mortgage mess: The Scapegoat of The Mortgage Crisis : The Dastardly Stated Income Loan - 05/02/08 06:15 AM
There have been many scapegoats in history.  
Steve Bartman, the Chicago Cub fan who many believe cost the Cubs a trip to the World Series for the first time in nearly 60 years.
Bill Buckner, who made an error at first base that Red Sox fans believe cost them the 1986 World Series.
According to legend, some ancient cultures would sacrifice criminals in response to natural disasters.
I won't mention the political scapegoats.  For many, even their mention is painful.
Scapegoats have been with us throughout history.   Some people need them to give a face to catastrophes that are beyond rationalization.   
To make the unexplainable easier … (23 comments)

mortgage mess: Note Modification is a Compromise - It's Not For Everyone and Won't Save Every Home - 09/26/07 03:23 PM
I have been blogging on note modification a lot lately.   As a result I have gotten a lot of calls from distressed borrowers looking for some free advice, which I am happy to provide.
This morning I got a call from a woman named Alice in Florida.  She wanted me to help her talk to her mortgage company about a note modification because she said she "couldn't get anyone to listen to her." 
We did a conference call with her mortgage company.
Alice is upside down in her home.  She has an Option ARM she has been paying 1% on.  Her loan is $300,000 … (12 comments)

mortgage mess: A Comment from Diana: A Real Life Story of Today's Mortgage Mess and Why All Lenders Need To Get Involved - 09/26/07 03:10 AM
Last week, I wrote  Calling on All Mortgage Lenders on Active Rain! Be a Hero - Give FREE Time To A Distressed Borrower and Help Them Save Their Home thru Note Modification.
I told about how I have been helping families get their mortgages notes re-done by simply spending time with them and communicating with their mortgage companies to help them save their home from foreclosure.  I challenged ALL lenders to do the same. 
I have received a lot of great comments on it but none as powerful as Diana's. Please read this.  Diana puts the face on what is real today.  She isn't … (2 comments)

mortgage mess: Calling on All Mortgage Lenders on Active Rain! Be a Hero - Give FREE Time To A Distressed Borrower and Help Them Save Their Home thru Note Modification - 09/19/07 06:41 PM
In the past two weeks, I have had no less than five desperate homeowners, with negative equity, mortgage lates, and resetting ARMs call me to help them refinance their mortgage to save them from foreclosure.
In all five cases, a refinance was not possible.  I still made appointments for each of the borrowers to come to my office and bring their mortgage coupon.   
In each case, I called their mortgage company, got the note modification department on the phone and arranged for a note modification.    I did not get one refinance out of this.  I did this for free. 
I cannot be any busier in my mortgage business here in Las Vegas.  As more and more lenders leave … (41 comments)

mortgage mess: The Lessons of 2007: At What Point Would You Decline A Loan For Someone Headed For A Train Wreck?? - 09/14/07 06:23 PM
I recently had a featured blog called,  Be Truthful With Your Lender from Day One - Desperate Acts and Lies Can Kill Deals.   In the post I wrote about some very dishonest borrowers I had recently dealt with.
Konnie McKee, an agent from Prince William County, Virginia made this comment:
"I had a client, school teacher, who bought a $780K home, and I tried to talk her out of it...she went stated income...and 6 months later she is in foreclosure...the loan officer knew she could not afford it...but he pressed on...at what point would you have declined to do a loan for someone … (5 comments)

mortgage mess: George W Comes to the Aid of The Mortgage Mess - Are The Tides Finally Turning?? - 08/31/07 07:29 AM
A few days ago I blogged about the Fed Chief's ideas to help out the mortgage mess.   The Fed Chief Chimes in On A Cure For the Mortgage Mess - Higher FHA Loan Limits is a Great Place to Start
Today, the Commander in Chief has chimed in.  George W came out and outlined some ideas that will help troubled home owners avoid foreclosure. 
It wasn't a full blown bail out, by any means.  It was basically an affirmation of what Bernanke had suggested a few days ago. Regardless, its still more good news.
Not to get too political but in 2000, I, like … (9 comments)

mortgage mess: The Fed Chief Chimes in On A Cure For the Mortgage Mess - Higher FHA Loan Limits is a Great Place to Start - 08/30/07 05:58 AM
The Federal Reserve chairman, Ben Bernanke, came out today and offered his opinion on the cure for the mortgage mess.   If the powers that be listen, I believe its the first step on the lengthy road to recovery.
Bernanke suggested a wider range of mortgage products for low income and other borrowers who have been hit hard by the market and the credit crunch.
He said that the Fed is keeping close tabs on the markets and is "prepared to act as needed." 
Foreclosures are at or near an all-time high in most areas.  Depreciating home values have made it impossible for people to refinance out … (31 comments)

mortgage mess: The Countrywide Mortgage Credit Crunch and What It Really Means To You - 08/16/07 04:00 AM
Countrywide announced today that they had to borrow $11.5 billion from a group of 40 banks to fund loans.
This clearly shows us just how deep the lending crisis has become and shows you clearly why the smaller companies are closing.  They don't have access to this kind of capital.
But what does this really mean to you and your business?
When Countrywide made this announcement they said "some 90 percent of the loans it originates from now on will be conforming loans or will meet its internal bank criteria."
This means that they are going to adjust their product line mainly to Fannie Mae and Freddie … (20 comments)

mortgage mess: Countrywide Changes Guidelines for Phoenix, Miami, and Las Vegas. - 08/13/07 10:56 AM
From an email I got from Countrywide 30 minutes ago.   More great news in our market and in Phoenix and Miami.  
For agents in PHX, MIA and Vegas you may wan to make sure Countrywide is not your only referral option.  Your clients have to pay 5% more than any other area of the country to go thru them as of today.  Locks don't apply as usual.
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 Hello everyone.  Here is another change that will certainly have an impact on your files currently submitted if they were not underwritten and approved as of today.  This will affect any file that used the … (6 comments)

mortgage mess: This Will Help You Understand What Your Lender is REALLY Dealing With - 08/10/07 09:42 AM
There is a tremendous amount of frustration between agents, clients and the lenders today as the mortgage mess gets worse and worse.  This will give you some insight to what your lender is dealing with today. 
When you log-on to the Countrywide website today, August 10, 2007, to check on a loan guideline or to get a rate, you get the following disclaimer:
IMPORTANT NOTE:Due to the rapidly changing mortgage market, our product availability and lending guidelines are subject to change frequently at this time. For the latest product and guideline adjustments, please go to Products on the Home Page of CWBC.   Please note that, … (9 comments)

mortgage mess: “What in the Heck is Going on With Lending and How Do We Adjust Our Business?” - 08/06/07 04:31 AM
Last week, a real estate broker I have tremendous respect for, sent me an email that said, "What in the heck is going on with the lending business and how do we adjust our business?"  He asked me to come speak with the agents in his office about it tomorrow.  Here is what I will tell them....
What's happening in lending is that the biggest banks in the world, like American Home Mortgage (AHM), one of the nation's top 15 lenders, are suffering  tremendous losses caused by foreclosures and a soft real estate market.   They are all concerned for survival and they … (12 comments)

mortgage mess: My Solution to the Lending Mess---An Open Letter to The Nation's Top Banks - 08/01/07 06:56 PM
Dear Top 25 Residential Lending Banks---
As you know, we are in a mess.  A downright mess. 
Foreclosures are at an all-time high in many areas.   Most housing markets are depreciating.  Millions of homeowners are facing the recast of their adjustable rate mortgages.  They cannot refinance out of them so they will watch their payment skyrocket and reluctantly join those already in foreclosure.
For those of you who can survive it, and most of you won't, this is going to cost you billions.  It's also going to create a new low for an industry that, although its had its downs before, has mostly been vibrant and alive for decades....the real estate … (15 comments)