Part 7 (Excerpt)

FHA Guidelines regarding foreclosures and first time home buyers; incredible home buying value

Ok I was just checking because I thought this was a story about all the mortgage backed securities that were going under. It started at the top and it worked its way down. The reality of it is that people were buying homes, not reading what they were signing, not understanding how it worked and shame on the people who were putting it in front of them, knowing that they didnt know and we all need to take a little responsibility here for this past crisis. It is not just the Wall Street firms; its not just the mortgage companies and banks, the brokers have little in fact to do with it, we didnt create the loan products that people were buying, we were merely disseminating it to the public. I am glad to say I was not a part of any of that. I was able to stay away and do traditional, conventional type financing for people. So luckily I didnt have a lot of clients who got stuck into that nightmare.

Speaking of that nightmare, Dan when we talk about the people who have had foreclosures, their lives have been turned around, turned over and they think that there is no where for them to go. One of the nice things about the Federal Housing Administration loan, the FHA loan, thats the first time home buyer type loan, the minimum down payment loan, its only 3 years after you have had a foreclosure that you can qualify to purchase a home again. So it is important if you have had a foreclosure, you need to point your future away from the flame, you need to save your money, do your best, work as tightly as you can on a budget and look forward to that time when you can go back out and buy a home again.

Property values are going to be up from where they are today, but there is still going to be plenty of great value out there and there are not going to be loan products that are going to get you in trouble again. They wont exist. What really caused the great inflation in home values starting in about 2002 was the financing was just getting crazy. I wont get into a whole lot of technical stuff about mortgage backed securities and all that, but the lenders were creating products, selling them off their books, thinking that they would never have to worry about them again. They sold trillions of dollars worth of these loans and those are the ones that are going bad.

Ones that were toxic in the first place: the stated incomes, the option ARMs, all those loans are all gone now. I was saying earlier today that we are back to where we were in financing in 1992-1993, back when the median home price was $75,000. Now I dont think we are going to go anywhere near that again, I think at $130,000 we are getting real close to the bottom of the market and what I was thinking was when I got into the business in 1995 and you were in at about the same time I was, and I remember talking to a guy who comes into our office to sell us loan programs, now this is the very beginning of the really crazy stuff, and he was saying we can do 70% no doc loans.

We go, what do you mean? If somebody puts down 30% they dont have to verify anything, they dont have to verify their employment; they dont have to verify taxes, anything. We were absolutely floored, but by the peak of the market we were doing 100% no doc loans. If you were breathing they gave you a loan and the credit scores didnt have to be that high, I think I saw them as low as 600…

Duration : 0:5:36

Technorati Tags: 1st, 8000, advice, assistance, bank, bill, breaks, buy, buyer, credit, debt, deduction, down, downpayment, estate, federal, fha, finance, financial, first, fixed, foreclosure, government, Grant, guide, guidelines, help, Home, homebuyer, house, housing, incentives, income, information, interest, lease, lend, lending, limits, loan, low, modification, Mortgage, new, no, owner, package, Payment, plan, price, program, property, purchase, qualifications, rate, real, rebate, refinance, rent, requirements, sale, short, stimulus, tax, time, tips

Part 8 (Excerpt)

Analyzing tax returns for self employed and small business owners; Use a Mortgage Planning Expert

Credit scores now are a major factor with interest rates. You see the liars up on the internet with interest rates being at 4.625% and all this kind of hocus pocus, its not true. You are never going to qualify for that rate today. They are going to lie to you, once you sign and see the fine print you are going to realize that it is a ridiculous idea to pay that amount of money in fees.

Credit scores have to be significantly higher than they used to, but again I have to tell you, its my opinions that a 70% no doc loan with someone who has a 720 or higher credit score I believe is a good loan. I personally believe that at some point it will be brought back.

I am not arguing with that, with a good FICO score I can agree with a 20% down for a stated income loan. People are encouraged through our tax system to write off all of their expenses and so often we have small business people who really are making money but because they take advantage of our tax system they are not able to get a loan. They cant qualify based upon their income.

In a lot of cases yes, but once again I definitely want to point his out just because someone is self employed and owns a small business and they do write everything off, that does not mean that they will not qualify. They may have been told now that they have to go stated income because of tax returns, but most people, the small business owner, the consumer doesnt know how to analyze his taxes, whether or not he is going to qualify for financing thats not his area.

Most CPAs dont even know how to analyze taxes to extrapolate enough income back out where we can use it as income, so just because a person is self employed does not mean that they cant qualify for financing and honestly nothing could be further from the truth. Plenty of people self employed, small business owners will qualify using their tax returns.

I think that anyone right now who doesnt own a home should be giving you a call getting pre-qualified. If nothing else give you a call and see what you can do. So you say, I wrote off a bunch of stuff last year and I am not going to be able to buy a house well maybe you can. But get in there, have a professional, have someone who knows what to do, whos been in the business for 15 years, have them take a look at it and decide whether or not you can really get that loan.

One of the things with my mortgage education; I am a certified mortgage planner. I am a certified mortgage analyst and a certified mortgage planning specialist. The significant part of that training and those certificates is in analyzing complex tax returns and we analyze complicated tax returns for professional athletes, for professional musicians, all the time. There is income always, it is just a matter of knowing how to get all of it out there. So I think we have kind of hit that.

So yes if you dont own a home today and you have been told NO, you need to find out if the person who told you no is qualified to tell you no, #1, and #2, less than 15% of the lenders in Arizona are qualified to do FHA loans. Those are the loans we are talking about, $100 down to buy a HUD-home, less than 3.5% down to buy a house with the best interest rates that we have seen in my career, its crazy not to look at your options.

If a lender does tell you no, it would be like going to a doctor and he says you have to have your arm amputated because you have a pimple on it. I think you are going to go get a second opinion, maybe even a third. To make sure you dont have to have it cut off. And that is exactly what we have here, if you go to a lender and he says, Well you are going to have to put down 20% you know he is not an FHA lender. So run out of there and call Michael at Velocity Financial and get yourself pre qualified.

Dan Havey, you have a great website, its called http://discountdreamhome.com and why dont you talk real quick about that. Its real simple, if you are looking to buy a foreclosed home, and as we discussed earlier they are many times the best homes to buy right now, they are vacant, they obviously have a highly motivated seller. You dont have to deal with all the troubles you would have to deal with from a regular or as we refer to them, an organic seller, because a lot of these people are upside down.

Duration : 0:7:49

Technorati Tags: 1st, 8000, advice, assistance, bank, bill, breaks, buy, buyer, credit, debt, deduction, down, downpayment, estate, federal, fha, finance, financial, first, fixed, foreclosure, government, Grant, guide, guidelines, help, Home, homebuyer, house, housing, incentives, income, information, interest, lease, lend, lending, limits, loan, low, modification, Mortgage, new, no, owner, package, Payment, plan, price, program, property, purchase, qualifications, rate, real, rebate, refinance, rent, requirements, sale, short, stimulus, tax, time, tips

Duration : 0:4:3

Technorati Tags: Antonio, fha, loan, Mortgage, san, Texas

As a mortgage professional, you’ve got to put up with lots of borrowers seeking your help but are just not qualified yet. Perhaps they need more money to put down on a home… or they need to get their credit scores up… before they can qualify.

Now what if you could convert some of those turndowns into commissions? How would you like to collect fees on your non-deals? Would you like to get more referrals and repeat business by successfully helping more of the borrowers no one else can touch?

I’d like to help you cash-in on more of the borrowers coming to you right now without spending another dime or another minute on getting new leads. Let me explain… Do you have pre-qualified borrowers at 80% or 90% LTV but lack the 10% to 20% to put down? You might be able to close their loan immediately if you had a flexible seller willing to carry back a second, right? Good news. We are that seller.

With our trademarked EZhomebuyers Program we can turn your ‘turn downs’ into cash. Call 260-436-5000 or online www.EZCashAwards.com.

To see our current home rent-to-own listings go to www.RentToOwnListings.com

Duration : 0:4:21

Technorati Tags: brokers, credit, fha, Fort, Home, in, leads, lease, low, Mortgage, mortgages, purchase, rent-to-own, scores, Wayne

Rocky Hardie–Austin, Texas’s #1 Government Home Loan Expert–went on a mission to find out what could be done to help area home buyers. Deep down in the tool kit, he re-discovered a little-used government program that allows people to purchase deeply discounted properties with almost nothing down!

Watch this short clip to learn more…

Duration : 0:2:19

Technorati Tags: austin texas, banking, bonds, credit cards, fha, finance, home buyer, homes in Austin, HUD, Mortgage, rates, Real Estate, rocky hardie, rural development, USDA, VA, zero down

Duration : 0:1:51

Technorati Tags: Colorado mortgage lenders, Colorado Mortgage Loan, Denver Mortgage Loan, fha, home buyer, home seller, mortgage rates, realtor, VA

Part 6 (Excerpts)

Arizona is not a recourse state, so chances are you will not owe 1099 C Income

In Arizona, typically its not a recourse state, so if they are telling you that theyre going to garnish your wages because you didnt pay back your entire mortgage, there is a local bank ,that was threatening a very good colleague of ours about a small second mortgage that person had taken out. Threatening to send it to collections and garnish her wages. It simply isn’t going to happen.

But nevertheless, there is still the tax implications that apply, if you need to navigate through this maze. There is a lot to it, you need to protect yourself. You talked about bankruptcy is one of those exclusions, right? One of the problems with bankruptcy is people dont understand the bankruptcy laws. They are so tight now and your feet are really held to the fire from the federal government right now. It’s not like you just didn’t make your mortgage payment, so you go file bankruptcy, it’s just not realistic. Assuming bankruptcy is the last resort option for everybody. And we certainly want to avoid that, it would not be sound financial advice from any credible source that I can think of.

Let’s walk through a case scenario, somebody who is listening to this broadcast, their head is spinning right now, they’re thinking, oh my gosh. I should have known about the tax implications, a short sale versus loan modification. Let’s start at the top and work through a quick scenario. And then we’ll point out the specifics of what they should be considering right now.

For example, we talk about this all the time and to your credit Michael Barnes and to Velocity Financials credit, you were early in bringing out the loan modification for people who were in a distress situation regarding a mortgage, maintaining or keeping up with the mortgage payment. So you started going down the path where the refinance started to become a much more difficult option, with new constraints and all the other factors that led to part of this economic crisis, a loan modification has become a buzz topic today. Driving to the station today, driving down Camelback Road, I see a sign on the corner. You know, one of those stick in the ground, homemade jobs, that says don’t refi a Loan, modify, with some success rate and the phone number.

Hang on there I want you to say the success rate. The sign literally said, 99% success rate, and it goes back to the point that you made when they say that they can reduce your mortgage principal by tens of thousands, hundreds of thousands of dollars, thats the absolute last resort for any lending institution. Thats not what this is about, so let’s start with that, then we will work on the tax ramifications of how that might work in the overall financial strategy.

I am familiar with the loan modification industry here in Arizona. There is no regulation, unfortunately. We at Velocity Financial work with a national network of attorneys, so if you’re the guy in El Centro California, or youre in Phoenix, or youre in Alaska it doesn’t matter where you’re at. We have someone who is an expert in that field in that state because the laws are different. But without the regulations some person with the ugly yellow sign on the side of the road says he has a 99% success rate, I don’t believe him it’s probably not using an attorney, who knows, dont buy into that garbage. Were going to tell you the truth, if we cant do a loan modification, we will tell you that we cant do it. And if a loan modification is not the best thing for you, you can find the some of these other options.

Duration : 0:5:19

Technorati Tags: Adjustable, Administration, ARM, attorney, avoid, bank, bankruptcy, buyer, closing, Corporation, cost, credit, down, estate, expert, fannie, fed, federal, fha, first, fixed, FNMA, foreclosure, fraud, freddie, Funds, Future, Home, housing, income, Insolvency, interest, lender, loan, loss, mac, Mae, marketing, Median, meltdown, mitigation, mod, modification, Mortgage, Negotiate, owned, Payment, price, program, purchase, rate, real, realtor, refinance, rent, reo, repo, Resolution, RTC, S&L, sale, savings, scam, seller, Servicer, short, TARP, tax, time, Trust

Duration : 0:1:9

Technorati Tags: Advantage Mortgage Group, ARM, brokers, Canby, conforming, fha, fixed-rate, jumbo, loans, mortgages, Oregon, Real Estate, USDA, VA, YellowPages

Weve put together this collection of online articles to help explain everything from the basics to some interesting and advanced topics.

The Anatomy of a Mortgage
A mortgage payment consists of PITI
P Principal – The original amount of the money borrowed from a lender.
I Interest – A fee charged for borrowing money.
T Taxes – Property taxes paid to your local government.
I Insurance Home owners insurance on your property.

Mortgages Choices

Fixed Fixed mortgages have a fixed term (like 15 or 30 years) and a fixed interest rate. The interest rate and term are fixed over the course of the mortgage and your monthly payment for the payment of principal and interest will not change during the term of the mortgage. Taxes and insurance can change so this may affect your total payment during the life of your loan.

Adjustable An ARM (Adjustable Rate Mortgage) has an interest rate that will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down based on these interest rate changes.

The Down Payment
Many people believe that they need to put down 10 percent or even 20 percent for their down payment and thats no longer true. There are many lenders that have loan programs that require 5 percent or less, including zero down. Way back when, the only zero down loans were from the Veterans Administration but fortunately those days are gone. If you think that you have to pay rent until you save up a 10 or 20 percent down payment, check with us. Youll be pleasantly surprised.

Prequalification
You will want to get pre-qualified during your mortgage search. Prequalification isnt binding but rather it gives you a ballpark idea of what you can afford. The lender analyzes your income, debt and credit history to estimate your maximum loan amount. Combine that with the money you have for a down payment and you have your maximum home price.

The next step is preapproval which verifies your income, debt and credit. Preapproval gives you the following benefits:

Knowing exactly what you can borrow. You will have an accurate commitment from your lender for the amount you can borrow.

Credit problem solving. You will know now, instead of while your offer is being evaluated by the buyer if you have any credit issues to be dealt with.
Stronger negotiating position. Sellers love preapproved buyers. They know your offer will not fall through and will treat you like the proverbial bird in the hand. This can help you negotiate a better price.

Duration : 0:0:35

Technorati Tags: Advisor, CA, Convential, fha, financial, Home, loans, Mortgage, purchase, rate, refinance, residential, Tustin, VA

Duration : 0:3:30

Technorati Tags: Colorado mortgage lenders, Colorado Mortgage Loan, Denver Mortgage Loan, fha, home buyer, home seller, mortgage loans, mortgage rates, realtor, VA