real estate: Internet Security - Are your customers and YOU at risk??? - 04/21/08 02:54 AM

Minimizing the risks related to the Internet security is of primary concern for any online business site. Internet security is very important and must be guarded severely at all costs. Minimizing the risks related to online security will ensure that you will be able to attract many customers to your online sites. Many security measures can be installed in an online site for lessening the risk of Internet security.
If the customers are not sure about the security of their personal details and financial statements, they will never conduct online business. Internet privacy security is very important for any online business … (0 comments)

real estate: Insuring your most valuable asset, your home - 04/04/08 05:25 AM
Your house is a big investment - probably one of the biggest you're every likely to make.
It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That's why it is so important to ensure that your home and family are protected in the event of your death. It's not a topic that any of us like to dwell on, but the sad fact is that should you die and the family is no longer able to afford repayments on the house, they will lose the property and the roof … (0 comments)

real estate: 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)

real estate: 1031 Tax Deferred Exchanges - 03/17/08 01:26 PM
 Turn NOTHING into SOMETHING (BIG) with a 1031 Tax Deferred Exchange
Commercial real estate can be a lucrative and feasible investment strategy. For those wishing to take advantage of the current market, a device exists that can grow existing investments into lasting financial security: Section 1031 of the Internal Revenue Code allows buyers and sellers of investment property to defer capital gains taxes from a property sale by rolling the proceeds into another investment property of equal or greater value.
The 1031 exchange, as a transaction under this section is known, is governed by strict rules. To be eligible for a tax … (0 comments)

real estate: Why are interest rates on 30-year fixed-rate mortgages rising even as the Federal Reserve slashes interest rates??? - 03/10/08 08:19 AM
Many of you have been asking, why are fixed rates still remain high when the Federal Reserve has been lowering them?   
The moral:  Your money is worth less to banks (interest paid to you by banks) but to borrow this money, comes at a higher rate.
The answer is that the mortgage market is short of roughly $1 trillion in capital, according to Paul Miller, an analyst at Friedman, Billings, Ramsey. The modern mortgage market works with borrowed money. Investors, including hedge funds and mortgage real estate investment trusts, buy mortgage securities, but finance a lot of their purchases with this borrowing ability.  Miller estimates that … (4 comments)

real estate: Tax time, time for mortgage write offs - 02/07/08 06:36 AM
If you have ever taken out a mortgage, you probably already know of the tax advantage provided by deducting your mortgage interest payments.
But many homeowners overlook another the tax break available for points paid to get a home loan. In some cases, points also could shave tax bills for homeowners who refinanced or got an equity loan or line of credit.
Each point is 1 percent of the loan amount. Lenders charge points as a way to make a profit, and borrowers generally pay points in exchange for lower mortgage rates.
If you paid points, the amount should be listed on the 1098 statement from … (2 comments)

real estate: Real Estate Contracts for Dummies - 01/31/08 03:30 AM
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)

real estate: 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):
Below 620                    2.000
620-639                         1.750
640-659                         1.250
660-679                       … (0 comments)

real estate: 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)

real estate: 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)

real estate: Tips for Avoiding Foreclosure - 12/18/07 06:46 AM

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)

real estate: Fannie and Freddie Rate Adjusters for FICO Score... - 12/06/07 12:50 PM

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)

real estate: 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)

real estate: 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)

real estate: How to prepare your house for selling! - 06/26/07 12:50 PM
Buying a home is not only based on price and location but also emotional aspects like comfort, ease of transition, and durability of the home. Home sellers are often confused about what the best way is to make their house stand out above the rest. Too often than not, home sellers are spending countless hours fixing up things that a home buyer would not notice and are ignoring the items that would turn away a home buyer. Here is a list of suggestions in preparing your home for selling: 1. Curb appeal - Make the first impression count. Some home buyers won't even … (0 comments)

real estate: Business and Marketing Plan for Real Estate Success - 04/20/07 01:56 PM
How Much Do You Want To Earn?Gross Revenue is not income.  Revenue is the gross earnings before expenses and taxes.  Net Income is what you keep after all is said and done. Let's face it, that is what matters.  You can earn $1,000,000 but if it costs you $990,000 how much did you really make? If you do not set yourself an income goal for the year, chances are you will not achieve it.Know All Your Expenses.There are two types of expenses, fixed and variable.  In real estate that translates into Overhead and Transactional Expenses.  Overhead would be defined as those expenses, such as … (2 comments)

real estate: Is Now the Time to Buy? - 04/04/07 02:59 PM
There is no doubt that the real estate market has slowed down and is not the hot market we had from 2002 to 2005. The news media is quick to point out that more homes are on the market and that sales are down. Given the current market, is now a good time to buy a home?"But the market is turning and prices seem to be falling, so why would I buy a home now?" The housing market has changed, prices are leveling and may even decline. But remember that a home should be thought of as not only as an … (1 comments)


Daniel Eckenrode

Hagerstown, MD

More about me…

Free State Mortgage, LLC

Address: 11245 Suffolk Drive, Hagerstown, MD, 21742

Office: (301) 416-7283

Mobile: (240) 291-0076

Email Me




RSS 2.0 Feed for this blog