sales: 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)

sales: 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)

sales: 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)

sales: 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)

sales: 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)

sales: 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)

sales: 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):
  
CREDIT SCORE LOAN LEVEL PRICE ADJUSTMENT
  
Below 620                    2.000
  
620-639                         1.750
  
640-659                         1.250
  
660-679                       … (0 comments)

sales: Advice on Lease Options - 01/02/08 11:41 AM
 
 
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)

sales: 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)

sales: 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)

sales: 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)

sales: 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)

sales: 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)

 

Daniel Eckenrode

Hagerstown, MD

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Free State Mortgage, LLC

Address: 11245 Suffolk Drive, Hagerstown, MD, 21742

Office: (301) 416-7283

Mobile: (240) 291-0076

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