It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.
Hey - the above quote was from the National Assocation of Realtors. Looks like people agree with what I've been saying for quite some time now. You shouldn't write an offer and expect to close in 2 weeks to a month. Give lenders 45-60 days. We'll close in 2 weeks if we can, but when you don't give us 45-60 days, don't complain about the last minute problems. There's just too many systems put in place by the government now to smoothly close in 30 days. That doesn't mean it can't be done, but MURPHY's LAW. It won't go smoothly if you give us 30 days, so if you give us 45-60, it will get a proved in 2 weeks. That's just how it always goes. If you want to have an option to close sooner, put vergiage in the offer: Will close sooner, if possible.
Call me for details, 608-498-1959 or 608-779-1519
Jolyn
Thursday, October 29, 2009
Wednesday, October 28, 2009
IF YOU BENEFITED FROM THE $8,000 BUYER TAX CREDIT LET YOUR GOVERNMENT REPRESENTATIVES KNOW ABOUT IT
Congress is looking at extending or expanding the buyer tax credit. It currently expires 11/30 so loans have to be closed by that date. I know a lot of 1st-time buyers who have benefited from this credit and a lot more who could.
If you would like to see it extended, or you bought and benefited from the program, let your senators and congress-persons know so they can offer their insight when they decide if they should extend it.
Rumors are it may be extended for 6 months, and it may be opened up to buyers who are not 1st time buyers but are moving up to a more expensive home, selling theirs to give 1st-time buyers more to choose from. Nothing is set yet, so any input you want to give is appreciated.
Get a note or e-mail off to Ron Kind or Russ Feingold and let them know your opinions.
If you would like to see it extended, or you bought and benefited from the program, let your senators and congress-persons know so they can offer their insight when they decide if they should extend it.
Rumors are it may be extended for 6 months, and it may be opened up to buyers who are not 1st time buyers but are moving up to a more expensive home, selling theirs to give 1st-time buyers more to choose from. Nothing is set yet, so any input you want to give is appreciated.
Get a note or e-mail off to Ron Kind or Russ Feingold and let them know your opinions.
Tuesday, October 27, 2009
GPS advice
I got an e-mail from a friend of mine who works for a security company. He cautioned against using your home address as the starting point when you use your GPS. Instead, pick a gas station or bank. Someone went to a football game. They had their GPS mounted on their dash. Knowing that they'd be there for a few hours, someone broke into their car, took the GPS and the garage door opener. They could see where they started all their trips from, took a truck and cleaned out the house. I'd never have thought of something so evil.
Also, if you get a text message asking for your PIN, call back and make sure it's sent by the person you think it was in case they a hold of the phone of a spouse.
Just some good advice.
Have a great week.
Also, if you get a text message asking for your PIN, call back and make sure it's sent by the person you think it was in case they a hold of the phone of a spouse.
Just some good advice.
Have a great week.
MINNESOTA HIGHEST INCREASE IN LOAN FRAUD
I was just perusing Fannie Mae's website reading about fraud cases. It's pretty scary what some people were out there doing. You think Bernie Madoff is bad - there's some equally bad mortgage brokers out there. That's why it's important to deal with someone trustworty like ME.
I wanted to pass along to you that from 2007 to 2008, Minnesota was ranked #1 in increased loan fraud. It increased 435%. That's a whole lot!!!
I complain a lot about all the extra hoops we have to jump through, and how picky underwriting is, but it's very understandable.
I was talking to another lender who does a lot in Illinois. One of their underwriters was reviewing an appraisal. She thought some of the furnutire and decor looked a little like she'd seen it before. These people were going into vacant houses, fixing up the rooms that require photos in the appraisal, bringing in the same furniture and furhishings, taking photos then moving the stuff to the next house. Faking appraisals and entire deals. They just happened to be unlucky enough to get the same underwriter who reviewed appraisals thouroughly and caught them. Then uncovered a huge fraud ring.
Some just have to ruin it for everyone!
I wanted to pass along to you that from 2007 to 2008, Minnesota was ranked #1 in increased loan fraud. It increased 435%. That's a whole lot!!!
I complain a lot about all the extra hoops we have to jump through, and how picky underwriting is, but it's very understandable.
I was talking to another lender who does a lot in Illinois. One of their underwriters was reviewing an appraisal. She thought some of the furnutire and decor looked a little like she'd seen it before. These people were going into vacant houses, fixing up the rooms that require photos in the appraisal, bringing in the same furniture and furhishings, taking photos then moving the stuff to the next house. Faking appraisals and entire deals. They just happened to be unlucky enough to get the same underwriter who reviewed appraisals thouroughly and caught them. Then uncovered a huge fraud ring.
Some just have to ruin it for everyone!
Monday, October 19, 2009
OPTIONS OTHER THAN ALLOWANCES ON OFFERS
Since simply putting cash to a borrower as an allowance for repairs or negotiated things, have the seller pay it toward their closing costs. If the borrower was going to pay their own closing costs, by having a seller pay what they would have given in an allowance, you're doing the same thing except a lender won't have a problem with it. Call if you have questions on what would be an acceptable solution and satisfy mortgage requirements.
Allowance is just a reduction in sale price
As far as lenders are concerned, ALLOWANCES in offers is unacceptable. If there is a problem with a property, the problem must be corrected by closing. Giving a borrower $1,000 allowance at closing is not going to work for a secondary market loan. Just giving a buyer $ at closing will not work. Why: If it's a sever problem like an electrical or structural problem, a borrower could get a credit at closing and not fix the problem. Unfortunately most loans will not allow escrows for anything. Sometimes, weather-related items are permitted, but otherwise, all repairs need to be completed prior to closing.
If it's not a structural problem or safety issue, just reduce the sale price as you will not be able to just give a buyer a credit on the closing statement. Once a loan is closed, there's no guarantee it's going to be completed, and the reason they don't allow escrows is costs can always change and there may not be sufficient funds to complete the repair.
If you keep in mind that all repairs must be completed by closing, you won't have any problems.
If it's not a structural problem or safety issue, just reduce the sale price as you will not be able to just give a buyer a credit on the closing statement. Once a loan is closed, there's no guarantee it's going to be completed, and the reason they don't allow escrows is costs can always change and there may not be sufficient funds to complete the repair.
If you keep in mind that all repairs must be completed by closing, you won't have any problems.
Thursday, October 15, 2009
30 WORKING DAYS LEFT
If you're still shopping for a home thinking you'll be able to close and get in on the $8000 potential 1st-time buyer credit, you may be out of luck. If a bank or credit union guarantees they can get it done - you might not want to believe them.
I'll clue you in to secondary market vs. in-house loans. An in-house loan can be closed in time to meet the 11/30/09 deadline for this tax credit, but secondary market loans are iffy at this point.
In-house loans can be done fast. These loans will NOT BE a 30-year fixed rate. Rates will probably be a bit higher, and you'll need at least 10% down. If you don't want to jump through all the hoops, this is your only option.
Otherwise, for 30 year fixed, with 3.5% down (FHA) or Zero down (Rural Housing) at low rates, we can not speed things up to get the loan done. FHA might squeak by in time, but no guarantees. Rural Housing I would bet can not be closed in time. They are backed up nationwide.
If you plan on buying by 11/30, give me a call to discuss your options. I'm not going to paint you a rosie picture or blow smoke - you'll get the truth from me.
Give me a call or e-mail me.
Jolyn - the MORTGAGE EXPERT
I'll clue you in to secondary market vs. in-house loans. An in-house loan can be closed in time to meet the 11/30/09 deadline for this tax credit, but secondary market loans are iffy at this point.
In-house loans can be done fast. These loans will NOT BE a 30-year fixed rate. Rates will probably be a bit higher, and you'll need at least 10% down. If you don't want to jump through all the hoops, this is your only option.
Otherwise, for 30 year fixed, with 3.5% down (FHA) or Zero down (Rural Housing) at low rates, we can not speed things up to get the loan done. FHA might squeak by in time, but no guarantees. Rural Housing I would bet can not be closed in time. They are backed up nationwide.
If you plan on buying by 11/30, give me a call to discuss your options. I'm not going to paint you a rosie picture or blow smoke - you'll get the truth from me.
Give me a call or e-mail me.
Jolyn - the MORTGAGE EXPERT
Wednesday, October 14, 2009
SOME DAYS MY JOB SUCKS
Things are going pretty good, and I've adjusted to all the changes over the past year in the mortgage industry and tried to keep my Realtors and customers aware of them before they went into effect.
One change that we need to inform our government representatives about is the re-disclosure requirements. It's designed to protect borrowers, but it's causing a lot of stress instead. It's only gong to get worse come January 2010 when our good faith "ESTIMATE" has to be exact with the final closing costs. If it doesn't, we'll have to re-disclose and wait 7 days before we can close. Now keep in mind we don't know exact costs till most times a day or two before closing. It's already a bit of a pain and I've had to re-schedule 3 closings in the last week because the APR and finance charges can't very more than .125% or no more than $100.
I had a closing where many of the closing costs actually came in lower than what I estimated. The only differenc was instead of closing on 9/30 we closed on 10/9. There was 10 days of interest due at closing because of it, which was about $500. I think a borrower should be able to waive this and choose to close. There were no suprise added costs, the closing date was merely changed.
It's getting where we will need to get the loan totally approved and ready to close, then we'll have to do the closing statement, re-disclose, and close 7 days from when the closing statement is done. If you think this is rediculous, let your senators and congressional representatives know.
We are required to run a loan through FIVE fraud systems. Some of which we can't do till we have the closing statement. This can cause last-minute issues.
I know lending was out of hand and needed to be reeled in. You can try and blame the lenders, but hey - I didn't make the rules! I couldn't turn a borrower down for a loan if they qualified 2 years ago. Ask youself who made up the guidelines that allowed lenders to approve these zero down, 1 day out of bankruptcy loans? It wasn't me. We needed the changes, but I think they've gone a little too far the other way. It will ease up, but until then, we have to adjust.
One change that we need to inform our government representatives about is the re-disclosure requirements. It's designed to protect borrowers, but it's causing a lot of stress instead. It's only gong to get worse come January 2010 when our good faith "ESTIMATE" has to be exact with the final closing costs. If it doesn't, we'll have to re-disclose and wait 7 days before we can close. Now keep in mind we don't know exact costs till most times a day or two before closing. It's already a bit of a pain and I've had to re-schedule 3 closings in the last week because the APR and finance charges can't very more than .125% or no more than $100.
I had a closing where many of the closing costs actually came in lower than what I estimated. The only differenc was instead of closing on 9/30 we closed on 10/9. There was 10 days of interest due at closing because of it, which was about $500. I think a borrower should be able to waive this and choose to close. There were no suprise added costs, the closing date was merely changed.
It's getting where we will need to get the loan totally approved and ready to close, then we'll have to do the closing statement, re-disclose, and close 7 days from when the closing statement is done. If you think this is rediculous, let your senators and congressional representatives know.
We are required to run a loan through FIVE fraud systems. Some of which we can't do till we have the closing statement. This can cause last-minute issues.
I know lending was out of hand and needed to be reeled in. You can try and blame the lenders, but hey - I didn't make the rules! I couldn't turn a borrower down for a loan if they qualified 2 years ago. Ask youself who made up the guidelines that allowed lenders to approve these zero down, 1 day out of bankruptcy loans? It wasn't me. We needed the changes, but I think they've gone a little too far the other way. It will ease up, but until then, we have to adjust.
Tuesday, October 13, 2009
I'm not an evil person so I wouldn't have thought of this stuff. Check it out
A friend of mind who works for a security company sent me this information. It's something to think about if you use a GPS and mobile phone/blackberry. If you get a text message that looks like it's from someone you know asking for personal info, call and confirm they asked for it, don't just text it back. Amazing how evil people are. Here's info from the security company. Read on....
GPS:
A couple of weeks ago a friend told me that someone she knew had their car broken into while they were at a football game. Their car was parked on the green which was adjacent to the football stadium and specially allotted to football fans. Things stolen from the car included a garage door remote control, some money and a GPS which had been prominently mounted on the dashboard.
When the victims got home, they found that their house had been ransacked and just about everything worth anything had been stolen.
The thieves had used the GPS to guide them to the house. They then used the garage remote control to open the garage door and gain entry to the house. The thieves knew the owners were at the football game, they knew what time the game was scheduled to finish and so they knew how much time they had to clean out the house. It would appear that they had brought a truck to empty the house of its contents.
Something to consider if you have a GPS - don't put your home
Address in it. Put a nearby address (like a store or gas station) so you
Can still find your way home if you need to, but no one else would know
Where you live if your GPS were stolen.
MOBILE PHONES
I never thought of this.......
This lady has now changed her habit of how she lists her names on
her mobile phone after her handbag was stolen. Her handbag, which
contained her cell phone, credit card, wallet... Etc...was stolen.
20 minutes later when she called her hubby, from a pay phone telling
him what had happened, hubby says 'I received your text asking
about our Pin number and I've replied a little while ago.'
When they rushed down to the bank, the bank staff told them all the
money was already withdrawn. The thief had actually used the stolen
cell phone to text 'hubby' in the contact list and got hold of the pin
number. Within 20 minutes he had withdrawn all the money from their
bank account.
Moral of the lesson:
Do not disclose the relationship between you and the people in
your contact list.
Avoid using names like Home, Honey, Hubby, Sweetheart, Dad,
Mom, etc....
And very importantly, when sensitive info is being asked through texts,
CONFIRM by calling back.
Also, when you're being text by friends or family to meet them
somewhere, be sure to call back to confirm that the message came
from them. If you don't reach them, be very careful about going places
to meet 'family and friends' who text you.
GPS:
A couple of weeks ago a friend told me that someone she knew had their car broken into while they were at a football game. Their car was parked on the green which was adjacent to the football stadium and specially allotted to football fans. Things stolen from the car included a garage door remote control, some money and a GPS which had been prominently mounted on the dashboard.
When the victims got home, they found that their house had been ransacked and just about everything worth anything had been stolen.
The thieves had used the GPS to guide them to the house. They then used the garage remote control to open the garage door and gain entry to the house. The thieves knew the owners were at the football game, they knew what time the game was scheduled to finish and so they knew how much time they had to clean out the house. It would appear that they had brought a truck to empty the house of its contents.
Something to consider if you have a GPS - don't put your home
Address in it. Put a nearby address (like a store or gas station) so you
Can still find your way home if you need to, but no one else would know
Where you live if your GPS were stolen.
MOBILE PHONES
I never thought of this.......
This lady has now changed her habit of how she lists her names on
her mobile phone after her handbag was stolen. Her handbag, which
contained her cell phone, credit card, wallet... Etc...was stolen.
20 minutes later when she called her hubby, from a pay phone telling
him what had happened, hubby says 'I received your text asking
about our Pin number and I've replied a little while ago.'
When they rushed down to the bank, the bank staff told them all the
money was already withdrawn. The thief had actually used the stolen
cell phone to text 'hubby' in the contact list and got hold of the pin
number. Within 20 minutes he had withdrawn all the money from their
bank account.
Moral of the lesson:
Do not disclose the relationship between you and the people in
your contact list.
Avoid using names like Home, Honey, Hubby, Sweetheart, Dad,
Mom, etc....
And very importantly, when sensitive info is being asked through texts,
CONFIRM by calling back.
Also, when you're being text by friends or family to meet them
somewhere, be sure to call back to confirm that the message came
from them. If you don't reach them, be very careful about going places
to meet 'family and friends' who text you.
Tuesday, October 6, 2009
I'm scheduling my pumpkin pie classes now
Hey - the pumpkins are ready and we're into the "fall weather" so it's time to learn to make a pumpkin pie from a pumpkin, not a can!
If you and 5 of your friends would like to learn how to prepare a pumpkin, make the crust and bake the pie, let me know. It's $25 per person, held at my house. I'll provide wine, all the ingredients, and you'll go home with your prepared pie, plus another pumpkin so you can recreate the experience on your own. $25 per person.
Scheduling classes now.
Chef Jolyn
If you and 5 of your friends would like to learn how to prepare a pumpkin, make the crust and bake the pie, let me know. It's $25 per person, held at my house. I'll provide wine, all the ingredients, and you'll go home with your prepared pie, plus another pumpkin so you can recreate the experience on your own. $25 per person.
Scheduling classes now.
Chef Jolyn
CALL TO ACTION!!!!
If you want the government to continue to offer the buyer tax credit, cut and paste this link in your browser and let them know.
http://takeaction.realtoractioncenter.com/campaign/hbtc/wbku5guf2j3j8mde?
If we don't band together they might not continue this program. It has been a great incentive to get borrower's off the fence and into homes. Take a minute to let your representatives know you support continuing the buyer tax credit.
Thanks!
Jolyn
http://takeaction.realtoractioncenter.com/campaign/hbtc/wbku5guf2j3j8mde?
If we don't band together they might not continue this program. It has been a great incentive to get borrower's off the fence and into homes. Take a minute to let your representatives know you support continuing the buyer tax credit.
Thanks!
Jolyn
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