mortgage: Mortgage Fraud Red Flags
- 03/25/08 03:24 AM
Do You Know Your Mortgage Fraud Red Flags? With a substantial increase in more full documentation loan applications, it is important to closely review the provided income documentation for inconsistencies. The following represent some common mortgage fraud red flags on the IRS Form W-2 or 1099: Employer is a large, recognizable company, but forms are not computer-generated W-2 appears typed, but paystubs are computer-generated Different type or font appears within the income document Employer identification number is formatted other than XX-XXXXXXX (two digits, hyphen, seven digits) Employer and employee names and addresses are inaccurate and/or do not match the 1003 Form reflects even dollar amounts for wages (3 comments)
The real estate contract is the most often used, yet little understood tool in the real estate business. Whether you are a rank beginner or seasoned expert, there is no excuse for not knowing and understanding the real estate contract. Real estate contracts are based on common law contract principles, so it is important that you understand the nuts and bolts of contract law. Offer, Counteroffer, and Acceptance. In most states there are standardized contracts used by real estate agents and attorneys. The contract is generally drafted in the form of an offer. The offer is usually signed by the buyer. (2 comments)
mortgage: Risk Based Pricing Explained
- 01/24/08 11:48 AM
I've had a few questions in regard to the risk based pricing and what it means to your clients. These adjustments are not targeted on the 100% purchase programs, but this may vary from lender to lender. In a nut shell, your clients will qualify for less because the rates will go up for the lower credit score borrower. The following are RISK-BASED adjustments that apply to all programs unless specifically excluded below:
For LTV's greater than 70% with credit scores listed below (My Community Mortgage, Home Possible, EA1, 10/15 year Terms are excluded):
Lease/Options can be fun and profitable, but there are certain pitfalls. The following are some practical, legal and tax tips I have learned from doing many lease/options deals over the years. Protecting Your Option Lease/options are great, except when the seller decides not to live up to his end of the bargain. Sure, you can always sue the seller to force him to sell you the property, but this can cost you thousands of dollars in legal fees and take years to accomplish. You need to be in a better position if you want your investment to be protected. Here are three good (6 comments)
mortgage: Mortgage Insurance Continues to be Tax Deductible
- 12/21/07 12:12 AM
Some GOOD News for a Change Mortgage Insurance (PMI) continues to be tax-deductible through the year 2010. Since 80/20 loans are now just about obsolete, a ONE loan with PMI is a excellent way for borrowers to purchase a home with essentially NO MONEY DOWN. Households whose adjusted gross income is $100,000 or less can deduct 100% of their MI premiums. (The deduction is reduced by 10% for each additional $1,000 of adjusted gross income, phasing out after $109,000.)The deduction applies to "qualified residences," as defined in the Internal Revenue Code. Generally, that includes the borrower's primary residence and a "non-rental" second home. Investor properties (2 comments)
mortgage: Real Estate/Mortgage Fraud is Out There, Are You to Blame?
- 12/20/07 01:19 AM
Mortgage fraud is out there. Learn the facts and how to prevent it. What is mortgage fraud? Mortgage fraud is a misstatement, misrepresentation or concealment of a fact or action that deceives and may be relied upon by a mortgage lender through the mortgage origination, purchasing or servicing process. Two classifications of mortgage fraud: • Fraud for Housing: Borrower's intent is to repay the mortgage; however, false information may be provided to facilitate loan approval. • Fraud for Profit: Typically involves a collaborative relationship among industry professionals with the intent to deceive. Multiple misrepresentations exist. An organized scheme may involve multiple transactions. Common areas of misrepresentation • Income/employment • Credit/Social Security (3 comments)
mortgage: Tips for Avoiding Foreclosure
- 12/18/07 06:46 AM
STOP FORECLOSURE TODAY! Save your home from foreclosure. Get the help you need now! A record percentage of U.S. homeowners are facing foreclosure and many more are falling behind on monthly house payments. Foreclosures and mortgage delinquencies number in the millions. According to reports, consumer debt, foreclosures, bankruptcy filings and mortgage delinquencies are higher than at any other time in history. Families are losing their homes at record rates, and experts are predicting higher numbers this year. The only viable option for most of these homeowners is loss mitigation. Loss Mitigation is the art of helping delinquent homeowners, in or close to foreclosure, (2 comments)
Once again kicking us while we are down, I have been told by one of my investors that Fannie and Freddie Mac will start to introduce "FICO Rate Price Adjusters" beginning the first of the year. What does this mean for you the Real Estate Professional and our clients? Well, if we can get a standard DU/LP approval, we can price the loan with the standard adjustments (i.e. LTV, DOC type, etc.) Well, even if you get a standard approval, Fannie/Freddie are going to require lenders to factor the borrowers FICO into the rate equation. So a borrower with a FICO of 650 will end up (3 comments)
mortgage: Mortgage Fraudsters Finding ways to Exploit Bubble Bust
- 11/05/07 01:59 PM
It is hard to find a tragedy in the world that some heartless rat can't find a way to exploit and the current and growing incidence of foreclosures doesn't violate the rule. Foreclosure fraud is not new - as far back as the spring of 2005 the National Consumer Law Foundation published a 68 page report on incidents they had investigated in every state of the union and the FBI recently published its Mortgage Fraud Report for 2006 which said in part: "Recent statistics suggest that escalating foreclosures provide criminals with the opportunity to exploit and defraud vulnerable homeowners seeking financial guidance. The (3 comments)
mortgage: Dealing with difficult sales prospects
- 10/08/07 04:53 AM
I often have clients who say people inquire about their products or services and once they give them a price they say so and so has it cheaper and hang up. Well it sure is incredible to see individuals acting that way. Since when getting the cheapest price is the best deal? I don't necessarily choose my providers because of their cheap price. I also look at the value of what I get. I always look for the lowest possible price with the best but I also consider the quality of service, level of expertise of the company, how long will (3 comments)
mortgage: Leads, Selling and Making it All Work
- 07/13/07 10:14 AM
Lead lists, all sales people have used them in some form or another. Are they worth their weight in gold? My company uses all sorts of ways to market to clients to include telemarketing. Lets face it, this is really not the way that ANYONE wants to prospect for business, but when the phone isn't ringing, we are forced to make others ring instead to generate the need. Make makes a good lead? How do we use these leads to generate a quality sale? No matter what you are selling, you want to make the offer appear to be something that client wants rather something that is being "sold" to them. Hence, (2 comments)
mortgage: Promises, Promises, Promises...
- 07/11/07 01:04 PM
We have all heard it before...the horror stories of a closing gone wrong. "The loan officer told me that I was getting a fixed rate," or... the rate that was promised which was "so much lower than everyone else" was NOT what they received at closing." It is sad to see that in this business, that mortgage professionals are being labeled the same as "used car salesman" (yuck!) This "bait and switch technique" is VERY deceptive (not to mention illegal) practice among loan officers. These originators feel that they can quote a low rate to reel the customer in and when they find out otherwise, it is too (5 comments)
mortgage: What is a Reverse Mortgage?
- 04/20/07 01:21 PM
Answer: A reverse mortgage is a loan where the lender pays you instead of you paying the lender. Home equity is tapped to make these payments, which can be lump sum or monthly. Generally, reverse mortgages do not need to be repaid until you sell your home. Reverse mortgages are often used for retirees who have a lot of equity in their house but have a reduced income. A reverse mortgage can pay a dividend to the homeowner from the equity in the owner's home (annunity payments.) Reverse mortgages are also a plus when a homeowner is faced with the decision to either sell (0 comments)