Your lender will provide a Good Faith Estimate of Closing Costs which include but are not limited to: Down payment The loan origination fee The mortgage loan processing fee The mortgage loan underwriting fee Appraisal fee Credit report fee Flood certification The homeowner's insurance premium for the first year Escrow account reserves for insurance and property taxes, if applicable Survey fee Attorney fees Title search fee Title insurance premium Title company fees Courier fee Deed recording fee HOA transfer fee if applicable   09/11/2008

When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed. If you don't have sufficient insurance, your insurance company may only pay a portion of the cost of replacing or repairing damaged items. There are three ways to insure the structure of your home: Replacement Cost: Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount. Guaranteed Replacement Cost: Insurance that pays the full cost of replacing damaged property, without a deduction for depreciation and without a dollar limit. This coverage is not available in all states and some companies limit the coverage to 120 percent of the cost of rebuilding your home... 09/11/2008

Washingtom Mutuals stock is in a freefall and we could see a run on the bank soon, similar to what happened with InyMac. This bank should be monitored closely today. They are knee-deep in Pay-Option ARMS, mostly in California. From the MarketTicker: Those of you who have read The Ticker for a while know that I have been banging on the drum of WaMu for a long time - since last April when I first piled onto them following their 1Q 07 report in which I "noticed" that they were paying dividends out of (in part) Capitalized Interest - which, while "booked" profit, isn't cash. As I always said in my years in business, its first, foremost, and always the cashflow stupid; all else is a nice distraction. Now swaps on WaMu (protecting against the risk of default) are being quoted not in basis poi... 09/11/2008

1. What is Prequalification? Prequalification is the process of determining what price a home can be purchased by a prospective buyer. 2. My real estate agent recommended that I get a commitment letter. What is a commitment letter, and why should I get one? A commitment letter is given by the lender stating the terms which it agrees to provide a mortgage to a homebuyer. Commitment letters help you set realistic goals while you're house-hunting, provide the same negotiating ability as a cash buyer, and enable you to move quickly once the perfect home is found.3. When mortgage lenders refer to "PITI" what exactly are they referring to? PITI is Principal, Interest, Taxes, and Insurance- the components of a monthly mortgage payment.4. When my loan officer asks me if I want to waive my escro... 09/11/2008

In their recent conference call, BOA warned that their commercial portfolio is under-performing. Many fin ancial analysts think this may be the next shoe to drop. These loans are mostly construction loans to builders... Sept. 10 (Bloomberg) -- Bank of America Corp., the biggest U.S. consumer bank, said credit weakness is spreading to commercial borrowers from residential customers and loan losses probably will deepen in the third quarter. Home builders unable to repay their loans are contributing to deterioration among commercial borrowers, said Brian Moynihan, head of the global corporate and investment banking unit, at a New York conference today. More than half the Charlotte, North Carolina-based bank's $13.4 billion in loans to builders are considered troubled, 19 percent are not pa... 09/10/2008

Chairman of the House Financial Services Committee, Barney Frank, has discussed publicly the fact that he has negotiated an agreement with HUD Secretary Steve Preston that will provide for the continuation of privately funded downpayment assistance. The agreement allows HUD to impose risk-based pricing on downpayment assistance transactions which provides Secretary Preston the fiscal protection he seeks for the FHA insurance fund. According to an Inman News article published today, Chairman Frank is quoted as saying "The FHA loved the ban on down-payment assistance (but) hated the ban on risk-based pricing," Frank said at Saturday's hearing. "That seemed to me to offer an opportunity. So (HR 6694) will replace both bans with middle ground -- and it will pass the House, I can guarantee y... 09/10/2008

As the market rallied on Monday with the news of the Fannie and Freddie rescue, it weakened yesterday on news the Lehman still hasn't secured a new capital infusion... From the New York Times: On Wall Street, there is a growing sense that Lehman may have to solve its problems on its own, without drastic help from the government, which in March brokered the rescue of another Wall Street bank, Bear Stearns."Some may worry that Treasury has taken on so much taxpayer burden they don't have any remaining capacity more to take on the burdens of Lehman," said David Trone, an analyst at Fox-Pitt Kelton. 09/09/2008

The mortgage market continues to tighten, with more non-traditional mortgage products starting to exit the market. Today, CitiMortgage announced the end of it's stated income (SIVA and SISA) and 40-year loan products, the 40-year interest only mortgage and the 40-year ARM. These products have no buyers in todays market and this tightening mwill continue for a while. From CitiMortgage: For all Agency Alt-A (SIVA and SISA), 40-year Fixed I/O, 40-year LIBOR ARM products - these are being discontinued. Any loans that you have under these programs must be REGISTERED BY 9-12-08, LOCKED BY 9-30-08, and FUNDED BY 10-31-08. 09/09/2008

View Real Estate For Sale in Mobile, Alabama Following is a list of Neighborhoods/Subdivisions in Mobile, AL. We offer FREE no obligation information on any Subdivision in Mobile including recent home sale statistics, average selling price, schools, parks, community information and home values. If you are looking to purchase Mobile Foreclosure home, REO/Bank owned real estate in Mobile and Mobile distressed properties, We are here to assist you. Contact us today to learn more about Subdivision(s) of your choice in Mobile, AL. Adobe Ridge Estates Airmont Airport Acres Airway Commercial Park Alandale Alba Beach Albert Street Alexander Heights Alpine Hills Alpine Hills-concord Alpine Park Alta Vista Amberly Amelia Court Angelo Place Annwood Antoine Apartment Site Arlington Arlington Oaks ... 09/09/2008

One of the upsides to the government bailing out Fannie/Freddie will be lower rates for the fixed-rate mortgages. As the government buys mortgage backed securities, the yield will drop and thus rates will drop. Treasuries will suffer as the money pours into MBS. This is being reflected this morning and rates should drop dramatically.... From marketwatch... Washington takes over Fannie Mae, Freddie Mac Stock markets rally on U.S. Treasury move By Greg Robb & Steve Gelsi, MarketWatch Last Update: 8:23 AM ET 9/8/08 WASHINGTON (MarketWatch) - U.S. Treasury Secretary Hank Paulson on Monday said the government's takeover of Fannie Mae and Freddie Mac was necessary, but it was "not something I wanted to do." Meanwhile, the biggest potential government bailout of a generation sparked rallies in... 09/08/2008

A Radical Industry Restructuring is Upon Us- Mark Sunday morning, September 7, 2008, as the day the residential mortgage business changed forever.   " By the rude bridge that arched the flood, Their flag to April's breeze unfurled, Here once the embattled farmers stood and fired the shot heard round the word"    Emerson wrote " Concord Hymn " to emphasize a critical event happened that triggered something of global importance. Could yesterday be such a day ? Whether we see mortgage rates fall is a 64,000 question, Mortgage rates have not been the barrier to home buying, but the rates and fees have effected refinance.  It looks like the Treasury Department has laid the groundwork for the eventual dismantling of these once politically powerful (and once highly profitable) government chart... 09/07/2008

Well, it looks like those that hold Fannie and Freddie's preferred stock will be out of luck, as well. This will be particularly hard on some of the banks, who bought lots of this type of stock. This is not what the banks need at this juncture. From The Market Ticker... Bullet points: Both common and preferred stock dividends eliminated (not deferred) GSE portfolios will run down starting in 2010, 10% annually, until at a "safe" level (unspecified) Modest growth in MBS portfolio in 2009 Capital limits eliminated (since Treasury now must pony up whatever is required) Treasury to buy some MBS as necessary "temporarily" (only new MBS, however - no existing ones.  If the new underwriting standards are so good, how come they need to purchase them?) Senior and subordinated corporate debt will... 09/07/2008

 www.mygcmls.com   How to buy a foreclosed home, there are bargains to be had, but there are also plenty of pitfalls awaiting anyone brave enough to wade into real estate's maelstrom. Here's what to consider.  There are certainly plenty of foreclosed homes on the market. Fannie Mae CEO Daniel Mudd said that the company is pushing hard to sell more foreclosed properties, to get them off the books. "I don't think this is a time to be holding onto REOs and hoping for a better day," he said. Steve Dexter, author of "Prospering in the Rising Wave of Foreclosures," has bought dozens of foreclosed homes and thinks now is a good time to dive in. The book quotes "It's the best way to buy, and it's time to buy again,"    There are three different stages of foreclosure, each of which presents diff... 09/06/2008

09/03/2008

Press Release: GMAC Financial Services and ResCap Announce Further Streamlining of Mortgage Operation On Sept. 2, 2008, a plan was approved that included closing all 200 GMAC Mortgage retail offices, ceasing originations through the Homecomings wholesale broker channel, further curtailing business lending and international business activities, and right-sizing functional staff support. In addition, the company is evaluating strategic alternatives for the GMAC Home Services business and the non-core servicing business. These collective actions will reduce the ResCap workforce by approximately 5,000 employees, or 60 percent. This portion of GMC use to be a major source of revenue. They are now catching it on both auto sales and mortgage origination... 09/03/2008

Steted income loans were originally available for self-employed borrowers who "wrote off" much of their income for true business expenses. The problem was that they seldom qualified for "full documentation" loans. Thus, the stated income loan was born. Because of all the abuse of this program, there are very few stated income loans available for those that need them. This will cause problems for many self-employed borrowers who have ARMs that will reset in the next year or so!   From Business Week... Alt-A mortgages were designed for people with good credit who had trouble documenting their income - people like the self-employed. Not as risky as subprime but not quite prime either, Alt-As made some news recently because they're part of what's ailing Fannie Mae and Freddie Mac. About hal... 09/02/2008

     www.GCHouses.com  Mobile Alabama, has a Lot of New Homes that will qualify ! For many the mention of USDA conjures up thoughts of farmers, ranchers, and regulations related to the safety of meat, poultry, and egg products. In fact, more and more Americans are taking advantage of USDA's programs. One of the housing programs gaining popularity is the USDA Guaranteed Rural Development Loan, a program with unique benefits to assist individuals and families acquire homes. The program is truly remarkable and creates special opportunities for:  Home Buyers Flexible Credit CriteriaMany loan programs only have automated computer underwriting systems driven heavily by credit scores. However, the Rural Development Loan allows for manual underwriting.Manual underwriting allows us to consider t... 09/02/2008

Gustav now up to a strong Category 4 Hurricane. It looks like it will hit far enoug to the West of New Orleans to spare devastation, but a jog East could prove disastrous. Mandatory evacuations by Sunday AM. Everyone from Houston to Mobile is watching... MIAMI, Florida (CNN) -- Gustav's winds increased to near 145 mph Saturday as it threatened the western tip of Cuba as a Category 4 hurricane.Saturday morning Gustav was about 255 miles east-southeast of the western tip of Cuba. "This makes Gustav an extremely dangerous Category 4 hurricane on the Saffir-Simpson hurricane scale," the National Hurricane Center said. Gustav's hurricane force winds extend outward up to 60 miles as it barrels toward the U.S. Gulf Coast for a landfall late Monday or Tuesday. Read the entire article here http:... 08/30/2008

Are you a full-time professional real estate agent? Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.Yo... 08/30/2008

It looks like all the models are lining up over central Louisiana. This may be far enough to the West of New Orleans to keep them relatively safe, as far as the levees are concerned, but it will be a close call. Please keep us in your prayers... The storm poses a serious threat to lives and property along the Gulf Coast, with landfall forecast late Monday or early on Tuesday. The threat will extend well inland from the immediate coast. The highest risk for a direct landfall from Gustav lies from Houston, Texas, to Mobile, Ala.; however, all interests along the Gulf Coast from the Florida panhandle to south Texas should monitor the progress of Gustav. Read the entire article here  http://www.accuweather.com/news-top-headline.asp?partner=accuweather&traveler=0&date=2008-08-29_08:04   08/29/2008