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Are We Close to an End of the Mortgage Nightmare?

By the First Quarter of 2012 the Large Wave of Mortgage Resets will be Over

In November of 2008 I posted a very simple article that contained the following graph and asked for the opinion of the financial experts. It is noticeable that on 2011 we will have the largest number of Option Adjustable Rate Mortgages that will reset. This means that many borrowers were qualified to pay the minimum payment based on the starting rate and once they reset the monthly payment may be 4 or 5 times what they were qualified for. When it was done everyone expected the prices would go up forever and that time they could sell the property and make money, needless to say things didn’t go according to plans.

Please do not forget this takes the data for all USA and every market has responds differently.

If you see in my Monthly Weston Market Updates*, even though based on this graph 2010 should have been a year with a large number of distressed properties (short sales and foreclosures) hitting the market, during 2009 and 2010 there was not a significant difference.We expect 2011 to keep the same trend…

*To find the Articles with Market Update Information: go to the bottom right of the page and search for the Category: Market Update.

Credit Suize Mortgage Rates ResetsTo stay updated with what’s going on in the Real Estate Market and receive my blog posts directly to your in-box subscribe here.
If you are interested in buying or selling, please call me at (954) 588-7260 or
contact me.

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What’s Going on With the Halt on Foreclosures?

An interesting article was posted today about what the foreclosure mess means to you. I think it says it all… depending on your particular situation it may benefit or harm you…but for the recovery of the housing market the only thing that’s certain is that it will create more uncertainty!

To stay updated with what’s going on in the Real Estate Market and receive my blog posts directly to your inbox subscribe here.
If you are interested in buying or selling, please call me at (954) 588-7260 or
contact me.

Written by Ines Garcia | Discussion: No Comments »

2010 FHA Changes Starting Today

FHA LOGO

At the beginning of the year FHA announced some changes to their program that would take place later in the year, the day is here…

Some of the Changes are:

To stay updated with what’s going on in the Real Estate Market and receive my blog posts directly to your inbox subscribe here.
If you are interested in buying or selling, please call me at (954) 588-7260 or
contact me.

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Mortgage Rates Hit Rock Bottom

Unprecedented 4.71% Average 30 Years Fixed-Rate

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Can you Prevent Foreclosure?

Show me the Money!

I often hear about the lengthy letter borrowers are sending lenders to explain their hardship. Once the letter is sent they expect the bank will contact them right away to offer a loan modification; but it doesn’t work that way and borrowers get frustrated. Even though having gone through some financial issues help banks being more empathic; what they really want to know is if you can afford a “modified payment”.

Fannie Mae uploaded a Video in YouTube explaining the documents your lender need to be able to help you. Before you call your Lender gather the following information:

Be truthful, don’t hide anything!!! and Good Luck

To stay updated with what’s going on in Weston and receive my blog posts directly to your inbox subscribe here.

If you think that selling your home can be a way to prevent foreclosure and for a FREE market analysis, please call me at (954) 588-7260 or contact me.

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Written by Ines Garcia | Discussion: 3 Comments »

Forget About Quick Closings? When Will the Closing Take Place?

fotolia_13096511_xsThe New Government Regulations May Impact Closing Dates, for a transaction to close in less than 30 days we need “the perfect world being in motion and the starts lighting our way”.

What is HVCC?

Effective May 1st, 2009 the Home Valuation Code of Conduct (HVCC) was created to reinforce appraiser’s independence, protect lenders from unethical practices and to improve the overall integrity of the valuation process.
As a way to protect consumers it makes sense because it shields appraisers from being influenced by lenders; but from a practical point of view is curb-some and more expensive to borrowers because it forces them to lock in the mortgage rate. In the past the principle of independence was violated too often and it was one of the reasons the prices could keep increasing at an unrealistic pace but the impact in closings dates and disputes is yet to be determined.

How it Impacts the Closing Timeline?

-The earliest a transaction can take place is 7 business days after the borrower is issued his mortgage disclosures from the lender.
-Upfront fees can not be collected by the lender until disclosures are received by all the borrowers. Starting July 30, 2009 the fees can be collected only when the application is taken in person and the home-buyers receive the initial disclosures
-The Lender does not order the appraisal directly;  it can cause a delay in the process and the appraiser might not be the most qualified for an specific area.
-The borrower must receive a copy of the appraisal at least 3 days prior to closing date; the buyer has the option to waive this requirement.
-Any increase of more than 1/8th percent in the APR from the initial Truth in Lending Disclosure must be disclosed to the borrower and it must be received at least 3 days prior to closing. This requirement implies that the rate should be locked or it may change during the course of the transaction creating potential delays in the closing date.

As good as it is to protect consumer, as a real Estate Agent I find the process complicated and an additional potential source of conflict between the Buyer and the Seller. There are enough things that can go wrong in the course of a real estate transaction and each an everyone of them can delay closing dates.

Why Closing Dates are so Important?

Because there is a lot of stress involved in moving! The truck is already loaded, I have to leave my place by certain date, I have no place to go, delaying the closing will cost me X amount of dollars per day…  you name it! If you have been there you will understand it better. Let’s say the closing is scheduled on June 30th.; the Buyer received the commitment letter on June 15th, there mortgage rate increases 1/4% by June 29th and the Buyer didn’t lock in his rate. What happens? New Disclosures must be sent to the Buyer and the closing can’t take place until August the 2nd. With such a short notice can you imagine how Buyer’s and Seller’s life is disrupted.
I always say to my clients: the closing date is a target date…be prepared for last minute changes and have your plan B ready. We all work very hard to close on time but many things can happen at the last minute. Having expectations set up upfront eases the frustration but does not avoid it. It easier said than done!

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