Mortgage After BK Foreclosure Short Sale

When Can You Close a Home Mortgage 
after Bankruptcy, foreclosure, short sale, modification?
C G at CMG Financial

Conventional Loan Sold to Fannie Mae/ Freddie Mac

7 year wait from Foreclosure completion
4 year wait from Short Sale Completion
4 year wait from Deed in Lieu recorded
4 year wait from Bankruptcy Discharge or Dissolution Chapter 7
2 year wait from Bankruptcy Chapter 13 discharge
4 year wait from Bankruptcy Chapter 13 dismissal

FHA Loan

3 year wait from Foreclosure  Extenuating Circumstances is hard to prove on paper, not just a reason,
but say your spouse died (death certificate after large medical bills on paper) and your employer closed down the plant in Flint Michigan (news clippings) you could get a FHA loan 1 year after
3 year wait short sale
3 year wait Deed in Lieu
2 year wait Bankruptcy Chapter 7
1 year wait after payout lapse paid on time Chapter 13

VA Home Loan

2 year wait from Foreclosure complete
no wait for short sale
2 years from Deed in Lieu
2 years BK 7 discharged
1 year BK 13 payout and paid on time


3 years from Foreclosure
3 years from Short Sale
3 years from deed in lieu
3 years BK 7 discharged
1 year BK 13 payout lapsed paid on time Chapter 13



OTHER Mortgage Loans

One day after foreclosure, BK, short sale, whatever 
just the rate is higher

Call me C G (949)  784- 9699

nmls 324982


VA Joint Loans

Veterans Administration Joint Loans

An eligible veteran is a person who served on active duty in the Army, Navy, Air Force, Marines, or Coast Guard, cadets at service academies, and Public Health Service Officers, and who, (except for a service member on active duty) was discharged or released from active duty under conditions other than dishonorable; or Members of the Reserves and National Guard are eligible upon completion of 6 years of service; or surviving spouses of certain Veterans who are in receipt of Dependency Indemnity Compensation (DIC) from VA. If under age 57 cannot be remarried. The Certificate of Eligibility will indicate the amount of available basic entitlement.

railroad poppy dishes
All VA loans require a 25% guaranty/equity to meet secondary marketing requirements. See table on the next page for maximum potential guaranty assuming the veteran has full entitlement. In addition, the VA does not impose maximum statutory loan limits; however, VA does publish county loans limits to determine how much the VA will guaranty on a specific loan. Our maximum VA loan amount is $1,200,000 and all loans require 25% guaranty/equity.
 • Secondary Market Requirements: o The amount of cash down payment plus the amount of available VA guaranty must equal at least 25% of (i) the purchase price of the property or (ii) the reasonable value of the property, whichever is less. The funding fee charged by VA must not be included in this calculation.
 ▪ The cash down payment must also include the amount, if any, by which the purchase price exceeds the reasonable value of the property.
▪ The cash down payment may not be derived from a second mortgage on the property. • Prior Approval: Any joint loan (see below) for which the veteran will hold title to the property and any person other than the veteran’s spouse must be submitted for prior approval. Any loan for which the veteran and the veteran’s spouse will hold title to the property, whether or not the spouse also uses entitlement, may be closed automatically by a lender with automatic authority. Any prior approval loan requires a manual underwrite.
Saint Francis
VA Joint Loans  must be prior approved by the VA.
 Guaranty is limited to that portion of the loan allocable to the veteran’s interest in the property. VA considers a Veteran’s spouse as the Veteran unless the spouse is also using entitlement on the loan. Joint Loans require special handling by VA for determining the amount of Guaranty on the loan and the lender for determining secondary market (GNMA) requirements. These loans usually do not have sufficient entitlement/guaranty to meet secondary market requirements and, if they do, must be sent to VA for Prior Approval.
“Joint loan” generally refers to a loan for which: o a veteran and another person(s) are liable, and o the veteran and the other obligor(s) own the security. o the veteran and another person to be included on title but not an obligor on the loan. A joint loan is a loan made to: o the veteran and one or more nonveterans (not spouse), o the veteran and one or more veterans (not spouse) who will not be using their entitlement, o the veteran and the veteran’s spouse who is also a veteran, and both entitlements will be used, or o the veteran and one or more other veterans (not spouse), all of who will use their entitlement.
A loan involving a veteran and his or her spouse will not be treated as a “joint loan” if the spouse:  is not a veteran, or o is a veteran who will not be using his or her entitlement on the loan.


Save Money: Refinance

The sky is falling?
No this is an opportunity to save some money

News, well negative news, makes mortgage rates go down. There’s been a great deal of yelling about the trade sanctions with China. I am personally glad we are finally facing off with a bully who steals all our intellectual property. I’ve had books pirated, and even rose patents. On this issue both Republicans and Democrats seem together. I’m not running out to buy a bunch of electronics or steel or a car or any other items that come in metal containers from China. Other news also stirred worry in the bond market. Brexit seems unsolvable. Europe struggles. Don’t bring up war with Iran in my house, we will also start yelling.
What does all this bad economic news mean when you thought we were on the happy train to higher wages and free medical insurance?
The Fed is not going to raise interest rates this year. My crystal ball says  the Fed is going to swing wild the short way and price in a seventy percent of a 32-basis point cut by October 2019. I love a Halloween Refinance Boom. We’ve had several Halloween Refi-manias in my thirty year career. Is a 32- basis point cut down too much? I don’t believe the American economy is doing that strong. Don’t you know three people who have to work two jobs to afford their house? I know fifteen or more.  My magic eight ball says:  save money!
Mortgage interest rates are at a twelve month low. IF you bought or refinanced in the past year I can save you money on your payment. Treasuries at 2.15 and the Ten year bond is 2.35, a fifteen month low.
More roller coaster volatility is ahead. Expect rates to swing up on a Friday when everyone is spooky or running off to the Hamptons.
Get your loan application in and approved and update as needed. I’m here to help save you money.

C G Caroline Gerardo Barbeau
NMLS 324982

(949)  784- 9699

This is not a commitment to lend Equal opportunity lender. Why would anyone not be an equal opportunity lender that makes no sense to me



Best Nurseries and Garden Supply Stores In Orange County California

to make the video play click both arrows

1. The Plant Depot
32413 San Juan Creek Road
San Juan Capistrano, CA

The number one Garden Supply, Gardener's Gift Store, and nursery store.
Family owned and loved. The staff will help you find what you dream about. Plant and orchard, build a pond, arrange a succulent garden, and English garden, just ask.
No question is considered silly, they are kind and caring. Prices are reasonable and all plant stock, water lilies, pots, and gifts are guaranteed to dazzle. They have it all: gifts for Mom for Mother's Day, door mats, bird houses, fertilizers, pots, annuals, a big selection of seeds, potted arrangements for fancy presents, bulbs, pond plants, gloves, pretty straw hats, tools, and free good advice.

The number one place to go for gardeners in Orange County

2. O C Succulents
3350 1/2 Warner Ave., Irvine, CA 92606

Wholesale prices for cactus, succulents, indoor plants, and everything drought tolerant. They have a free re-potting bench where you may decorate, add colored pebbles and custom a gift. Prices are the lowest around. They had a huge shade covered potting house- not a green house but a space with giant fans to keep the plants happy and cool in the summer.
The number two place for gardeners in OC. They don't carry annuals, vegetables and flowers.

3. Roger's Gardens
2301 San Joaquin Hills Rd.
Corona Del Mar, California

Coming in at number three is Corona Del Mar's most luxurious garden center. Roger's offers just about everything: classes, outdoor furniture, deep variety of plants, containers,nice staff, full service do it all garden center; but, with the highest prices. They have a lovely restaurant. 

4. The Tree Of Life
Seven miles east of I-5 on Ortega Highway
33201 Ortega Highway, San Juan Capistrano, CA 92675

Phone: 949.728.0685

Number four because they grow 99% of what they sell right on the property. Staff knows everything about native plants. IF you want to buy local and avoid green house gas of trucking flats of plants to stores drive out on Ortega Highway and enjoy a stroll around California's past before it is gone. They offer a few classes. The Spanish architecture adds to the charm of this great nursery and store. They offer advice on planting, watering and care. 

5. DM Color Express Wholesale
31461 Avenida De La Vista, 
San Juan Capistrano, CA 92675

This is wholesale only so bring cash and mum's the word. Act like you know what you are doing (call me if you need advice if you act dumb they won't sell to you). No prices are labelled. They load your truck if you go inside the trailers and ask. OR go pick up the flats you want and load them on top of the plastic or old sheet you brought with you. Prices are CHEAP. Cash only of you don't have a resale card. If you have a resale card and license they will set up an account and take a credit card. Plant supply changes with the whim, weather, and seasons. Don't bring children or a dog this is not handicapped set up and not safe for children to wander. Don't bring your helper pet or just buy one plant, they will make you into fertilizer.

6. Seaside Growers Nursery
33773 Camino Capistrano
Dana Point California

A little hard to find. Off Camino Cap there is an old historic adobe house on the corner, one of the last few in all the county. The road entrance is right next to the newer Residence Inn. Follow the dirt road, cross rusty railroad tracks and there you find a shady grove of nursery plants. They grow about half of what they sell. They will order anything that makes you happy. Smile, they are kind and know everything about palms and cycads. No picture seed packs, no fountains, no rose cultivars here.

7. The Pottery Shed By Carlisle
401 W. Chapman Ave
Orange, CA 92866

Jack has built a unique garden supply store. There are rusty antiques to add charm to your home. Not the largest selection of plants but wonderful for ideas. Some cool rusty gates, pottery made to look like the 1950's and sculptural not antiques but kind of...

8. Moon Valley Nursery
6500 Alton Parkway
Irvine California right along the freeway you see the giraffe and metal dinosaur every day

They have a number of locations in California, also in Arizona and Nevada with their own wholesale grow locations. The place to buy mature trees at good prices. They create some good fertilizer mixes, which I have not tried as I don't use chemicals, but others swear by them. 

Other mentions:

9. Green Thumb Nursery
23782 Bridger Rd, 
Lake Forest, CA 92630
Sales staff is surly in Lake Forest This is a chain, many locations 

10. Armstrong
lots of locations

11. OC Farm Supply 
worthy of footnote if you need feed and some wilted tomatoes priced cheap.

Mortgage for a Fixer 203(k)

Renovation Loans
Purchase a home fixer which needs repairs.
So you bought this house and it needs a new kitchen

203(k) FHA Loan May Be the Fixer
You are able to borrow up to $31000 for repairs

What do you need?

  Identity of Interest Form
  203(K) Borrower Acknowledgement
  Work Explanation Letter 
  Correct Estimate to be signed by borrower and contractor
  Homeowner Contractor Agreement signed by contractor and borrower for every contractor 
  Contractor Resume for every contractor
  W-9 for every contractor 
  Business/State Licenses from contractor and subs as required by state 
  Liability insurance/bond/workman’s comp- Obtained from Contractor and Subs (if General Contractor does not have workman’s comp)
  Contractor Attestation Letter
  Contractor Identity of Interest
  Contractor Deposit Acknowledgment
  Permit Certification – Reno Specialist to Complete
  As Completed Appraisal with Estimate in the appraisal

FHA 203K Limited Renovation‐ Steps to Success  

  •  Identify the Property! Let’s get it renovated and perfect!  
  •  Review what renovations are necessary or desired.  You need to select a contractor.  Ask friends who have completed renovations for suggestions. Your marriage with the Contractor is an important relationship.  
  • The Contractor fills out a Contractor Profile Form  This is an important part of reviewing their qualifications to do the work.  
  • Are they licensed if required?  
  • You and the contractor(s) sign a Homeowner/ Contractor Agreement. Spell out costs, time frame, and expectations in a notebook. Keep records in the notebook of progress
  • Look for comparable homes that have sold in your tract that were upgraded in similar items that you plan to complete. as if all the renovations were completed Have all the proposals in writing given to your appraiser before the appraisal process begins. Provide all the details you can as to finish and upgrades.
  • Appraisers may find other issues with the property that were not a part of the original inspection.  In these cases, those items must be added to the contractor proposals.  Health and safety code violations must be addressed. Install a carbon monoxide smoke detector before the appraiser arrives, as this is required in California code. If you know electrical is ancient, plan on bringing it Into this century. If the water heater is not properly strapped, purchase the kit to make it safe.
  • Because renovation loans are a combination of purchase or refinance loans and construction loans, they take time to close.    
  • Aside from the normal credit and property information, we must also gather and analyze the construction/ rehab part of the loan as well.  
  •  Normally a renovation loan takes thirty days to close.  The process stops if we are waiting for the contractor proposals.  They are key.  
  • A renovation loan is powerful product that allows a Buyer to move into a home and then watch it become their Dream Home.  Our commitment and expertise can help a Buyer realize that dream.  
  • FHA and Lead Based Paint 
  • If the home you are renovating was built before 1978, you may need to use a contractor or painter who is Lead Based Paint Certified.
  • Lead dust or chips can be very harmful and toxic, especially to children, and FHA therefore requires that the contractor understands how to keep you and others safe.

Here are some things that may trigger the need for a lead paint certified contractor:
1. If you are breaking through walls and doing demolition.
2. If you are repainting rooms that have chipped or peeling paint of if you are sanding painted surfaces.
3. Doing an addition which requires you to expose any painted surface or break through it.
4. You are doing replacement windows or doors.
5. Bathrooms or other room renovations requiring the disturbance of painted surfaces.
6. Exterior painting which also includes chipping, scraping, sanding or pressure cleaning.
When in doubt, let us know so we can discuss it with you and your contractor.
We want to keep you and your family safe.

CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS# 1820 in most, but not all states. 
Caroline Gerardo Barbeau   C G Barbeau NMLS 324982   (949) 784 - 9699


Mortgage Escrow Impound Rules

Number of Months Property tax impound advance collection

Mortgage Lenders require tax and insurance impounds on high loan to value loans, called mortgage escrow accounts

California impounds are not required IF the loan is less than eighty percent loan to value.
  • Closing month January – First Payment March, 6 months impounds required
  • Closing month February – First Payment April, 1 months impounds required
  • Closing month March – First Payment May, 2 months impounds required
  • Closing month April – First Payment June, 3 months impounds required
  • Closing month May – First Payment July, 4 months impounds required
  • Closing month June – First Payment August, 5 months impounds required
  • Closing month July – First Payment September, 6 months impounds required
  • Closing month August – First Payment October, 7 months impounds required
  • Closing month September – First Payment November, 8 months impounds required
  • Closing month October – First Payment December, 9 months impounds required
  • Closing month November – First Payment January, 4 months impounds required
  • Closing month December – First Payment February, 5 months impounds required
The months are collected up front and held in trust to make sure that property taxes are paid upon when they are due. You are required to pay one-twelfth of the estimated cost of the escrow items each month. 

Be mindful, these amounts can change, you usually have to put some additional money into the account as well. Property tax bills increase, especially if you bought a home where the seller was taxed at a lower rate than the current purchase price. You will receive a whopping supplemental tax bill in about six months after your close, or as soon as the county catches the increase. Expect any supplemental tax or insurance increase that can affect how much is needed to be collected on your impound account. If you experience a supplemental tax bill the amount you have in escrow may not cover the entire amount due and therefore a shortage would be applied to your new impound account balance.

Lenders  require impound accounts for a single-family, owner-occupied dwelling if:
  1. state or federal regulatory  requires the account
  2. a state or federal governmental lending or insuring agency (like FHA or VA  Fannie FReddie Ginnie) made or guaranteed the mortgage
  3.  borrower fails to pay two consecutive cycles of property taxes 
  4. the original loan to value is 90% or more of the sale price or appraised value
  5. there are two or more loans secured by the property, and the combined principal amount exceeds 80% of the appraised value of the property
  6. the loan is a higher-priced mortgage loans established in Regulation Z, whether or not the loan is a higher-priced mortgage loan (a HOEPA or High Cost)
  7. the loan is refinanced  in connection with a lender’s home-ownership preservation program
  8. if the borrower does a modification 


Mother's Day May 12th


to my Mom
my sisters
my sisters in law
and sisters at work

and to you as well

May 12th Sunday!


May the Fourth Be With You

May 4th is Star Wars Day
That is what I have to say.

CNBC contributor Alicia Adamczyk identified these five questions many Americans have not asked, or did not know they could ask, that save money.

  1. Ask for a raise – Career website Payscale found that only 37% of 160,000 workers surveyed asked for a raise in 2018. Of those who asked, 70% received a raise!  When asking for a raise at work it’s important to demonstrate your value by presenting a particular achievement you’ve had at work, listing any new tasks you’ve taken on since you last got a raise, and all of the value you’ve added to your company.  Many people focus on why they “need” a raise and fail to focus on why they deserve it. 
  2. Ask your bank to waive fees – CompareCards, a credit card comparison site, found nearly 90% of people who asked for a late fee to be waived were successful. Accidents happen, you may miss a payment or experience an unexpected overdraft.  However, these accidents can add up.  A couple $25 charges could soon compound.  Please note, negotiating with your bank or credit card company works best if you are a long-time responsible customer or if this is a first-time occurrence, and try to avoid these instances in the future!
  3. Ask the seller to pay closing costs – Most first-time home buyers know they have to save for a down payment, but few may understand how expensive closing costs will be. In a competitive market, with lots of people selling similar homes in the same area, sellers may be willing to offer “seller concessions” if you buy their home.  One such concession could be your closing costs.  Director of economic research at Zillow, Skylar Olsen, explained, “what buyers don’t realize is that there are a lot of things you can put in your offer letter that are non-standard.  Everything is on the table.”  Consult with your Realtor and real estate agent and find out if it’s a good idea for you to ask the seller to pay closing costs.
  4. Ask for a lower credit card APR – Chances are your credit has improved since you first got your credit card. CompareCards found that 8 out of 10 people who called their issuer and asked for a lower interest rate on their credit card were successful, but only 20% of survey respondents asked!  Asking for a lower credit card APR works best when you have been a long-time customer with an established responsible repayment history. 
  5. Ask if you really owe that medical bill – Healthcare costs are some of the most rapidly rising costs in our country today. It’s important to protect yourself by double-checking any and all medical bills to make sure there hasn’t been an error.  DirectPath, a service that helps employees manage their benefits, found that at least half of all medical claims it reviewed for clients had an error.  If you think your medical bill is incorrect, call your insurance company and your doctor.  If that doesn’t help, you can always contact a third-party service to look into the potential error.

Whatever your financial goals are in 2019, a few simple savings techniques could help you achieve them.  Be diligent about your credit report and medical bills, consider negotiating with your bank or credit card company, and ask for a raise when it’s warranted.