My New Blog

Our Congressional Oversight Panel described the situation of Community Banks and Commercial Real Estate as "BAD".  They anticipate over HALF of all Commercial Real Estate loans will be under water by the end os 2010.  The worst is not over for real estate...

Call me with any questions!

Barbara

"The foreclosure plague is not going away -- it's only getting worse. 

A record 1.53 million properties were in the foreclosure process -- default notices, auction sale notices and bank repossessions -- during the first six months of 2009. That was 9% more than the previous six months and 15% more than the same period of 2008, according to a report released by RealtyTrac.

There were a total of 1.91 million filings resulting in 1 out of every 84 U.S. properties receiving at least one filing in the first half of the year. Banks repossessed 386,800 properties.  "What this means is, despite the intensity of the efforts on the part of government and lenders we don't have a handle on foreclosures yet," said Rick Sharga, a spokesman for RealtyTrac."

This is a market with an unprecedented volume of foreclosures with unknown implications on your property values, your neighborhood, and your property taxes.

Barbara

Since late 2006, 362 major U.S. lending operations have "imploded" according to the Mortgage Lender Implode-A-Meter

Feel like you have sent your monthly payments to a few different places since you purchased or refinanced your home? Change is the new norm in the mortgage business.  Underwriters changing credit criteria, lenders changing rates several times a day, and property values continually changing.

As we celebrate the beginning of Fall today, know that I am a resource to help you through this mortgage lending implosion.

Barbara

Every time a superbly completed loan package is submitted, you're entered in a monthly drawing for such prizes as gift certificates for travel, department stores and restaurants.  There is NO limit to the number of times a processor can be awarded a Certificate of Appreciation. Thus, the more complete packages you submit, the better the chance you have to win!

Is this to get loan processors to steer business to specific lenders or just a way to get cleaner paperwork?

Have a great day!

Barbara

Real estate prices nationally have increased.  Building permits on single family homes have increased over last month.  Does this mean people are rehabbing or tearing down mold infested properties?  On average 300,000 properties are torn down.  One month is a snapshot.  Let's see what happens next month as summer is usually the best residential property selling season.

Have a great weekend!

Barbara

Two appraisals are required on cashout refinances exceeding 85% LTV.

All cash out refinances with LTVs above 85% require two appraisals, each of which must be completed by FHA roster appraisers. When values differ, the lower of the two values will be used. The other requirements for refinances exceeding 85% LTV are as follows:

The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.

If said property is encumbered by a mortgage, the borrower must have made all of his/her mortgage payments within the month due for the previous 12 months, i.e., no payment may have been more than 30 days late and is current for the month due.

The property that is security for the refinanced mortgage must be a 1- or 2-unit dwelling.

Subordinate financing may remain in place, but subordinate to the FHA insured first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.

Any co-borrower or co-signer being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.

The second appraisal to be ordered by the broker from the FHA Appraisal roster

FHA has higher closing costs besides the 2 points charged- you may need to pay for two appraisals - one of which from the FHA list.... hope they know your neighborhood.

Call me if you are considering FHA to understand your options.  312-863-9560 Barbara

In 1984, Thomas Boswell wrote a great book , "Why Time Begins on Opening Day."  As the baseball teams open their seasons, it is a sense of new beginnings as each batter steps up to the plate the first time with great anticipation of what this season might hold.

In this economy, life imitates baseball in many ways as it is nine against one on the field.  If you are feeling that so many variables of this economy are against you, you need a solid financial advisor and educator in your dug out to help your personal strategy.

Please call me direct at 312-863-9560 if you have a question and I will give you an honest answer or find the answer with you.  These are challenging times and I hope all my clients remember that I am here for them.  (Of course, if you were orphaned by the individual or company that put you in your current mortgage,  I am happy to evaluate your options with you.)

Batter Up!

Barbara

Identify and seek out relationship building opportunities that will bring you into contact with potential clients by:

•  Serving on the board of a local not-for-profit organization
•  Contact organizations that interest you and ask if they need a board member with your background
•  Participating in business and industry awards programs
•  Get involved with your chamber of commerce 
•  Consider nominating a client or yourself
•  Offer your expertise as a speaker for business and community organizations
• Volunteer at charity events – get involved in your community while putting yourself in a position to network with potential clients

You can't meet potential clients sitting behind a desk waiting for the phone to ring.  Get out there!

Barbara

312-863-9560

8,000 Reasons to Buy Your "First" Home

First-time home buyers who purchase a home before December 1, 2009 may be eligible to take advantage of an $8,000 tax credit as part of the American Recovery and Reinvestment Act of 2009.  Qualifying first-time home buyers may claim a tax credit of ten percent of the purchase price, up to $8,000, or $4,000 for married individuals filing separately. The tax credit begins to phase out for those whose adjusted gross income exceeds $75,000, or $150,000 for joint filers.

Buyers must purchase a home before Dec. 1, 2009 to be eligible and the credit may be claimed on a home buyer's 2008 or 2009 tax return. Filing an amended 2008 return after purchasing a home provides an option to buyers who wish to receive the credit sooner.

Unlike the previous $7,500 credit available to first-time buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back as long as the home remains the buyer's primary residence for at least 36 months after the date of purchase. First-time buyers, for the purpose of this credit, are those who have not owned a home in three years.

If you or anyone you know would like to take advantage of this program by purchasing a home, please do not hesitate to let me know. Call Barbara at 312-863-9560.

Over the past 18 months, Fannie and Freddie Mac have increased their loan fees in response to market conditions and rising delinquencies.  How much are these fees?  They can add $2,000 to $6,000 to the cost of the mortgage at closing for borrowers with less than perfect credit. 

So, look closely at your good faith estimate for a GSE (Government Sponsored Enterprise) adverse credit fee.

Bottom line, know who you are dealing with and know what you are paying for at closing.

During these economic times, every penny counts.

Barbara