Looking Out From the Garage

Ken Cook and I are working with Gwinnett Homstretch Down Payment Assistance. As a buyer, you need to have $1000 going into the purchase, but Gwinnett Homestretch may contribute up to $7,500, if you qualify. There are a few things to keep in mind:

• It is paid as a 0% loan, which will be forgiven after 5 years of using the property as your principal residence. In effect, that makes it a grant... there are no payments due during the 5 years.
• You will be required to complete an 8-hour counseling class from a HUD approved Housing Counseling Agency.
• Total household income must not exceed HUD lmits, based on household size. Households range from 1-8 people.
  • 2 people - HUD max is $46,000
  • 4 people - HUD max is $57,450
  • There are different income maximums for other household sizes.
• Investors are NOT eligible for this program.
• The home MUST pass an inspection by Gwinnett County PRIOR to closing.
• Purchase Price may NOT exceed $200,000.

There are other requirements, such as being able to qualify for a mortgage. Contact Ken and I for details.

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We'd love to help you buy a home. There are great deals on the market right now, and interest rates are exceptional.

For more info, click here. There are other Down Payment Assistance programs available around the Metro Atlanta area.

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Last year I was waist deep in dealing with buyers involved in REO properties (bank owned).  Oddly, I have been waist deep in the same process lately.

As mentioned in the older post, some buyers have to go through 6, 8 or 10 (or more) offers in order to land some of these properties.  And when the listing agent, or the seller, requires a pre-qualification from THEIR specific lender in order to offer on the property, that can add up to a lot of credit pulls for the potential buyer... possibly even enough to damage their credit.

The situation seems a little better... but only a little.  We are still running into a lot of bank owned properties that are requiring buyers submit to specific pre-quals from lenders that are either specified to by the seller, or friends/partners of the listing agent.

We have had a little better luck resisting this year, though.  Perhaps the banks are getting the message that this isn't their best idea...

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from LaneBailey.com

There is a video clip that has been EVERYWHERE on the internet.  It has been re-subtitled more times than I can count.  Almost any subject that is causing anyone frustration, from the collapse of the housing bubble to the Democrat meltdown to the way some people drive in traffic...  They've all had a version of this video.

And while it isn't politically correct, it is funny.  And I don't care about being politically correct.  I prefer funny.  And Bill Mahr is politically correct... and NOT generally funny.

Pop back a couple of years and see what the fuss was about...

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from LaneBailey.com

Over the last few weeks I have worked with a few buyers that have had questions about mortgages, pre-approvals and "the process"...  Oddly, as I was looking for a post from last year, I stumbled onto a collection of Ken Cook (the mortgage dude, not the weather dude) posts I had highlighted about those very things.

I assembled a few quotes from 3 of Ken's (then) recent posts and linked back to them for more info.  He puts out a LOT of great info about the mortgage side of real estate, and he is my "GoTo Guy" for financing.

So, wander back and see a few "Mortgage Thoughts from Ken...".  Let me know what you think.

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I am very NOT perfect.  I have had credit issues just like many others... I have fought back from the brink and suffered setbacks.  And one thing I have learned is that there are NO easy remedies.  You can't make a call, spend $500 and get magically good credit from some dude driving around in a crappy car... or even an expensive car.

A couple of years ago I wrote a post about a Credit Repair company I saw advertised on the back window of an older SUV.  What really ticked me off was that it said...

Get the "Good CREDIT" you DESERVE

It bothered me on several levels.  Feel free to read the post to see exactly why...

• First, why are there quotes around "Good CREDIT"?
• And don't most of us HAVE the credit we deserve?  I don't want to sound harsh, but when we don't act responsibly, we don't "deserve" good credit...

There are also some tips on how to get the good credit you desire.

If you want to buy a home, I might suggest talking to a good mortgage lender... I happen to know one.  If you find out that your credit isn't where you expected it, he might be able to help that, too.

 

from LaneBailey.com

A couple of years ago I wrote about folks facing foreclosure.  I would love to say that things have really changed in the last couple of years, but I can’t…  They have actually gotten worse in many regards.  But we might be seeing the light at the end of the tunnel… but it is just a pinprick of light…recent numbers are showing that the tide of foreclosures might be easing… if only slightly… from record levels.

But I am still seeing something that really bothers me.  People that are in the sights, facing foreclosure, close themselves off and refuse to admit reality until the Sheriff comes knocking on their door.  I understand why… it isn’t any fun facing a grim reality.  But the grim reality WILL be faced.  Better to face it while there is still time to alter it for the better.

Let me be VERY clear.  I do not have the training to do short sales.  I don’t do short sales as a listing agent.  I do handle foreclosures… and would be just fine as a buyer’s agent on either a short sale or foreclosure.  But, I don’t want to list your home as a short sale… and I would be just fine if your home didn’t come on the market as a short sale or foreclosure…  I would MUCH rather that you find a way to avoid losing your home.

The good news is that loan modifications and short sales ARE getting easier.  Not much, but it is a start.

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A couple of years ago I wrote a post about Mortgage Fraud... and the dangers it can pose to sellers.  It is a good read, and can clue you in about one of the ways you (as a seller) can get dragged into fraud... and then dragged off to jail.  Be careful.

Link.

Now for a little story...  Early in my career, the agent on the other side of a transaction from me asked me to prepare a second contract and increase the sales price.  Even as a "newbie" I knew that what this "seasoned agent" was asking me to do was wrong.  My broker agreed...  The seller was fully insulated from the situation.

The problem is that the fraud evolves.  As investigators and others recognize specific tactics, the tactics are changed.  Many of them might seem to be almost logical... and the perpetrators may have a good story to spin.  But at the base, it is still fraud.

Don't be afraid to ask your agent, you agent's broker or even local investigators questions.  Better safe than sorry.

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Ken Cook, from America Home Key Mortgage, is an FHA expert and extremely knowledgeable about the Mortgage Industry in general.  And of course he is on top of the recent and pending changes HUD announced for the FHA. 

The Federal Housing Administration, the division of the Department of Housing and Urban Development which insures home mortgages for qualified borrowers, has recently announced pending changes which will affect all borrowers and specific borrowers.

Reports show FHA defaults and foreclosures to be at 18% of the total number of loans where the average number of defaults and foreclosures on other loans is 14%. In an effort to avert the need for a taxpayer bailout there have been several changes initiated and proposed.

The rest of the article is here.  It examines the changes to the Mortgage Insurance Premium, enforcement enhancements, changing seller funding from 6% to 3%, and limitations on the 3.5% down payment.

The bottom line is that many buyers have their best shot at getting an FHA mortgage before all of the changes take place.

More current mortgage industry info can be found here on Ken's blog.

Times are rough... they are rough for many of us... especially in the real estate industry.  We are finding our belts and sucking them in a few notches...  But not just in the real estate industry. 

Last night I was talking with some friends that are in the business of state and local government.  Furloughs, hours reductions and no raises are just some of the ways they are being affected...  Out in the private sector, pay cuts, layoffs and other cutbacks are all over the place. 

But that isn't news...

One can barely turn on the radio, TV or computer without seeing rough news about the economy... and the news is getting rougher.  Instead of stemming job losses with the "stimulus package", it seems that losses are still running heavily.  Increased governmental debt and looming tax increases are keeping businesses from expanding.  The dollar is remaining weak, keeping the cost of fuel high, despite lower worldwide demand. 

But there IS something that we can do about it...

We can save money.  Did you know that Google has multiple directories of resources to save money?  I didn't...  I know now, though.  From ways to lower food expenses to coupons and freebies... there are all sorts of resources for all of us to use to help us enjoy life while saving a few more bucks.  And even if we think the job is secure and our risk exposure is low, saving a few dollars can reap huge rewards...  Think of the amazing investment opportunities that are out there right now... from undervalued, but healthy companies that might be great to own stock in, to super deals on real estate for investment purposes...  Since the economy is tough, it is a buyer's market all over. 

This is the time when solutions can be found and the foundations will be poured for future financial gains.  And the first step is putting ourselves into a position to do something about it. 

The baby-step for financial security is saving money...  So, try this. 

If you are looking for that investment property in Gwinnett County, let me know...

Ok, don't panic, it doesn't end until December 1st, 2009.  But don't get complacent, either...  That is sooner than you think.

If you aren't familiar with the FTHBTC (First Time Home Buyer Tax Credit), here is a little reading.  The first thing to know is that not owning a home for the last 36 months qualifies one as a First Time Home Buyer for this tax credit...

So, back to the timeline...

Loans are taking a little longer to close lately...  The end of November is going to be VERY busy with closing attorneys...  The good deals aren't on every corner...

So, getting a home under contract 45-60 days out from the December 1st date would be a really good idea.  That means that you really want to have the right house picked out by September.  If there is a failure on a deal... or a short sale... it could add a month or two to the process.

Bottom line...

Don't let the time get away.  If you qualify, don't leave $8,000 sitting on the table.  And finally, don't think that looking for a house after Halloween gives you a great chance at getting closed by December 1st...

 

from LaneBailey.com