Mortgage Rates Fall getting one is a bigger Pain

Mortgage Rates Hit another Historic Low Good news Bad News

Interest rates low, and a few Economists are now saying rates could go lower! Shocking that the European Central Bank holds off reacting to the crashing E. U.

The Institute for Supply Management yesterday said it’s services index fell to 53.8 in June from 55.4 in May. Thomson Reuters expected a level of 55.0. Treasury prices pushed down interest rates, which have been falling for weeks. Tuesday the yield on the benchmark 10-year Treasury note fell to 2.94 percent from 2.98 percent late Friday. It hasn’t been below 3 for a while.

Mortgage refinances heat up but despite the lower rates getting a loan is not easier.

Getting a loan is more difficult than ever before. The key component to closing your home loan is who is your lender.

During the process do not buy. Do not shop for anything. Do not even think of looking at a car until after your loan is funded and recorded. Don’t call me paranoid until you hear what is going on behind the scenes.

Fannie Mae’s new loan quality initiatives ask lenders to continue to pull credit reports, at the beginning, during and closing process. Any inquiry for new credit will be followed to prove what is owed. The messy part is it is hard to provide proof that you did not open a new Bloomingdales account – if you ask Bloomies to give you a letter saying you didn’t open anything Bloomingdales will not provide the letter you need to prove the ghost does not exist.

Not only is your credit being scoured for new hidden accounts, the lowest middle number will determine your final pricing. Your FICO score now has become a vital organ.

Lenders may not tell you is behind the scenes they are ordering MERS reports to determine if you have other hidden cosign accounts, 4506T to actually see the IRS returns filed. Going to a broker is a position of out of control, you must go direct to the bank. Underwriters check and balance your dividends to match the accounts you claim for assets, and if you have failed to disclose any deductions. Lenders will check FBI records randomly of Borrowers and agents. You may be asked to allow a background check, which is looking for anything violent in your past.

Reference:

https://www.efanniemae.com/sf/lqi/index.jsp

“Fannie Mae is implementing the LQI enhancements to promote improved loan delivery data that is complete, accurate, and fully reflective of the terms of the mortgage. The LQI will also help ensure that the loan meets the credit and eligibility standards, pricing guidelines, and other requirements of the Selling Guide or negotiated variances. A primary focus is on capturing critical loan data earlier in the process and validating it before, during, and immediately after loan delivery.”

“Mortgage Electronic Registration System (MERS®) report can be run to determine if the borrower has undisclosed liens and/or if another mortgage is being originated. MERS® ServicerID is a free service available to the public that allows users to obtain servicer information on properties with mortgage liens registered in the MERS®”

https://www.mers-servicerid.org/sis/. 

Surfrider Foudation Monday 8:00 AM San Clemente Pier

Monday Surfrider Foundation Beach Cleanup. This is actually a fun event and many people of all walks of our neighborhood show up to pick up after the tourists. My children love to round up buddies to lend hands. Yes really hands and backs. They have sponsors who give gifts to anyone who shows up to help.

Mon, July 5, 8am – 11am


San Clemente Pier

" We are the masters of our enemy. " Rifleman's creed

Beware of Short Sale Sharks

Why are short sales attracting all the sharks and crooks? Short Sale Fraud is the Real Estate Industry’s most recent shame. It is number one white collar crime being investigated by the FBI.


Short Sale fraud now occupies the time and energy of fourteen states Attorney General and their staffs to prosecute. The reasons are simple. The owner of record is usually in a dire financial situation after often a year or more of trying different solutions, only to learn that the value of their home has decreased more, they owe more, and the negative equity number is larger.



How can you avoid being ripped off by con artists? Don’t come back crying that you were taken advantage of by a subprime lender who worked part time at your local bar, to find out he now is a short sale negotiator expert. Don’t pay any short sale negotiator up front fees. Check the license and the track record of a real estate agent or attorney. Be in charge of your own destiny and in the loop of all emails and information submitted to your lender or lenders.

Shop the fees and compare before you agree to using an escrow, title or closing attorney. Fees vary greatly and junk surcharges are padded into costs. Don’t pay illegal fees outside of escrow. Read everything you sign. If you do not understand it, do not sign it until you do. Items submitted to your lender are like your permanent record, you do not want to send them anything more than they need and you do not want to lie. This is why it is important to have an agent who is honest, smart, organized and knows about financial institutions

Straw buyers and house flipping are not easy fix solutions. If it seems too good to be true –run. If the buyer of your home is using a standard lender the lender isn’t going to allow flipping. A short sale negotiator who misrepresents the market value of a property to a homeowner's lender by submitting low ball offers on the property from an affiliated straw buyer is a crook. After the home is purchased below market value, the fraudsters immediately flip it and pocket the difference.



A title or a class on the subject does not certify anything. Short sale negotiators and agents use titles including debt negotiator, debt resolution expert, loss mitigation practitioner, foreclosure rescue negotiator, short sale processor, short sale coordinator and short sale expeditor.



This is a paperwork intense process. If you are somewhat good on the computer is can be easy. Get a right fax. Fax to yourself all the documentation and keep in a folder so you can easily email copies to anyone. Many of these items can be download for free and “saved as”- label each one. This is a partial list of what you as a homeowner need to prepare:

1. complete copy of your current credit report.

2. online tax bill from your county recorder

3. copy of your fire insurance policy

4. homeowner association bill

5. Paycheck stubs

6. w-2 and 2009 tax return

7. actual bank statements not just online printout- go to the box for a statement

8. Prepare a detailed hardship letter

9. go online and look at comparable sales for your home- find three houses close by sold in past 100 days with similar square footage

Add up the numbers-

1. I owe : $

2. I can sell for $

3. I make $





Shop for your agent. This is a person you want to talk to regularly and come up with a team strategy to help you move on. Ask friends and family and persons you trust for someone who is: honest, organized, and willing to work hard. Having negative equity is not the end of the world. It is outside your control that the value decreased. If you lost your job, are getting divorced, someone is ill or deceased, or you must relocate for a job these are beyond your planning and good intentions. Planning again for getting back on your feet in the best method for your individual life takes some thinking.



Nothing too good or too bad lasts too long the key is to have grace, honor and a clear head in both.

Top fraud states courtesy FBI: California is number one.