Realtors Archives

On October 21, USA TODAY published an article entitled Investment Firms Look to Single-family Rentals.  With the number of vacant, foreclosed properties on the market, investors are striking bulk deals and renting out the homes which might otherwise remain vacant and appealing to criminals.

Investment firms look to single-family rentals

As homeownership rates continue to fall, a new type of single-family home buyer has emerged: large corporate investors.

With house values still depressed in many areas, investment funds and real estate trusts have been scooping up thousands of foreclosures across the U.S. in the hopes of managing houses the same way large real estate funds hold apartment complexes and office buildings.

That trend has accelerated recently as Fannie Mae announced its first two bulk sales of foreclosed homes to investment companies, selling 94 Chicago properties and 699 in Florida to firms that have pledged to rent them for at least three years. The federal mortgage-finance giant expects to sell nearly 2,000 units, the majority of them single-family homes, to stabilize cities hit hard by the housing crisis and to lighten its portfolio of foreclosed houses, which in June numbered about 109,000. Click Here for Full Video/Article (Members Only)

FHFA Streamlines Short Sale Standards for Fannie Mae and Freddie Mac

The program attempts to remove barriers created by some subordinate lien holders by limiting subordinate-lien payments to $6,000. This maneuver essentially cuts off any attempts by second-lien holders to negotiate for larger payoff amounts.

New short sale requirements for servicers proposed by the Federal Housing Finance Agency are giving financial firms a battle strategy for dealing with reluctant subordinate-lien holders who attempt to delay short sales on points of negotiation.

Some parties in short sales are able to delay the process by Click Here for Full Video/Article (Members Only)

Raising annual rental license fees was one thing.  But when officials in Columbia, Missouri added yet another regulatory requirement, landlords cried foul.

According to a news report, the Columbia City Council proposed a law which will require landlords to complete an “occupancy disclosure” form at leasing, verifying each occupant, and placing it on file with the city.

Landlords expressed concern that not only would this new requirement be onerous, but it would force them to violate their tenants’ privacy by revealing sensitive information.

Over the past two years, landlords across the country have been slammed with a barrage of government regulatory requirements, from non-smoking disclosures in Oregon, to radon disclosures in Maine, to the most recent voter registration requirement in Madison.  In 2010, Athens, Georgia adopted an “education form” where landlords are required to apprise tenants of their civic duties, including the rules for littering and the city’s occupancy standards. Landlords are challenging that law in court.

City officials in Columbia say that the intent of their proposed disclosure law is to cut down on overcrowding in rental properties.

For landlords, it’s just one more burden that falls on their shoulders, leaving them vulnerable to fines for failing to police the local laws.

The proposal to increase rental licensing fees – nearly doubling them in some situations — was placed on hold pending a study of the city’s actual costs for a rental inspection program, according to the report.

City officials say they will continue to collect comments on the occupancy disclosure form and forward the public input to the City Council.

Ignorance Of The Law

Is NOT Your Get Out Of Jail Free Card

                   While working my full time job as an undercover police detective, I had the opportunity to see a lot of things “behind closed doors.” One of the most powerful phrases most investors and Americans do NOT understand is the title of this short article. I can not tell you how many folks, after being arrested for a crime, would say “I did not know that was against the law.” 

          With the help of media and lenders and our economic market today, the word “real estate” has transformed into an almost bad word. In fact, many consumers are looking for ways to “get back” or get even, or sue the very folks who helped them graduate into homeownership. This means me and you have huge targets on our backs.

          Be very careful in today’s real estate market. Always use the proper disclosures and always do things the right way, the professional way.

          PROTECT YOURSELF NOW! Remember this powerful phrase.

Here’s some simple no-brainer tips and red flags to avoid as a real estate investor.

  • NEVER Buy using a Quit Claim Deed
  • NEVER do “kitchen table closings.” ALWAYS use a “GOOD and REPUTABLE” real estate attorney or title company.
  • ALWAYS buy Title Insurance when you are buying an investment property.
  • If you are selling a property and you want to sell it real bad…. Be very careful about what you do to help your seller. Many times a loan officer or loan broker will ask a Seller to prepare another form or they may ask you to just sign this form and they’ll say “We Do This All The Time.” If you hear this phrase, you might want to run. (Remember, ignorance of the law is not a get out of jail free card.)
  • AVOID buying using a “Contract for Deed, Land Contract, or Agreement for Deed.” Once again, always have a professional full blown closing with a real estate expert attorney or title company. (It is ok for you to sell on Land Contract or Contract for Deed)
  • Some common schemes seen by IRS criminal investigators include:
    • “Property Flipping” — A buyer pays a low price for property, then resells it quickly for a much higher price. While this may be legal, when it involves false statements to a lender who is regulated by the feds, it is not. (Now do you really want to say you are a “FLIPPER” or you “FLIP” Properties… the new F word.) 
    • Two Sets of Settlement Statements — FOLKS, This is FRAUD!
    • Fraudulent Qualifications — Some “professionals” assist buyers who would not otherwise qualify by fabricating their employment history or credit record.

Happy Hunting and watch out for these Red Flags of Fraud.

Landlord Training – Tenant Challenges Part VI

This is a on demand preview 

 

Click Here for Full Video/Article (Members Only)

25 min GOLD Member Training session with Melissa in North Carolina

 

Do You have a question or two?

Call Melissa at 502.252.1834

Click Here for Full Video/Article (Members Only)

Ignorance of the Law is not Your Get Out of Jail Free Card!

An Everett, Washington landlord has been ordered to pay a $21,800 fine after failing to include a lead disclosure in his lease.
 
The landlord, who manages 26 units located in Bellingham, Washington, repeatedly leased properties to tenants over the course of several years without including the federally-mandated lead disclosures. The EPA brought the charges against him.

“People have the right to know about lead hazards prior to renting or buying a place to live,” said Rick Albright, Director of EPA’s Office of Air, Waste and Toxics in Seattle. “Sellers, landlords and property managers who do not properly notify the people who will live in these homes can face stiff penalties.”

The Disclosure Rule requires landlords, property management companies, real estate agencies, and sellers to inform potential lessees and purchasers of the presence of lead-based paint and lead-based paint hazards in pre-1978 housing. They must also provide the purchaser or lessee with a copy of the Lead Hazard Information Pamphlet, “Protect Your Family from Lead in Your Home” before entering into any lease or sales agreement, and keep records showing they have met the federal requirements.

The Federal government has recently changed its guidelines on refinancing.

Homeowners who are “underwater” in regards to value in their homes can now also take advantage some of the lowest rates in 60 years, regardless of your appraised value or loan amount.

The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for the FHA’s streamline refinance program, after June 11, 2012.
Since the financial crisis of 2008, more than 750,000 borrowers have refinanced their mortgages through FHA’s streamline program, according to data from the Department of Housing and Urban Development. More than half of those refinances took place in 2009 after the housing and mortgage markets collapsed.
But rising mortgage insurance premiums on FHA loans have become an obstacle for many homeowners who want to refinance. Depending on the size of the loan, the fees can eat up much of what the borrower would save through the refinance. FHA asserts that lowering the MIP rates for streamline refinances will not incur taxpayer expenses or jeopardize its mutual mortgage insurance fund.
In this streamline program, the FHA asks for limited documentation from borrowers and doesn’t require an appraisal of the home. The no-appraisal rule allows owners to refinance even if they owe more on their mortgages than their houses are worth.
The lower fees go into effect June 11 and will be available to borrowers who refinance loans that were endorsed by the FHA before June 2009. FHA estimates that there are approximately 3.4 million households with qualifying FHA mortgage loans with mortgage rates over 5 percent.
The average household could save about $250 per month or $3000 annually using streamline refinancing.
Acting FHA commissioner Carol Galante remarked that lowering the insurance premium rates for streamlining FHA mortgages “is one way that FHA can help homeowners who are doing the right thing, paying their bills on time and who want to take advantage of today’s low interest rates.”
The program is providing an inexpensive method of refinancing, which can prevent foreclosures and provide homeowners with additional cash for paying bills and meeting essential household expenses.
The FHA Streamline Refinance is a unique mortgage product, available to homeowners with existing FHA home loans only. The program was built to be the fastest, simplest way for an FHA-insured homeowners to refinance their respective mortgages. The FHA Streamline Refinance’s big attraction is the leniency of its underwriting standards.
But In Order to Qualify, You Must Meet This Criteria…
    Your current FHA mortgage must have been assigned before May, 2009
    You must be current on your mortgage and not been late over the last 12 months consecutive.
If you meet these two criteria, you may be FHA Streamline-eligible and below are a few other items to consider,
If you had a bankruptcy, you are most likely eligible, but please call expert Loan officers and other mortgage professionals for more information about your particular situation.
There are many options available, including a “no-closing cost” option where you won’t have to come out of pocket for the refinance.
And remember: you may “not” need an appraisal to qualify.
The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for the FHA’s streamline refinance program. Again, the lower fees go into effect June 11 and will be available to borrowers who refinance loans that were endorsed by the FHA before June 2009.
The new, lower fees will make streamline refinances much more feasible to borrowers, as some estimates when the new fees take effect will be, a borrower refinancing $200,000 will pay $20 — instead of $3,500 — in upfront mortgage insurance. The borrower also will pay about $92 — instead of $208 — per month for annual mortgage insurance.
That’s because the FHA reduced the upfront mortgage insurance premium for eligible homeowners to 0.01 percent of the total loan and the annual premium to 0.55 percent of the loan.
In comparison the borrowers who are “not eligible” for the reduced fees under the streamline program, the cost of upfront mortgage insurance is 1.75 percent of the total loan and 1.25 percent of the loan per year.
Loan officers and other mortgage professionals say they have lists of clients who are waiting to refinance in June with the lower fees which could create a mini-refinance boom in June after the fees are reduced.
Remember that “No appraisal required”, except some lenders have overlays, if you are going from a 30-year to a (15-year mortgage) and your payment is not decreasing, or if you are removing one person off the title,” you’ll need an appraisal
As long as your mortgage payments decrease by at least 5 percent with the refinance, the lender does not have to order an appraisal of your home.
These guidelines are to help homeowners who are upside down on their mortgages.
Generally, lenders want a FICO score of 640 or higher for streamline refinances, Some lenders are willing to accept 620 and a few will go lower than that, but they usually charge higher rates on loans with lower scores.The FHA does not require a minimum credit score for streamline refinances, but the lender that is refinancing your mortgage will likely have its own requirements, as an additional “overlay”
With the streamline program, the FHA allows borrowers to refinance without having to show proof of employment and income. Although some states have laws that require lenders to verify borrowers’ income on all mortgages regardless of what the federal program allows. And in some cases you will likely be asked to present documentation that shows you can afford the mortgage payments.
In the last few years Lenders have been reluctant to underwrite mortgages without asking for full documentation and minimum credit scores, especially when many of the mortgages they are being asked to refinance have lower values and are underwater.
So these new guidlines should encourage lenders to embrace streamline refinances, since the government has changed the way it evaluates lenders’ FHA loan portfolios. The FHA has a scoring system based on the performance of each lender’s FHA loans. If a particular lender has too many delinquent loans compared to other lenders, the FHA may stop doing business with that lender.
Historically, the FHA Streamline Refinance has been an excellent program with lots of success stories and it remains the fastest, easiest refinance loan program in the country.
The FHA will start accepting these new streamline loans after June 11, 2012 but borrowers can begin the application process now in anticipation of the new program.
Everyone needs to be sure to find the ethical honest “Real Estate Industry Professionals” willing to assist the “American Homeowners”  who are “underwater” in regards to value in their home, be sure to  educate yourself, and beware of the mortgage fraudsters. Mortgage fraud is a material misstatement, misrepresentation, or omission relied on by an underwriter or lender to refinance, fund, purchase, or insure a loan.
If you have questions or need to know if you are dealing with a ethical or reputable lender, send an e-mail and I will attempt to assist you in the order the e-mails are received.

Your Comments and Share with Friends!

UPDATE: TrusteeServicesUSA.com can be your Trustee. 

 

here is a preview on how to select your trustee on a ROTH IRA deal vs. normal deal using the 5M Land Trust

GOLD MEMBERS can access the full video

Click Here for Full Video/Article (Members Only)

 Page 2 of 15 « 1  2  3  4  5 » ...  Last »