Impact of Loan Modification on Credit Scores

With the introduction of the Home Affordable Modification Program (HAMP) many homeowners that are not currently behind on their mortgages are being faced with a situation where they are being offered potential relief.

Obviously their first reaction would be to accept this relief but the government had done something smart (yes, give credit where credit is due).  They made it mandatory for loan servicers to report derogatory history to the credit bureaus for all borrowers who participate.  The creators of HAMP did this to weed out the people that can afford their payments but want a modification of their loan terms on the taxpayer dollar.  

Those in true financial need won't mind, they are most likely already behind on their payments and their credit…

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Condos owners now required to pay HOA dues and inside the walls insurance policy

HO-6 Insurance Requirements for Condominium and PUD Properties 

HO-6-CONDOMINIUM UNIT OWNERS COVERAGE

Here is an excerpt from a memo sent to us by one of our biggest lenders: 

Borrowers must show evidence of hazard insurance coverage for all condominium projects with attached units, including two- to four- unit projects, that covers fixtures, equipment, and other personal property inside individual units if they will be financed by the mortgage.  Borrowers must show evidence of a “walls-in” coverage policy (commonly known as HO-6 policy) unless they can document that the master policy provides the same interior unit coverage. The master policy must include replacement of improvements and betterment coverage to cover any improvements that the…

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Attorney General unveils new Loan Modification website for California consumers

California Attorney General Jerry Brown unveiled a new website aimed at ending abusive practices in the loan mod industry 

Overall this is a good thing, I think consumers should make sure that they are dealing with a licensed person/company when attempting a loan modification.  If things don't work out their should be an accountable individual or entity to deal with for the consumer.  Getting a signed advanced fee agreement is a must.  I'm still not completely convinced that homeowners get the best modifications when representing themselves though...

Also debatable is whether certain homeowners will ever face reality.  The homeowner that choose the 1% option arm over the 5.75% 30 year fixed against the advice of more conservative voices because they…

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Free Rental Survey Data for Greater Los Angeles Area

Greater Los Angeles Area Rental Values

Investors:

Thinking of buying an investment property and want to know what current market rents are?

Landlords:

Want to know if your maximizing the value of your property?

Renters:

Want to know if your paying fair market value for your unit?

Here is a Zilpy link, bookmark it, its a cool service

http://www.zilpy.com

Los Angeles - Craigslist is a good source too but too many scam artists on that site for my tastes.

5962 Views, 2 Comments

Free Directory Assistance from Google

Never pay for Directory Assitance on your cell phone again.

I know most people have smart phones but it can be time consuming to look up info on the internet from a PDA.

Google has a free 411 service set up: GOOG-411 

I've tried it, it works well.  Its a completely automated system and you don't get to speak to a live person so if the system doesn't understand you or there is too much back ground noise you may not get good results.  I tested it with a "roebucks juice" in "torrance,ca" query and the results were accurate.

 To apply this to real estate, it may be handy next time you need a local service contractor, i.e.- plumber, electrician, roofer, termite, carpenter, window repair etc., etc.

3704 Views, 2 Comments

HOA Assistance Program for First Time Homebuyers in South LA & North Orange County

HOA Assistance Program offered through PWR

HOA Assistance program offered through my local association of realtors (Pacific West Association of Realtors)

Program offered through Pacific West Association of Realtors for homeowners in Southern LA and Northern Orange counties.  Funds for this program are from a charity account setup by fellow Realtors and a grant from a California Association of Realtors fund.  The program will pay up to $250/month & up to $3000 per year to the Home Owners Association for the qualifying borrower.  This program has helped over 30 families since its inception in 2007

Be sure to check with our office for qualifying guidelines and available funds before applying.

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"Direct Lender" pre-approvals are a JOKE

I really don't understand this whole new phenomenom about REO listing agents (and now short sale & standard transaction agents) requiring a pre-approval from a "Direct Lender".  Maybe I'm just bitter because my client who was told by a "Direct Lender" that their financing was secure and all they had to do was find a property.  So I found them a property and then 20 days later the "Direct Lender" denies the client due to credit/employment/income factors (layered risk) that were present prior to the client being issued their pre-approval.  Maybe its because for the most part the loan reps I see at Direct Lenders at the banking institutions I go to (Bofa, Chase, Wells Fargo) are young, seemingly inexperienced and likely unlicensed.  Many loan reps working at…

2867 Views, 2 Comments

Time running out on $10,000 tax credit for CA new construction homebuyers

Did you know that the state of California is offering a $10,000 tax credit for homebuyers buying new construction?

Well time is running out on this great opportunity.

For more information go to CA Franchise Tax Board website at:

http://www.ftb.ca.gov/individuals/New_home_Credit.shtml

Update: as of July 3rd, 2009 the state has run out of funds for this program.  Sometimes when sales people are telling you that you'd have to "Act Now" its actually true....

2193 Views, 2 Comments

Open Question to the Lending Industry?

If all borrowers are required to sign IRS 4506-T forms that allow underwriter to verify income documentation, why do lenders require income documentation?  Shouldn't they just be able to take a signed 4506-T form get the IRS transcript and verify the income coming directly from the IRS?  Wouldn't the world be easier for loan originators and processors too if they could just order a 4506-T verification direct from the IRS covering a 2 year time period, get the transcript and divide by 24 to get the borrowers monthly income?

Just thinking out loud into the blogosphere...

2258 Views, 1 Comments

3 Factors that affect how consumers choose Real Estate Agents

Click here to view an interesting article by the Baylor University school of Business:

New study on 3 factors that affect how consumers choose their agents...

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