Thursday, December 16, 2010
Friday, November 19, 2010
Empowering People Through Guidance & Education
- Eliminate Your Debts Permanently & Live a Debt-Free Lifestyle
- Learn How to Negotiate With Your Creditors Safely
- Learn How to Create a Monthly Budget
- FREE Loan Modification. Modify Your Loan at NO COST TO YOU!
- Avoid Foreclosure: Our REALTORS® & Short Sale Negotiatiors Facilitate Short Sales.
- Learn How to Buy & Sell Real Estate Correctly
- Find Out How to Get Every Dollar You Deserve…by Getting The Full Value of Your House!
- Eliminate The Need For Home Price Reductions to Compete & Sell in a Buyer’s Market
- Attract More Buyers by Making it Easier For Them to Qualify
- Walk Away With the Maximum Amount of Your Equity
- Learn The Dangers of Reverse Mortgages
- Learn The Benefits of a Tax Deductible Mortgage
- learn How to Manage Your Home equity to Help You Build Wealth.
- Find out How to Maximize your Tax Deductions
- Learn How to Increase Cash Flow to Eliminate Financial Stress
- Increase Your Rate of Return
- Increase Safety
- Minimize The Wealth You Unknowingly Transfer to Others
- Find out about Tax Favored Treatment of Life Insurance Programs
- Learn How to Prepare For Retirement, Protect Your Family & AssetS
- Find Out How to Maximize Your Nest Eggs, Save Taxes & Grow Your Assets With Minimum Guarantee.
- Discover How to Make the Most informed decisions
- Retire Happy and Enjoy Your Golden Years
- NEVER GET RIPPED-OFF EVER AGAIN BY SALESMEN
See You at The Top!
Empowering People Through Guidance & Education!
CA DRE License # 01856185
Tel: (818) 341-2972
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"One of the keys to successful real estate investing has always been to purchase undervalued and distressed properties, as opposed to buying when it is overpriced." |
Sunday, November 14, 2010
How Can You Get Out of This House Payment Alive
- Are you having trouble keeping up with your monthly mortgage payment?
- Have you received a notice from your lender asking you to contact them?
Don’t ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.
Today many homeowners find themselves upside down in their property and in financial hardship due to a challenging economy. They are uncertain as to what to do, and realize they cannot maintain the monthly payments for a home that is worth less than the actual loan balance. Some have turned to loan modification, but unfortunately a great number of homeowners who apply will not qualify. Are there any helpful answers to resolve this situation?
Some who need to sell a property which decreases in value are doing a Short Sale. A Short Sale is the ability to sell the home for the fair market value, yet the bank accepts less than what is owed on the mortgage. A number of homeowners are turning to some REALTORS® and Short Sale Negotiation Companies to facilitate a Short Sale.
One of the criteria a bank looks at is the seller’s hardship. A legitimate hardship can be found due to one or more of the following reasons:
- Adjustable Rate Mortgage Reset
- Job Relocation
- Damage to Property (natural disaster or unnatural)
- Death of Spouse or Co-Borrower / Death
- Illness
- Death
- Loss of Job
- Incarceration
- Reduced Income
- Divorce / Marital Separation
- Failed Business
- Medical Bills
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, you should act immediately and contact your lender or a specialist like myself who will find a legitimate solution to get you out of this financial mess.
A Short Sale is different from a foreclosure. A foreclosure is detrimental to ones credit score. A Short Sale is not reported on a credit report as a Short Sale, but is usually reported as “debt settled”, which is generally less damaging to one’s credit.
How long could this process take? What information will you need to find out if you qualify for a Short Sale? Please feel free to contact me with no obligation. I am here to educate you and provide you with real options and possibilities. Why trust me? Because I never put clients in a bad financial situation by selling them an overpriced home or referred them to loan sharks who sold bad loans and misled consumers with deceptive advertising. Why give the car keys to someone who drove homeowners into the ditch? I wouldn’t? Would you? If your house was on fire, would you shoot at the firefighters? I wouldn’t? Would you? I show homeowners how to buy and sell real estate correctly to build wealth. Some Create The Real Estate Malaise, WE SOLVE IT!
Warm Regards,
Andre Luc Plessis
REALTOR®, RCS-DTM REALTOR®
Keller Williams® Realty
The Wealth Creation Team
CA DRE License # 01856185
Office: (818) 341-2972 - Cell: (310) 266-9463
Email: AndrePlessis@att.net
Thursday, October 21, 2010
How Credit Missteps Decrease Your Credit Scoring
The company behind the popular FICO scoring model has published a “What If?” series for common, specific credit missteps.
If you’ve ever wondered how your credit score would be affected by a missed payment or a maxed-out credit card, now you can use a look-up guide to assess the probable damage.
As published by http://www.myfico.com/, here’s a few common financial difficulties and how they affect FICO scores.
Max-Out A Credit Card
- Starting score of 780 : 25-45 point drop
- Starting score of 680 : 10-30 point drop
- Starting score of 780 : 90-110 point drop
- Starting score of 680 : 60-80 point drop
- Starting score of 780 : 140-160 point drop
- Starting score of 680 : 85-105 point drop
Also worth noting that the above is just a guide, your scores may fall by more, or less, depending on your individual credit profile. The number and type of credit accounts you hold, plus their respective payments and balances make up your complete credit history.
Saturday, October 16, 2010
California forgoes new foreclosure law
California has a law on the books requiring loan servicers to contact distressed homeowners and consider them for a loan modification before beginning foreclosure proceedings. But the law applies only to homeowners who took out a mortgage between Jan. 1, 2003, and Dec. 31, 2007.
Friday, October 15, 2010
Does the new health care law impose a 3.8 percent tax on profits from selling your home?
No, with very few exceptions. The first $250,000 in profit from the sale of a personal residence won’t be taxed, or the first $500,000 in the case of a married couple. The tax falls on relatively few — those with high incomes from other sources.
Only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.
The sort of people who would have to pay the tax might include, for example:
Thus, for the vast majority, the 3.8 percent tax won’t apply. The Tax Foundation, in a report released April 15, said the new tax on investment income (including real estate) "will hit approximately the top-earning two percent of families" when it takes effect in 2013.
The Internal Revenue Service says that to qualify for the $250,000/$500,000 exclusion, a seller must have owned the home and lived there as the seller’s "main home" for at least two years out of the five years prior to the sale.
Only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.
The sort of people who would have to pay the tax might include, for example:
- A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
- An "empty nester" couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the half-million-dollar exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.
Thus, for the vast majority, the 3.8 percent tax won’t apply. The Tax Foundation, in a report released April 15, said the new tax on investment income (including real estate) "will hit approximately the top-earning two percent of families" when it takes effect in 2013.
The Internal Revenue Service says that to qualify for the $250,000/$500,000 exclusion, a seller must have owned the home and lived there as the seller’s "main home" for at least two years out of the five years prior to the sale.
Thursday, October 14, 2010
Yield Spread Premiums Will Soon Be The Past
Newly-approved federal regulations target a mortgage brokers/bankers/loan officers that experts say contributed heavily to the mortgage meltdown and ultimately the greatest financial recession since the Great Depression.
Effective April 1, 2011, the Federal Reserve will prohibit ALL loan originators from receiving compensation based on a borrower's interest rate or other loan terms. That will save consumers thousands of dollars on a mortgage.
In the past, loan originators were compensated, in part, for steering borrowers to more expensive mortgages. The more costly the mortgage, the higher the so-called "yield spread premium" (YSP) payment.
They pretented that YSPs helped borrowers avoid additional closing costs. They rarely did.
CRL also found in the 2004 study, "Yield Spread Premiums: A Powerful Incentive for Equity Theft":
• The average amount of a YSP was about $1,850 per loan, the largest part of a broker's compensation. Broker's earned an average $1,046 more on loans with YSPs than on loans without the fee.
• Loans that included YSPs cost borrowers an additional $800 to $3,000 more than loans without YSPs.
• There was no legal requirement to inform borrowers about the connection between the YSP and the interest charged on a loan.
Effective April 1, 2011, the Federal Reserve will prohibit ALL loan originators from receiving compensation based on a borrower's interest rate or other loan terms. That will save consumers thousands of dollars on a mortgage.
In the past, loan originators were compensated, in part, for steering borrowers to more expensive mortgages. The more costly the mortgage, the higher the so-called "yield spread premium" (YSP) payment.
They pretented that YSPs helped borrowers avoid additional closing costs. They rarely did.
CRL also found in the 2004 study, "Yield Spread Premiums: A Powerful Incentive for Equity Theft":
• The average amount of a YSP was about $1,850 per loan, the largest part of a broker's compensation. Broker's earned an average $1,046 more on loans with YSPs than on loans without the fee.
• Loans that included YSPs cost borrowers an additional $800 to $3,000 more than loans without YSPs.
• There was no legal requirement to inform borrowers about the connection between the YSP and the interest charged on a loan.
Monday, October 11, 2010
Foreclosure flaws
Hopeful news for homeowners may not be the best news for the larger US economy. As the 'robo-signer' scandal unfolds, here are the likely consequences.
Questionable paperwork has halted foreclosures across the country, and may give some troubled homeowners the leverage they need to stay in their homes.
Some borrowers have already used lenders' erroneous documentation to get their mortgages legally erased in bankruptcy court. Others hope to use the problems as a levrage to force lenders to reduce their principal or payments.
"You can challenge not only the foreclosure, but (the legitimacy of) the mortgage," said attorney Stephen Elias, the author of "The Foreclosure Survival Guide: Keep Your House or Walk Away with Money in Your Pocket." "You make the allegation that 'we don't think you're going to be able to prove the ownership and the paperwork' . . . that's the thread that, if you pull it, the whole thing will unravel."
The problems stem from the way modern lending is done, and the way lenders have struggled to keep up with a tidal wave of defaulting homeowners. Many mortgages were sold to investors shortly after they were made. Some pieces changed hands several times. Loan servicers, the companies that actually accepted borrowers' payments to forward to the investors, and that are the ones to begin foreclosure proceedings, don't always have the paperwork to prove who owns the loan.
How loan servicers handled foreclosure filings in court is the latest issue. One of the core problems is "robo-signers," or people working on behalf of lenders who signed foreclosure documents without verifying the facts, or even reading what they were signing. It was a way to try to facilitate the process. They've been overwhelmed by the foreclosed properties, and this was their way of trying to get through those problems as fast as they could. Concern about the process has prompted officials to halt foreclosure in many places across the country. Authorities have put the brakes of foreclosures in 23 states as they try to figure out if thousands of homeowners were unfairly booted out of their homes by the banks.
After admitting widespread problems with foreclosure documentation, Bank of America, JPMorgan Chase and Ally Financial's GMAC Mortgage unit suspended tens of thousands of foreclosures in the 23 states where foreclosures go through the courts.
More loan servicers are expected to follow their lead, and the foreclosure freezes could spread to so-called "nonjudicial foreclosure" states where the court system isn't used.
Some of the likely consequences of the scandal:
- A big mess for the courts. Experts predict a blizzard of lawsuits over past and current cases, with attempts to get the courts to undo foreclosures and evictions. Foreclosures that were thought to be completed may come back to life "like a hangar-full of dead bodies started to wake up.
- A much slower housing recovery. The longer it takes to resolve the foreclosure crisis, the longer the huge inventory of foreclosed homes will weigh on local real-estate markets. Buying a foreclosure may get tougher as title insurers get pickier about which homes they cover. The controversy could scare away potential buyers and lead to even lower home sale prices.
- More time for struggling homeowners. Nationwide, the average foreclosure takes nearly 16 months to complete, up from 12 months a year ago, according to LPS Analytics. The foreclosure freeze and attendant regulatory scrutiny are likely to lengthen that wait in many states.
Friday, October 8, 2010
Bank of America Stops All Foreclosures Due to Questionable Foreclosure Documents
Bank of America Stops All Foreclosures Due to Questionable Foreclosure Documents
October 8th, 2010 at 10:03am
Bank of America became the first lender to halt foreclosure proceedings against distressed borrowers in all 50 states amid questions about whether it had properly processed foreclosure documents. JP Morgan Chase, Ally Financial, Inc. (GMAC), Wells Fargo and other lenders are under the microscope too, although Wells Fargo denies it failed to follow state foreclosure laws. Despite the self-imposed moratorium, Bank of America claims “Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.”
Despite the denial, Renee Hertzler, a Bank of America employee, has acknowledged in at least one deposition that she routinely signed 7,000 to 8,000 documents per month having to do with foreclosing on residential properties.
Also today, Pittsburgh-based PNC Financial Services Group, Inc. announced it is suspending foreclosure proceedings in the 23 judicial foreclosure states for a month while it conducts an internal review to confirm it has complied with state foreclosure laws.
Read the full article in Yahoo News and MSN.
Despite the denial, Renee Hertzler, a Bank of America employee, has acknowledged in at least one deposition that she routinely signed 7,000 to 8,000 documents per month having to do with foreclosing on residential properties.
Also today, Pittsburgh-based PNC Financial Services Group, Inc. announced it is suspending foreclosure proceedings in the 23 judicial foreclosure states for a month while it conducts an internal review to confirm it has complied with state foreclosure laws.
Read the full article in Yahoo News and MSN.
Wednesday, October 6, 2010
Resale Fees! What are those? Better watch.
If you haven't heard about resale fees, then it's time you did. They are making headlines across the nation, and for very good reasons.
When you buy a house, how often do you read every line of your sales contract? If new legislation fails to pass, you'll need to read before signing anything.
Resale fees, also known as capital recovery fees or private transfer fees, are fees that a seller pays to the developer, each and every time the home sells for a specified period of time.
A recent article by the New York Times, detailed the story of one family who bought their dream home, only to find that resale fees allowed the developer to collect 1 percent of the sales price from the seller every time the property changes hands, for the next 99 years.
This particular detail is typically hidden deep inside the sales contract. And homebuyers simply sign away their rights to that 1 percent, without ever having knowledge of it. Why would a builder or developer want to use this questionable practice?
The New York Times explains it this way, "Many developers see the resale fee as a creative way to get new financing. They are hoping to one day use the trickle of cash from these fees as collateral for a loan, or to get cash up front if pools of the fees are packaged into securities to be bought and sold on Wall Street." As they see it, developers are desperate.
Be sure to talk to your agent about your contract and if resale fees could be an issue for you.
When you buy a house, how often do you read every line of your sales contract? If new legislation fails to pass, you'll need to read before signing anything.
Resale fees, also known as capital recovery fees or private transfer fees, are fees that a seller pays to the developer, each and every time the home sells for a specified period of time.
A recent article by the New York Times, detailed the story of one family who bought their dream home, only to find that resale fees allowed the developer to collect 1 percent of the sales price from the seller every time the property changes hands, for the next 99 years.
This particular detail is typically hidden deep inside the sales contract. And homebuyers simply sign away their rights to that 1 percent, without ever having knowledge of it. Why would a builder or developer want to use this questionable practice?
The New York Times explains it this way, "Many developers see the resale fee as a creative way to get new financing. They are hoping to one day use the trickle of cash from these fees as collateral for a loan, or to get cash up front if pools of the fees are packaged into securities to be bought and sold on Wall Street." As they see it, developers are desperate.
Be sure to talk to your agent about your contract and if resale fees could be an issue for you.
Avoiding Mortgage Scams
It's goes against accepted ethics, but there are those who prey upon the weak and desperate in today's housing market. If you find yourself upside down on your loan, facing default and foreclosure, then beware. There may be those lurking nearby, waiting for a chance to take advantage of your vulnerable situation. They could make away with more than just your money; they could walk away with your home.
If the company, or person, in question asks for an upfront fee, it's time to turn on your scam radar. No fees should be exchanged until a service is being rendered. Additionally, your mortgage company will not charge you a fee for counseling about your mortgage.
Do not respond to pressure to sign or to "move quickly." If a legitimate professional is truly interested in your property, they will have no issue waiting days or even weeks for you to make a decision. Never sign anything upon first meeting with someone.
Never sign anything without having a lawyer review it. There are numerous pro-bono lawyers in most areas that can look over your paperwork for free. Don't worry about insulting the company or person offering you a deal. If they are a true and honest professional, they will have no problem with you taking your time and exploring your options.
If the company, or person, in question asks for an upfront fee, it's time to turn on your scam radar. No fees should be exchanged until a service is being rendered. Additionally, your mortgage company will not charge you a fee for counseling about your mortgage.
Do not respond to pressure to sign or to "move quickly." If a legitimate professional is truly interested in your property, they will have no issue waiting days or even weeks for you to make a decision. Never sign anything upon first meeting with someone.
Never sign anything without having a lawyer review it. There are numerous pro-bono lawyers in most areas that can look over your paperwork for free. Don't worry about insulting the company or person offering you a deal. If they are a true and honest professional, they will have no problem with you taking your time and exploring your options.
Monday, October 4, 2010
FTC's New Debt Settlement Protections For Consumers Begin Today
Improved Disclosure Requirements Start Today, Tougher Rules on Fees Begin on October 27
Starting September 27: New Disclosure Requirements
Starting today, debt settlement firms must disclose to consumers the time it will take to reduce the debt, when the firm will negotiate a settlement with creditors, and how much money consumers must set aside before a settlement offer will be made. Debt settlement firms also must tell consumers about the negative consequences of not making payments to outstanding creditors, such as being subject to collections or lawsuits, decreased creditworthiness, and increased debt.
Starting October 27: New Limits on Advance Fees
Beginning on October 27, new rules will go into effect that will prohibit debt settlement firms from collecting fees for their services until they have settled some or all of a consumer's debt. Under the new rules, a debt settlement company cannot charge any fees until it reaches a settlement on at least one of the consumer's debts that the consumer agrees to in writing. Fees cannot be collected until the consumer has made at least one payment to the creditor as a result of the negotiated agreement.
If one portion of the debt is settled, the fee will be limited to a proportion of what the total fee would have been if the entire debt was settled or a percentage of the amount saved by the settlement.
If the debt settlement service requires the consumer to place funds in an escrow account, it must disclose that the fund is owned and controlled by the consumer and that the funds can be withdrawn at any time without penalty.
While the new FTC regulation will ensure that debt settlement companies only get paid if they help consumers, it does not stop them from charging outrageously high fees. Consumers Union supports legislation to cap debt settlement fees to a reasonable percentage of the actual savings for consumers.
"The FTC's new rules will put an end to advance fees but more needs to be done to limit the amount of fees that can be charged for debt settlement services," said Pamela Banks, Policy Counsel for Consumers Union. "Lawmakers should cap fees so consumers who are already drowning in debt don't have to pay a steep price to get a fair debt settlement."
Starting September 27: New Disclosure Requirements
Starting today, debt settlement firms must disclose to consumers the time it will take to reduce the debt, when the firm will negotiate a settlement with creditors, and how much money consumers must set aside before a settlement offer will be made. Debt settlement firms also must tell consumers about the negative consequences of not making payments to outstanding creditors, such as being subject to collections or lawsuits, decreased creditworthiness, and increased debt.
Starting October 27: New Limits on Advance Fees
Beginning on October 27, new rules will go into effect that will prohibit debt settlement firms from collecting fees for their services until they have settled some or all of a consumer's debt. Under the new rules, a debt settlement company cannot charge any fees until it reaches a settlement on at least one of the consumer's debts that the consumer agrees to in writing. Fees cannot be collected until the consumer has made at least one payment to the creditor as a result of the negotiated agreement.
If one portion of the debt is settled, the fee will be limited to a proportion of what the total fee would have been if the entire debt was settled or a percentage of the amount saved by the settlement.
If the debt settlement service requires the consumer to place funds in an escrow account, it must disclose that the fund is owned and controlled by the consumer and that the funds can be withdrawn at any time without penalty.
While the new FTC regulation will ensure that debt settlement companies only get paid if they help consumers, it does not stop them from charging outrageously high fees. Consumers Union supports legislation to cap debt settlement fees to a reasonable percentage of the actual savings for consumers.
"The FTC's new rules will put an end to advance fees but more needs to be done to limit the amount of fees that can be charged for debt settlement services," said Pamela Banks, Policy Counsel for Consumers Union. "Lawmakers should cap fees so consumers who are already drowning in debt don't have to pay a steep price to get a fair debt settlement."
Saturday, October 2, 2010
Avoiding Foreclosure
Avoiding Foreclosure
If you are having difficulty paying your mortgage on time or know you will have difficulty in the near future, call your lender. Your lender is your biggest ally if you are having problems paying your mortgage, and the sooner you reach out for assistance, the more help they can provide.Your lender – also called a servicer – has a variety of options to help you with your mortgage and avoid foreclosure. These options include:
- The President's Making Home Affordable Plan
- Loan Modification
- Refinance
- Short Sale
- Deed-in-Lieu
- Forbearance
- Repayment plans
If your lender has called or mailed you documents, do not ignore them. Your lender is trying to help you. Remember, when you contact your lender early, there is a greater chance your lender can help you with your mortgage and avoid foreclosure.
Are You Facing Foreclosure?
There are resources available to help you protect your home.- Attend a Foreclosure Prevention Workshop in Your Area
- Where to Get Help
- Working With Your Lender
- Identifying a Housing Counselor
- Special Circumstances to Stop Foreclosure
- How to Rebuild After a Foreclosure
- How to Spot Loan Modification Scams
- Making Home Affordable Frequently Asked Questions
Help for Homeowners
Please use the self-assessment tools provided on MakingHomeAffordable.gov to see if you are among the millions of homeowners who may be able to benefit from Making Home Affordable. You can also connect with a HUD-approved housing counselor through HOPE LoanPort.- Your next step: Preparing for the conversation with your lender.
Beware of Foreclosure Rescue Scams Help is Free!
- There's never a fee to get help with Making Home Affordable from your lender or a HUD-approved housing counselor.
- Beware of anyone who asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay – walk away!
- Beware of people who pressure you to sign papers.
- Beware of anyone who says they can "save" your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never submit your mortgage payments to anyone other than your mortgage company without their approval.
Homeowners Warned about New Mortgage Fraud Schemes
Homeowners Warned about New Mortgage Fraud Schemes
August 24th, 2010 at 6:06pm
The U.S. GAO (General Accounting Office) has just released a report on the newest forms of mortgage fraud. Requested by Rep. Doris Matsui of Sacramento, the new frauds are a variation of the foreclosure fraud schemes in which fraudsters demanded upfront fees and performed little or no work on behalf of the consumer. Attorney General Edmund G. Brown has been aggressively prosecuting licensed agents, attorneys and others who broke the law, with the result that some have been sentenced to prison and fined and some have lost their real estate licenses or the right to practice the law.
The GAO has identified the two new scams as:
(1) a “forensic” loan audit, in which the borrower pays an upfront fee to the “auditor” (someone who is usually NOT an auditor) to see if their were regulatory violations in the original mortgage. The auditor tells the borrower s/he can get the loan modified or even canceled.
(2) the “consultant” promises to get the borrower’s mortgage erased based on a far-fetched notion that the government will pick up the loan due to the lender having done something illegal during the loan origination process.
Read the full article in the Sacramento Business Journal.
The GAO has identified the two new scams as:
(1) a “forensic” loan audit, in which the borrower pays an upfront fee to the “auditor” (someone who is usually NOT an auditor) to see if their were regulatory violations in the original mortgage. The auditor tells the borrower s/he can get the loan modified or even canceled.
(2) the “consultant” promises to get the borrower’s mortgage erased based on a far-fetched notion that the government will pick up the loan due to the lender having done something illegal during the loan origination process.
Read the full article in the Sacramento Business Journal.
Monday, September 20, 2010
10 Reasons To Buy a Home NOW!
1. You can get a good deal these days with real estate market down
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted etc.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich quick. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes.
The Wealth Creation Team
Empowering People To Buy 7 Sell Correctly!
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted etc.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich quick. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes.
The Wealth Creation Team
Empowering People To Buy 7 Sell Correctly!
Sunday, September 5, 2010
How Important is a Home Inspection
We cannot emphasize enough the value and necessity of an extensive home inspection. Many home purchasers, either in the desire to save the $300 to $500 that a good inspection costs, or due to simple ignorance, have spent enormous sums of money repairing items that any good home inspector would have pointed out. Any offer to purchase you make should be contingent upon (subject to) a whole house inspection with a satisfactory report. Do not let anyone dissuade you from having the property thoroughly inspected! Not only will you sleep much sounder after you have moved into the house, a professional inspection can give you an escape hatch from a contract on a defective property. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for. If you are not satisfied, you have the option to cancel the contract.
Home Inspections are designed to disclose defects in the property that could materially affect its safety, livability, investment or resale value. They are not designed to disclose cosmetic deficiencies (for example, an interior wall that needs paint touch up). You will need to determine on your own those type of items that will need attention.
A True Story:
The house was built in 2005 and appeared "solid".
Until the Home inspector turned on the water and everything (except the bathroom sinks) started leaking like a sieve. Including toilets. Including a hose bib. Including pipes in walls. Including the roof (well turning the water on didn't cause that one!) Including the kitchen sink.
The moral of the story for any Real Estate Buyer: GET A HOME INSPECTION!
Home Inspections are designed to disclose defects in the property that could materially affect its safety, livability, investment or resale value. They are not designed to disclose cosmetic deficiencies (for example, an interior wall that needs paint touch up). You will need to determine on your own those type of items that will need attention.
A True Story:
The house was built in 2005 and appeared "solid".
Until the Home inspector turned on the water and everything (except the bathroom sinks) started leaking like a sieve. Including toilets. Including a hose bib. Including pipes in walls. Including the roof (well turning the water on didn't cause that one!) Including the kitchen sink.
The moral of the story for any Real Estate Buyer: GET A HOME INSPECTION!
Real Estate Market in Los Angeles
"So How's The Real Estate Market in Los Angeles These Days?"
"$400k and below market is on fire right now. Anything in that range that shows well and is priced right moves quickly. A lot of FHA buyers using FHA loan and 3.5% down payment only. Million plus range is a little slower. But interest rates are unbelievably low, which is bringing the buyers out there"
There has never been a better time to purchase real estate. The proper term would be; Invest in Real Estate. Low Interest Rate and Home Values Down. Can't beat that!
"$400k and below market is on fire right now. Anything in that range that shows well and is priced right moves quickly. A lot of FHA buyers using FHA loan and 3.5% down payment only. Million plus range is a little slower. But interest rates are unbelievably low, which is bringing the buyers out there"
There has never been a better time to purchase real estate. The proper term would be; Invest in Real Estate. Low Interest Rate and Home Values Down. Can't beat that!
Saturday, September 4, 2010
The End of The Mortgage Broker
How can I be saying that this is the end of the Mortgage Broker? It's called the Financial Reform, and it is completely changing the mortgage landscape.
The financial reform has introduced a new rule that takes place in April 2011, and this rule takes away the ability for any lender or Mortgage Broker from "incentivizing" or charging more for a particular program or rate. In other words, they are eliminating the YSP and forcing everyone to make the same amount of money or percentage based on the loan amount only.
Not only that, FHA now requires the Lenders be responsible for the actions of the Mortgage Broker. This way the Mortgage Broker. can't originate 50 fraudulent loans and then file for Bankruptcy leaving no one responsible. Instead the Lender (with large financial net worth and liquid money) is held responsible for the loan that the Mortgage Broker originated. So in turn, Lenders now highly restrict and limit the Mortgage Brokers while requiring then to have large sums of net worth and a majority of that liquid, the same way the Lenders are required by FHA. This is not possible for most, or they are simply being pushed out of the business. HENCE, THE END OF THE MORTGAGE BROKER BUSINESS AND MORTGAGE BROKER INDIVIDUAL IS IN SIGHT.
The financial reform has introduced a new rule that takes place in April 2011, and this rule takes away the ability for any lender or Mortgage Broker from "incentivizing" or charging more for a particular program or rate. In other words, they are eliminating the YSP and forcing everyone to make the same amount of money or percentage based on the loan amount only.
Not only that, FHA now requires the Lenders be responsible for the actions of the Mortgage Broker. This way the Mortgage Broker. can't originate 50 fraudulent loans and then file for Bankruptcy leaving no one responsible. Instead the Lender (with large financial net worth and liquid money) is held responsible for the loan that the Mortgage Broker originated. So in turn, Lenders now highly restrict and limit the Mortgage Brokers while requiring then to have large sums of net worth and a majority of that liquid, the same way the Lenders are required by FHA. This is not possible for most, or they are simply being pushed out of the business. HENCE, THE END OF THE MORTGAGE BROKER BUSINESS AND MORTGAGE BROKER INDIVIDUAL IS IN SIGHT.
Friday, September 3, 2010
New regulations will soon crack down on shady debt settlement companies.
Starting Sept. 27, new Federal Trade Commission rules will require debt settlement companies to disclose:
The new rules:
According to the FTC, after Oct. 27 debt settlement companies can't collect fees until:
- How long the process is likely to take.
- How much the companies charge to settle debts.
- Any negative consequences of debt settlement, including the facts that your credit scores will be trashed, you may get sued and you're likely to get a tax bill for any debt that is forgiven.
The new rules:
According to the FTC, after Oct. 27 debt settlement companies can't collect fees until:
- There is a written settlement agreement, debt management plan or other agreement between the consumer and the creditor, and the consumer has agreed to it.
- The debt relief service successfully renegotiates, settles, reduces or otherwise changes the terms of at least one of the consumer's debts.
- The consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.
Another important change has to do with where clients put their savings. Typically, debt settlement companies tell you to stop paying your creditors and instead put aside your payments to accumulate a lump sum that can be used for settlement offers.
It's always been a bad idea to let a debt settlement company have or control those savings, but now the FTC has spelled out that the money needs to be in an insured bank account controlled by the client, not the debt settlement company.
I am a firm believer that there is absolutely no need to hire someone to help you deal with your creditors. As an adult you should be responsible and mature enough to deal with your situation, which you have somewhat embraced by your actions and decisions. It is as simple as calling your creditors and explaining to them your financial situation. No company, or individual can accomplish miracle in regards to negotiating with your creditors. I suggest you read a couple of books: "How to get out of debt, stay out of debt and live prosperously" by Jerrold Mundis and "Debt Cures" by Kevin Trudeau.
After reading those 2 books you will gain the knowledge that will help you negotiate successfully with your creditors and find a solution to your financial distress.
It's always been a bad idea to let a debt settlement company have or control those savings, but now the FTC has spelled out that the money needs to be in an insured bank account controlled by the client, not the debt settlement company.
I am a firm believer that there is absolutely no need to hire someone to help you deal with your creditors. As an adult you should be responsible and mature enough to deal with your situation, which you have somewhat embraced by your actions and decisions. It is as simple as calling your creditors and explaining to them your financial situation. No company, or individual can accomplish miracle in regards to negotiating with your creditors. I suggest you read a couple of books: "How to get out of debt, stay out of debt and live prosperously" by Jerrold Mundis and "Debt Cures" by Kevin Trudeau.
After reading those 2 books you will gain the knowledge that will help you negotiate successfully with your creditors and find a solution to your financial distress.
Mortgage Rates to Once Again Set New Record Lows
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending September 2, 2010, down from last week when it averaged 4.36 percent. Last year at this time, the 30-year FRM averaged 5.08 percent.
15-year FRM this week averaged a record low of 3.83 percent with an average 0.6 point, down from last week when it averaged 3.86 percent. A year ago at this time, the 15-year FRM averaged 4.54 percent.
15-year FRM this week averaged a record low of 3.83 percent with an average 0.6 point, down from last week when it averaged 3.86 percent. A year ago at this time, the 15-year FRM averaged 4.54 percent.
Sunday, August 29, 2010
Divorce Real Estate
As an RCS-DTM REALTORS® I am specially trained to neutralize divorce real estate as a business transaction, in the best interest of the house and each divorcing spouse. Whether your divorce is completed, just beginning or somewhere in between, an RCS-DTM REALTOR® I can help you determine your best options now for a fair property settlement and a stronger financial future.
Saturday, August 28, 2010
Why choose The Wealth Creation Team
If you’ve been conducting your finances on your own, it’s time to consider choosing a team. When it comes to building serious wealth, and we’re talking millions, it’s hard to do it alone. Building and managing money on that kind of level isn’t just possible for one person alone. It’s almost impossible to do it without a team of experienced Financial Coaches, Mentors, Tax Advisors and Financiers. The Wealth Creation Team is a group of carefully selected professionals who work with you to help you eliminate debts, stay out of debt, create and manage your wealth!
For your FREE Consultation (310) 266-9463
For your FREE Consultation (310) 266-9463
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