Cash Home Buying

Cash Home Buying Trumps All Cash home buying does not refer to buying a home with a suitcase full of Benjamins spread out on a conference table in some hush hush location after dark.  Most  home buying offers are made with a contingency clause requiring successful approval of mortgage financing.  Typically there is a 10

Zombie Foreclosures Haunt Defaulted Homeowners

Zombie Foreclosures are Bank Walkaways The Consumer Financial Protection Bureau has a lot on its plate.  High on its list of priorities are Zombie Foreclosures.  Zombie Foreclosures is a term used for banks that start the foreclosure process on a real estate parcel and then don’t complete it.  This practice is a particularly prevalent occurrence

Mortgage Lenders Detect Undisclosed Debt

Mortgage Lenders Detect Undisclosed Debt Incurred during the “Quiet Period” How do mortgage lenders detect undisclosed debt assumed during what is called the “Quiet Period?”  For those new to the mortgage lending game the phrase “quiet period” refers to the time frame elapsing between the original pulling of the credit reports and the actual closing. 

Reverse Mortgage Basics Review

Reverse Mortgage Basics Review UPDATE:  05/2016     There is a general consensus among analysts that Reverse mortgages are safer than ever.  This is attributed to tougher lending standards than those that once prevailed combined with new limits and stricter federal requirements. UPDATE 10/02/2013:  Surviving Spouse protected.  A surviving spouse not listed as a borrower on

Mortgage Strategic Defaulters Banking Dilemma

Mortgage Strategic Defaulters Mortgage strategic defaulters are a phenomenon born of the housing crisis.  Bankers define mortgage strategic defaulters as homeowners who have made a conscious choice to let their mortgage go into arrears in favor of paying other bills.  These people are not necessarily people who have given up on the financial system or

Mortgage Application Personal Questions Shocking

Uniform Residential Loan Application Form What is your Ethnicity and Race?  What?  A Mortgage lender can ask that?  Under the Uniform Residential Loan Application Form  rules not only are bankers permitted to ask that question…they are required to ask that question.  You can choose to check off a box saying “I do not wish to

Home Office Tax Deduction Simplified

Home Office Tax Deduction Simplified 3.4 million taxpayers claimed a home office tax deduction in 2010.  In this last year for which complete figures are available 60 percent of those who qualified for a home office tax deduction did not take it. 3.4 million taxpayers did take it. This deduction is widely known as a

Homeowner Hardship Help Letter

Homeowner Hardship Help Letter Homeowner’s who are feeling that cold uneasy feeling of trouble ahead in making their mortgage need to put on their big boy or big girl pants and get realistic early in the game.  Feeling sorry for yourself may be a natural first reaction.  Planning and taking action will do much more

Mortgage Lending Future Landscape

  Mortgage Lending Future Landscape The mortgage lending future landscape has been outlined in a new report by the Consumer Financial Protection Bureau. In an attempt to balance lender’s approach to mortgage lending the new rules aim at a policy that is neither too easy nor too hard.  In the words of director Richard Cordray

Home Seller’s Federal Recapture Tax

  Home Seller’s Federal Recapture Tax The home seller’s federal recapture tax is a little known tax that can be assessed against homeowners when they sell who receive a loan financed with the sale of tax exempt mortgage revenue bonds or received a mortgage credit certificate.  Most of these mortgage holders come from First Step

Discounted Homes Market Shrinking Rapidly

  Discounted Homes Market Shrinking Rapidly Discounted homes market shrinking rapidly according to the highly respected analysts at Real Estate’s premiere web site Zillow.  Zillow’s research shows that the repossessed and bargain homes that have been fueling the Real Estate market comeback are disappearing fast. Competition, low interest rates and free market forces may soon

Housing Boom Coming Say Optimists

Conjoined twin sisters from Nuremberg Chronicle (1493). (Photo credit: Wikipedia) Housing Boom Coming Say Optimists Here we go again as it becomes clear that the housing crisis has leveled off, at least in most areas.  Optimists who have been awful quiet lately are now emerging with a new found vigor and predicting banner days ahead. 

Bankruptcy and Mortgages

Bankruptcy and Mortgages Bankruptcy and mortgages are not necessarily forever mutually exclusive. A personal bankruptcy filing will reduce your FICO score by 130-240 points depending on where your score was to start.  A foreclosure will reduce your score by approximately half as much.  Notice of the filing will stay on your credit reports for 7

FAQ: Do I owe taxes if I sell my home for a profit?

Home Sale and Taxes Home Sale and Taxes don’t go hand in hand for the vast majority of people. If you are one of the fortunate few who have been able to realize a profit from the sale of your home the chances are very good that you owe nothing in taxes to the Federal

Home Buying or Home Renting?

  Home Buying or Home Renting? With rents climbing and home prices continuing to show strong signs of stabilizing, the factors to be weighed when choosing between buying or renting are shifting in favor of buying for many people. More people are taking the plunge, buoyed by a disturbing trend towards sharply increasing rental prices. 

Underwater Home Owner Settlement Update

Underwater Home Owner settlement update   The massive $26 Billion dollar settlement between the government and certain large banks regarding abusive practices, in particular the use of suspect documents (robo-signing), covers the following banks: Bank of America Ally Financial Inc/GMAC Mortgage Citigroup JP Morgan Chase & Co. Wells Fargo & Co. The settlement is complex

“OK to Flip Houses!”: FHA!

It is “OK to Flip Houses”: FHA Yes, dear reader, you read that right.  In a rare triumph of common sense and reason over knee jerk politics the FHA has given its approval to buying homes cheap in hopes of a quick resale…usually within 90 days. It is now “OK to flip houses!” The waiver

Prepare First for that Rock Bottom Mortgage Rate

Prepare First for that Rock Bottom Mortgage Rate When you’re ready to take advantage of today’s rock bottom mortgage rates keep these pointers in mind: Failing to Prepare is Preparing to Fail Have proof of at least 2 years income in the form of pay stubs and W2s.  Have more than 2 years worth of

Interest Rate Reporting is Deceptive

Interest Rate Reporting is Deceptive I don’t know how or why this custom began but there is an assumption built into the interest rate quotes reported in the media that the buyer will pay pre-paid interest or “points” in the amount of 0.8%%. Deceptive by Design This system is truly ridiculous. If you applied the

FAQ: Is the mortgage tax deduction threatened?

FAQ: Is the Mortgage Tax Deduction Threatened? FAQ:  Is the Mortgage tax deduction threatened? Changes in the law allowing itemizers to deduct interest on mortgage payments up to $1 million do not appear to be imminent.  The housing market is showing encouraging signs of recovery. Policymakers are being urged to adopt the physician’s motto of