Each month we distribute three (3) newsletters for people interested in the real estate and mortgage finance markets, real estate professionals, professional sales people, and homeowners.  The newsletters are Real Estate Trends, Real Estates Page, and The Sales Update.  Full archives for each newsletter are available here under the "Newsletters" heading on the front page of my website - www.sjbaxter.com.

Here are the 3 newsletters:

1.  September Real Estate Trends - In economic news, talk about a "double dip" recession is in the news.  It's not going to happen, but it's enough to scare people and keep economic activity a low levels.  We also have a story about how nearly 1/3 of homeowner refinances are shortening the term of the outstanding mortgage on their property - this is very good news.

2.  Real Estate Page - Tax Benefits of Home Ownership - A special report that outlines the major tax benefits of owning real estate. These include deductions for mortgage interest and property taxes, sheltering gains on sale, the use of home offices, and rental real estate. 

3.  Sales Update - John Wooden & Success - Learn about the creed that John Wooden, the ledgendary basketball player and coach, lived by and used to help shape a very successful life.

Please feel free to download and use with your database.

 

I send out a Sales Update newsletter to my Realtor and other referral partners every month.  For the last 4 months, the newsletter has focused on changing your business plan to succeed in a changing market.  To start, we focused on the marketing plan which really only has 4 components:

1. Identify your sphere
2. Grow your sphere
3. Prioritize your sphere
4. Deliver value to your sphere.

In a referral sales business it really is all about your sphere of influence - the people you know, work with, and live with.

Here are the 4 newsletters all in one location.  I hope they help you continue to build your business.

Part 1

Part 2

Part 3

Part 4

 

Sorry!  Probably isn't going to happen - not right now.  We're in June.  Remember all those sales in April to first time home buyers that need to settle by June 30th or they "lose" $8,000?  Those are the mortgage loans getting priority in the processing and underwriting queues around the country.

Unfortunately, as hard as I might try, your client's application is going to get pushed behind the all important first time buyer's application that still hasn't settled.  Things are so busy that at least one national mortgage lender has set this Friday - June 11th - as the deadline for getting all final conditions into processing in order to close a "tax credit mortgage" by June 30th.

Even if you and your client get me everything today (which you won't), the application file won't get to my processor until Monday (after overnight shipping and 24-48 hours of "quality control" audits).  Then we have to deal with a 7 business day underwriting queue.  If everything goes perfectly, I could have the mortgage commitment in 2 weeks . . . if everything goes perfectly.

Unfortunately, nothing ever goes that well.  Did I say that the borrower's a resident aliens and own a commercial building for rental, as well as, a single family home rental?  Did I mention that their son is acting as the intermediary in every communication?  Oh, and the property they are buying is a condo unit in a resort market and they are buying it as a 2nd home when the listing highlights how much rental income the unit produces during the summer season - remember these folks have a history of acting as real estate investors.

None of this is problematic from the point of view of getting the loan approved and settled in an orderly manner.  Just not in 2 weeks!

Just because a title attorney's office says they can "get title" in 2 weeks, it doesn't mean that the appraisal, the condo review, the underwriting review, and everything else involved in getting a loan to closing can happen that quickly.  Let's not forget about all the new RESPA, HERA, HEOPA, and HVCC disclosure and timing requirements that we have to comply with.

So, enough said.  Let's please try and set proper expectations for our clients.  If they wanted to be in the summer condo by June 22nd, then they should have signed the purchase agreement at least 2 weeks ago, or purchased with cash.

The sad part is that this agent will probably tell the borrower to find a lender that will say they can get the loan closed in less than 2 weeks.  Then I'll get the call a couple of weeks later to come in and get the borrower or the condo project approved:  "Jeff, you know my guys that you approved but said you couldn't get to settlement in 2 weeks?  Well, the lender I put them with - they are ready to go, but - Fannie Mae won't approve the condo . . ." Yaada, Yaada, Yaada

I know you want to get to settlement but let's all do a better job of understanding the details of each transaction and setting the right expectations with everyone involved.  Thanks.

If you need a lender in the Delaware or Maryland beach resort area, please contact me.  I'll be happy to help in an upfront and straightforward way.

The USDA has recently been sending out notices that they are accepting USDA Rural Housing applications and issuing "conditional" commitments - conditional in that they are no good until Congress passes implementing legislation.  I get calls from borrowers, title attorneys, and real estate agents asking why I'm not taking applications?

Well, long story short, there two different pieces of legislation in congress at the moment. One allows for a 3.5% upfront fee (current fee is 2%) to make Rural Development (RD) self funding and the other would allocate $12B to allow RD to keep funding loans as usual. Not knowing which legislation is going to be final, we would either need to charge the borrower 3.5% upfront (which could be a compliance problem since that amount is not approved yet) or hope to collect it at the back-end (with new RESPA, HOPEA and HERA rules could be a problem) or pay it ourselves - losing money. On top of that if Congress does not pass either piece of legislation for some reason, USDA will not insure the loans made while we are waiting. Their "Conditional Commitments" are based on Congress passing some form of one the bills. And finally, we don't know when (or if ) Congress will pass the legislation (it's in line behind financial reform and possibly immigration) and if a borrower misses their first payment for any reason, again, USDA will not insure that loan and we will own it on our books.

So while RD is accepting applications – they are not bearing any of the risks (financial or reputational).  I hope this helps you understand what we are dealing with.  We are, however, putting all of the wheels in place to act quickly once there is clarity on direction from Congress.

Please contact me with any specific questions for loan in Delaware or Maryland and I'll be glad to help.

 

On Saturday, June 5th, my wife Sue participated in the annual Seaside Craft Show in Bethany Beach, DE.  This is a juried craft show and is usually one of the highlights of the start of the summer season at the beach in southern DE.  Unfortunately this year, Saturday also brought 94 degree temps and very high humidity which evidently melted the crowds and their enthusiasm.  It's a shame because I saw first hand how hard all of the participants worked on their crafts and setting up their displays.

Sitting out in the sun all day, trying to sell your arts and crafts to small crowds isn't exactly fun, but I saw first-hand the enthusiasm and grace with which these folks worked through the day.  I hope they all had some modicum of success.

I'm very proud of Sue and Baxter Bags for participating in her first show.  She did very well considering the conditions and our combined inexperience in preparing for a full day (6:00 AM to 6:00 PM) on the Boardwalk in Bethany.

I work long hours on my mortgage business, but I've never seen such a grueling 12 hours.  You really need to love your craft and that's something that shows through in every Baxter Bag that Sue designs.

Our monthly newsletters have been published for June and are available on my website and blog - The View From The Beach. 

Each month we publish three (3) newsletters to provide information to clients, referral partners, and customers.  Here are the links to each individual newsletter:  

June Real Estate Report - How to Buy a Foreclosure An in-depth look at purchase property in foreclosure - the tricks and trip falls are highlighted.  

June Real Estate Trends A monthly summary of the key issues in the real estate economy  

June Sales Update - Charge Results by Changing the Numbers (Part 2) Part 2 of our series on re-thinking your business or marketing plan and planning for greater success.  

Please feel free to download and print these newsletters for your clients or to forward them directly via email.  As always, I appreciate all of your referrals and invite your calls.

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If you are a real estate professional working with REO buyers, you should speak with your lender about Fannie Mae HomePath financing. This program allows for up to 97% LTV financing on Fannie Mae REO (real estate owned) properties. You can view properties at Fannie's HomePath website - www.homepath.com.

With HomePath financing, no appraisal is required by the lender. The sales price is the appraised value for the purposes of financing. Naturally, you should encourage you buyer to purchase an appraisal if there is any question about the property value. Just don't share the appraisal or property inspection with the lender.

No MI is required on these loans, even at 97% LTV, but there are price adjusters added to the loan so check pricing carefully with your lender.

HomePath financing is available for all types of occupancy, primary, second home, and investment, but the maximum LTV's for second home and investment property purchasers are lower.

Check with you lender or give me a call.

With the tax credits being gone you may be asking yourself  if you should still consider buying a home. 

If you are a real estate professional, your clients may be asking you the same question.

There are 3 perspectives you need to look at when considering purchasing a home in today's market: 

1. Home Values
2. Net Effect of Payments
3. "Emotional Benefits"

Please take a few minutes to watch the video by clicking next to the red arrow to hear the answers to these questions.

What's Next Without the Tax Credit? (about 5:25 minutes)

Then give me a call (302.602.1067) to discuss your personal situation and if this is a good time for you to purchase a new home.

Good series on short sales for Realtors

Our May Newsletters are posted on my website - www.sjbaxter.com - and are ready for your use. Each month we produce three (3) newsletters that target different audiences in our business. Please feel free to download for your use. They can be printed and mailed, emailed, or faxed as you want. Click on the links below:

May Real Estate Trends - This is a general real estate update for your clients and prospects. This month we discuss the most recent economic numbers, getting good deals on properties that are not perfect, and some important tax information for people involved in short sales.

May Real Estate Report: Ensuring a Remodel Pays Off - This is a great piece for you client base. We discuss 6 ways to ensure a remodel project pays off.

May Sales Report: Change Your Results by Changing the Numbers - This newletter is for you - the sale person. Each month we offer tips and tactics to help you business. May's issue is the beginning of a series on improving your results in any market. Specifically we discuss the importance of adding value to your sphere.