Nov
21
Mortgage Finance Experts: How will the market affect homeowners who will be refinancing next year?
Filed Under Renting & Real Estate | 5 Comments
Kate373 asked:
My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that’s bound to occur as a result of this, they are worried about what refinancing has in store for them. The good news is that they have flawless credit (they successfully removed their PMI, and they are early every month on their mortgage payments —and they pay an extra couple of hundred dollars than they should. Not to mention their credit card debt is very low (only a couple of thousand dollars). They’ve both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Any hope?
JOSH
My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that’s bound to occur as a result of this, they are worried about what refinancing has in store for them. The good news is that they have flawless credit (they successfully removed their PMI, and they are early every month on their mortgage payments —and they pay an extra couple of hundred dollars than they should. Not to mention their credit card debt is very low (only a couple of thousand dollars). They’ve both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Any hope?
JOSH
Nov
13
7 Simple and Easy Steps to Big Time Real Estate Investing Success
Filed Under Investing | Leave a Comment
Sean Flanagan asked:
Too many real estate investors fail to achieve their dreams because they fail to properly launch their investing careers or because they reach a crossroads and don’t know which way to turn. Confused about the next step to take, they spin their wheels, do nothing, and eventually opt to walk away from real estate completely and go back to a life of mediocrity. To prevent this from happening to you, follow this simple seven step roadmap to success.
Step One: Education – The right education is critical to your success. Before getting started you should begin learning about a variety of creative techniques. You don’t want to spend so much time preparing to invest that you never launch your investing career, but you don’t want to go off half-cocked and fire at everything that moves either. Learn enough to be able to write an intelligent offer and then make it happen. As your career advances, continue learning as you go along. There’s a ton of accumulated investing knowledge available, so take advantage of it. Keep in mind, too, that education doesn’t have to be a $2,000-$3,000 guru-sponsored super course. You can sometimes learn more from a $20 book, but never quit learning or you will quit growing.
Step Two: Planning – What steps are you taking to reach your goals? Are you sitting around with a pad of paper and a pen planning how you’ll spend your real estate profits or are you taking a series of deliberate steps to all but guarantee your success? How many calls are you going to make today, this week, or this month? How many properties will you look at? How many offers will you write? Real estate is a numbers game, so you need to plan your numbers and then you need to follow up by analyzing your activity. If you don’t keep score you won’t know if you’re winning or losing. It all starts with a plan and ends in the winner’s circle or the employment office. Planning – or failing to plan – will determine where you’ll be in a year and how much money you’ll have.
Step Three: Team Building – Major league ball teams don’t wait until the season starts to begin looking for members of their team. Their team-building effort starts months ahead of opening day. As a real estate investor you need a team of professionals in your corner. Start today with a small title or escrow company and a mortgage company. Make sure they understand creative real estate and have experience. If you’re not working with a mentor familiar with creative investing, you need to find one. He or she can shave years off your learning curve by helping you to avoid some of the stupid and costly mistakes they made.
Step Four: Circle of Influence – Who are you listening to? Your brother whose idea of creative real estate investing is buying a time share in Arkansas? If your circle of influence – people who give you advice – don’t know and understand real estate investing, they’ll constantly be taking aim on your hopes and dreams because they don’t understand the concept or because they don’t want your success to shine a spotlight on their mediocrity. Tap into as many creative – and successful – real estate investors as you can at your local REIA meetings.
Step Five: The Right Sellers – Wasting time trying to browbeat somebody into accepting your creative offer is unproductive and demoralizing. Make sure that the sellers you’re dealing with are highly motivated to sell and good things will happen. Don’t be afraid to walk away from the wrong deal even if the price is right. Know your ideal situation and then capitalize on it when the opportunity presents itself.
Step Six: Hobby/Business? – Is real estate investing going to be your pathway to prosperity? While there are plenty of opportunities for you to have fun, never lose sight of the fact that you’re playing in a very competitive sandbox. You have something going for you, though. A lot of investors lack the education, training, and mindset to prosper. If you’re one of them, you should save your money and take up stamp collecting or join the rock club. If, however, you’re serious about success and give this business the effort it deserves, your future is a blank check – and you’re holding the pen.
Step Seven: Stick with It – Real estate investing success won’t necessarily come overnight. That’s not to say that you won’t become an overnight sensation, but be prepared for the possibility that it might take 3-5 years to achieve a level of success that inspires you to throw all of your time and energy into enriching yourself. Real estate investing is easy, but it’s not simple. It takes work, effort, and a willingness to keep plodding ahead even when your big payday is years away – instead of mere days.
By following this seven step action plan you can set your sights on reaching all of your personal and financial dreams. Real estate investing is one of the most lucrative careers in the world, but you’ll have to dedicate yourself to your success. How bad do you want it?
Now go get it!
BYRON
Too many real estate investors fail to achieve their dreams because they fail to properly launch their investing careers or because they reach a crossroads and don’t know which way to turn. Confused about the next step to take, they spin their wheels, do nothing, and eventually opt to walk away from real estate completely and go back to a life of mediocrity. To prevent this from happening to you, follow this simple seven step roadmap to success.
Step One: Education – The right education is critical to your success. Before getting started you should begin learning about a variety of creative techniques. You don’t want to spend so much time preparing to invest that you never launch your investing career, but you don’t want to go off half-cocked and fire at everything that moves either. Learn enough to be able to write an intelligent offer and then make it happen. As your career advances, continue learning as you go along. There’s a ton of accumulated investing knowledge available, so take advantage of it. Keep in mind, too, that education doesn’t have to be a $2,000-$3,000 guru-sponsored super course. You can sometimes learn more from a $20 book, but never quit learning or you will quit growing.
Step Two: Planning – What steps are you taking to reach your goals? Are you sitting around with a pad of paper and a pen planning how you’ll spend your real estate profits or are you taking a series of deliberate steps to all but guarantee your success? How many calls are you going to make today, this week, or this month? How many properties will you look at? How many offers will you write? Real estate is a numbers game, so you need to plan your numbers and then you need to follow up by analyzing your activity. If you don’t keep score you won’t know if you’re winning or losing. It all starts with a plan and ends in the winner’s circle or the employment office. Planning – or failing to plan – will determine where you’ll be in a year and how much money you’ll have.
Step Three: Team Building – Major league ball teams don’t wait until the season starts to begin looking for members of their team. Their team-building effort starts months ahead of opening day. As a real estate investor you need a team of professionals in your corner. Start today with a small title or escrow company and a mortgage company. Make sure they understand creative real estate and have experience. If you’re not working with a mentor familiar with creative investing, you need to find one. He or she can shave years off your learning curve by helping you to avoid some of the stupid and costly mistakes they made.
Step Four: Circle of Influence – Who are you listening to? Your brother whose idea of creative real estate investing is buying a time share in Arkansas? If your circle of influence – people who give you advice – don’t know and understand real estate investing, they’ll constantly be taking aim on your hopes and dreams because they don’t understand the concept or because they don’t want your success to shine a spotlight on their mediocrity. Tap into as many creative – and successful – real estate investors as you can at your local REIA meetings.
Step Five: The Right Sellers – Wasting time trying to browbeat somebody into accepting your creative offer is unproductive and demoralizing. Make sure that the sellers you’re dealing with are highly motivated to sell and good things will happen. Don’t be afraid to walk away from the wrong deal even if the price is right. Know your ideal situation and then capitalize on it when the opportunity presents itself.
Step Six: Hobby/Business? – Is real estate investing going to be your pathway to prosperity? While there are plenty of opportunities for you to have fun, never lose sight of the fact that you’re playing in a very competitive sandbox. You have something going for you, though. A lot of investors lack the education, training, and mindset to prosper. If you’re one of them, you should save your money and take up stamp collecting or join the rock club. If, however, you’re serious about success and give this business the effort it deserves, your future is a blank check – and you’re holding the pen.
Step Seven: Stick with It – Real estate investing success won’t necessarily come overnight. That’s not to say that you won’t become an overnight sensation, but be prepared for the possibility that it might take 3-5 years to achieve a level of success that inspires you to throw all of your time and energy into enriching yourself. Real estate investing is easy, but it’s not simple. It takes work, effort, and a willingness to keep plodding ahead even when your big payday is years away – instead of mere days.
By following this seven step action plan you can set your sights on reaching all of your personal and financial dreams. Real estate investing is one of the most lucrative careers in the world, but you’ll have to dedicate yourself to your success. How bad do you want it?
Now go get it!
BYRON
Nov
10
Can a Mortgage Company hold your insurance check for the repair of your building?
Filed Under National Language | 2 Comments
Charles C asked:
My building suffered damage with a hail storm. The insurance company sent me a check made out to the mortgage company and to me. Now the Mortgage company is holding the funds and I can’t finish the repairs needed. My mortgage payments are up to date.
The repairs are done, the Mortgage company inspected the repairs and they are holding the depreciation check. Would anyone know why?
GLEN
My building suffered damage with a hail storm. The insurance company sent me a check made out to the mortgage company and to me. Now the Mortgage company is holding the funds and I can’t finish the repairs needed. My mortgage payments are up to date.
The repairs are done, the Mortgage company inspected the repairs and they are holding the depreciation check. Would anyone know why?
GLEN
Nov
7
For Deals, Foreclosure!
Filed Under Real Estate | Leave a Comment
Kevin Bilberry asked:
The media is full of foreclosure news, and with good reason – foreclosures are up almost 35 per cent this year, with twice as many properties in some areas. With this expanded inventory buyers have more properties to choose from.
When a homeowner defaults on their loan, the house will go into foreclosure. Many investors see this as a chance to get a great deal on a property, but don’t let your dreams run away with you – the most attractive houses often sell for a price close to their market value. There are deals to be had (you may be able to shave at least 10 to 20 percent off the market value), but you have to follow certain steps in order to secure them. A foreclosure financing specialist can help you through the process.
As an investor or a potential homeowner you can buy a home in any of the three stages of foreclosure, though they all carry different risks and savings potential. The best buys may be found at preforeclosure, after the property has been listed in public record but before it goes to auction. This is a private deal done with the homeowner, who is obviously in a stressful situation, and in some cases isn’t even aware that the property has been publicly listed. If you are willing to approach the buyer you may be able to get the home for less than market value (but more than the amount owed on the bank loan). This isn’t an easy process and is often more than the average home buyer is comfortable with.
The next stage is the auction, which is probably the riskiest stage and has a major financing obstacle: auctions require you pay your deposit in cash or by cashier’s check, and often the balance is due within days, even hours, of the purchase. Add this to the idea of buying a property with no inspection, often sight unseen, without being eligible for title insurance. You could be on the line for unpaid bills, liens, and pricey repairs. Furthermore, if the defaulting owners refuse to move out you’ll may have to oversee their eviction. Still there are bargains to be found here. If you can come up with the cash, be sure to do your homework prior to the sale – research the house in advance and know your state laws to minimize surprises.
When an auction is unsuccessful, the property reverts back to the financial institution that holds the mortgage. This is the final stage of foreclosure: the property is now REO, real estate owned. Buying at this stage means you can have an inspection done and qualify for title insurance. The bank has most likely dealt with any evictions and tax liens, and may have even done some repairs. This is a much safer deal, buy you might not get the savings you were hoping for. Small banks may offer better opportunities here – these houses are non-performing assets on the bank’s books. Remember, the bank has to pay for the upkeep of the property (or let it go and risk losing more money). So while they not be moved to action while holding just a couple of properties, as inventory piles up they should be more open to selling rather than holding.
Remember, you don’t want to become an example of history repeating itself: make sure you can afford your payments. Resist the urge to buy more than you can comfortably afford. Making a back up plan (and a rainy day fund) for unforeseen circumstances (such as an illness, injury, etc) will allow you some breathing room in a crunch. If you do find yourself in financial trouble, talk to a HUD approved housing counselor for free advice before you’re in too deep.
BRAIN
The media is full of foreclosure news, and with good reason – foreclosures are up almost 35 per cent this year, with twice as many properties in some areas. With this expanded inventory buyers have more properties to choose from.
When a homeowner defaults on their loan, the house will go into foreclosure. Many investors see this as a chance to get a great deal on a property, but don’t let your dreams run away with you – the most attractive houses often sell for a price close to their market value. There are deals to be had (you may be able to shave at least 10 to 20 percent off the market value), but you have to follow certain steps in order to secure them. A foreclosure financing specialist can help you through the process.
As an investor or a potential homeowner you can buy a home in any of the three stages of foreclosure, though they all carry different risks and savings potential. The best buys may be found at preforeclosure, after the property has been listed in public record but before it goes to auction. This is a private deal done with the homeowner, who is obviously in a stressful situation, and in some cases isn’t even aware that the property has been publicly listed. If you are willing to approach the buyer you may be able to get the home for less than market value (but more than the amount owed on the bank loan). This isn’t an easy process and is often more than the average home buyer is comfortable with.
The next stage is the auction, which is probably the riskiest stage and has a major financing obstacle: auctions require you pay your deposit in cash or by cashier’s check, and often the balance is due within days, even hours, of the purchase. Add this to the idea of buying a property with no inspection, often sight unseen, without being eligible for title insurance. You could be on the line for unpaid bills, liens, and pricey repairs. Furthermore, if the defaulting owners refuse to move out you’ll may have to oversee their eviction. Still there are bargains to be found here. If you can come up with the cash, be sure to do your homework prior to the sale – research the house in advance and know your state laws to minimize surprises.
When an auction is unsuccessful, the property reverts back to the financial institution that holds the mortgage. This is the final stage of foreclosure: the property is now REO, real estate owned. Buying at this stage means you can have an inspection done and qualify for title insurance. The bank has most likely dealt with any evictions and tax liens, and may have even done some repairs. This is a much safer deal, buy you might not get the savings you were hoping for. Small banks may offer better opportunities here – these houses are non-performing assets on the bank’s books. Remember, the bank has to pay for the upkeep of the property (or let it go and risk losing more money). So while they not be moved to action while holding just a couple of properties, as inventory piles up they should be more open to selling rather than holding.
Remember, you don’t want to become an example of history repeating itself: make sure you can afford your payments. Resist the urge to buy more than you can comfortably afford. Making a back up plan (and a rainy day fund) for unforeseen circumstances (such as an illness, injury, etc) will allow you some breathing room in a crunch. If you do find yourself in financial trouble, talk to a HUD approved housing counselor for free advice before you’re in too deep.
BRAIN
Nov
5
Homes for Sale Alessandro Heights FAQ
Filed Under Real Estate | Leave a Comment
Howard Henderson asked:
Homes For Sale Alessandro Heights
We all want to live the American Dream and a piece of that dream is to have your own home. However, not everyone is capable of buying one but you should consider in acquiring a house now. Looking at the Homes for sale Alessandro Heights will motivate your self in acquiring your own home. Even if our economy is in difficulty right now, experts say this is the best time to invest in a house. So either you are a renter or just want to buy your own house then this could be your most feasible chance to seize one.
Why is it ideal to buy a house when in fact we are experiencing recession? There are many houses for sale yet there are fewer buyers. It will take some time before this houses will be purchased. For that reason, sellers have no choice but to cut down their prices. Recession in the U.S. made house prices to drop by 15% to 30% depending on which part of the country. This opening is your best chance to buy a house at great deals.
Homes being sold at Alessandro Heights are considerably low compared to the past several years. Comparing a house acquired few years back and a house acquired few days back, there’s no contest that the newer house is the better bargain. In addition to that mortgage will be easier to pay because interest rates are at its lowest peak.
Owning a house is a priceless milestone that most of us strive. If you have the means to buy house then visit Alessandro Heights and find that dream house of yours. You will find different kinds of homes here to match your likings. Aside from that, Public Utilities are world class like high quality water and reliable electric services being served at low rates. And the City Hall aids its locals to develop their community.
With these in mind the only next thing to do is buy a house. Just hold that thought. First, look at your financial situation. Will you still enjoy those happy holidays when you start paying for your mortgage? Secondly, is the company you are working for been hit hard by recession? You will still have to pay your house even if you lose your job. One more thing is you need to know how willing you are to manage your house because you will maintain and look after it unlike renters who don’t own the place. Give all of these a plenty of thinking and if everything is in place then there will be no reason why you shouldn’t consider buying the dream home you have always wanted particularly at Alessandro heights.
Experience superior living like no other. Homes for Sale at Alessandro Heights introduces you to several topnotch options.Clearly, Riverside is the magnanimous choice for a safe and clean community. It is where you belong.
VICTOR
Homes For Sale Alessandro Heights
We all want to live the American Dream and a piece of that dream is to have your own home. However, not everyone is capable of buying one but you should consider in acquiring a house now. Looking at the Homes for sale Alessandro Heights will motivate your self in acquiring your own home. Even if our economy is in difficulty right now, experts say this is the best time to invest in a house. So either you are a renter or just want to buy your own house then this could be your most feasible chance to seize one.
Why is it ideal to buy a house when in fact we are experiencing recession? There are many houses for sale yet there are fewer buyers. It will take some time before this houses will be purchased. For that reason, sellers have no choice but to cut down their prices. Recession in the U.S. made house prices to drop by 15% to 30% depending on which part of the country. This opening is your best chance to buy a house at great deals.
Homes being sold at Alessandro Heights are considerably low compared to the past several years. Comparing a house acquired few years back and a house acquired few days back, there’s no contest that the newer house is the better bargain. In addition to that mortgage will be easier to pay because interest rates are at its lowest peak.
Owning a house is a priceless milestone that most of us strive. If you have the means to buy house then visit Alessandro Heights and find that dream house of yours. You will find different kinds of homes here to match your likings. Aside from that, Public Utilities are world class like high quality water and reliable electric services being served at low rates. And the City Hall aids its locals to develop their community.
With these in mind the only next thing to do is buy a house. Just hold that thought. First, look at your financial situation. Will you still enjoy those happy holidays when you start paying for your mortgage? Secondly, is the company you are working for been hit hard by recession? You will still have to pay your house even if you lose your job. One more thing is you need to know how willing you are to manage your house because you will maintain and look after it unlike renters who don’t own the place. Give all of these a plenty of thinking and if everything is in place then there will be no reason why you shouldn’t consider buying the dream home you have always wanted particularly at Alessandro heights.
Experience superior living like no other. Homes for Sale at Alessandro Heights introduces you to several topnotch options.Clearly, Riverside is the magnanimous choice for a safe and clean community. It is where you belong.
VICTOR
Nov
2
What percentage of your income goes towards your mortgage payments?
Filed Under Renting & Real Estate | 3 Comments
Ash asked:
If you don’t mind my asking, I’m trying to figure out what a reasonable percent of my income is to be going towards a mortgage payment. My partner and I make around $6500 gross monthly, and I’m wondering what percent of that we could reasonably spend on a mortgage without getting in over our heads. We have no other debt, but have normal bills like utilities and car insurance. If you don’t mind could you please give me an idea of what you earn and what you put towards your mortgage? Or what percent of your gross income goes towards your mortgage payments?
If you don’t mind my asking, I’m trying to figure out what a reasonable percent of my income is to be going towards a mortgage payment. My partner and I make around $6500 gross monthly, and I’m wondering what percent of that we could reasonably spend on a mortgage without getting in over our heads. We have no other debt, but have normal bills like utilities and car insurance. If you don’t mind could you please give me an idea of what you earn and what you put towards your mortgage? Or what percent of your gross income goes towards your mortgage payments?
Thanks so much!
MARSHALL