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Mortgage Companies Mandating Mortgage Fraud

Mortgage Companies Mandating Mortgage Fraud

Forget about the lawyers, Realtors, sellers and buyers have a new enemy in the real estate transaction.  The mortgage guys. In an effort to deliver “high quality” loans that are (usually) not sold to Fannie Mae, Freddie Mac, FHA or VA, lenders get to set their own guidelines are rules for loans. The bank can say that you can or can’t do something and if you don’t do it, you don’t get the great rate you were promised and locked in to. Example?  I just had a lender tell buyer (I was on the Seller side) that the washer and dryer are personal property and it must be REMOVED from the contract. If they did not do that, the loan would not go through. So now, the buyers have “given up” what they negotiated.  And, if we actually include the washer and dryer, are we committing mortgage fraud? The lender is boxing everyone in to what they want because he who has the gold, makes the rules. What will...

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Does brand matter?

Does brand matter?

That’s a question that real estate brokers that have a big brokerage say yes and small brokers say no. The bigger discussion is who is going to be the most effective person to handle your transaction and what back up do they have. If the person you are dealing with has a great grasp of your needs, able to handle negotiating for you where you get most of what you want, knows how to communicate and have positive relationships with others in the industry, the only you and they need is a back office and leader that follows the same path. Many times, there are great agents that do a super job but have staff that does not understand that time is of the essence. Also, they have a title or mortgage person they involve in the transaction that does not call people back. Not good! And when there is a real problem, you have to make sure that the broker of record or the office manager is accessible...

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Could Rentals Kill the Economy

Could Rentals Kill the Economy

Greed is good.  The rich get richer. We’ve all heard these expressions but are they right? Landlords are so excited that the economy is coming back, more people are working and homes are harder to buy because mortgages are strangling the market. Since there are no more option arms and no docs, people have to qualify for loans. Even without the CFPB overregulations, the housing market is exactly what it would be without the idiocracy of paperwork and restrictions imposed by the government agency. So, the supply and demand features of rentals have been rearranged.  Everyone needs to live somewhere.  But the $750 a month rental that they had is now $1000.  Why, because they can. But, if you take $250 out of people’s accounts that they have to spend on rent, that leave $250 less to spend on basic goods and services.  The landlord’s $250 does not go towards less basics but towards either improving the property, savings or a new car. The $250 times the many, many...

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This Way to Happiness!

This Way to Happiness!

Important ideas in homebuying to think about. The best way to figure if a home will work for you is to close your eyes and imagine your day-to-day life from the time you wake up, make coffee, get showered, dress, eat yogurt, search for your car keys and then get in the car and drive away. Then, coming home.  You walk in, take off your shoes, have some chardonnay, turn on the music, make dinner, eat, read, take a swim, a shower and read again before bed.  (And yes, you can freely replace any other activities with what I described above). The bottom line is, this will be the place that will formulate your happiness for years to come and obviously, happiness rules. Home, Sweet Home. Share this:TwitterFacebookGoogleTumblrLinkedInEmailPrintPocketRedditPinterestLike this:Like...

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And Now, the End is Near

And Now, the End is Near

Two events today have indicated to me that the economy is about to go nose dive. One came from Federal Reserve Chairperson Janet Yellen in her prepared remarks in front of the Senate Banking committee.  She announce “Irrational Exuberance 2”, the sequel to Alan Greenspan’s mention that tech stocks are too high based on no backbone. Yes, there is no basis to the valuations on some companies that have not put together dollar 1 in profit, yet have spreadsheets making them worth billions. I am sure there are a few that deserve that price, but many don’t.  Even the people writing the algorithms don’t agree with the numbers that are projected.  In order for free markets to exist, they must have valuations based on realities, not wild speculations. The other came in the form of an email.  Our new hero for ending the economy is Kevin DeLory, Regional Sales Manager at Carrington Mortgage Wholesale.  I received an email from Mr. DeLory today since I am a mortgage broker that...

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Top Reasons the Real Estate Market Could Crash Soon

Top Reasons the Real Estate Market Could Crash Soon

Crash? Don’t be alarmed. Don’t sell your business, but realize that the economic structure and outside occurrences can shape a real estate market. I am a normally upbeat guy, but I do like realism. We have to step away from being happy all the time to an honest view for our clients — both sellers and buyers. Here are the top reasons that the real estate market could fail soon, in no particular order: 11. Rates are dropping. What? Aren’t rates dropping a good thing? Actually, no. The market is telling us based on macroeconomic reports that the economy is not cooking and jobs are not being created to make people buy homes. The only good news that will come from this is that those who forgot to refi, especially the HARP2 eligible, will be able to get better rates. Speaking of HARP, it’s being reported that FHFA Director Mel Watt may waive the eligibility date! 10. Robots. CNBC did a report called “Robots Rising” highlighting the fact that robots will continue to...

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