|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
A Look Behind the Curtain at the Jobs Report
$8000 & $6500 Tax Credit for Homebuyers
$8000 & $6500 Tax Credit for Homebuyers
If you are like many Americans thinking about buying a home and would like to learn more about the $8,000 & $6500 Tax Credit and have questions, you will find this post useful. You are not alone but your time is running out. April 25, 2010 is approaching and contrary to some people's belief, the tax credit is not going to be extended again. The Feds have signaled that the stimulus is working and there is no more need for an extension of the $8000 & $6500 tax credit, for many reasons that will distract us from the following information.
So what are the details to $8,000 First-time Home Buyer Tax Credit Expansion? (Read More)
Improving your FICO Scores
Improving your FICO Scores
For a long time, longer than I care to remember, FICO Scores aka credit scores have been an super secret formula where only the credit reporting bureaus (Experian, Transunion, Equifax) knew how they worked. This, of course, is because they are the ones who created the system. For too long, we all wondered how to improve our credit scores while mortgage professionals tripped over themselves trying to provide a homebuyer a logical answer. However, it still remains a complex formula based on factors that we likely will never know how they actually work.
Getting and maintaining good credit isn't rocket science, we just need to pay our bills on time, keep our balances low and sparingly take on new debt.
Bankruptcy
FICO's information demonstrates that a bankruptcy tends to do the most damage to a person's scores. I can damage scores up to 240 points.
Credit Card/ Revolving Debt
Those with good or excellent credit - aka Prime Borrowers - put their scores at risk with a simple mistake. For example, someone with an average score of 680 who might make a payment 30 days late can experience a 60 to 80 point drop in their score. However, someone with an excellent score of 780 - that same late payment can plummet their score by 90 to 100 points. (Read More)
90 Day FHA Flip Rule has been waived for 1 year!
FHA 90 Day Flip Rule Is Waived for 1 Year
HUD has ruled on waiving the 90 day seasoning financing contingency for buyers. What does this mean?
Effective February 1st 2010, FHA/ HUD will not require that a seller of a property be on title for 90 days or more in order to sell the property to a borrower acquiring FHA financing. This is an incredible opportunity for the majority of buyers & sellers in today's market.
Investment Properties, Flips, Foreclosures, Short Sales
This news is an important decision handed down by HUD as it propsed to dramatically assist the real estate market recovery. (READ MORE)
FHA Short Sale Guidelines: FHA hands down it’s verdict on Short Sales
FHA hands down it's verdict on Short Sales
There are a lot of schools of thought but just last week, FHA finally laid out it's decision on how they will determine if a homeowner is eligible for FHA financing after a short sale. As I have said before, there are probably 10% of lenders that wil do this, the other 90% will not. Keep you eyes open as the lending industry is about to get more strict. My guess is that the 10% will likely cease to exist.
You should be careful to imply that this is somehow set in stone. There are way too many variables to risk ourselves in implying that our client "IS" going to get into a home in 2-3 years.
This mortgagee letter provides guidance to lenders and underwriters regarding borrower eligibility when:
- a previously owned property was sold for less than what was owed (short sale), or
- there is principal write down of indebtedness that cannot be refinanced into a new mortgage (short pay off).
Summary - FHA Guidance on Short Sales (Read More)
My Blog Sites:
www.academymortgage.com/tedcanto
Ted Canto
Sr. Mortgage Consultant
Academy Mortgage
Job Market Picture Requires Look Beneath Surface
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
R.I.P. - How Jim Rohn had changed my life..

As you know, our mentor and friend Jim Rohn passed away December 5, 2009. I couldn't help to get a little choked up about the idea that my mentor had passed away after helping me to not only look at ways to improve my business rather how he helped me look at who I am and how I want to be remembered when the good Lord decides that it is my time to do his work.
I remember being at a crossroad financially and spiritually. I was handed a CD by a friend. I popped it into my car CD player. This was the beginning of a new me. I listened and at every word, this old wise and gentle man was speaking the very experience I was going through. I listened to Jim Rohn CD 100's of times. At every day I was feeling a bit de-moralized, unmotivated, or was in need of a kick in the pants, Jim would tell me like it is. He told me that "To be successful you don't need to do extraordinary things, you just need to do ordinary things extraordinarily well."
This may not be the best place to tell you (a stranger) this but to understand how Mr. Rohn affected me and thousands of others is to not leave any empty spaces in the story. I was on the verge of divorce (for all the wrong reasons, financially in the dumps, spiritually.. well let's just say I had a long hard talk with the Lord and he came up winning. Before that that day, I had no direction and personally I didn't care for any. Then I heard Jim tell me "You cannot change your destination overnight, but you can change your direction overnight" He went on to tell me "It is the set of the sails, not the direction of the wind that determines which way we will go."
From that day forward, I worked on my marriage, my financial well-being, my relationship with the Creator and I found an immense reward awaiting on the othe side of the road. Jim's words helped me improve the person I was and he is directly a part of who I am today. I realized many things by his help but importantly, that the world was in no need of someone who did not need the world. For what do you have to offer if you want to live your life with no direction, no value to mankind or more importantly to your family and peers? This ladies and gentlemen is the secret to a rich life.
Funny! My 40 year mile marker of my journey was changed by a man who I never met.
God Bless you Jim and may you continue changing lives, one soul at a time!
Ted Canto
AZ Residential Lender
www.academymortgage.com/tedcanto
A Volatile Week Ends a Volatile Year
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Halls Decked With Lots of Economic News
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Your Conventional Loans May Be in Jeopardy as soon as NOW!!
As you are all aware, DU release 8.0 is rolling out this week.
This means that if your loan was approved through the AUS (Automated Underwriting System) with a 47%-56% debt ratio and has not closed or let's suppose waiting for a Short Sale approval, you risk that the loan will not be approved.
Why?
The new AUS guidelines are now restricting the buyer to a maximum of 45%. It is not flexible and does & will not base the decision on the strength of the buyer. The days of stretching the ratios to someone who had compensating factors are over. In my opinion, it will not be long before FHA follows suit (Which always tends to be the case).
So what do you do?
Make your negotiators and the asset managers understand that this will ultimately affect their books if they don't put themselves in gear. Do not be passive and light a candle and make the "Sales Prayer". It's lame, it doesn't help anyone and it surely reduces the chance the deal will get accepted and funded.
I know what you are thinking.. "But Ted, we don't want to upset our negotiator or the asset manager." You might as well say "I,m scaaaarrrredddd!!" and go cry in the corner. Of course not because it would be useless and imagining it, quite funny but embarassing. You have NOTHING TO LOSE!! The deal is going south anyway.
This will cause a ripple in transactions that are pending approval of some sort. Imagine all the deals that are in the waiting line. Wooo Eeeeeyy!! Do not be that transaction. Get on top of this and fast.
There are some banks already implementing these guidelines as of yesterday, so you may want to look into your transactions asap.
If you did not receive your final DU run by a date prior to the last couple of days, then the risk of losing that approval will be exposed. We do not have specific information that confirms that a DU run / approval that was previously run on version 7.0 / 7.1 will be able to run through DU on the older version. To err on the side of caution is the right approach in this case.
There are a lot of other changes that will surely affect your transactions but this post is not about that, it is more of a wake up call. If you are interested in more of the finer details, you can visit Fannie Mae at: https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu80.pdf
Content © 2009 'Frequent Contributors'. Design © 2009 ActiveRain Corp.
Logos and service marks owned by copyright holder.



Going the extra mile is my standard, not the exception










