Loan Modification and Short Sale Tips

FHA finally did the right thing and pulled the license of Lend America. Lend America, which operates in 46 states, is an example of what is wrong with the mortgage industry.  It is yet to be determined how much damage Lend America has caused.  The reasons given by FHA for pulling its license incl...

Here is some good news to all of you that are worried about all the money the government is spending.  Apparently the executives at Bank of America woke up this morning and discovered to their amazement that they had an extra $45 billion lying around.  They decided to pay back the $45 billion tha...

I wrote a post the other day about a judge in Suffolk County on Long Island who voided the mortgage because he ruled that the lender was being arrogant and uncooperative.  The lender refused to consider modifying the loan or agree to a short sale.  I was talking to some colleagues about this case...

Please beware!  On December 12,  Fannie Mae is toughening its underwriting criteria.  The borrower must have a 620 and an DTI of less than 45%.  It will approve a DTI of up to 50% if there are other compensating factors such as low LTV, good credit or a large amount of liquid assets.  If your cli...

A judge in Suffolk County on Long Island had enough with a bank’s arrogance and attitude and completely voided a mortgage.  This may be the start of a trend where now the judicial system is getting fed up with lenders and are taking matters into its own hands.   The case is actually pretty straig...

I cannot think of a better time to buy.  This morning  I was reviewing the rate sheets and I nearly fell out of my chair.  I have never seen interest rates this low.  It is possible to get a 30 year fixed rate mortgage for 4.5%!  If you want to take a chance on a 5 year ARM, the rate is 3.5%.  If...

Most times persistence is a good quality to have.  However, good judgment is even more important so when enough people say “No”, it is time to move on.  This is especially true with regard to the real estate area.  Loan officers fall into this trap all the time.  They will receive a referral from...

A realtor invited me to sit in on an open house this past Sunday.  I would answer any mortgage related questions and if possible, prequalify anyone for a mortgage who asked.  This was the first time I ever went to an open house at the invitation of the listing agent.  This house was located in Le...

This holiday season, what better gift can a person receive than a house?   Well, not an entire house, but enough money to be able to qualify for a home.  Under FHA programs, a borrower can use funds from a relative not only to pay for house, but for closing costs as well.  Even though FHA offers ...

One of the ways to take the fear and loathing out of an ARM is to understand how the interest rate is determined and how much it will change. Once the initial fixed period of the ARM expires, the mortgage calculates a new interest rate by adding the index of a mortgage to the margin  To calculate...