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docvuai · 2 months ago

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Document Automation and the Future of Non-QM Loans with IDP solutions

As margins thin out, lenders are faced with the task of reconfiguring their existing cost structures while looking for alternate revenue streams. The non-QM market is emerging as a lucrative and practical solution for many. COVID-19 halted the boom of non-QM due to the liquidity constraint, however, it regained its market share and finished 2021 with 25 billion worth of originations and is anticipated to double in 2022.

What is a Non-QM Loan?

A loan which has any one of the criteria below will be considered non-QM:

Debt-to-Income greater than 43%

Blemish on FICO credit due to unforeseen circumstances

Self-employed for less than two years

Low income on tax returns

A non-qualified mortgage doesn’t conform to the consumer protection provisions of the Dodd-Frank Act.

For example, if you have a DTI of more than 43% or have erratic income and don’t meet the income verification requirements set out in the Dodd-Frank Act or by most lenders, you are not eligible for a qualified mortgage and may be offered a non-qualified mortgage instead.

How Do Lenders Verify Income for Non-QM Loans?

Non-QM loans don’t adhere to the standards required for QM loans, but that doesn’t mean they are low-quality loans. A study conducted in 2018 shows that the differences in credit score and loan-to-value ratio between non-QM borrowers and QM borrowers are minimal. However, non-QM borrows on average do have a higher DTI ratio.

Non-QM loans provide flexibility for lenders to offer mortgages to people not eligible for QM loans. Nevertheless, lenders still need to substantiate the documents provided, including income sources. They may also want to verify assets or any other information that assures them the borrower will be able to repay the loan. Non-QM loans are not insured, guaranteed, or backed by FHA, VA, Fannie Mae, or Freddie Mac.

The Evolution of the Mortgage Market

The non-QM market shows promise for the future due to the below factors:

Stricter Regulations

Regulatory bodies, Fannie Mae, and Freddie Mac have made stricter restrictions to reduce possible risks by limiting the percentage of qualified loans offered. This has resulted in a smaller government box, isolating a large section of borrowers who do not conform with the GSE. Moreover, with bank lending restrictions also becoming stricter, this aided non-QM loans to become a more accommodative alternative for loan seekers.

2. Evolving Borrower Profile

There has been a radical change in employment profiles across the country triggered by the COVID-19 pandemic. Entrepreneurship is on the up with a significant percentage of salaried individuals starting their own business due to loss of jobs.

According to statistics, the growth of start-up businesses in the country has risen by 24% from 2019 to 2020. A Forbes report published in 2019 estimated that nearly 30% of Americans are self-employed. This opens the non-QM market to a large number of individuals who become natural candidates for non-QM loans as Fannie Mae and Freddie Mac primarily favor the salaried class.

3. Soaring Home Prices

Home prices over the past few years have seen a gradual rise. The mortgage market is generally shifting away from refinances, which made up over 50% of the market in the last 12 months, to a purchase driven market. The demand for large-sized loans has increased – mostly in the form of Non-QM, as the GSE guidelines around investment properties have been disqualifying most candidates for agency loans.

Key Challenges Faced by Lenders in the Non-QM Space

While interest in the market is on the rise, there are challenges for Non-QM loans. Despite the growing interest, the sector does face some basic functional challenges that lenders are required to overcome. The key ones are detailed below-

Managing Error-Prone Manual Processes

Manual processing of Non-QM can lead to errors, longer timelines and higher costs. Non-QM products do tend to be a bit diverse. This makes the requirement of proper technology to streamline tasks and improve efficiency levels across the organization quite a pressing one. Though there are many generic automation solutions available in the market, Non-QM loans require specialized solutions to get the domain intelligence into the system.

2. Mitigating Risks of Frauds

Mortgage fraud has been rising steadily in the last decade. Due to a relaxation in DTI ratio and other criteria, it becomes critical for Non-QM providers to have a robust risk and fraud mitigation mechanism.

3. Dealing with the Changing Cost Structures

When looking at the total number of mortgage units over the last 10 years, the market has fluctuated up or down by up to 50% each year. It’s clear that mortgage is an industry that is subject to high fluctuations. Due to this ambiguity, increasing fixed costs by investing in additional capacity can be a risk.

The pivotal role of specialized document automation technology in overcoming functional challenges

Specialized solutions can help to overcome functional challenges faced in disbursing Non-Qualified Mortgages. Document automation involves using advanced technology such as AI to simplify the lengthy tasks pertaining to disbursing a typical non-QM loan – right from onboarding, processing, underwriting, pricing, packaging, and closing in a cost-effective way.

DocVu.AI – the most innovative AI/ML solution for BFSI* is designed to be workflow-driven and follows the same set of rules that is adhered to when tasks are manually executed. With the use of intelligent algorithms, the solution significantly increases the pace of execution and reduces the probability of costly human errors.

As a result, Non-QM Mortgage lenders gain increased freedom to take on additional workload due to the automation introduced at several points without worrying about capacity constraints. This empowers the lenders to place their undivided focus on core areas for sustainable growth.

*As per IBS Intelligence 2021 ratings

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bbtfinance · 4 months ago

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Mortgage Lenders

Mortgage lenders assess your financial and credit history to determine whether you are eligible to borrow funds to purchase a home. They also manage your repayment process and navigate relief options if you cannot afford your payments.

Mortgage lender services are offered by banks, credit unions, nonbank lenders and mortgage brokers. They typically request income and asset documentation, pull a credit report and analyze debt-to-income ratios.

Banks

Banks are large financial institutions that offer a variety of financial products, including mortgages. They typically have a long history of stability and a solid reputation. They may also have a greater online presence and more customer reviews to help guide your decision. They prioritize your business and can offer personalized service. However, their size can limit their options, and they may have stricter requirements for loan approval.

Local banks can be used as mortgage lenders, but they generally focus on other products like checking and savings accounts, certificates of deposit, auto loans and credit cards. They may offer loyalty incentives for existing customers, but their mortgage offerings are limited and they typically have stringent eligibility requirements.

Mortgage lenders specialize in mortgages and have extensive experience qualifying borrowers with unique financial situations that don’t easily fit into conventional underwriting standards. They can often process and approve loans more quickly than banks and have a broader library of mortgage products to choose from.

Credit Unions

Credit unions typically offer lower mortgage interest rates because they're not profit-driven. Like banks, they're federally insured. But unlike banks, credit unions are less likely to sell your mortgage loan to third-party lenders or servicers.

They're also more likely to know you personally, making it easier to work with a lender you trust over the life of your mortgage. In addition, credit unions often offer home equity lines of credit (HELOC) and second mortgages.

However, they may not have as many branches or ATMs as national banks. And they usually have membership requirements, such as residence, occupation or community affiliation. Plus, they may have fewer financial products, such as savings and investment accounts or credit cards. Still, if you're looking for personalized mortgage service and low fees, a local credit union might be worth considering. And if something goes wrong in the mortgage process, you can always go to your local branch for face-to-face help.

Nonbank Lenders

While traditional banks still dominate the mortgage market, they’re increasingly facing competition from nonbank lenders. Non-bank lenders often offer more flexible lending criteria, faster processing times and competitive interest rates.

They’re also more willing to approve borrowers who might be rejected by bank lenders. For example, those with less-than-perfect credit scores or unconventional income sources. They may even specialise in providing government-backed loans like VA and FHA mortgages aimed at higher-risk borrowers.

But while nonbanks can offer borrowers a more flexible variety of mortgage products, they also typically charge higher fees. To examine these costs, Bloomberg News analyzed 38 million Home Mortgage Disclosure Act data from 2018 to 2022. It found that upfront fees are closely correlated with borrowers’ credit scores, which help lenders set interest rates and determine whether to approve a loan. This makes analyzing them critical to fair-lending analysis.

Mortgage Brokers

Mortgage brokers act as intermediaries between lenders and borrowers. Typically, they find a lender that will make the particular type of mortgage a borrower needs and then help arrange the loan process. Typically, mortgage brokers receive payment either from the borrower or the lender for their services. This fee is usually incorporated into the overall cost of the loan.

Mortgage brokering can be an effective solution for borrowers with credit problems that would keep them from qualifying through direct lender programs. However, borrowers should carefully evaluate the mortgage broker they're working with to determine whether they provide enough options or have any preference for certain lenders.

Ask a potential mortgage broker about their experience, the precise help they offer and how much they charge for their services. It's important to know how they make money, since this may affect whether they steer borrowers toward loans with higher fees or rates. Ask to see a copy of any fees they charge before you decide to work with them.

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hakesbros · 2 years ago

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Home Amh Homes

The inhabitants has been growing at roughly two % a year. This causes the Fort Collins real property market to appreciate at a barely faster fee, however the Fort Collins housing market isn’t so sizzling that locals are priced out. In LA or San Francisco, that’s enough new home builders in albuquerque for a cramped condo. One of the most costly neighborhoods in the Albuquerque actual property market, North Albuquerque Acres, has a median list price of 889,000 dollars.

This is why the Albuquerque real estate market saw 5 percent progress in 2018 and is anticipated to see almost three p.c appreciation in 2019. Over the last two years, real estate appreciation charges in Albuquerque have been tracked to close the national common, with the annual appreciation fee averaging 4.60 %, in accordance with NeighborhoodScout's data. Looking solely on the last twelve months, Albuquerque's appreciation charges stay among the many highest in the nation, at 21.85 percent, which is greater than appreciation charges homes for sale albuquerque in 79.50 % of the country's cities and towns. Short-term actual property traders have discovered success in Albuquerque over the last twelve months. In the most recent quarter, Albuquerque appreciation charges had been 8.44 p.c, equating to an annual appreciation fee of 38.30 %. Albuquerque real property market tendencies show that it is a seller's real property market, which implies that extra folks wish to purchase than there are homes available.

You understand that you are not required to consent to receiving autodialed calls/texts as a condition of purchasing any Bank of America services or products. Any cellular/mobile phone quantity you provide may incur costs from your mobile service supplier. Your month-to-month mortgage cost usually will include principal and curiosity on the mortgage, in addition to owners insurance and property taxes if your mortgage payment new homes albuquerque consists of escrow. Depending on your down cost and mortgage type, you may also should pay personal mortgage insurance coverage as part of your month-to-month mortgage payment. FHA loans get pleasure from a low down payment, however you may want to contemplate all costs concerned, together with up-front and long-term mortgage insurance coverage and all fees.

Protect yourself and your funding from unexpected system and appliance repairs with our complete home guarantee plans. In order to provide you with the greatest possible price estimate, we'd homes for sale in albuquerque nm like some further information. Please contact us to be able to focus on the specifics of your mortgage wants with considered one of our home loan specialists.

To preserve the historical past and character of the realm, most homes are constructed in the Pueblo Revival style. Inspired by the architecture of the Spanish missions, the Pueblo Revival type often incorporates options like stuccoed partitions, flat roofs, wooden beams, and rounded exteriors. The typical Albuquerque house has three bedrooms and two bogs and measures about 1,500 square feet on average.

These young adults may select to search out jobs upon graduation and stay in the Albuquerque housing market, however they won’t be buying homes whereas attending college. This means you ought to purchase Albuquerque actual estate funding properties supposed to cater to this nearly recession-proof rental market. For example, people move here to work because wages are greater than the state common and employment charges larger. They transfer here because it's higher than where they came from, but they can’t commit to a house cost till they’re doing better personally. Home consumers have so much to think about when house-hunting or looking to spend cash on rental properties, from the state of the housing market itself to taxes and potential resale value. The housing market grew strong and expensive in the final decade following the 2008 recession, however the market could be slowed by rising interest rates.

This luxury new home neighborhood is unique for its stunning mountain vistas, with many homesites providing picturesque views of the Sandia Mountains. See the present MLS listings of homes for sale in Albuquerque. Change the settings beneath to browse obtainable homes. The offerings are topic to errors, omissions, adjustments homes for sale in albuquerque new mexico, together with value, or withdrawal without discover. We’re the nation’s largest real estate brokerage, with the listings you need in your market. The New Mexico Home Fund began with funding from the Federal Government in the course of the COVID-19 pandemic.

Thank you for visiting our Albuquerque homes and actual property webpage. Here you will find useful info on Albuquerque, NM actual estate and Rio Rancho, NM actual property for both buyers and sellers. Please freely browse and make the most of our Albuquerque New Mexico public MLS to search for all Albuquerque and Rio Rancho homes for sale. Our high standard is all the time to provide superior service and honest illustration.

#real estate

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airoasis · 5 years ago

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YES YOU CAN! Get Rid Of Your FHA Mortgage Insurance - Today's Mortgage and Real Estate News

New Post has been published on https://hititem.kr/yes-you-can-get-rid-of-your-fha-mortgage-insurance-todays-mortgage-and-real-estate-news/

YES YOU CAN! Get Rid Of Your FHA Mortgage Insurance - Today's Mortgage and Real Estate News

I’m no longer internationally identified, but i am identified to rock the microphone. This is Dan for your inside of team at Growella, it’s Wednesday, April 18, 2018. Welcome to modern day personal loan Minute-and-a-half. I write spins, not tragedies, and the U.S. Housing market has been something but a tragedy when you consider that bouncing off its backside in late-two thousand twelve. Within the near-six years considering the fact that, dwelling values are up almost forty percentage nationwide. And if you are a homeowner with an FHA-backed loan, this upward thrust in dwelling values is above all just right information for you considering it means that you may regularly discontinue paying those FHA mortgage coverage premiums. Sure, i do know. You had been told by using your lender that FHA MIP lasts for the life of your loan and that is real for everyone who used an FHA loan and put down lower than ten percent on their buy.But, but! Phrases have meaning, and "loan coverage for the life of your loan" does not imply the equal as "mortgage coverage endlessly". "For the lifetime of your loan" method unless your mortgage ends, and your FHA mortgage can end in these days. Keep in mind: residence values are up by lots this 12 months, and likewise in latest years. The compounding outcomes has given you equity. And, that FHA loan that was once a first-rate match for your date of buy is likely less-than-most suitable in these days. You will have the alternative to refinance to a non-FHA mortgage, that doesn’t charge FHA loan coverage, and that may shut in less than a month.Do it zero-closing rate, if you need. Simply do it and cancel your FHA MIP. It’s better to procedure these sort of things with a way of poise and rationality. I mean, technically, your mortgage is saved. Talk to a lender to start to grasp your choices. It is any such first-class line between stupid and clever, and the same is true for the exchange in personal loan premiums this week.Charges have moved slash, but most effective moderately. Conforming, FHA, VA, USDA and Jumbo rates are increased. Your exact quote will fluctuate situated in your mortgage size, your credit score ranking, and where you live; and through your option in lenders. Keep in mind to talk to 2 extra lenders earlier than deciding on a price, and decide upon the lender that presents your appreciated combo of service, premiums, and fee. It can be this type of exceptional line between stupid and clever, and the equal is correct for the alternate in personal loan premiums this week. Premiums have moved larger, however best reasonably.Conforming, FHA, VA, USDA and Jumbo premiums are worse. Your genuine quote will vary based in your loan dimension, your credit score rating, and the place you live; and by your option in lenders. Do not forget to speak to two extra lenders earlier than settling on a rate, and decide upon the lender that presents your preferred combo of carrier, charges, and fee. It can be the one weird trick to repay your mortgage rapid. Besides it can be now not a trick. And, it is no longer bizarre. It is a 15-yr mortgage and it’s about as un-weird as anything else in loan. Makes for just right advertising and marketing, however as in comparison with a thirty-yr mortgage, can it make for good individual finance? Yes, it will possibly.Because fifteen-year mortgages diminish the amount of interest a homeowner can pay to its lender over the lifetime of a mortgage, and those savings are foremost. At modern-day loan charges, you can pay forty-seven percentage less interest with a 15-year loan as in comparison with a thirty 12 months which, in greenback terms, is 100 twenty thousand bucks saved for each two-hundred fifty thousand borrowed. That is pretty good. Lovely lovely beautiful just right. But those financial savings don’t seem to be what’s pleasant for everyone. Here is why. Fifteen 12 months mortgages shop property owners cash with the aid of decreasing with the aid of half the number of years over which their loan is paid again. And, to accomplish that, payments get compressed into a fewer quantity of years. You get a reduce rate, however your repayments go up by means of virtually half. And, if that’s anything you need to deal with, the long-time period payoff is huge. Except it’s now not a bizarre trick.It can be just a bit math. Ask your lender for help with the numbers. Remember whether or not fifteen-12 months loans are what’s exceptional for you. Growella does well timed and central personal loan news thrice weekly and we do a enjoyable, are living session every Thursday at midday jap. So, put a like on it, leave a remark, and, don’t forget that if dad jokes have been fairly that bad, they’d be referred to as bachelor jokes as an alternative. .

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batterymonster2021 · 5 years ago

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YES YOU CAN! Get Rid Of Your FHA Mortgage Insurance - Today's Mortgage and Real Estate News

New Post has been published on https://hititem.kr/yes-you-can-get-rid-of-your-fha-mortgage-insurance-todays-mortgage-and-real-estate-news/

YES YOU CAN! Get Rid Of Your FHA Mortgage Insurance - Today's Mortgage and Real Estate News

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steve-rogers-new-york · 4 years ago

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Redlining in America Part 1: The Origin of Redlining

Redlining is the practice of rating neighbourhoods for their value and perceived risk when issuing mortgages. What made it so destructive, both at the time and for generations to come, was the heavy racial element involved in these assessments and its promotion of segregated living, schools and many other facets of people’s lives.

Origins While the term ‘redlining’ wasn’t coined until the 1960s, the practice began in the 1930s. The early 1930s saw a housing crisis, with families already in homes defaulting on their mortgage repayments due to the financial crisis, and a stall in the construction industry as the number of new home constructions dropped off alongside a drop in new homeownership.

In 1933, the federal government launched the Home Owners’ Loan Corporation (HOLC), which purchased existing mortgages in imminent foreclosure, and then reissued them with longer repayment schedules (up to 15-20 years, as opposed to their previous 3-5 years). They were also at lower interest rates and became fully amortized, meaning for the first time working- and middle-class homeowners would gradually gain equity during the mortgage and eventually own the property in full. The HOLC created their own colour-coded maps with which they (in large party) decided the risk of a neighbourhood. These maps were made for every metropolitan area across the country.

The government also tried to encourage middle-class families to buy single-family homes, and in 1934, as part of the New Deal, the Roosevelt administration created the Federal Housing Administration (FHA). The purpose of the FHA was to insure bank mortgages, extend their terms up to 20 years, and make them fully amortized.

To qualify for both the HOLC mortgage buy-out and the insurance from the FHA, the property in question would be evaluated for risk to assess the risk of the loan. HOLC used their colour-coded maps, and the FHA used agents working from their Underwriting Manual, which included detailed direction for assessment. If the assessment judged the property too high-risk the HOLC would not rescue the mortgage and it would go into foreclosure, and the FHA insurance would be rejected, and the property deemed “unfit for investment” by the bank, resulting in that potential homeowner being unable to purchase.

This is just the bare-bones basics of redlining and its origins, the next post in the series will go into the assessment process and destructive results of it.

Redlining in America - Part 2: Assessment

Redlining in America - Part 3: Discrimination and Damage

Useful Resources

BOOK Rothstein, R. (2018) The Color of Law: A Forgotten History of How Our Government Segregated America. New York: Liveright Publishing Corporation. — This was probably the single most useful book I used during research.

My Research Notes

Image Sources

HOLC Map of Brooklyn, 1938 | Source HOLC Map of Manhattan, 1938 | Source Lower East Side, c.1930s | Source Winchester, CA suburban development, c.1930s | Source

This post has been sponsored by my much loved and long-time Patreon supporter Joanna Daniels. She and I would like to dedicate the post to the loving memory of her mother Joan Daniels. She will be sorely missed.

[ Support SRNY through Patreon and Ko-Fi ] And join us on Discord for fun conversation! I also have an Etsy with upcycled nerdy crafts

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yhsgrs-blog · 5 years ago

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Homeownership and the true cost of homeownership

What Everyone Ought to Know About The True Cost of Homeownership?

Many people don’t really understand the details about the true costs of homeownership. Today, we’re going to be talking about the true costs of homeownership and the other factors that comes with buying a home.

Homeownership is a long-term financial commitment. Buying a home requires a down payment, closing costs, and other expenses. The true cost of homeownership is calculated along with other factors included in the home buying process. On this article, we will discuss how $707 is the true cost of homeownership when buying a $315,000 house.

So what is the true cost of homeownership?

There is no universal answer to this question, you simply have to run the numbers.

But if you are after a precise answer, the analysis can be quite complex.

Current interest rates, where they are and where are they headed with the feds

the mortgage financing

and the qualifying for a home mortgage

Above are essential factors of knowing the true cost of homeownership.

$707 = True cost of homeownership

What if I told you and or the audience that a $315,000 house costs approximately now about $707 a month?

For example, we take a $315,000 house and put down 5%. Let’s first start off with 5% down, which is $16,000. That would mean we have a loan amount of $300,000.

We want to emphasize that from a consumer’s perspective if we ask 10 people what it costs to buy a $315,000 house, 80% will tell you $40,000 – $60,000. They needed this unbelievably high credit score.

Principal and interest on that loan amount would be $1,610.

I’m going to use $250 a month for homeowners insurance, $400 a month for real estate taxes and $132 for mortgage insurance, giving us a grand total of $2,392 a month in terms of a monthly payment.

How is $707/month the True Cost of Homeownership for a $315,000 home?

We understand that the principal interest, taxes, and insurance are $2,392 per month, let’s now dive into the numbers.

TAX DEDUCTION

Let’s break down the tax deduction on a monthly basis, $800 of that payment interests.

So that means $9,600 of that annually will add up to $9,600 a year in annual interest real estate taxes.

If it’s $400 a month that would mean $4,800 a year would be the real estate taxes. So we add the two together, which is 14,400, assuming a 30% tax bracket that would mean a true refund.

A true refund of $4,320 a year, meaning $360 a month.

If we have a $2,392 payment, we understand that $360 of that will be coming back to us for owning the home.

Let’s go a little further……….

PRINCIPAL & INTEREST PAYMENT

We understand that of the $1,600 worth of principal and interest is principal meaning $800 of it, that would mean, the principal is money coming out of our personal savings account and going into our home savings account. So that $800 which is $9,600 / year is going into our home savings account, right?

Take that amount of money because it’s our money going into that savings account off of the monthly payment. So that’s another $800 a month. So, so far we have $360 coming off the payment because of tax deduction. $800 because of our principal.

ANNUAL APPRECIATION

And last but not least, using a 2% annual appreciation, which is ultra conservative.

Ultra conservative. So that’s less than the cost of living would be $6,000 a year roughly, which would be equal to $525 per month.

LET’S DO THE MATH!

We start off with principal interest, taxes, and insurance of this payment being $2,392 minus the tax deduction of $360 a month. We minus our principal payment of $800 per month and we minus our appreciation of $525 a month giving us a true cost of homeownership for $707 a month based on these facts.

Isn’t that interesting?

Other people aren’t so much numbers people, but the bottom line is when you’re working with different professionals and things like that and they can really explain it to you and how it works out to basically buying a home at $315,000 and the actual hard costs to you by the time you back out everything is only $707 a month!

Why is everybody out there running to purchase a home?

Lack of education.

Our industry does a poor job of providing this type of data. Some professionals don’t educate the consumer enough as to what the true cost of homeownership is. Now, of course there’s going to be maintained that you have with the home and so on, but when you stop and think about it now we’re using a 2% factor in terms of appreciation. We can all agree that’s a very low number. And here in Florida, depending on the market, even 4% it’s quite low.

When you think about long term homeownership, you always hear the stories about our relatives up in the northeast sold their home and moved down here, owned it for 10-15 plus years. When you look at their acquisition price versus what they sold for and you get it all out, even with maintenance, half the time you’ve owned the home for free and sometimes in a profitable situation.

Don’t feel trapped any more! After knowing the true cost of homeownership, grab this FREE Special Report and learn “How To Stop Paying Rent and Own Your Own Home”

Mortgage Financing

When we think about the overall market and where we’re at right now, a couple of things. We go back to the educational component. And the biggest challenge that I think people have and even agents as well is not understanding how simplistic mortgage financing is.

The vast majority of Buyers put themselves at an overwhelming disadvantage by approaching the process entirely wrong.

Now that you already know the true cost of homeownership, it’s time to obtain the Best Rates & Lowest Closing Costs in South Florida

From 2008 to 2018 where are we today? And the truth of the matter is that it’s never been easier in a sense to get mortgage financing.

Now we have FHA government programs to where there’s no credit score requirement.

Why?

The way it works nowadays is it’s through automated underwriting systems.

So for example, we approve someone with as low as a 550 credit score just two weeks ago.

But virtually no credit score requirement, you can use baselines. 580 credit score is acceptable for conventional financing, 620 is acceptable. So these are not the highest of scores down payment, as little as 3%. And we also nowadays have these government grant programs that are built into the loan products. So you’re not running around from city to city trying to see who’s got the money.

We actually have a product that we actually give you the money through the loan products or you’re putting down zero.

So what debt to income ratio mean?

A lot of people out there don’t really understand that. What’s the backend?

Debt to Income Ratios

We can go over 50% debt to income ratio. That is your income up against your housing expense can be over 50%. So when you think about that, we have co-borrowers that we can bring on. If someone doesn’t qualify, mom and dad can jump on the loan. There are so many different avenues to get them home.

Let’s use a $5,000 a month income. And let’s say that someone’s mortgage payment is going to be $2,500 a month. That would be 50%, right? So their income is $5,000 their mortgage payment would be, $2,500 so the front end debt ratio.

Think about that, that’s almost 50% of their income can be used for the mortgage payments to qualify. It’s a big number.

That is a big number. Aren’t people, don’t people get scared about that number?

It depends on who you’re asking. Look what it does, it builds wealth.

Federal Reserve: So where are we headed?

Interest rates have been creeping up just a little all-time low still, but they’ve been creeping up a little bit.

Interest rates are up about three-quarters of a percent in the past, we’ll call it 9 to 10 months. We are what we would refer to as in an ascending rate environment. Rates are moving up. Rates right now are falling anywhere between the high 4’s to low 5’s depending on the overall profile. And I have to tell you that it’s an interesting adjustment on a day to day basis in terms of communicating that five number.

It’s still a bargain. The federal prime rate right now is at 5%. It’ll probably end up near five and a half percent by year-end is what we would think. But let’s put all of that into perspective.

We should have interest rates. Interest rates should be around seven and a half percent. The truth of the matter is, is that a fourth, seven and a half percent that means the banks are giving you 5% 500% of your CTE, right? That means the fixed income retired borrower is getting more money on there, on their savings, more money circulating.

If the Federal Reserve confident to increase rates, that means we’re doing well as a country, as a whole.

Our economic position is gaining momentum. We’re creating more jobs.

So someone can let’s say, pay 4.875 on an interest rate, which is up to three-quarters of a percent, but they’re 401k is up 25%.

I mean, what are those numbers really look like when you think about it?

Conclusion

Homeownership is really the American dream and really designed to get you there. Now, of course, there’s a lot of different factors at play when it comes to knowing the true cost of homeownership, but on the long term, we can all agree you can never go wrong.

If you are thinking of buying today, don’t wait any longer. If you have a correct plan in place, know the true cost of homeownership and if you understand what your length of ownership is going to be.

A home is not trading stock. It’s not trying to sharpshoot a bottom. That’s not how wealth is created. The purpose of real estate is to own it.

And so if we think about it from that perspective, a home houses our family, it brings us a lot of joy. It brings us a lot of financial benefits. It brings us tax deductions, a whole lot of benefits come along with being a homeowner. We all know that if we put a long term time frame on real estate, we will almost never go wrong.

Each month, we publish a series of articles of interest to homeowners in Palm Beach and Broward County– money-saving tips, household safety checklists, home improvement advice, real estate insider secrets, etc. Whether you currently are in the market for a new home in South Florida, or not, we hope that this information is of value to you. Please feel free to pass these articles on to your family and friends.

At The Stampini Team, we’re happy to answer any questions you have about buying and selling in the Palm Beach-Broward County area.

Call us now or feel free to share our contact information

with someone you know that needs expert help buying or selling their home.

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jw1734-blog · 6 years ago

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Blog One: Redlining

There is a clear racial divide in the majority of communities in this country, and I would like to examine the reasons behind this. The racial divide that still exists today was caused by redlining, the refusal of lenders to make mortgage loans in certain areas regardless of the creditworthiness of the individual loan applicant (Holmes, Horvitz 81). The Federal Housing Administration was created in the early 1930s, and this sparked the long history of redlining. Minority neighborhoods were targeted and marked as red. This made it very hard to get a mortgage loan in such neighborhoods. On top of this, when minorities began moving into white neighborhoods, the ratings went down. Until 1968, redlining was allowed. The socioeconomic implications though, are still alive and well today. Minority communities are at a big disadvantage, due to their houses being worth less. In turn, their net worth also decreases.

This may not come as a surprise to some, but as I stated earlier, our government allowed redlining to be an official policy in the housing industry. Red areas, which was the lowest possible rating, were listed as ““detrimental influences in a pronounced degree, undesirable population or infiltration of it” or “hazardous” (HOLC). In these areas with undesirable population, the FHA deemed “no insurance available” or some received “enhanced rates and terms” (Greer, 213).

Every race was affected by redlining, but it is clear that the black community was hurt the most by this practice. In the documentary “The House We Live in” we saw an example of banks fostering racial division in communities. On Eight Mile Road in Detroit, a few members of a white community were told they could not receive a loan. The reason behind this was that they were too near a black neighborhood. To solve this issue, the white residents built a wall to literally form a racial divide with them and their neighbors. This story goes to show that banks really did not care about actual qualifications to receive a loan. They were only concerned with the race of those trying to apply for one. Once the wall was built, the all white neighborhood was a more secure investment. Some people in this country just seem to have an affinity for throwing up walls to solve problems that don’t even exist in the first place.

Wealth is often spread out across generations, and the value of one’s home contributes to what you’re able to pass on. The majority white communities known as the suburbs have houses that are worth much more than minority communities, who’s home values were automatically decreased just because they were minorities. White families who were able to acquire more wealth can pass it down in the form of college, while minority families with lower net worth were not afforded the same privileges. As we know, education is critical for social mobility, the this is a vicious cycle that is hard to break. In the year 2016, the race with the highest percentage of homeowners is white, at 71 percent. Looking back on redlining, we can conclude that our government played a vital role in cultivating the socioeconomic divide that we still see among races today.

Sources:

Andrew Holmes, author and author Paul Horvitz. "Mortgage Redlining: Race, Risk, and Demand." The Journal of Finance, no. 1, 1994, p. 81. EBSCOhost, doi:10.2307/2329136.

Greer James L., author. "Historic Home Mortgage Redlining in Chicago." Journal of the Illinois State Historical Society (1998-), no. 2, 2014, pgs. 204-233. EBSCOhost, doi:10.5406/jillistathistsoc.107.2.0204.

“The House We Live In: Race—The Power of an Illusion.” Films Media Group, 2003, fod.infobase.com/PortalPlaylists.aspx?wID=104024&xtid=49736.

“Homeownership Rates by Race and Ethnicity of Householder.” US Census Bureau, 2016, www.census.gov/housing/hvs/files/currenthvspress.pdf.

Smith, Lindsey, et al. “Data Analysis: ‘Modern-Day Redlining’ Happening in Detroit and Lansing.” RSS, Michigan Radio, 15 Feb. 2018, www.michiganradio.org/post/data-analysis-modern-day-redlining-happening-detroit-and-lansing.

Blog Two: Inequality in Women’s Soccer

Gender inequality is pervasive at every level of society in the United States. Recently, the United States womens’ national soccer team has been leading a fight to receive equal wages, the same as their male counterparts. You may be thinking that men’s soccer is more popular, and generates more revenue. Therefore, the men should earn more money. This is entirely false. Yes, on a global level men’s soccer does generate more revenue, but the story is different when you compare the mens’ and womens’ national teams in the United States. In fact, after their World Cup victory in 2015, “The United States women’s national team earned more money than the men’s national team last year.” (Das 2016) Projections also show that “it will do so again in the next fiscal year.” (Das 2016) Based on these statistics, the women don’t deserve equal pay, they actually deserve more. Despite this, the the women earn “37 cents to every dollar the men earn.” (Block 2016)

When you look at the facts, the wage gap in soccer in the United States is absurd. Concrete evidence shows that the women should actually be paid more, yet the gap is even worse than the disparity encompassing all women in this country. Now, how is it that this gap is still in place even though all of these statistics have been published? This question can be answered simply in two words: male privilege. Soccer in the United States is essentially a microcosm for gender inequality. We have clear evidence that the women should be getting paid even more than the men, yet to this day, their compensation is still unequal. On a larger level, women in this country are earning less than men for doing equal work.

Since the pay gap in soccer is even worse than the national pay gap, even though the women’s team generates more revenue, it may seem like a futile inequality to fight against. However, there is a more positive side to all of this. While they are still receiving less pay, the players believe that they have made a positive impact. We are beginning to see that “other female athletes around the world have started finding their voices, too.” (Das 2018) The women’s soccer team in Norway launched a protest for equal wages, and they actually won. Obviously there is still a long way to go for the women representing us in soccer, and the same can be said for the United States as a whole. That being said, it seems like the United States Womens’ National Team is making some positive strides in the fight for gender equality. Christen Press, an American player, stated “You want to think that they’re inspired by us, we’re inspired by them, and that makes us all more powerful,” speaking about other female athletes around the world. This goes to show that unity can go a long way, and eventually we can hope that some positive change will occur.

Sources:

Block, Justin. “U.S. Women's Soccer Doesn't Deserve Equal Pay - They Deserve More.” The Huffington Post, TheHuffingtonPost.com, 29 Dec. 2016, www.huffingtonpost.com/entry/united-states-womens-soccer-equal-pay_us_56fd37e3e4b0daf53aeee5d7.

Das, Andrew. “In Fight for Equality, U.S. Women's Soccer Team Leads the Way.” The New York Times, The New York Times, 5 Mar. 2018, www.nytimes.com/2018/03/04/sports/soccer/us-womens-soccer-equality.html.

Das, Andrew. “Pay Disparity in U.S. Soccer? .” The New York Times, The New York Times, 19 Jan. 2018, www.nytimes.com/2016/04/22/sports/soccer/usmnt-uswnt-soccer-equal-pay.html.

Blog Three: The War on Drugs

The term war on drugs came about in the 1970s when Richard Nixon declared them “public enemy number one.” (“War on Drugs”) However, Nixon didn’t really want to wage war against drug abuse. He had a more specific target in mind, and it was black people. John Ehrlichman, the domestic policy chief for Nixon, stated that “We knew we couldn’t make it illegal to be either against the war or black people.” (“War on Drugs”) Nixon’s two main oppositions were those against the Vietnam War and the black community. Essentially, Nixon spent billions of dollars to fight a war on drugs, with the sole purpose of mass incarceration towards African Americans. To this day, “African Americans are incarcerated at more than 5 times the rate of whites.” (NAACP 2018) The adverse effects of this war on drugs is still seen today, through deteriorated and poor urban communities. The wealth gap among races in this country cannot be ignored. As we know, wealth is often passed from generation to generation. Being arrested for a drug related crime is not exactly a great way to climb up the economic ladder. In other words, generations of African American families will have to deal with the negative outcomes of this war on drugs. Many people act as if white privilege does not exist, but for decades our government has been fostering it by targeting black people and putting them behind bars.

Today, the war drugs has shifted towards a more nurturing and supportive strategy. Why is this the case? Opioid use has spread into suburban communities like wildfire, and it is having a big effect on white and middle class children. To recap, in the 1970s and 1980s our government began throwing African Americans in jail for drug use. In recent years, our government has taken a more relaxed stance on the issue because it is beginning to affect white people more than it ever has. Looking back on the way it was handled, it seems that our government’s actions have really backfired. Drug abuse is not exclusive to any one race. If the nurturing stance on drug abuse was taken back in the 1970s like it should have been, “we'd be way ahead of the game now in dealing with this scourge of opioid addiction.” (Glanton 2017) Instead, Nixon and Reagan used the war on drugs to aid their own political agenda. Now, we are seeing the affects and even white middle class communities are being hurt by drug use.

Sources:

“Criminal Justice Fact Sheet.” NAACP, NAACP, 2016, www.naacp.org/criminal-justice-fact-sheet/.

Glanton, Dahleen. “Race, the Crack Epidemic and the Effect on Today's Opioid Crisis.” Chicago Tribune, Chicago Tribune, 21 Aug. 2017, www.chicagotribune.com/news/columnists/glanton/ct-opioid-epidemic-dahleen-glanton-met-20170815-column.html.

“War on Drugs.” History.com, A&E Television Networks, 31 May 2017, www.history.com/topics/crime/the-war-on-drugs

Replacement Blog: My Privileges

1. I can go to the grocery store and not be followed around because of the assumption that I am a thief.

2. I will not be shown houses in only low income areas, because of my race.

3. I will not be a victim of police brutality because the police force will most likely not fear me irrationally.

4. I will not be a victim of bullying due to my sexuality.

5. I can set down a drink and not worry about it being spiked with anything.

6. I can see people of my race represented in just about every history class I will take.

7. I can surround myself with those of the same race as me if I feel the need to.

8. I can take a liberal political stance on an issue without being accused of identity politics.

9. My neighbors will not fear me due to my race.

10. I can get a scholarship and be sure that no one will assume it was only given to me based on my race.

11. I do not feel out of place when trying to pursue higher education.

12. Everything I read is in my primary language.

13. People will believe me more than a person of color if I notice a racial issue, because I am not the victim.

14. I am not expected to follow a certain career path because of my race.

15. People will not fear me if it’s dark out and we’re walking on the same street.

16. I will never have to worry about being stopped in traffic due to suspicion that I am undocumented.

17. I am not expected to follow a certain career path because of my sex and gender.

18. People will not judge me based on the way I dress as much as they would if I was female.

19. I can walk home at night with no fear that I will be sexually assaulted.

20. I can be sure that I am receiving rightful compensation in the workplace.

21. I am less likely to be the victim of getting conned when purchasing a car.

22. People will not judge me if I do not want to have kids.

23. If I stay home with the kids and do household chores I will be seen as a great father, rather than it being my duty.

24. I can engage in sexual activity as much as I want and it will be seen as an accomplishment, rather than being judged negatively.

25. I will not be asked what it is like to occupy any of my statuses.

My life experience has been heavily shaped by my privileges. I was only required to make a list of twenty-five privileges, but my list could have gone on forever. My statuses include male, white, able-bodied, and middle class, so just about every privilege that exists is granted to me. I will always be seen as “normal” in this country because my statuses are simply not judged in a negative way. I think one of the most beneficial privileges that I possess is based on my primary language, English. Education is really the way to improve socioeconomic status in this country, and I was never held back because I was forced to study everything in a secondary language. Also on the subject of education, my race and gender are widely represented in what we study in school. This kept me from losing motivation and devaluing my culture, because it is seen as important. Essentially, my intersection of statuses will never hold me back from climbing up the economic ladder.

If I did not have these privileges, I can only imagine how much harder my life would be. I would not have free reign in the pursuit of what I want to do with my life, and I think this would be the most difficult change. For example, I can pursue whatever job I want and not be judged for it. The pressure of sticking with the norms for my race or gender would be somewhat influential in how I choose my path, at least I think they would be. I would also more often be in fear if I was a different race or gender. I never have to worry about being the victim of police brutality because the police force will not fear me irrationally. I also do not have to worry about being the victim of a sexual assault as much as I would if I was female. If the roles were reversed, I think I would be fearing these things much more than I do now, considering that I don’t fear them at all currently.

I think it’s much easier for someone who is not part of a marginalized group to undo privileges. When someone claims that they are a victim of racism, sexism, or any type of discrimination, it’s difficult for the dominant group to relate to. This is simply because they will assume it’s an isolated incident, because the dominant group never experiences discrimination. However, if an outside source that is not the victim challenges discrimination, then it is more likely that people will listen. If I challenge racism as a white male, it won’t look like I am trying to get a leg up for myself. People are more likely to listen to me, because they can’t assume that I am being selfish. On top of this, I am part of the “normal” group, so it’s also easier for those of my race to trust what I am saying. I think Peggy McIntosh said it best with the statement “Keeping most people unaware that freedom of confident action is there for just a small number of people props up those in power and serves to keep power in the hands of the same groups that have most of it already.” (McIntosh 7) The small group of people that she is referring to are white people with unearned privileges. Therefore, if white people raise awareness of their privileges, it could be a step towards everyone having them eventually.

Sources:

McIntosh, Peggy. “White Privilege: Unpacking the Invisible Knapsack .” Racial Equality Tools, Racial Equality Tools, 1988, www.racialequitytools.org/resourcefiles/mcintosh.pdf.

Blog Five: Social Reproduction in American Education

Education in this country is seen as a great economic equalizer. Despite this, American education seems to have a history that is deeply rooted in the social reproduction theory. IQ tests were held with such high regard in the early 20th century, and heavily favored English speakers. These tests also had a significant impact on the track students lives would take. The life adjustment curriculum was used to impose a certain set of skills on young children, likely leading them to their future occupations. Therefore, if English was not your first language, the IQ exam would likely place you on a track requiring little skill. Being placed on such a track would immediately reduce your future earning potential. Essentially, American Public schools were reinforcing the class stratification that we still see today, starting as early as grade school.

The place where our system fails is the need to Americanize our students. This puts minority groups at a significant disadvantage, because American is synonomous with whiteness and speaking English. We teach all of our students the same material, and the majority of that material is representing white people with a Eurocentric viewpoint. This also puts minority students at a disadvantage because their cultures are not represented well enough or at all, which causes them to devalue it. One example of deculturalization in the American Education system was directed towards Native Americans. Native American Joe Suina once stated that a teacher told him to “Leave your Indian at home!” (Suina 3) This is just the tip of the iceberg, like this went on constantly and they still do today. In Tucson, the Mexican Studies Program was banned because it was deemed as hatred for our country. Again, this is an example of our need to Americanize students, rather than acculturate them.

As a future educator, stories like these inspire me to tell the real truth to my students. My goal is to become a history teacher, and I think it’s important to tell the real story, instead of the fake ones we see in many textbooks. In my experience in grade school, I always saw my culture represented through a Eurocentric version of everything. For example, in eighth our American history course begins with colonization. If my curriculum requires me to use a certain textbook, I would like to get creative with how I teach that book’s information. I think it’s also important to make time for the real story. I like to think that this would actually decrease deculturalization, because if a Native American student was sitting in my class, I assume they would feel left out if American History skipped over them, as if they didn’t exist before European colonization. I think it’s important for me to break the status quo in American Education, and I want to empower each and every student who comes into my classroom with the truth. Knowledge is power and we are often fed fake news by our education system, which can have disastrous effects for minority communities.

Sources:

Suina, Joe. “And Then I Went To School.” Cambridge College , Cambridge College, 1985, mycc.cambridgecollege.edu/ICS/icsfs/AndthenIwenttoschool.pdf?target=e3be3e4e-bb14-4066-b098-686cac0b9590.

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pilferingtheheavens-blog · 6 years ago

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9 Beautiful Keller Williams Realty Agents Berlin MI 48134 Residences Now Available Around The US

7 Breathtaking Keller Williams Realty Agents Berlin MI 48134 Homes For Sale Around America

Purchasing a Berlin Township Michigan, invented and created by Gary Keller, home is most likely the most serious monetary commitment you'll ever make. For lots of people, it'll be the biggest financial investment she or he will make in their lifetime.

If you are a millennial or a newbie KW Realty residence buyer, you might not know where to start. Prior to you go out to purchase your dream residence, take a look at where and what you presently spend your cash on. It's important to examine your financial resources-- preferably for a minimum of three months-- in order to get a concept of how much you generally spend monthly before buying a Keller Williams Real Estate residence. Then, once you've chosen that you're ready to acquire something, here are the actions that you're likely to come across.

How to start investing in realty?

Acknowledge that your investments are a company, and prepare for it.

Find somebody who understands more than you do.

Invest for capital.

Invest in your own understanding.

Begin.

Discover your niche.

Expect issues along the way.

Do not expect to get rich quick.

If you have or prepare to have a huge family, you ought to take a look at Keller Williams Realty houses that will have enough room for your family. You need to have a much safer house is safe if the previous occupants had kids.

When starting the Keller Williams Realty INC house buying process, it's vital to get a copy of your credit reports and ratings. If you're buying with a partner, or another person, they'll require to run their credit too. You'll want the highest rating possible, prior to you make an application for a mortgage. A score of 740 or higher is considered to be excellent credit. Typically, anything below 700 is not considered outstanding credit. Nevertheless, this does not imply you can't get a mortgage.

A lot of Real estate Top Keller Williams agents have lists which contain all the crucial components of everything you need to do when buying a Keller Williams Realty Agents Berlin MI 48134 home.The list can help you organize everything is looked after when it needs to be.

If you have bad credit, don't panic, as there are different ways to enhance your credit. One of the best ways to improve your credit is to try to stay below 30% of your total credit line. If you have overdue payments, deal with them. Include all your due dates to your calendar to ensure your bills are up to date and paid on time. Keep in mind do not open new charge card if you do not require them, and use your credit responsibly at all times.

This is a fun time to turn to real estate as an investment. Property values have sunk to an all time low after the real estate market crash. The marketplace is going to rise again, so any investment you make will have returns.

According to industry standards, you should not invest more than 30% of your regular monthly earnings on your month-to-month expenditures. Keep in mind credit usage and effective budgeting are crucial, and creating a spending plan that you can adhere to is simpler than you believe. The very best method to do this is by figuring out all your sources of income and then tally up your month-to-month costs. For expenditures, make two specific columns, one for repaired expenditures such as lease, mortgage, insurance, automobile payments, and so on and another for variable expenses such as entertainment, travel, food and other expenditures. Generally, variable expenses are simpler to manage. Then, analyze all of your costs-- specifically the variable ones-- and see what you can cut out.

Sex wrongdoers need to be registered, however there is no warranty that the seller nor their Keller Williams Estate agent is going to feel a commitment to inform a prospective Berlin MI home purchaser of any transgressors in the area.

rom this point, it's important to meet with a mortgage broker, who generally works for a loan provider to determine how much you can pay for. A mortgage lender is usually a banks that loans you money to purchase a Keller Real Estate home, which is called a mortgage. The majority of people believe that you require a down payment of at least 20%. If you do not meet these requirements, your mortgage broker can educate you on programs, which require less. Some of these mortgage programs include the following:

Have a professional inspector look at the Keller Williams Realty Agents Berlin MI 48134 property you prepare to purchase. You don't want a house that requires significant remodellings. This can be a severe issue if there are structural issues after you purchase the inspector a very affordable and-safety mindful option that you will be responsible for and you may need to leave your KW Realty property while it is fixed.

USDA Loans

So you have decided to look for a Berlin Township Michigan residence to acquire, however prior to you start you require to locate a real estate Keller Williams Realty partner that is qualified. You clearly require one you can trust. An Keller Williams Realty partner with a tested record can assist you appropriate Keller Williams Realty Agents Berlin MI 48134 homes.

VA Loans

You don't wish to discover the Berlin Township Michigan residence you can afford to buy.

FHA Loans

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If you are looking to buy a few of or all of a building in order to open an organisation, do some research about the neighborhood and choose the best place possible. Launching a new company in a location of high criminal offense and shabby structures will not win you lots of clients. Talk with a realty professional to discover what locations are available.

FHA 203K Loans

Take your time to thoroughly determine a Keller Williams Realty Agents Berlin MI 48134 house you thinking about buying. The difference between these two figures need to be no more than 100 square feet; if it is more than that, either reconsider your purchase, or determine what is going on.

Personal Mortgage Insurance Coverage

When choosing to buy realty, stay concentrated on the objectives you've set. Determine early on if your goals are short term or long term. Don't think about properties that is irrelevant to your long-lasting or short-term goals. A lot of financiers don't do this due diligence and purchase something that does not satisfy them and even lose loan.

Lenders will wish to see that you presently have numerous credit lines readily available, which you pay off routinely. Credit lines consist of the following: charge card, trainee loans, auto loans or any other types of loans. Lenders typically wish to see activity on these credit lines from the previous twelve months.

When house hunting, if you own a lorry it is essential to discover if there is great parking around the place. This is very crucial when thinking about that lacks a driveway. If there are not a great deal of areas to park near the Keller Williams Realty home, you might be stuck parking quite a range from your Keller Williams Realty Agents Berlin MI 48134 residence.

Financial institutions will analyze your debt-to-income ratio to determine what exactly you will receive. Throughout this process, ask your mortgage broker to get a pre-approval letter, for the quantity that your banks will provide you. Now that you know what you can afford, it will assist the seller believe in your offer when you discover the Keller Real Estate house you want to buy.

If you have an interest in a rental property, make sure you ask your property owner about it. Some rentals will have the occupant be responsible for lawn tasks. Other places have this service as an included monthly payments.

Throughout this procedure, you need to make certain you have enough to cover closing costs. Closing costs usually include loan origination charges, appraisal charges, title insurance, title search charges and taxes. You might also encounter deed-recording fees, discount rate points and credit report charges. An excellent guideline is to reserve 2-- 3% of the purchase cost.

It may take a while to find the best property that will assist you are trying to find.

If the Keller Williams Realty home is over a million dollars, it might be 3-- 4% percent. In addition, to the attorney's costs, which generally vary from $2,000 to $5,000, banks need you to have reserves beyond the deposit and closing costs. It is necessary to use an attorney, who focuses on realty. Normally, financial institutions will wish to see that you have post-closing liquidity.

You require good legal representation due to the fact that issues during foreclosure acquisition. You can really conserve a great deal in the future because of cash in the end.

It is important, once you look for a mortgage, to not handle any brand-new financial obligation and or alter companies as lenders wish to see stability in a borrower. Banks likewise want to see stability from the previous 24 months from the time of obtaining a mortgage. Banks do this as a way to guarantee that borrowers do not make any decisions that may upend their capability to make mortgage payments.

If you do not do this right away, you might not be covered if an unfortunate occasion happens, like an unforeseeable natural disaster.

When you're wanting to buy a Berlin MI residence, start by finding a relied on property attorney. He or she will be able to help you prevent typical issues that can develop with the purchase of a Keller Williams Realty Agents Berlin MI 48134 residence. Being that a realty attorney is trained in this type of law, they can assist a buyer avoid unclear terms and assist a purchaser completely understand the numerous agreements they'll need to sign.

the number of Keller Williams representatives are there?

It grew from a solitary office in Austin to approximately 940+ workplaces with over 180,000 associates worldwide since May 2018.

There are numerous down payment assistance programs offered, and you may want to see if you receive them.

When aiming to purchase a Keller Williams Realty Agents Berlin MI 48134 home, you must focus on a specific area. Remember, place is key! Individuals buy in neighborhoods, every bit as much as your houses they pick.

Determine the quantity of cash you can spend on a readily offered online calculator.

As soon as you have a particular location in mind, it is necessary to find an excellent realty Top Keller Williams agent that is educated about the area you wish to reside in and someone that you can trust. Most property buyers use a property Top Keller Williams agent that was described them by a relative, buddy or collogue. They can supply you with useful details about the area, and inform you of what similar properties have actually cost. Working with a realty Keller Williams Realty partner will make the procedure a lot easier for first time Keller Williams Real Estate residence buyers. Feel free to get more here on Youtube

You should ensure that you have the least possible down payment for your mortgage company. If you do not have a substantial down payment, you will pay private mortgage insurance (PMI).

Now that you've selected a relied on real estate Keller Williams Realty partner, start trying to find KW Realty houses. Make a list of what you must have. When taking a look at Keller Williams Realty Agents Berlin MI 48134 residences, take images and videos, this way you can remember the specifics about each and every KW Realty house you visit. It's a good concept to drive through the location at various times of the day to check out the length of time it takes to commute to your workplace. If you have kids in school, make a consultation with a school administrator. Throughout this procedure you'll probably view a variety of different Keller Williams Realty Agents Berlin MI 48134 homes, so do not get discouraged.

Work with a professional inspectors to check the house that you are planning to buy. It is best to hire a professional, but the advantage over having someone you know examine the Keller Williams Realty residence is that you can hold a bad inspection against an expert inspector, while there is little you can do to a relative.

As soon as you've looked at many different choices, and you find a Keller Williams Realty residence that you like, it's time to make an offer. When you discover the Berlin Township Michigan property that's right for you, and when you've agreed on the cost and terms, you're almost done. Constantly ask to have a KW Realty house assessment in addition to an engineer's report, if required, and make certain you view the report as soon as possible. This will highlight any engineering problems in the Keller Williams Realty Agents Berlin MI 48134 house and offer a detailed engineering analysis, together with any possible engineering design defects.

If you're buying realty, it's best to seek advice from a professional realty Top Keller Williams agent. These specialists will have resources that might not be straight readily available to you. Lots of brokers will utilize unique software to sort through the MLS and other listing services.

When you have an accepted offer, it's important to begin Berlin Township Michigan property examinations. Typically, deals are contingent on the Keller Williams Realty Listings for residence evaluation. Berlin Township Michigan home inspections are done to check for signs of structural damage or specific things, which require to be fixed. Normally, your property Keller Williams Realty partner will assist you arrange these evaluations. By having a Keller Williams Realty Agents Berlin MI 48134 home inspection contingency in your agreement, this secures you as the buyer to renegotiate your deal based upon the findings in the assessment report.

Research study property properties well prior to purchasing one. There are a couple of critical points which you need to be considered prior to writing a deal for rental property. Is this property in strong condition and is it going to remain that way with minimal upkeep? The second crucial function to consider when buying is the location. Area is certainly highly essential when it concerns acquiring rental property.The third is the typical income of the property's location. This differs from physical location given that high rents is much better than those with low ones.

What is the greatest realty company in U.S.A.?

Keller Williams Realty, Inc. is the world's largest realty franchise by representative count, with greater than greater than 150,000 associates as well as over 800 market centers around the world are affiliated with Keller Williams.

Progressing, there is a great deal of documentation that is involved in purchasing a Keller Williams Realty Agents Berlin MI 48134 property. At this time, your banks will schedule a title business to manage all of the paper work throughout this process, and to verify that the seller of the property is the lawful and rightful owner of the Keller Williams Realty INC residence that you're buying. This becomes part of the due diligence procedure in the closing process. Keep in mind the closing process can differ with time and can be anywhere in between 30, 60 or 90 days.

Remain in consistent contact with others in realty investment business.There is constantly a property readily available somewhere, but not every piece of property is correct for every financier. Keeping your ear to the ground is a terrific way to get a diamond in the rough that others have not yet understand of.

Now, it's time for the actual closing. A day prior to signing all the paper work, it's vital to do a walk through, to guarantee that whatever in the Keller Real Estate home remains in working order. At the time of closing, you'll be needed to sign all of the paperwork, which will be needed to finish the purchase of this property. Once all documentation is signed, and adjustments are made, you're now a Keller Real Estate residenceowner and ready to move into your new Berlin MI house.

#Home #homes #house #houses #property #properties #realty #realestate #kellerwilliams #kw #kwrealty #michigan #mi #berlin

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steve-rogers-new-york · 4 years ago

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Redlining in America Part 2: Assessment

This is Part 2 of a 3-part series on the history of redlining in America. If you’ve not read Part 1 yet, start there as it goes over the government agencies that will be discussed in this post — Redlining in America - Part 1: The Origin of Redlining

As discussed briefly in the previous post, the Home Owners’ Loan Corporation (HOLC) and Federal Housing Administration (FHA) each used assessment methods to judge the perceived risk of investing in properties. The degree of safety vs. risk a property was judged to have by these agencies, from an investment standpoint, would decide if a mortgage was saved from foreclosure (HOLC) or if the government would insure a new mortgage (FHA). These assessments would make or break a family’s attempts to become homeowners or avoid loosing their home during the Great Depression.

HOLC Maps

These were colour-coded maps, made for every metropolitan area in the US. It used colour blocks to mark our the perceived investment risk of neighbourhoods using a 4-colour range.

Green — Grade A — “In Demand”

Blue — Grade B — “Still Desirable”

Yellow — Grade C — “Declining”

Red — Grade D — “High Risk/Hazardous”

While in theory this may make sense to some degree, the way these divisions were made is the issue. While matters like building quality or age, cost, population growth, and proportion of homeownership vs. renting; it is inescapable that a significant portion of the assessment was based on the ‘racial’ and economic make-up of the neighbourhood. In the HOLC’s own words, their assessment judged the “threat of infiltration of foreign-born, negro, or lower grade population.” The very wording of the paperwork is discriminatory, with terms like “unskilled labor-merchants questionable characters,” “Foreign-born families...%,” and most tellingly “Infiltration of...” which pertained to groups such as “Italians & Negro”.

The weight of “undesirable” ethnic groups on a rating can be seen in how they are spread over the grades. To qualify for a Green (Grade A) rating, a neighbourhood would have to be void of “a single foreigner or Negro.” Spatially, there were often the newer-built suburbs. Surrounding areas with older suburbs would then be rated as Blue (Grade B), as they became closer to the city centre and more mixed with a small number of the “undesirable” populations. Yellow (Grade C) neighbourhoods would often be those bordering the Red (Grade D) ones. They would have older buildings and were considered to be in “transition” and decline. Finally those in the Red grading would typically be inner-city neighbourhoods surrounding the central business district of a city. These would be neighbourhoods with predominantly Black, foreign and working-class occupants.

The University of Richmond offers an amazing interactive map of neighbourhoods using scanned HOLC maps and links them to the official HOLC paperwork relating to each. I recommend taking a look and reading the documents that accompany various graded neighbourhoods.

FHA’s Underwriting Manual

From 1935, the FHA provided their appraisers with an instructional document called the Underwriting Manual that outlined how they wanted properties to be rated. The text of this document carries a clear racial agenda: "If a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally leads to instability and a reduction of values," and "incompatible racial groups should not be permitted to live in the same communities."

The zoning approach was comparable to the HOLC’s colour-coded maps. The manual directed appraisers to issue value based on strict criteria, of which 40% was weighted on “Relative economic Stability” (the economic and employment status of the neighbourhood’s occupants, eg “laborer”), and a further 20% on “protection from adverse influence” (these could include: nearby businesses, schools, or “offensive noises or odors,” element common in inner-city neighbourhoods). The assessments were harshly issued, with some criteria resulting in an automatic rejection. Overall, many of the criteria were inherently prejudice against the urban setting, with elements that were rated being impossible to achieve in an urban setting, like “natural light and ventilation,” and “proximity to joining buildings.”

The FHA used its position as an insurance provider to discourage banks from issuing loans to urban neighbourhoods. This did not affect only homeownership, but also businesses within these communities.

This is just the bare-bones basics of redlining and how it was assessed, the previous post in the series addresses the origins of these agencies and policies, while the next will go into the destructive results of the polices on urban setting in the decades that followed and how the perpetuated structural racism in America.

Redlining in America - Part 1: The Origin of Redlining

Redlining in America - Part 3: Discrimination and Damage

Useful Resources

WEBSITE New America: The History of U.S. Housing Segregation Points to the Devastating Consequences of Algorithmic Bias — The material is pretty heavy technically, but had great info on assessment criteria.

PDF A scanned copy of the full FHA Underwriting Manual

My Research Notes

Image Sources

Dual HOLC Map of Brooklyn, 1938 / Current Overlay | Source Cover of FHA Underwriting Manual, 1938 | Source FHA Underwriting Manual fold-out form, 1938 | Source

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posttrestase1978 · 4 years ago

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does homeowners insurance cover garage doors

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does homeowners insurance cover garage doors

does homeowners insurance cover garage doors? You can have this covered when you purchase a basement warranty, including a roof-over-garage warranty. Most home insurance policies can cover garage door damage but do not cover garage doors or garage door openers or siding and it is also included in most car insurance policies. Garage door openers and siding repairs are generally not covered by car insurance. Some home insurance companies can only provide these coverage limits when a claim is for an un-insured or underinsured driver. Also, most new home buyers don’t take the risks of driving or renting a house when they are trying to afford their monthly bills. You really need a garage door and garage door closed-the-under. This can be costly and inconvenient because garage door work can cost you money, it will not protect your family, or it will not go the way you want. This might be a good solution if you don’t need garage door closed-the-under and your home has a garage door. does homeowners insurance cover garage doors, floors, roofing, etc? I have had this issue a lot more in my past when it seems like a bad thing. The insurance company says I need to replace a garage door but I would absolutely pay for it and just don t have any way to do it. We need to use the garage with a small insurance company so the garage door does not need to be replaced or damaged without insurance. The insurance company says I need to pay for it but will they offer a replacement yard door? I know that can t be said of an actual garage door that is not damaged with damage to the car, but it could be said that will happen. I feel that there is going to be something there so it s not really a garage door to save some money, but at least I ll be covered and covered with it. How can a garage door be covered without a garage door? Most insurance companies are quite conservative and they don t ever have to pay out-of-pocket for a. does homeowners insurance cover garage doors and windows?, or something like roofing? A full suite policy, with a garage door coverage. The cost of a full suite policy varies depending on a number of things, and a lot of what can be determined by a homeowner insurance company to be. Some insurance policies don’t require a medical exam for a full suite policy — most insurance companies, such as A.M. Best Company, do, and some insurance companies do, but that’s a variation of these general policies. All of the coverages listed below are only as strong as their respective strength. For example, A standard home insurance policy does not have garage doors. With a separate garage door policy, you would insure garage doors and a garage door deductible of . However, standard homeowner and the garage door deductible is on the higher end. With a separate garage door policy, you would pay the garage door at that time to repair damage to your home. A garage door deductible would.

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What garage door conditions affect my insurance cover?

What garage door conditions affect my insurance cover? My insurance adjuster told me that if your garage door is broken and it is a covered theft, you need a guarantee to protect. But, you can also sign a declaration document that declares the breakwater that s covered by your policy. Why is this important? The answer is to ask this question every time you add or change your homeowner’s insurance policy since it is essential to make sure that you are able to cover theft. We all want to be covered. It is not worth making sacrifices for your auto insurance because you are not yet insured. You can make any significant investments without becoming a victim of car theft. We recommend making the time to do some budget shopping before you commit to a new or used car. That way, you won’t be tempted to take out a large deposit while your new vehicle is still in the garage. You’ll receive the cost of adding or changing a vehicle to your insurance policy and you’ll then be able to enjoy your.

How Long Do You Pay Mortgage Insurance on an FHA Loan?

How Long Do You Pay Mortgage Insurance on an FHA Loan? Most people think their mortgages are set to expire on , but there are also loans for auto, life and other financial assets. There are three types of mortgage insurance: You pay your insurance company upfront (premium usually ranges from $500 to $2,250) and your premium usually is based on your family income until the point your spouse becomes divorced. The good news is that there are ways to get into those early stages of your mortgage debt. As of September 2018, each state’s Department of Insurance can require an extra $500–$1,000 payment to add to a mortgage if your children are living at home, and to be on their own for the entire term of the policy. This extra money can also be a source of savings for you and your family as long as you’re not working full-time or your children depend on you for income and maintenance. It’s only about 6% of the mortgage cost at the time of a mortgage. It.

Insurance

Insurance.com, LLC, is a licensed insurance producer resident in North Carolina with license number 020773852, with its principle place of business at 15720 Brixham Hill Avenue, Suite 300, Charlotte, NC 28277. This insurance company is not an insurance company. In order to provide the information, please select the product(s)(and their applicable states) in which you want insurance protection. After you select a state, click the appropriate state(s) in which you want to purchase your insurance and enter your information in the form. Your information is only provided when you actually enter these values: All of the information you provide on the website is accurate and complete. In my experience there are no instances in which I was required to send the insurance card to my broker. This means you can continue to call and email, but then you cannot get any more insurance. If you need to cancel your insurance or get in touch with an insurance company, click here:.

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parkerjasmine1996 · 4 years ago

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how long does a speeding ticket stay on your insurance

BEST ANSWER: Try this site where you can compare quotes from different companies :bestinsurancequotes.top

how long does a speeding ticket stay on your insurance

how long does a speeding ticket stay on your insurance record? Speeding and can be confusing because they can impact health insurance plans, car insurance, and home insurance. Luckily, cheap car insurance can really pay your bills quickly if you are involved in an accident, whether by accident alone or if you get into an accident with multiple victims. Finding affordable car insurance for high-risk drivers can be a challenge; you have to answer a variety of questions based on your race, gender, previous accidents, residence, occupation, type of vehicle, vehicle type, and driving record. Read on to learn more about how to choose the best high-risk auto insurance provider. It is also important to understand just how much high-risk auto insurance can work. Even though the rate you pay will depend on several factors, it can seem like you can’t control your high-risk car insurance. You may have to pay the same premiums for a few years but for some drivers, rates will increase with history and other factors that make coverage more expensive.. how long does a speeding ticket stay on your insurance record? You should shop around for car insurance and adjust your rates to find the best deal. That is why you have an idea how much coverage you get. There are thousands of auto insurance quotes and you can start there. Read on and let us learn about how much insurance coverage you can get with the level you qualify. The difference between what you would pay for insurance under 100k and what you would pay for insurance with an average of more than 300k miles under your insurance company could be a few hundred dollars. As you shop for car insurance, make sure to look at how you compare car insurance quotes. You may see that the higher your car insurance quote is, the longer their coverage will be with more than 300k miles driven. After all, the first thing you should do in preparing to go through car insurance is get a quote from an insurance company like The General. In the case of the above, you may save a couple of figures by simply getting a quote online without a phone. how long does a speeding ticket stay on your insurance record? Keep in mind that only a few weeks out of the year do insurance companies tend to suddenly stop caring about speeding tickets to show more drivers are driving safely. For example, in the case of a speeding ticket, this happens when you are speeding. So, if you are not the driver that caused the infraction, but still need to pay a speeding ticket, you should probably get a new policy. While this is not always the end of the story, that is the unfortunate truth. Most insurance companies are beginning to see this same situation with getting new quotes. When you are dealing with speeding, is not always a factor. Sometimes, your new rates will be more than if you were to get your first insurance policy or the first speeding ticket. This is because if you are still living at the time, having a speeding ticket is not a factor. If you have a spotless record and don t get any speeding tickets, then you will have less responsibility. The best thing to do.

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Do out-of-state tickets affect insurance?

Do out-of-state tickets affect insurance? Your car insurance policy may include the following types of out-of-state coverage: Class action: Liability claims under an auto policy Commercial auto insurance: Liability claims under an auto policy Commercial vehicle insurance: Liability claims under an auto policy. How much does it cost to fix or replace your car? The cost of repairing or replacing your own car is typically less than the cost of replacing your own. A newer model car has more expensive components and may cost more to fix. Replacement cost coverage: Car insurance company would cover the difference. How much does it cost to fix your car? The typical cost in insurance is $300 to $300 a year. How much did you pay? How much does it cost to repair your car? The average premium for the top-of-the-line, high-end, premium models is the same $100 to $200 per year. How.

How much is life insurance?

How much is life insurance? Why did it vary so much? We’ll dive deep for all the basics and cover some key areas that might affect your insurance premiums. We’ll find you the best life insurance companies at the cheapest rate possible, so you’re no longer stranded between paychecks. We won t cover anything that isn’t listed in the table above. The table below shows just how much rates change depending on where you live, which region you live in, and your driving record. We can take a look at the average cost of insurance as far as credit goes. There are so many factors that go into the price of insurance, including driving record, age, gender, age and other underwriting factors. These factors might include how long you ve been with the same insurance company you’re currently with, as well as which companies you can get quotes from. With that said, there are plenty of things that could potentially affect the average price you pay for insurance. There are.

How will getting a ticket affect my car insurance rates?

How will getting a ticket affect my car insurance rates? It is possible to go to prison for speeding and driving without insurance, though it depends on the particular infraction. According to , driving without insurance can mean penalties of 2 or 3 times the normal fee. But the exact details aren’t as simple as a quick citation or the cost of your car repairs. The most common consequences for driving without insurance include: The car insurance rates that are linked to driving without insurance can continue to be incredibly high for several years. This is a typical consequence for low-income drivers who make the effort to get car insurance. Drivers who tend to get their insurance through employers can also benefit by getting the benefits of free car insurance coverage. One benefit to being an employer is affordable car insurance for employees. While it depends on how it is calculated, insurance costs for the employee vary depending on the car insurance. If you are employed with a car, you may face a steep increase in car insurance. If you live in a heavily populated area, however, chances are.

Auto Insurance

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How do speeding tickets affect insurance premiums?

How do speeding tickets affect insurance premiums? Well, driving record is an indicator of whether you’ll have a claim when you’re driving more slowly than a non-smoker. Drivers in California may see a decrease in their insurance rates if they’ve been involved in an accident. If your driving record has been deemed poor, the insurer can be willing to overlook your claim and still charge you for your premium. While most providers will be willing to take some time to review your driving record to determine whether you’ll have a claim, insurers will still look at your credit score, particularly if you’ve had an accident. If you’re looking for cheap car insurance near you, look no further than a state like California. The average rate for the lowest quote is $2,655 on average for a driver with no accidents or violations and a $465 credit score. In California, the average premium for a 20-year-old male driver is $4,054 as of 2018,.

How Long Do You Pay Mortgage Insurance on an FHA Loan?

How Long Do You Pay Mortgage Insurance on an FHA Loan? One of the main reasons I get a mortgage is because I’ve decided to keep my home in a high-income apartment with multiple apartment buildings and a home full of buildings. I’d always be better off paying for apartment building insurance on my FHA loan but I’ve moved out when I needed to and my insurance is too expensive after my mortgage company had paid for everything. One of the things with my old mortgage insurance, that I think I’ve really improved on, is to do business with my employees, to make the payouts easier. If you live in a high-income apartment, you can look out for yourself so that we are on the same company. I’m a proud member of the . I’m self-employed, and there’s not that much that can change after that. But don’t worry, my insurance covers about half the cost of my apartment. My office is.

Combining car insurance with a roommate

Combining car insurance with a roommate does seem a bit gimmicky in some cases. But in a lot of cases, having insurance for multiple cars can go a step beyond simply adding your roommate to your policy. And in some cases, your roommate would even be covered under your auto insurance for the entire family. (Though it’s ultimately best to keep the older drivers on your policies — they’re no longer considered independent contractors.) It’s usually a good idea to have comprehensive and collision, which will cover the damage to your car or the other driver if you’re in an accident for which you’re responsible. But you might also want to consider taking out a homeowners insurance policy for your car, which will protect both you and your belongings in accidents. And sometimes, other businesses might be able to bundle your car insurance with other business insurance policies, as well. You can ask your agent to review your coverage options. And if your parent’s car doesn’t have insurance yet.

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melissawalker01 · 4 years ago

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Lindon Utah Foreclosure Lawyer

Lindon is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 10,070 at the 2010 census. In July 2018 it was estimated to be to 10,970 by the US Census Bureau. Lindon has an abundant cultural and historical background. Originally settled in 1861, Lindon began as pioneers moved into what was then the Lindon grazing land. The town was originally named “String Town” because of the way the houses were strung up and down the street between the towns of Orem and Pleasant Grove. An old linden tree (Tilia) growing in town in 1901 inspired the present (misspelled) name. Over the past century Lindon has seen organized development, but it has tried to remain true to its motto: “Lindon: a little bit of country”.

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Short Sales vs. Deeds in Lieu of Foreclosure

If you’re having trouble making your mortgage payments and the loan holder (the bank) has denied your request for a repayment plan, forbearance, or loan modification or if you’re not interested in any of those options two other ways to avoid a foreclosure are completing a short sale or a deed in lieu of foreclosure. One benefit to these options is that that you won’t have a foreclosure on your credit history. But your credit score will still take a major hit. A short sale or deed in lieu of foreclosure is almost as bad as a foreclosure when it comes to credit scores. For some people, though, not having the stigma of a foreclosure on their record is worth the effort of working out one of these alternatives.

Short Sales

A short sale occurs when a homeowner sells his or her home to a third party for less than the total debt remaining on the mortgage loan. With a short sale, the bank agrees to accept the proceeds from the sale in exchange for releasing the lien on the property.

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The bank’s loss mitigation department must approve the short sale before the transaction can be completed. (The process of finding a way to avoid foreclosure is called “loss mitigation.”) To get approval for a short sale, the seller (the homeowner) must contact the loan servicer—the company that manages the loan account—to ask for a loss mitigation application. The homeowner then must send the servicer a complete application, which usually includes: • a financial statement, in the form of a questionnaire, that provides detailed information regarding monthly income and expenses • proof of income, if applicable • most recent tax returns • bank statements (usually two recent statements for all accounts), and • a hardship affidavit or statement. • The purchase offer. A short sale application will also most likely require that you include an offer from a potential purchaser. Banks often insist that there be an offer on the table before they will consider a short sale, but not always.

• A second mortgage holder must agree to the short sale. If there is more than one mortgage on the property, both mortgage holders must consent to the short sale. The first mortgage holder will offer a certain amount from the short sale proceeds to second mortgage holder to release their lien, but the second mortgage holder can refuse to accept the amount and kill the deal.

Deficiency Judgments Following Short Sales

Many homeowners who complete a short sale will face a deficiency judgment, though a few states disallow them after this kind of transaction. The difference between the total debt and the sale price is called a “deficiency.” For example, say your bank gives you permission to sell your property for $200,000, but you owe $250,000. The deficiency is $50,000. In many states, the bank can seek a personal judgment against you after the short sale to recover the deficiency amount.

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While many states have enacted legislation that prohibits a deficiency judgment following a foreclosure, most states do not have a corresponding law that would prevent a deficiency judgment following a short sale. How to avoid a deficiency with a short sale To ensure that the bank can’t get a deficiency judgment against you following a short sale, the short sale agreement must expressly state that the transaction is in full satisfaction of the debt and that the bank waives its right to the deficiency.

If the bank forgives some or all of the deficiency and issues you a IRS Form 1099-C, you might have to include the forgiven debt as taxable income. When It Might Be a Good Idea to Let a Foreclosure Happen and Other Issues to Consider

In some states, a bank can get a deficiency judgment against a homeowner as part of a foreclosure or thereafter by filing a separate lawsuit. In other states, state law prevents a bank from getting a deficiency judgment following a foreclosure. If the bank can’t get a deficiency judgment against you after a foreclosure, you might be better off letting a foreclosure happen rather than doing a short sale or deed in lieu of foreclosure that leaves you on the hook for a deficiency. For specific advice about what to do in your particular situation, talk to a local foreclosure attorney. Also, you should take into consideration how long it will take to get a new mortgage after a short sale or deed in lieu versus a foreclosure. Fannie Mae, for instance, will buy loans made two years after a short sale or deed in lieu if there are extenuating circumstances, like divorce, medical bills, or a job layoff that caused you economic difficulty, compared to a three-year wait after a foreclosure. (Without extenuating circumstances, the waiting period for a Fannie Mae loan is seven years after a foreclosure or four years after a short sale or deed in lieu.) On the other hand, the Federal Housing Authority (FHA) treats foreclosures, short sales, and deeds in lieu the same, usually making its home loan insurance available after three years.

Deeds in Lieu of Foreclosure

Another way to avoid a foreclosure is by completing a deed in lieu of foreclosure. A deed in lieu of foreclosure is a transaction in which the homeowner voluntarily transfers title to the property to the bank in exchange for a release from the mortgage obligation. Generally, the bank will only approve a deed in lieu of foreclosure if there aren’t any other liens on the property.

You Might Want to Complete a Deed in Lieu of Foreclosure

Because the difference in how a foreclosure or deed in lieu affects your credit is minimal, it might not be worth completing a deed in lieu unless the bank agrees to: • forgive or reduce the deficiency • give you some cash as part of the deal, or • give you some additional time to live in the home (longer than what you’d get if you let the foreclosure go through). Banks sometimes agree to these terms to avoid the expense and hassle of foreclosing. If you have a lot of equity in the property, however, a deed in lieu is usually not a good way to go. In most cases, you’ll be better off by selling the home and paying of the debt. If a foreclosure is imminent and you don’t have much time to sell, you might consider filing for Chapter 13 bankruptcy with a plan to sell your property.

Just like with a short sale, the first step in obtaining a deed in lieu of foreclosure is for the borrower to contact the servicer and request a loss mitigation application. As with a short sale request, the application will need to be filled out and submitted along with documentation about income and expenses. The bank might require that you try to sell your home before it will consider accepting a deed in lieu, and require a copy of the listing agreement as proof that this has been done.

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Deed in Lieu of Foreclosure Documents

If approved for a deed in lieu of foreclosure, the bank will send you documents to sign. You will receive: • a deed that transfers ownership of the property to the bank, and • an estoppel affidavit. (Sometimes there might be a separate deed in lieu agreement.) The estoppel affidavit sets out the terms of the agreement and will include a provision that you are acting freely and voluntarily. It might also include provisions addressing whether the transaction is in full satisfaction of the debt or whether the bank has the right to seek a deficiency judgment. Deficiency Judgments Following a Deed in Lieu of Foreclosure With a deed in lieu of foreclosure, the deficiency amount is the difference between the fair market value of the property and the total debt. In most cases, completing a deed in lieu will release the borrowers from all obligations and liability under the mortgage, but not always.

Anti-deficiency laws

Most states don’t have a law that prevents a bank from obtaining a deficiency judgment following a deed in lieu of foreclosure. Washington, however, is one state that does prohibit a bank from getting a deficiency judgment after a deed in lieu. So, the bank might try to hold you liable for a deficiency following the transaction. If the bank wants to preserve its right to seek a deficiency judgment, it generally must clearly state in the transaction documents that a balance remains after the deed in lieu, and it must include the amount of the deficiency. How to avoid a deficiency with a deed in lieu of foreclosure To avoid a deficiency judgment with a deed in lieu of foreclosure, the agreement must expressly state that the transaction is in full satisfaction of the debt. If the deed in lieu of foreclosure agreement does not contain this provision, the bank might file a lawsuit to obtain a deficiency judgment. Again, you might have tax liability for any forgiven debt.

The process for completing a deed in lieu will vary somewhat depending on who your loan servicer is and who the lender (or current owner of your loan, called an “investor”) is. Generally, you’ll have to try to sell the property for at least 90 days at fair market value before the lender will consent to accepting a deed in lieu. Also, you usually must have clear title, which means there can’t be other liens on the property. You might have to provide details about your finances and show that the home won’t sell for what’s owed. As part of the deal, the homeowner usually agrees to vacate the home, leaving it in good (“broom swept”) condition, and sign over ownership to the lender. In some cases, the borrower will have to submit an affidavit indicating that the process was voluntary. In some cases, the lender will allow the homeowner to rent the home even after turning over the deed. Fannie Mae, for example, offers this option to borrowers who have Fannie Mae loans. Also, in some cases, the departing homeowner will receive relocation money after completing a deed in lieu.

Call A Foreclosure Lawyer

Some people think that completing a deed in lieu will cause less damage to their credit score than a foreclosure. But the difference in how a foreclosure or deed in lieu affects your credit is minimal. For this reason, it might not be worth doing a deed in lieu unless the lender agrees to forgive or reduce the deficiency, you get some cash as part of the deal, or you get some extra time to live in the home (longer than what you’d get if you let the foreclosure go through). In some cases, the lender will agree to one or more of these conditions to avoid the expense and hassle of foreclosing. Also, you should take into consideration how long it will take to get a new mortgage after a deed in lieu versus a foreclosure. Fannie Mae, for instance, will buy loans made two years after a deed in lieu if there are extenuating circumstances, like divorce, medical bills, or a job layoff that caused you economic difficulty, compared to a three-year wait after a foreclosure. (Without extenuating circumstances, the waiting period for a Fannie Mae loan is seven years after a foreclosure or four years after a deed in lieu.) On the other hand, the Federal Housing Authority (FHA) treats foreclosures, short sales, and deeds in lieu the same, usually making its home loan insurance available after three years. If you have a lot of equity in the property, however, a deed in lieu is usually a poor choice. You’d be better off by selling the property and paying of the debt. If you don’t have a lot of time and a foreclosure is imminent, you might consider filing for Chapter 13 bankruptcy with a plan to sell your home.

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With a deed in lieu, the homeowner may negotiate what will happen to the deficiency, if one exists. Because a deed in lieu is a voluntary agreement between you and the lender, it’s possible to negotiate a deal in which: • the lender agrees not to pursue a deficiency judgment • you agree pay part of the deficiency, or • you agree to repay the deficit over time. Be aware that, if the lender forgives all or part of the deficiency, you might face tax consequences. Should You Let the Foreclosure Go Through? In some states, a bank can get a deficiency judgment against a homeowner as part of a foreclosure or thereafter by filing a separate lawsuit. In other states, an anti-deficiency law prevents a bank from getting a deficiency judgment following a foreclosure. If the bank can’t get a deficiency judgment against you after a foreclosure, you might be better off letting a foreclosure happen rather than agreeing to a deed in lieu of foreclosure that leaves you responsible for all or a portion of a deficiency. (For specific advice about what to do in your particular situation, talk to a local foreclosure attorney.)

If you’re considering completing a deed in lieu, consider talking to a lawyer. Many different foreclosure avoidance options exist, including loan modifications and short sales, and some options might be better than others, especially for specific situations. To find out if a deed in lieu might be right for you or to explore other possible options, contact a lawyer.

Avoiding a Deficiency Judgment

In some states, lenders have the right to sue borrowers for deficiencies after a foreclosure or a deed in lieu of foreclosure. A deficiency is the difference between the amount you owe on your mortgage loan and the price your lender gets for your home when it sells at a foreclosure sale. In other words, if you owe your mortgage lender $300,000 on your house and you default, and the foreclosure sale brings in just $250,000, the deficiency is $50,000. If permitted by state law, the lender can sue you for the $50,000 and get a deficiency judgment—even though it already took the house. With a deed in lieu of foreclosure, the deficiency is the difference between the total debt and the fair market value of the house. As part of the deed in lieu of foreclosure negotiations, you should get your lender to agree to release you from having to repay any deficiency, perhaps in exchange for your agreeing to deliver the house to your lender in good condition. Make sure to get the deficiency waiver in writing. Though, if the lender forgives all or part of the deficiency, you could face tax consequences.

Know Your Options

If you are a distressed homeowner who’s facing a foreclosure, knowing your options is very important. As soon as you realize that you’re in financial distress, call your servicer’s loss mitigation department to find out what alternatives to foreclosure—such as a refinance, loan modification, short sale, or deed in lieu of foreclosure—are available to you. (The servicer is the company that manages your loan account on behalf of the lender. Servicers process borrower payments, manage escrow accounts, and pursue foreclosure for defaulted loans.) You have nothing to lose by calling the servicer and the call might make a huge difference. You will typically be provided a packet of information and documents to complete. If you don’t understand the contents of any of these documents, ask for help, either from an attorney or a free HUD-certified housing counselor. While the foreclosure process can be scary, you have some choice in the matter.

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It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!

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