Horror stories going around....homeowners get home to a new lock and empty home. NICE!
Lenders are foreclosing on wrong homes! Really? LOL
It's not a joke people. You can see how smart these people really are. They are auctioning wrong homes and putting new locks on your doors. Why don't they come to mine? These are the same people that manage our loans and our bank accounts. This is so funny I've got tears in my eyes when I think of the lawsuits.
These people haven't realized that they hit a lottery jackpot! If I found new locks on my door I would be doing cartwheels and headstands. lol
Google words like "foreclosure wrong house" "auction wrong house"
Check this blog out too
http://www.walletpop.com/blog/2009/08/19/bank-auctions-wrong-house-in-miami-not-the-first-time/
Tuesday, December 8, 2009
Monday, September 14, 2009
INVESTING IN FORECLOSURE IN THIS MARKET
So back in July I helped my brother purchase a 2 family foreclosure (Bank owned) property in a location that seemed like an Ace in the Hole! The property sold two years ago for $360,000 and we were paying around $130,000 cash for it. So we maxed out some credit cards (fun hah) and borrowed money from family and a friend. I was certain that house was worth at least $240,000 if we bought it and put it on market.
It was a cash deal so we couldn't get traditional financing. If he paid with cash right away it would take 6 months before he could do a cash out refinance. This would take too long to pay back all these people he owned money to. So I thought the best thing would be to create a mortgage and then do a rate/term refinance which doesn't have any title seasoning requirements. So I became his lender.
Idea was to do a quick rate/term refinance with QuickenLoans so we could pay off the loans. Now, that was a roller coaster! Dealing with QuickenLoans was like dealing with bunch of monkeys in a suit and a tie. They changed the loan terms on my brother like 10 times...they couldn't get the numbers right...I felt like flying over there and giving them 101 loan origination.
TIP: You gotta stay on top of these loan officers! All of them! Call them! e-mail them! Do whatever! Let them know you're alive.
First he was qualified for the traditional loan but then the appraisal came in at $140,000 which was crazy compared to all the work and repairs we've done on it. The appraiser compared the house to bunch of foreclosures in the area... so that was a pain! The bank didn't agree with the appraiser so they ordered another one from someone else. They also changed the program now to FHA loan from traditional loan. I was ready to shot someone!
The second appraisal came in at $190,000 which was perfect for the traditional loan but it was useless now because he was in the FHA loan and if you do a rate/term refinance right after purchase they won't count the appraisal. They will base it on the purchase price. We asked them to switch back to the tranditional loan but they didn't want to change it because of that other appraisal being in the system...it was crazy! Anyway, it was insane and we just wanted to get it over with! I must admit...I was tempted to send them this video to show our excitement and the cartwheels we were doing. http://www.youtube.com/watch?v=vkuX0nKiAlU
Thanks to that first-time homebuyer tax credit of $8,000 made all this insanity worthwhile :-)
So few tips:
1. If you're thinking about buying with cash: remember that you won't be able to cash out in 6 months. There are lenders who will do it right away but it's very very very expensive.
2. FHA rate/term refinance no title seasoning max LTV 96.50%. Mortgage insurance required in this LTV range. So that's an extra $30-$60 per month.
3. Stay on top when you're dealing with loan officers. Call them every single day! Annoy them! So when you call them you won't even have to say your name and they will know who you are :-)
It was a cash deal so we couldn't get traditional financing. If he paid with cash right away it would take 6 months before he could do a cash out refinance. This would take too long to pay back all these people he owned money to. So I thought the best thing would be to create a mortgage and then do a rate/term refinance which doesn't have any title seasoning requirements. So I became his lender.
Idea was to do a quick rate/term refinance with QuickenLoans so we could pay off the loans. Now, that was a roller coaster! Dealing with QuickenLoans was like dealing with bunch of monkeys in a suit and a tie. They changed the loan terms on my brother like 10 times...they couldn't get the numbers right...I felt like flying over there and giving them 101 loan origination.
TIP: You gotta stay on top of these loan officers! All of them! Call them! e-mail them! Do whatever! Let them know you're alive.
First he was qualified for the traditional loan but then the appraisal came in at $140,000 which was crazy compared to all the work and repairs we've done on it. The appraiser compared the house to bunch of foreclosures in the area... so that was a pain! The bank didn't agree with the appraiser so they ordered another one from someone else. They also changed the program now to FHA loan from traditional loan. I was ready to shot someone!
The second appraisal came in at $190,000 which was perfect for the traditional loan but it was useless now because he was in the FHA loan and if you do a rate/term refinance right after purchase they won't count the appraisal. They will base it on the purchase price. We asked them to switch back to the tranditional loan but they didn't want to change it because of that other appraisal being in the system...it was crazy! Anyway, it was insane and we just wanted to get it over with! I must admit...I was tempted to send them this video to show our excitement and the cartwheels we were doing. http://www.youtube.com/watch?v=vkuX0nKiAlU
Thanks to that first-time homebuyer tax credit of $8,000 made all this insanity worthwhile :-)
So few tips:
1. If you're thinking about buying with cash: remember that you won't be able to cash out in 6 months. There are lenders who will do it right away but it's very very very expensive.
2. FHA rate/term refinance no title seasoning max LTV 96.50%. Mortgage insurance required in this LTV range. So that's an extra $30-$60 per month.
3. Stay on top when you're dealing with loan officers. Call them every single day! Annoy them! So when you call them you won't even have to say your name and they will know who you are :-)
Saturday, July 11, 2009
What's the cause of this mortgage meltdown?
Most of these foreclosures are Adjustable Rate Mortgages (ARM) and options ARMs that are going from a fixed rate into a rate that will make you nauseous. I remember back in 2004 when I worked for this mortgage brokerage company and option ARM program from Washington Mutual was this hot item "SELL THIS!". I didn't like it at all! They gave you all these flayers and booklets on "stability" which looked scary to me. There was no limit on cash out as long as you fit the LTV requirements and I think there was No minimum FICO scores...crazy? right! That program was selling like it was going out of style!
The thing that was totally against my spirit or my moral was the pre-payment penalties and wholesale points paid to broker. The program had "No pre payment penality" option but it paid 0% to 0.50% rebate to brokers.... so what did most brokers do? Sell the 3 year pre-pay penalty so they could make 2% rebate. I was told to do the same, so I quit!
I was never a good sales person for these residential brokers...I could barely hit the 1% rebate mark. I originated loans for customers like they were my family... I just couldn't resist giving them the lowest rates. It was too easy :-)
The thing that was totally against my spirit or my moral was the pre-payment penalties and wholesale points paid to broker. The program had "No pre payment penality" option but it paid 0% to 0.50% rebate to brokers.... so what did most brokers do? Sell the 3 year pre-pay penalty so they could make 2% rebate. I was told to do the same, so I quit!
I was never a good sales person for these residential brokers...I could barely hit the 1% rebate mark. I originated loans for customers like they were my family... I just couldn't resist giving them the lowest rates. It was too easy :-)
Monday, June 15, 2009
Forclosures are depressing me!!!!
So I'm starting to lose count on this foreclosure thingy. It's totally depressing!
I think Obama needs to smack around some of these banks...like really...just SMACK THEM!! Don't give them any money! Don't allow them any writ- offs! MAKE THEM SWEAT and deal with their shareholders on a physical level *PUNCH!* :-D
I think Obama needs to smack around some of these banks...like really...just SMACK THEM!! Don't give them any money! Don't allow them any writ- offs! MAKE THEM SWEAT and deal with their shareholders on a physical level *PUNCH!* :-D
Wednesday, May 13, 2009
April foreclosures...a shocker!
Unfortunately people are continuing to lose their homes. March foreclosures were high....but April! WOW! 1 in every 374 homeowners filed for foreclosure in April. That number is starting to make me sick to my stomach. This whole system is making me ill. These banks just throw these people on the street, write off these bad loans, and sell the house for half the price. If you gonna take a hit anyway why not just modify these loan and deal with it!
Friday, March 13, 2009
Foreclosure on rise AGAIN
Foreclosures were up again in February. Where's that bailout money? Paying bank bonuses? Over 74,000 homes went into foreclosure in February according to RealtyTrac. Since the bubble bursted in Aug 2007 about 1.2 Million homes have been lost. The decrease in jobs is not helping at all! Unemployment rate on rise.