Hometown Blog

Faulty appraisals may be adding to real estate woes

By AUBREY COHEN
SEATTLEPI.COM STAFF

Wow, this is a throw back from yester year. I haven’t heard this term for many ages until recently it came back to light when a friend and I were having a conversation and he said that he was going to a mortgage burning party. Now to my surprise someone living in a home long enough to pay off a mortgage! These days it is so rare that anyone keeps a mortgage longer than 7 years, but I am glad to hear of this… owning your home free and clear and celebrating!!! Good for them and their family!

This has brought up a question we would like to put out there to all of our readers on our Hometown Lending Mortgage Blog. We want to ask these questions or take a survey.

Has anyone heard of a Mortgage Burning Party?

Has anyone been to a Mortgage Burning Party?

Do you plan on completely paying your own home off so you can have a Mortgage Burning Party?

We would love to have comments on this so others can know what it is like to be apart of a Mortgage Burning Party.

Here are some very important things to know before you plan on burning your Mortgage ( NOTE )

When your loan is paid in full, your lender will return your original mortgage and note, along with a document known as a "satisfaction of mortgages."

The satisfaction is much like the notice automobile lenders stamp on the auto titles they return when your car loan is paid off. The only difference is that although the lender's rubber-stamp statement is proof enough for most state governments that the car lien has been satisfied, a satisfaction of mortgage is a legal document that should be filed at the county courthouse. So make sure before you have this party that you have received all the correct original paper work.

When you call your lender to see whether you've met all your obligations, ask what the procedures are regarding the satisfaction document. Every place has its own rules for this procedure, so call first to find out exactly what you must do to wipe your mortgage off the books forever. But whether the lender presents the satisfaction or you do, make sure it becomes a matter of record by getting back the original document with the filing date and time stamped and noted on it.

So the hope that all will someday and in the very near future that everyone will be able to achieve this too! So get to it. Click link and listen to it!!!

http://www.youtube.com/watch?v=YwEMxYggoKQ So come on!

$8000 Tax Credit with HUD update… HUD decided using the $8000 tax credit as a down payment is too much like the non-profit “gift” (Nehemiah) program that HUD worked so hard to get rid of so they are not moving forward with the program. They have reversed their earlier decision and will NOT allow the $8000 credit to be used as a down payment.

But it will still be there for you to receive the tax credit at year end.... if you are a first time home buyer please seek professional tax advice. This is informational purposes only.

First time home buyers have one of the largest advantages.... 8,000.00 tax credit. This does not have to be paid back and there is talk that when you purchase your home, now you may be able to access the tax credit with a bridge loan if you are purchasing your home using a FHA loan. This will be able to be help with the 3.5% down payment. Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

Rates are still at very low levels sitting near 5% or lower depending on some factors, what type of financing you are looking at, your credit score, job history. With the drop in rates and the decline in home values this is a fantastic time to purchase your home.

This is truly a buyers market, there are so many opportunities with all the homes on the market, more inventory out there that some sellers are willing to negotiate, it is critical that you have a good real estate agent that can achieve this for you. If you are in need of some great full time strong negotiating agents just drop me an email david@lendingonrealestate.com, and I will be glad to assist you with their contact information.  

Her is what one of our great negotiating agents Margo Christophilis of America's Choice Real Estate did for a first time home buyer... a resale home listed at 180,000.00 3 bedroom 1.5 bath rambler, offered 165,000.00 received a counter at 168,000.00 with no other concessions, she then went back and negotiated a better deal for the client 168,000.00 with the entire home to be painted inside and out with the client picking their colors, 2,500.00 towards buyers closing costs and the seller signed off and agreed.

If you would like to contact Margo Christophilis for your real estate purchase, give her a call at 206.963.5525 she would be glad to help you.

Paul Herbord of  RE/MAX Metro Realty, Inc just closed an incredible deal on a shortsale for a client of his located in the Silver Lake are of Everett, WA this home was well maintained 3 bedroom 1.5 bath rambler home, this home sold for 210,000.00 Paul negotiated with the bank to take much less than what was owed on the home, they negotiated the deal down and finally had the first and the second lien agree to a less than owed amount, the buyer purchased this home below the appraised price. If you would like to chat with Paul his number is 206.714.2952.

To all you First Time Home Buyers... Good house hunting and great success!

"A year from now you may wish you had started today,"  Karen Lamb

For anyone that is looking for either their first home purchase, move up, or an investment there are some really great deals out there right now!

One of my Real Estate Partners Margo Christophilis of America's Choice Real Estate has some amazing deals and they are looking for offers on these properties. If you or anyone you know are wanting more information please contact Margo Christophilis at 206-963-5525 or email margomba@hotmail.com.

Quick over view on properties:

MLS # 28191080 34444  8th Ave SW,  Federal Way, WA  98023     Priced to sell! Beautiful home in Campus Highlands. 4 Beds 2.5 baths. Spacious Master with walk in closest, Large bath with soaking tub. Formal living and dining room. The Family room is just off Kitchen with a gas fireplace for those cozy nights. Landscaped yard front and back. Fully fenced with Hot tub built in to a two tiered deck. A must see!!!!

MLS # 29016483 26029  Pioneer Way NW,  Poulsbo, WA  98370     Nice two story house w/ beach rights. Hot tub, fenced yard,with entertainment deck. Walk in Closet, skylights. Great home, a must see. Financing for this home could be a USDA Loan this means Zero Down with no mortgage insurance, a 100% financed loan, also qualifies for WSHFC State Bond Program.

MLS #  29046713 13065  459th Ave SE,  North Bend, WA  98045    Gorgeous home on the River you can fish in your back yard. Rock built into fireplaces taken from the river. Open, sunny...great quiet neighborhood. A must see home with 4 bedrooms, 2.75 bathrooms, 3760 sq. ft. come home from a long day of work and relax by walking in your own private backyard and grab your flyrod get that rush with fish on!

MLS #  29048396 18717  156th Ave NE,  Woodinville, WA  98072           3 bedroom, 3 bathroom, 3,820 sq. ft. 4.21 acres,  looking for that diamond in the rough on flat 4 acres, this home needs someone who has vision. Older Spanish Villa Retreat needs some love but is on acreage in a secluded area....Seller says make an offer call listing agent Margo Christophilis for more details 206-963-5525

MLS # 29054826  2648  W Plymouth,  Seattle, WA  98199     WOW priced to sell Magnolia Home, on the front porch you can see the Space Needle, mountains, and water view, this is a craftsman home that needs your vision. Call listing agent Margo Christophilis 206-963-5525.

MLS #  29050835 1311  12th Ave S #C205,  Seattle, WA  98144    This 2 bedroom, 2 bath unit is a great condo in a gated community built on the historic Black Estate in Seattle. This condo has a wrap around deck for easy outdoor living, you won't believe all the many upgrade features such as granite slab, mantled fireplace, redone kitchen with stainless steel appliances and cherry finished cabinetry, new baths and ensuite full size washer and dryer waiting for you to call home! For all that have been to the Washington State Bond Seminar Class and are looking for a place in Seattle make sure you put this on your list!!!

MLS # 29054829 10931  124th Ave NE #104,  Kirkland, WA  98033     2 bedroom, 1 bath condo, Spacious bright living room and dining room with an open deck. Great kitchen with lots of cabinets, stainless steel appliances, eating bar, separate laundry room with panty area. Use the Washington State Bond Program for this to assist you with your down payment and closing costs. Call listing agent Margo Christophilis 206-963-5525 for more details.

Currently these homes are active. All offers are subject to lien holder approval. Shortsales, preforeclosure homes can take awhile so be patient but the opportunity is worth the wait. permission to put on blog by listing agent Margo Christophilis of America's Choice Real Estate

1. Visit www.financialstability.gov to check on eligibility requirements.
2. If customers appear eligible after visiting the site, determine who is currently servicing the loan.
3. Have the borrower collect current income documentation.
4. Don’t order an appraisal yet – wait for additional information from me regarding program requirements.

Here is the FHLMC website to check to see if loan is serviced by FHLMC: http://www.freddiemac.com/avoidforeclosure/

Go to this link and then click on "Does Freddie Mac Own Your Mortgage?" on the right hand side.

Here is the Fannie Mae website also: http://www.fanniemae.com/index.jhtml

There is a link on the right “does Fannie Mae own your Mortgage?”

Give me a call so we can finalize this or if you have any questions.

Appreciate your patience, but as soon as I have the information I send it out.

8,000.00 First Time Buyer Tax Credit!  Don't forget your money when your purchasing your home in 2009! And there is more... email for more details: David@LendingOnRealEstate.com

Qualified buyers can claim a federal tax credit for 10 percent of the home’s purchase price, up to $8,000. This means someone who buys a home for $80,000 could qualify for the entire $8,000 credit. If the homebuyer owes $2,000 in federal income taxes, the credit could wipe out that tax liability, and the buyer would receive a $6,000 check from the government.

This credit is for first-time homebuyers. However, the definition of first-time homebuyer is anyone who has not owned a home in the past three years. The Internal Revenue Service announced on Feb. 25 people who buy homes before Dec. 1 can claim the credit, either on their 2008 return, if they have not yet filed it, in an amended return, if they have filed without the credit, or on their 2009 return, if they purchase later in the year.

This credit does not have to be repaid if the home remains the buyer’s main residence for three years after the purchase date. The amount of the credit phases out for people whose modified adjusted gross income is $75,000 and $95,000 for individuals or $150,000 to $170,000 for joint filers.

As always please consult your own personal tax advisor. If you do not have a tax professional we would be glad to recommend you one. 

Hello Everyone,

I was watching this on CNBC with Diana Olick. This will be something to follow if someone is looking into bankruptcy and what the new Bill being passed through the House and moving to the Senate. Click on link below.

http://www.cnbc.com/id/15840232?video=1054590593&play=1

Here is one that talks about Bankruptcy over Foreclosure and how this will impact credit and borrowing in the future.

http://www.cnbc.com/id/15840232?video=1054768449&play=1

I am putting these links up that have an impact on what all the new Bills in the House and Senate are doing and how this is possibly going to effect us.

Finally the New Affordable Housing Plan . For all the changes that have happened in the market I strive to keep everyone informed.

I am sure by now you have all heard or read about the new loan program that the Obama administration has implemented through Fannie Mae and Freddie Mac. For those who haven’t I have attached a PDF describing the two different programs and their requirements from the Fannie Mae website. At this point I only know as much that is in the forms attached and will continue to update all of my clients once more information has been posted. I have sent this email to plant a seed in your ear and potentially help you refinance your home into a lower rate and more secure program. I have spoken with a few direct lenders/banks and they said that their systems may be ready for loan submission on these programs in a few weeks. We have all been affected by the market conditions and seen our homes decrease in value and now my job is to make sure we can all take advantage of this new offer. Not everyone will qualify, however we will do our best to make sure all options have been exercised. I hope you and your family is well and please email me with any questions.

Best regards,

David Haley                                                                          

david@LendingOnRealEstate.com

Stimulus Update-guideline details, pricing hits

Fannie Mae guideline summary

I have consolidated the Fannie Mae announcement made on Wednesday below which includes guidelines

Alright folks! Here are the details on the Homeowner Affordability and Stability Plan.

There are two ways to help your clients within this plan:

1. Loan Modification: If they are behind on their mortgage refer them to their current lender to participate in loan modification.
2. Home Affordable Refinance: If they are current on their mortgage, but are having trouble refinancing due to falling values, you can offer to help them refinance through the DU Refi Plus™ program

DU Refi Plus™

DU Refi Plus™ is a refinance of an existing Fannie Mae loan by any lender using Desktop Underwriter® (DU®) for underwriting; the lender does not have to be the current servicer of the mortgage loan.

DU Refi Plus will be available for loan casefiles submitted to DU on or after the weekend of April 4, 2009

Required Borrower Benefit

· a reduced monthly mortgage principal and interest payment; or

· a more stable mortgage product, for example, movement from an ARM to a fixed-rate mortgage. (Note: lenders are encouraged to provide fixed-rate mortgages to borrowers whenever possible).

Maximum LTV/CLTV Ratio

The maximum LTV ratio for DU Refi Plus is 105 percent.

There is no maximum CLTV or HCLTV; however, new subordinate financing is not permitted in conjunction with a DU Refi Plus transaction.

MI Requirements

For new refinance transactions with an LTV ratio that exceeds 80 percent, MI may or may not be required depending on the current MI coverage on the existing loan. New refinance transactions with an LTV ratio less than 80 percent do not require mortgage insurance. The following additional MI requirements will apply.

Lender Eligibility

Available to all Fannie Mae approved lenders using DU. (NONE HAVE ANNOUNCED AVAILABILITY YET….)

Available across all lending channels (retail, wholesale and correspondent).

In accordance with the provisions of the Selling and Servicing Guide, Part I, Section 309: Questionable Refinancing Practices, the lender may not specifically target borrowers whose mortgages are owned or securitized by Fannie Mae for a new mortgage.

Eligible Borrowers

The borrower(s) on the existing mortgage must be identical to the borrower(s) on the new mortgage.

Borrower(s) may be added to the new loan, provided the existing borrower(s) is retained.

Eligible Existing Mortgage Loans

Mortgage loans that were delivered to Fannie Mae prior to March 1, 2009.

Ineligible Existing Mortgage Loans

Reverse mortgage loans.

Second mortgage loans.

Government mortgage loans.

Mortgage loans that are subject to any credit enhancement (e.g., full or partial recourse) other than borrower-paid mortgage insurance.

Mortgage loans that are currently subject to any outstanding repurchase request from Fannie Mae.

Occupancy Type

Owner Occupied, Second Home, and Investment Properties are allowed

Eligible New Mortgage Loans

Fully-amortizing fixed-rate mortgage loans with a term up to 40 years.

Fully-amortizing ARM loans with an initial fixed period of five years or greater with a term up to 40 years.

Mortgage loans that meet Fannie Mae’s general loan limits and high-balance loan limits.

Loan Purpose

Limited cash-out refinances only; however, existing purchase money subordinate financing may not be satisfied with the proceeds of the Refi Plus mortgage loan.

All existing subordinate financing must be resubordinated to maintain the first lien priority of the new Refi Plus mortgage loan.

Credit History

No minimum credit score required.

The borrower must meet the requirements for DU underwritten loans, including the mortgage delinquency, bankruptcy, and foreclosure policies.

Condominium, Cooperative, and PUD Project Review

Lenders will not be required to perform a project review for condominium, cooperative, or PUD projects. The lender must confirm that the property is not in a condominium or cooperative hotel or motel.

Property Valuation

Lenders must comply with the property fieldwork requirements issued by DU. For certain DU Refi Plus eligible loan casefiles, DU will waive the requirement for an appraisal or exterior-only property inspection.

Documentation Requirements

Lenders must comply with the following documentation requirements issued by DU:

Salary/Bonus/Overtime: one current paystub and a verbal VOE of employment.

Commission/Self-Employment: one year’s federal income tax return.

This is a fantastic program for first time home buyers that will allow those that qualify to get money for closing costs, downpayment and other benefits.

If you know someone that is a first time buyer I would have them go to the class so they will receive a certificate that is given on completion of the class.

At the class you will learn all about the different types of downpayment options, financing, and incredible program where you can receive funds of up to 60,000.00 dollars on a mortgage credit. For first time buyers there is the new 8,000.00 dollar tax incentive credit thatyou can receive if you are to purchase your home before the end of 2009.

I have a link that will take you directly to the registration for the next class on my home page. There is a class that is going to be held on March 17th and 18th from 6:30PM - 9PM email for details

Plus there are some other great 100% loan programs that offer great rates. If you are in the market to purchase make sure you get all set up with your financials and your credit.