REO Financing Is Available

Financing is available to get borrowers into bank-owned properties. Even though there is not the wide variety of mortgage products that were around a few years ago, prospective home-buyers can get loans thru FHA, VA and of course, conventioanl means.

Yes, if you are an independent contractor and cannot show a W-2 that you get from your employer, it's much more difficult to find somebody to finance you, but it can be done.

If you have the right person helping you and have steady income, pay your bills in a timely manner, and if your debt ratio is reasonable, you can get a loan to buy a house. The areas that present more of a challenge are the higher priced areas where VA and FHA financing is topped out. This would at the $700,000 level and higher. Jumbo loans are still difficult to locate. But the other markets are still very active.

Opportunities at the local level still exist to buy homes. Rehab loans enable borrowers to take a home that needs work and do their own repairs. FHA 203(k) loans permit a buyer to purchase a house and establish an escrow with the money they need to fix it up the way they want. This is very exciting because you can get a great deal, have a house that is nice and it's fixed up the way you want it, financed, all in one package.

Many are waiting for the foreclosure pipeline to open during the second and third quarters of 2010. Some areas in the United States still need to see further value decline before foreclosures go through the pipeline and the overall housing market picks up, putting more REO properties back on the market.

At that point, prices for properties all over the nation will get back in the situation where they are increasing, not at the levels created in the bubble, but at traditional levels where you have a 2%, 3% and 4% appreciation per year.

One positive thing that has come out of the real estate market crash is that prices have come back down to where people who could not afford to buy three years ago can now afford to purchase a home.

They are now looking at an affordable price range for the type and size of house they need. These people are still interested in buying and want to buy.

Today, there are houses that have lost 50% or more in value and the industry has never before seen such dramatic percentage drops.

Another plus for home buyers is that interest rates continue to remain low, nothing like back in the early 1980's where they were as high as 19%. For most, it was very difficult back then to sell a home (unless they used seller financing which was plentiful) because the rates were so high and nobody could afford financing. Many products that we are familiar with today, originated back then because no one could afford to get a 19% fixed-rate loan.

The mortgage industry changes every year and no matter how long you have been in it, there are things that are new and quite exciting, especially the technology. More and more people are shopping for their homes on the internet.

It may take 5, 10, 15 years or even longer for the prices to rebound to reasonable market levels and now is the perfect time for consumers to begin looking.

For those looking for a good home loan, they should educate themselves to work with an agent and understand what the market is so they can get a good buy on a property and not waste their time throwing out rediculous low-ball offers that end up not getting accepted while somebody else scoops up the home they wanted by somebody who came in with a more reasonable offer.

Larry Potter is president of KIM-LAR INC and help provid loans for residential and/or commercial projects nationwide.

He also helps Monetize Mines, Bonds, Gems, Metals, Corp Notes, Bank Guarantees, Movies, etc.

Contact Larry at:

Lgpotter33@gmail.com

New Rules That Could Prevent Your Approval for a Low Rate Mortgage

For any clients applying for a mortgage after June 1, 2010, an updated credit report will be pulled after your loan is approved and prior to closing. This could result in a delay at closing, additional documentation, or a worst case scenario of reversing the decision based on the new credit report and score.

For clients who apply prior to June 1, and close prior to July 30th, the current rules apply, which state credit must be less than 60 days old at closing, which means nothing will change from the initial estimates, and once you are approved there is no additional information needed.

For those clients who prefer a "Hybrid Loan", fixed for a period of 5, 7, or 10 years, you must now qualify at the intial rate +2%. This means a customer who now qualifies at 3.75%, must qualify at 5.75% to be approved.

While not a large portion of loans being done are these 5, 7, and 10 year ARMS, it could result in higher rates across the board for clients.

Now is the time to apply. Get paid for getting a loan or for referring others. Just go to:

http://budurl.com/FastHomeLoans

Can Home Prices Increase With 2 Stones Around Their Necks?

As you may know, our government has created many programs to aid homeowners in keeping their houses. This includes loan modification and requiring banks accept short sales.

So, how's that working? Well, the latest report show that foreclosures have increase by 51%. Many talking heads on the financial networks and many so called "real estate gurus" said the bottom was here or very near. We did not stick our heads in the sand and believe the garbage they were spewing forth day after day. We knew the worst was to come and that real estate was not going to be improving anytime soon.

So, the bottom is really here now with the latest figures? Have the real estate gurus considered the 7.9 million homes that will have to come to market?

Do you think that will help real estate price improvements. That's like trying to swim upstream with a lead weight around your neck. It ain't gonna happen!!

Oh, let's not forget, the market is signaling that interest rates are going to move higher. Just another stone around the neck!

Carpe Diem.....Now...!!!!

Carpe Diem is Latin for "seize the day" -- in other words, enjoy the present, as opposed to placing all hope in the future.

Just Do It Now.....!!!

How To Make Your Online Business Profitable By: Larry Potter There has never been a better time to start a business - not necessarily a brand-new business - than now in this economy. You could even start something new with an online business that you already have in operation. Perhaps you could add video to your website with a free program like Jing or Photo Story 3 for Windows which is a free download, or create a series of follow-up emails with a service like Aweber or start placing ads on Backpage, Epage and Adlandpro. For the true entrepreneur, now is always the time to make improvements to your business. You want to stop doing things that are not working and do more of what's working for you. So, how do you know what to focus on first when you have a long list of things you want to try? That's not too hard, just put your efforts into the one that will generate the most profits that most closely matches the core purpose of your online (or off) business or your stated conversion goal. Suppose your main focus is to build a subscriber list that you want to market products or services to. You need to take a little time and decide what would give you the best return on your investment of money and time. Maybe you need to write more articles, or consider paid search advertising or test your landing pages for an online business. I've found that the best combination is writing articles that will drive free (organic) search engine traffic to one of your simple landing pages and paid search advertising. Your landing page should offer a free report on your topic of choice. Those who are interested in that topic will sign up. You deliver the report and follow up with ongoing e-mails that deliver more information. That's where services like Aweber come in handy and allow you to automate the process. Always stay on topic though and don't make each mail an ad, provide useful information along the way. For the paid advertising, you could open a Google AdWords account and create a single ad. Surely, you can give up one hour of watching television or surfing the Web to work on your Internet business. Did you know that in a recent report it was determined that the average American spends almost 1750 hours watching television in a one year. That comes out to 145 hours per month, which is more than six 24-hour days in front of the TV every month. If you are serious about having a successful business you can give up one of those five hours a day spent on television or surfing. We all have the same 24 hours each day, but how we spend them is very important. Stop right now and figure out how to use some of those hours to make progress on your online business goals. There's no excuse not to. Do it now. Larry G Potter Larry G. Potter has been investing in real estate since 1984 and is currently helping homeowners facing foreclosure to obtain loan mods (loan modifications) or mortgage principal reduction and thru their debt settlement program, to reduce consumer debt that thousands of people are drowning under. http://www.ReduceMyMortgagePrincipal.com http://www.LarryGPotter.com Article source: How To Make Your Online Business Profitable About: http://absurdsmartmarketingtips.blogspot.com

A Secret Tool To Help Sell Your Properties That Need Work

The HUD 203K program is awesome for selling your houses when doing short sales and foreclosures. It can also be great if you’re buying and holding.

It is to be used with properties that need repairs or need to be rehabbed. The HUD 203k program does not loan the money, they insure the money for the lender making the loan.

It is excellent for investors in the foreclosure and short sale arena, because you can now sell to potential buyers who get qualified for the HUD 203K program. It’s also a great tool for real estate agents that deal with short sales and foreclosures.

This loan program is different than a typical rehab loan, because the loan is made in full and set as a long term loan from the beginning, based on the estimated “after repaired” value. The purchase is made, and repair funds are put into escrow and used as needed.

The eligible property must be a 1-4 unit property that is more than a year old. Also, a single family home can be converted to multi-family, up to four units, or a multi-family can be converted to single.

You should know about it when doing your short sale and foreclosure investments, or even just wholesaling! It is a great tool for when it comes to finding buyers, or providing ideas for their financing. It also keeps you from having to do rehabs yourself before selling.

Just find it, get it under contract, and sell it! This is an excellent tool for short sale and foreclosure businesses.

You can get more info at: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

And don't forget, if you have rentals, you can get loan mods on them and increase your cash flow without raising the rents. We have one lady who has ten houses she wants loan mods on. You don't even have to be in arrears either! Get more info by filling out the form in the upper right hand side here.

Steps To Success

To climb steep hills requires a slow pace at first.

Therefore, today focus on the baby steps that will
lead to your success.

Details on FHAs new Seasoning Rules‏

New FHA guidelines were issued on January 15 that is the best news yet to Short Sale Investors. The guidelines remove the 90 day seasoning requirements for Investors to gain clear title before a sale can take place to a new buyer who is being financed with an FHA loan. The waiver on the old guidelines takes place as of February 1.

There are several requirements outlined in the guidelines:

1. No multiple transactions on the chain of title within a 12 month period. This means one Investor cannot assign a contract to another Investor or to a different entity before the end Buyer transaction occurs.

2. There may not be more than 20% profit built into the deal without jumping through additional hoops. If more than 20% is warranted, then there must be a second appraisal, documentation pointing to extensive repair and renovation needed, including an inspection report. Inspection reports must include the main structural elements of the house and the main mechanical and electrical elements. Inspections must cover both exterior and interior condition, insulation, ventilation systems, fireplaces and other fuel burning appliances.

Even with a low end property, however, 20% yields a fairly decent profit, especially when you are just starting out in investing. On a $50,000 house the maximum profit without further justification can be $10,000, while on a $200,000 house the built in maximum can be $40,000. You can see how dramatically profit will vary just by increasing the value of the property that you go after in the Short Sale marketplace. Still, the new ruling makes it profitable and simpler to go after low end deals and to put first time Homebuyers in place with these transactions than before when FHA buyers were out of the question. The Homeowners will no longer be forced to wait for lengthy seasoning periods, and therefore fewer deals will fall through.

3. As in the past, all FHA transactions must be “arms length.” Do not try to transact a Short Sale flip with a relative or close associate.

4. The Seller must hold title to the property. Make sure that the A to B transaction closes completely with separate funding, and that the sale is officially recorded. For this reason, it still may not be possible to do a same-day closing with end Buyers with FHA loans; there may need to be a few days to get the deed recorded before the second transaction can take place.

5. Make sure that you are investing within an LLC or corporation that has been fully recognized and is legally set up. Do not try to invest using a DBA. FHA does recognize trusts, if legally set up, but we highly recommend that you use an LLC or corporation as your legal base for your business.

6. The deal must have been marketed. The FHA will recognize deals that were marketed publically through the MLS, an auction, FSBO service, or through a developer.

The original set of exemptions to the FHA’s 90 day rule were for REOs and other properties owned by state and federally chartered financial institutions and single family homes in revitalization zones. Those who inherited properties were exempt, as were certain non-profit corporations. Relocation agencies also fit within the original narrow scope of those organizations exempt from the original FHA rules.

HUD repeals FHA 90 Day Title Seasoning for investor flips

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

* All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
* In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
* The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

What is a Buyers Agent

If you are a member of Home Seller Assist you have probably wondered what a buyer's agent is.

Well, every seller who has a home listed in the MLS has a agent (realtor) as their “Agent”. That means that their agent is legally liable to help them in achieving the best deal for their property.

That means that when a buyer phones the listing agent, they are dealing with the seller’s agent.

As for a “Buyer’s Agent”, the buyer who uses one as their agent, has the same legal representation as the seller.

The best part – it costs the buyer nothing! Why? The agents simply split the commission already being paid to the seller’s agent by the seller at the closing table! So if you are buying real estate using the programs in the Home Seller Assist program (also known as We Provide The Cash), you may wish to consider using a buyer's agent the next time.