certificate can obtain one easily by completing VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits and submitting it to one of the VA Eligibility Centers with copies of your most recent discharge or separation papers covering active military duty since September 16, 1940, which show active duty dates and type of discharge.
Decide on a home the buyer wants to buy and sign a purchase agreement
Order an appraisal from VA. (Usually this is done by the lender.)
Most VA regional offices offer a "speed-up" telephone appraisal system. Call the local VA office for details.
Apply to a mortgage lender for the loan.
While the appraisal is being done, the lender (mortgage company, savings and loan, bank, etc.) can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of the VA or LAPP appraised value determination, the loan can be approved and closed without waiting for VA's review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.
Close the loan and the buyer moves in

Let me know if you found this post informative.

Renovation Guide

Will Addo (REO Asset Solution, LLC) — Thu, 01 May 2008 00:10:34 -0500

Download your free renovation guide today by clicking here. Educate yourself on the renovation process.

FHA- Credit issues

Will Addo (REO Asset Solution, LLC) — Wed, 30 Apr 2008 20:12:12 -0500

Before approving a loan, I will analyzes the integrity of the borrower's past credit performance. Those who have a good credit history demonstrated by a solid track record of timely payments will likely be eligible for a loan. Potential borrower's whose credit history is marred by slow payments, poor financial judgment and delinquent accounts is not a good candidate for loan approval.

The following is a list of items concerning the borrower's credit.

No Credit History

Two lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms.

Chapter 13 Bankruptcy

FHA will consider appoving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

Late Payments

What is FHA??

Will Addo (REO Asset Solution, LLC) — Wed, 30 Apr 2008 20:02:57 -0500

Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans more than seventy years ago. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with over 73 million Americans currently owning their own homes. Statistics show that by 2005, home ownership rates in the US have climbed to 69 percent.

HOW IT WORKS
By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

NUTS AND BOLTS
The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.

GUIDELINES
It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

If you have further questions about this program you can feel free to contact me

"A wise man should have money in his head, but not in his heart."
- Jonathan Swift: 17-18th century: Irish essayist, novelist, and satirist

Renovation FAQ

Will Addo (REO Asset Solution, LLC) — Wed, 30 Apr 2008 19:43:45 -0500

What is the minimum down payment required on a renovation loan?
It depends on the selected loan and qualifying program. We have programs that have down payments for eligible borrowers. Please contact me for more information.

What is the minimum amount I can borrow for a renovation loan?
Some programs require a minimum of $5,000 in repairs while other programs have no minimum requirements. If you have less than $5,000 in repairs, however, renovation financing may not be your best option.

When can the work begin?
Work can begin as soon as the loan closes and the loan proceeds have been disbursed. All work must begin within 30 days of the loan closing.

Can I get money before the work begins?
Upfront funds are not disbursed on renovation loans. Funds are disbursed after work has been completed and inspected. The only exception to this policy is for flooring, cabinetry and windows that are not in stock have to be ordered with an up-front deposit. A copy of the supplier's invoice is required, and the check is made payable to the supplier for the deposit (maximum 50% of the item's cost). The remaining funds for the item are not released until after the item is received, installed and inspected.

How long do I have to complete the renovation?
Work must begin within 30 days of closing, cannot stop for periods greater than 30 days, and must be completed within six months of closing. There are, however, certain programs that will allow up to nine months if the cost of repairs exceeds $50,000.

Can I do the work myself to save money?
The use of a general contractor is strongly encouraged and is a requirement on some programs. Depending on the loan program, however, a customer who possesses the time, ability, tools and assets to perform the work may be allowed to do so. This is reviewed on a case-by-case basis. With no exceptions, licensed contractors must perform certain repairs, such as electrical, plumbing, roofing, and HVAC.¹

Can I be reimbursed for materials I purchase outside the work listed in the work write-up?
Your renovation escrow account is based on the scope of work detailed in the work write-up. The only time a reimbursement can be made is if a change order is submitted and approved prior to the additional work being performed. Any work performed outside the scope of work escrowed is your responsibility if the change is not approved.

Can I use a renovation loan to renovate a condominium?
Yes. Certain restrictions apply to condominiums, such as limiting the work to interior renovations, the number of units in the project, and the number of units undergoing renovation at one time.

Do I need a home inspection if I'm getting a renovation loan?
You always have the option of obtaining a home inspection in addition to the inspection made by the approved consultant.

When do I start making my mortgage payments?
Payments are due and payable as disclosed on the promissory note signed at the loan closing.

If the property is not habitable during the renovation, up to six months of payments can be financed based on the consultant's estimate of the time required to complete the work. In this instance, payments would be due from the customer on the first day of the month after the property is habitable or upon the completion date.

The maximum number of payments that can be financed is six, and only if the property is not habitable. Any mortgage-financed mortgage payments that are not needed will be applied to the principal balance of the loan after the final draw is processed and the renovation account is closed out.

What happens to the 10% contingency reserve if it's not used by the end of the renovation?
It can either be used to do additional repairs, if approved by the draw center, or applied to the principal balance of the loan. If you didn't finance the contingency reserve, it can be refunded in cash.

If I don't use all the money set aside for repairs, can the money be given back to me in cash?
Only funds that you paid for repairs, clearly identified as being paid in cash during the loan process, can be given back at the completion and closeout of the renovation account, if the account has some residual funds. Any remaining residual in your account will be applied against your loan's principal if not used for additional repairs at completion.

If I'm building my house and run out of construction funds, can I use the renovation loan to complete the home?
We have a program that allows you to finance the completion of a home. The home must, however, be close to completion.

What happens if something goes wrong while the repairs are in progress, such as a bursting pipe or the discovery of rotted wood?
Your contingency reserve is used to handle any unforeseen repairs. The approved consultant would complete a change order form executed by all parties and send it to the draw center for approval before the completion of any additional work. Once the change order is approved, the necessary work can then be completed. The funds will be released after the consultant has inspected the completed work.

Can I move into the home as soon as the loan closes?
Yes, as long as the home is habitable, as per local regulations, and no mortgage payments have been financed.

I'm building my house and have run out of money. Can I use a renovation loan to complete the construction on my home?
No, renovation loans are only available for existing homes.

Have another question about renovation financing? Ask me.

The Renovation Lending Process - Before Closing

Will Addo (REO Asset Solution, LLC) — Wed, 30 Apr 2008 19:35:33 -0500

Considering a home improvement loan? Here are the general steps for our renovation loans, which will improve your home and your financial outlook.

Let's Talk
The first step is to talk with me. As a renovation specialist, I can tell you everything you need to do and what documentation you'll need to have to get a quick loan approval.

Most importantly, it provides an opportunity for all of the parties involved to understand and agree on the scope of work.

After the work write-up has been completed, I'll send it to an appraiser, who will use it to determine the after-improvement value of the property.

Download a free renovation guide by clicking here

First time buyers creating custom homes in Georgia

Will Addo (REO Asset Solution, LLC) — Sat, 23 Feb 2008 01:54:37 -0600

Thousands of first time home buyers are now able to create the home of their dreams by utilizing our renovation financing. Most of the homes on the market today are mostly foreclosures. The typical issues with foreclosures are that they need repairs or improvements. However, most first time buyers did not have the means to purchase and make the neccessary home improvements. So, this caused buyers to miss out on great opportunities. Until now, investors were the only ones able take advantage of the great opportunities.

We now have programs that will provide you with the financing to purchase the property as well as obtain the financing to complete home improvements. All of this is being done with one loan. If you are a first time buyer that has dreamed of creating your dream home, don't miss out on your opportunity today. You can learn more about the program and process by going to Create my dream home.

Program High lights

Down payment assitance
No minimum credit score
No maximum income limits

and much more....

How to finance renovations on a high end home

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 21:49:15 -0600

The Renovation Loan:

This is a permanent mortgage that will allow you to purchase (or refinance) a home in need of renovation. With one application and one closing, you will have the money to renovate your home and make those improvements you need.

We base the loan amount not on what the home is worth today, but rather on what it is going to be worth after the improvements are made. The value of your home is based on an "after-improved" value. What your house would be worth when finished.

We simply determine what improvements you are going to make to the home, and then ask the appraiser to tell us what the home will be worth when the project is finished. The loan amount is based upon what the property will be worth when the renovation is complete. Give us a list of items to be renovated or improved and we'll ask the appraiser what your house is worth. Your maximum loan amount is based on your improvements.

The loan includes:

The cost to fix-up the property; and other costs such as consultant fees, mortgage payments during the construction period, permits, contingencies, etc. The loan amount is based upon what the property will be worth. Loans are available to Owner-occupants, and Investors for the purpose of repairing or improving one-to-four family dwellings that are at least one year old.

You may:

Make any kind of improvement from simple remodels to complete rehabilitations.
Convert one unit into 2-4 units or greater than 4 units into 4 units or less.
Demolish and rebuild a new house on an existing foundation.
Mixed use residential properties are eligible.

Eligible Improvements: Virtually any kind of improvement may be made, such as:

Interior:

Additions
Remodel kitchen and baths
Finish basement and attic
Heating, air conditioning and electrical upgrade
New carpet tiles and wood floors
Kitchen appliances; dishwasher, refrigerator, range
Double pane widows, insulation and skylights
Whole house painting

Exterior:

Roofing, gutters and downspouts
Patios, decks and terraces
Fencing, new walks and driveways
Landscaping; including trees and shrubs
Handicapped improvements
Well and septic installation
Energy efficiency upgrades
New swimming pool

I offer many different types of Renovation Loans. IF you'd like to some more information on our program, feel free to shot me a email. I look forward to hearing from you.

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Tips for Selecting a Contractor

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 20:34:25 -0600

Tips for Selecting a Contractor

For most Renovation Loans, a contractor is required to do the work. The contractor must usually be licensed and insured. Here are some tips for how to find a contractor.

Word of mouth. Ask friends or family members who they would recommend. Ask your Realtor®. Contractors with a good reputation are best.

Check the websites of professional contracting/remodeler's associations.

Yellow Pages. If you have to go this way, be sure you do your homework!

Ask for references - and check them.
Do they have experience doing the type of work you need?
Get all estimates in writing.
Check to be sure they are licensed if required in your area.
Ask what professional associations / designations they have. If none, be wary.
Check the Better Business Bureau.

Helpful Sites

Contractor.com - Find a contractor- by zip code
National Association of Remodeling Industry (NARI) - Find a contractor
Better Business Bureau - Check them out!

Choosing a Renovation Mortgage Consultant..

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 20:26:34 -0600

The typical renovation loan process is complex and requires a lot of attention to detail and follow-up. It requires coordination of all parties involved so nothing is forgotten and there are no delays. This is what we do - and it is all I do! My team works with you and for you so that your experience is one that you would gladly recommend to your friends. Will Addo

What to look for..

Someone who is experienced and specializes in Renovation Loans
Customer focused with a high degree of customer satisfaction
Personalized service - How, When and Where you Prefer
Competitive rates & fees
Direct lender

FHA 203k Renovation Loan-Frequently Asked Questions?

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 20:19:01 -0600

What is the maximum amount of a mortgage under this program?

Loan amounts vary from area to area, depending on FHA and Conventional Guidelines. Conventional loan limits go up to $ 822,700. FHA limits vary by county and state. Higher cost areas and multi-unit properties have higher limits. To find the limits in your specific area, click here. Link to FHA Mortgage Limits

Are there any residency requirements for the property?

For FHA loans, the property must be owner occupied. Investor loans are available..see below.

Is Renovation Lending available for investors?

Yes, for Conventional Lending only. Investors typically can get up to 90% after-improved value. Investors may purchase 1-4 family properties.

Are there any income requirements or restrictions?

No. Buyers just need to qualify based on debt/income ratios established by the lender. These loans can be done by anybody with any income in any area...so long as the borrower and property meet the lenders' guidelines.

Are properties with well or septic systems eligible?

Yes. These systems need to be tested and working properly or money must be allotted in the loan for there repair. The installation or repair of the system must be completed prior to the beginning of any other repairs. Contact your lender for more details.

Who determines what improvements are required and their costs.

HUD Consultants are readily available. Your lender will be able to help you find one in your area.

How is the consultant paid?

The borrower pays the consultant at the time of the inspection. Fees are pre-set by HUD and range depending on the dollar size of the project.

What requirements must a contractor meet to participate in this program?

The Contractor must be licensed and insured.

Can I do the work myself?

Yes, however it we strongly encourage you to hire a contractor as the GC. While HUD does permit ‘self help', many lenders do not. When self help is permitted, the borrower must be able to satisfy three requirements:

1. Time. Borrower must explain how they are able to complete the project in a timely manner. (Example: School teacher/off summers.)

2. Talent. Borrower must demonstrate to the lender that they have the experience/knowledge to complete the project. In many cases plumbing, electrical or specialty work is necessary.

3. Assets. Since all money on this loan is released as work is completed, the Self-Help borrower needs to have sufficient funds up front to get the work started. Borrowers who are ‘tight' for cash will not be able to meet this requirement.

On conventional loans only borrowers who are contractors by trade (licensed and insured) may do their own work. Even then, they are only reimbursed for materials and not labor.

What improvements are eligible?

Structural repair or modifications, repair or replacement of plumbing, electrical, heating or air conditioning systems, adding skylights, painting, carpeting, floors, railings, kitchen or bath remodeling, adding baths, new roof, siding, doors, windows, landscaping, built-in appliances. Additions of rooms, covered porches, car ports, finished attics, basements, garages, or even second floor to existing home and more!

Here are some of the situations where renovation loans work best:

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 19:53:06 -0600

Property will not pass basic inspection prior to closing (minimum HUD standards)

Cost of work needed is high - at least $5,000 - and borrower does not have the money available to pay for this work. The more work needed, the more renovation lending makes sense. If only minor work needs done it's often best to look at other options.

Property is fairly priced for its current condition, market & location. You do not want to over-pay for a property in less than good condition. Typically you'd expect to get a bargain on this type of property as a reward for being willing to buy it ‘as is'.

After renovation the property will appraise for the loan amount necessary. You don't want to owe more than the property is worth.

For additions, renovation loans makes sense if you can create a home that is better than the homes you're finding on the market. For example, the house would be perfect if it just had a "_____". (fill in the blank: garage, family room, extra bedroom...)

These loans are great for ‘fixer-uppers', handy-man specials or those homes that are advertised as "Needing a little TLC".

FHA 203k Renovation Loans can be used for a variety of purposes

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 19:46:57 -0600

Here are the common uses.....

Meet HUD minimum standards
Put on an addition or garage
Major (Totaling over $5,000) remodeling. Examples include: Roof, windows, siding, rainspouts, doors, carpet, plumbing, electrical, heating, driveway, fencing, re-drywall, update kitchens & baths, ...even install a new well or septic system.
Buy an historic home and restore it
Buy a multi-unit house and restore it back to a single
Buy a single and convert it to a double (if zoning permits)
Buy a distressed or foreclosed property at a bargain and fix it up...gaining instant equity.
Fix major defects including water problems, foundation problems or structural issues

What is a FHA 203k Renovation Finanicing???

Will Addo (REO Asset Solution, LLC) — Fri, 22 Feb 2008 19:36:04 -0600

What's different...

Loan are based on after-improved value and condition
Defects can be addressed after closing.
Repair costs can be included in the loan and completed after closing

Most loans require the property being financed to meet certain conditions. Any defect in the property - from leaky roofs or bad furnaces to torn carpet or peeling paint- can stop the loan from closing. You need to address all of these defects (before closing) or find another house. For some homes, these defects are minor and easily handled. For others, it's just not possible. The seller may not be willing or able to do the repairs necessary to put the home in closing condition. You may not be willing or able to do them either, especially before closing. In that case, Renovation Lending can save the day. The cost of the work that needs to be done to the home can be financed into the loan amount and put into escrow (a special holding account) at closing. The loan closes with the property ‘as is'. After closing the work is done and paid for with the money that was set aside in escrow. In the end, you get the home you've always wanted.

1 One loan, one closing, one payment

2 FHA 203(k) and Conventional Home-style loans are available

3 Loans from $40,000 to $822,700 (Total of purchase & renovation)

4 Minimum renovation of $ 5,000.

5 Can be almost any house/any condition

6 1-4 Unit properties only (can convert from multi-unit to single or vice-versa, so long as final property is 1-4 units)

7 Can include almost anything: Remodeling, Additions, Renovations, Conversions, well & septic systems

8 As-is condition doesn't matter: Renovation Loans are based on after-improved value & condition

9 Can include both necessary repairs and ‘wish list' items as well

10 Loan size only limited by what you can afford, loan limits in your area and comparable property values in the area

What You Have is Always Enough?

Will Addo (REO Asset Solution, LLC) — Mon, 26 Nov 2007 13:55:17 -0600

Well, how was your weekend with your family? Did anyone say or do
anything to offend you? Were you glad to see everyone? Did all of your
words bring soothing relief or did your words bite at someone's real
or imagined hurt?

Well?

Dealing with the holidays and family sometimes brings a mixture of
blessings, fun, anxiety, laughter, and crying. It is just the way it
is and nothing will ever change it.

We, individually, must understand that everyone is dealing with the
same hurts, concerns, fears, uncertainty in their lives that causes
real and many times imagined hurts, fears, slights, etc. in their
life.

One might exasperatedly state: "Why don't they just act like I do?"
"Why are they so crazy?"

Sure, it's easy to blame the other person. Sometimes it is deserved,
but many times, it is not. Many times, we are acting out of our own
fears and concerns as we transfer our feelings onto others.

This brings to mind the attitude that Dale Carnegie teaches in his
writings. Paraphrasing his well articulated words: "just take the
blame, imagine yourself in their shoes, give others the benefit of the
doubt, over look their statements, if I had to live with their issues,
how might I act, feel, believe, speak? What are they dealing with that
causes them to have these positions, and above all, how can I help?"

Many people that see me may say, "Boy, you've got it made." It's not
that I try to put on this front, nor is it that my closest friends do
not know some things about various situations that I have cried on
their shoulders about in confidence." I believe that your perspective
on life determines how you feel over all and that determines how
others see you. I don't have a better life than many others, I just do
my best to put fears, concerns, etc., into perspective and too see
obstacles, sometimes, as not something to overcome, but to take as an
opportunity for a detour.

A friend and confidant told me something once that I want to convey to
you: No one makes bad decisions on purpose. At the time the decision
was made, using the knowledge that you had, you made the best decision
that you could make. Even though it was the wrong decision, you didn't
make it on purpose.

Those few words of wisdom, spoken at the right time, have calmed my
anxiety many times over the years, and along with other tidbits of
wisdom, allowed me the personal strength that I needed, at that very
moment, to rise up on the inside and overcome the personal set backs
that I faced, or should I say that faced me.

How you decide to deal with problems, how you think about those
problems, and of course, the outside assistance that you receive in
correcting your thinking from time to time about your problems, are
the only assets we have to right ourselves when the winds of life have
ripped our sails, grounded our boat, or sometimes destroyed it on the
rocks of life.

As this holiday season begins, we in this industry are facing the
greatest uncertainty in nearly 30 years. But, that's OK. It has to be.
You can't do anything about many of the problems and to the extent you
can maintain control or influence the outcome, you must.

The problems are so large, the resolutions so far away, change is the
only thing that is sure. The outcome is known and certain:

1. People will buy houses and need mortgages.

2. People will need to refinance.

3. And the folks with the money will need to lend it out to make money
on their money.

If you are not careful, you will ask yourself the wrong questions. You
should not be asking: When the business will settle down? The correct
question is: How will it settle out for me? How do I fit into this new
world?

As with our dealings with our families, the perspective that we take,
from our knowledge and experience base, from our friends that assist
us with a kind and uplifting thought, the perspective in which you
look at the business world around you, will be the only asset that you
really have that will help you make your way.

As we go into the holiday season, as we begin to see our relatives,
our crazy aunts, stepmother or divorced father situations, and of
course as we bring our on concerns about our very livelihoods along
with us and our fears and concerns for our future, let's go into it
with the attitude that I want to be of assistance to someone, I want
to help them with their fears, I want to provide comfort to them and
do everything I can to make their path a little easier. Let's help
them by giving from our heart what we have. Let's give them
understanding; let's give them affirmation.

My present to you this holiday season is to tell you, that without a
doubt, if you maintain the perspectives discussed in this article, if
you make the hard decisions that many of us are having to make, and if
you concentrate and make a list of "what you do have" instead of
concentrating on what you don't have, you will emerge from these few
weeks better prepared to ring in the new year and with a clear vision
for your next move.

I want to leave you with this: As you know, I made a lot of money
over the past few years in real estate.

Instead of hoping that the market will come back, I have gathered up
the only thing that I have, my knowledge and ability, and have learned
a new way to flip houses. I have decided to take the only thing that
can help me, what I have, and use it. With this perspective, I am not
waiting on the market to "get back to normal." Instead, I am dealing
with the market as is. I am accepting the next window of opportunity.
And, I expect to make money as a result.

Please let me encourage you to spend the next few weeks making a list
of what you have. What you are good at? What you know? Who you know?
Take an assessment, and remember, ONLY WHAT YOU HAVE WILL HELP YOU AND
IT IS ALWAYS ENOUGH.