Monthly Archives: February 2012
Welcome to Moore TV, I’m Wes Moore. Today I am going to tell about a special non-profit organization that exists solely to help post 9/11 Military families in mortgage loans Albuquerque. It’s called USA CARES.ORG.
They help military families bear the burden of service through financial aid in advocacy support through grants to deserving military families. USA CARES.ORG’s mission is to help families with basic needs during financial crisis and to assist combat injured veterans and their families prevent military home foreclosures and evictions.
I was fortunate enough a couple of months ago to take a course from USA CARES.ORG in Las Vegas and they have now certified me as a certified military housing specialist in Mortgage Loans Albuquerque which means I am now a specialist in VA home financing.
This course written by a former loan officer, real estate broker and a career army wife was funded by a grant from Fannie Mae and launched in 2010. It reinforced my knowledge of PCS, LES, pay grade rank, d fast, the silver relief act etc. Now if you know a veteran or an active duly personnel member for that matter, I believe it’s your duty to refer them to a certified military housing specialist and in New Mexico, that’s me Wes Moore for Mortgage Loans Albuquerque and VA Loans. I may be reached best via my website @ moore4yourmoney.com or my cell phone directly any time @ 505-249-4506.
If you’re watching this in another state, just logon to usacares.org, to watch the list that’s there on that site of all the certified military housing specialists to get your VA Loans without any hassle.
Remember this, a veteran whether in active duty or retired, whether they are in National Guard or in Reserve, is someone who in some part of his/her life wrote a blank check payable to United States of America for amount up to and including their life. All of you folks out there in the street remember that and veterans please remember that USACares.org cares for you for your mortgage needs in Mortgage Loans Albuquerque.
Until next time, I’m Wes Moore and don’t forget to leave me a brief comment on this site or subscribe to this site for more information on Mortgage Loans Albuquerque.
When it comes to real estate marketing, it’s better to sell the sizzle rather than the stake itself. Here’s a famous case where the ex mother-in-law of Charlie Sheen has sued his Realtor for denying her referral fee on a purchase of a 7 Million Dollar mansion. But based on the preliminary findings, I really doubt whether she has a case there even though the money at stake is roughly $50,000.
If a lender engages in a similar behavior, both lenders at either end of the deal both the referral and referee would stand to lose their licenses due to RESPA violations. If this loan was going towards purchasing a commercial property, that would be fine but towards buying a mansion that would be a violation of RESPA. According to RESPA, the lender would be charged with taking advantage of Charlie Sheen. This is interesting as the same case is good for one scenario and a blatant violation for another scenario.
Mortgage Operational Safety Assessment (MOSA): It’s a best tool out there to measure loan repurchase risk for a lender, community bank or to whosoever is interested in mortgage lending. Right now AllRegs is giving away an introductory version of the “The MOSA Lite” first course assessment for free.
The darling little couple Fannie Mae and Freddie Mac are going to increase their incentives to push through the short sale transactions quickly in Bank owned Homes Albuquerque.
They are going to offer $1500 to servicers, $2000 to investors and up to $6000 to subordinate lien holders to push through short sale transactions rapidly. They think by offering more incentives to the folks in the transactions, they can quickly solve the problem in the housing industry and more so in the Bank owned Homes Albuquerque region.
However, the increase in incentives does not change the underlying problem in the real estate industry and more so in Bank owned Homes Albuquerque market since the investors, servicers and the subordinate lien holders already know they are whipped sufficiently and they want to stop this non-sense further. The way to end the suffering is not by offering more incentives which is not nearly enough. This problem has more to do with the systems rather than the incentives.
Currently short sales are back logged in the system with the servicers and investors not being on the same page. They are throwing a second lien and the proverbial kindergarten telephone game starts. The main problem here is the short sales department is not communicating well enough to the foreclosure department and nobody is sure at what price the short sale department is satisfied. I have been told by many real estate agents in recent times that houses get foreclosed at the very end of a time consuming short sale process. These instances are happening everywhere in the nation with no end to the stalemate in sight. Short sale processes are progressing at a slow pace with the above mentioned kindergarten game in operation and the foreclosure department is blissfully unaware of the happenings in the short sale department. The foreclosure departments in every bank or lender are pursuing their own path independently without forging any understanding with the short sale department. This process is hampering the deals with the Bank owned Homes Albuquerque market markedly.
Unfortunately if the house gets foreclosed by the lender, all the time consuming efforts put in for the short sale proceedings will go down the drain even when everything is ready and the deal is ready to close. This is the problem that is causing the greatest problem to the real estate industry and not the money. Unless the communication between the short sales department and the foreclosure department improves dramatically, the heartburns continue for the people and the real estate industry. I am a witness to several deals falling flat in Bank owned Homes Albuquerque market.
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You might have seen news that Freddie Mac was accused of betting against homeowners whose mortgages and other bank owned homes Albuquerque were backed by them. This news is neither totally true nor untrue in the true sense. This news can be interpreted in 2 ways and I will try to enunciate the total scenario behind this allegation.
There are 2 ways in which you can invest in mortgage backed bonds or mortgages held by bank owned homes Albuquerque. One way is to invest only on the principal portion of the loan called the Principal Investment Bonds which is widely regarded as a safe investment. The second way is to invest in only the interest part of the mortgage which is considered as a risky investment but will provide higher returns to the investors which is called Inverse Floaters or Investor Floater bonds. This will be the case with bank owned homes Albuquerque as well.
The reason why Inverse Floater bonds are considered risky is when we consider a scenario where the mortgage loan is paid off in full by taking advantage of the low interest rates available now for mortgage refinance. In this case the conservative principal investment bonds receive all their monies back whereas the Investor Floater bonds backed by Freddie Mac will not receive any thing because the loan is repaid before maturity and there will be no interest payment coming in from those mortgage loans.
As a matter of fact, Freddie Mac bought roughly $3.4 Billion worth Inverse Floater Bonds which benefits the bond owners when the mortgage loans are kept at higher rates without any refinance. But the problem is this is not the charter of Freddie Mac. They have been entrusted with the task of providing home loans to homeowners through affordability.
As we see the President, the members of the Congress and even the Federal Reserve have come out openly and said that we need to have a ‘National Refinance Program” right now to focus on disposable income of American citizens which enables them to spend more money that can be put right back into the economy. This provides more jobs, more money in the hands of the people etc.
This begs the question we have to ask our self whether the Refinance programs floated by Freddie Mac and Fannie Mae are hurting any chance of recovery quickly because refinances are pretty good to provide stimulus to the economy but bad for Freddie Mac as it is bad for their Inverse Floater Bonds. This is the case with bank owned homes Albuquerque situation as well.
My point is Freddie Mac should never invest in those Inverse Floaters bonds as there is a conflict of interest with their original charter and this situation needs to be looked into quite urgently. This is like Philips Morris selling cigarettes and opening a lung cancer center.
We also see in the newspapers that President Obama is also calling for a National Refinance Program. He suggests this should be done through the FHA. Considering the dwindling capital reserves of FHA and their delinquency rate of 9.6% with increasing foreclosures and short sales, both of which will continue to tax the FHA and FHA may not be in a best position to carry out the National Refinance Program.
It is also suggested to levy a surcharge or tax the banks to cover up the capital shortfall of the FHA and implement the National Refinance Program. But this has been received by the banks very, very poorly. The point here is more levies or tax on the banks will result in “More Cost to the Consumer” as the banks will pass on the levy to the ultimate consumers to protect their profits.
This is pandemonium all round and don’t hold your breath by any means. This is a piece of news which will certainly interest you. If you want live like the President of America here’s the chance. President Gerald Ford’s Rancho Mirage home is up for sale at $1.699 Millions. This 6 bedroom, 4.5 bathrooms home boasts of many facilities and you can also have the original furniture at an undisclosed price. This one would be one hell of a deal for the investor, the listing agent and the realtors.
Coming back to the Freddie Mac issue, there is a clear conflict of interest between its charter and the way it is conducting business in the market. Unless this anomaly is removed, the chance of housing recovery happening soon looks a distant possibility.
Do us a favor and subscribe to this site for free. You can always forward and share this one with any one you think might use it. See you again soon for more information on Bank Owned Homes Albuquerque, Wes Moore.
The latest post coming out from the banking major Wells Fargo is they are unconcerned with rising FHA mortgage loans Albuquerque delinquencies in their portfolio. The fact of the matter is FHA delinquencies went up from 8.17% to 9.3% which means somewhere in the ballpark roughly about 690,000 FHA loans are horribly delinquent and are on the verge of foreclosures.
The idea is to get FHA Mortgage Loans Albuquerque portfolios and everybody else’s portfolios into the new HARP program which is Home Affordability Modification Program before they get into the point of foreclosure which is to target 4 million homes which refinance every year. Even with the new guidelines, lenders would get up to 900,000 homes for refinance. As we see and hear from seasoned observers of the real estate industry, HAMP modifications are also seeing rising delinquencies and foreclosures in recent times. So HAMP is not able to stem the tide and FHA is beginning to feel the bite.
Now coming back to Wells Fargo, in a conference call a few days back, CFO Tim Sloan said that the rising FHA foreclosures is primarily due to growth in FHA/VA portfolio over the past two years and subsequent seasoning of these loans. Actually this piece of information is very interesting and the rise in foreclosures due to these FHA loans given in the past two years is really surprising and astonishing. This means that homeowners who bought after the meltdown on a clear book of business are also under pressure to repay even with more watchful and considered underwriting of FHA mortgage loans. This is a worrying signal for the FHA mortgage industry and the real estate market as a whole.
Those homeowners who bought homes in the past two years definitely would have a cheaper monthly payment outgo in mortgage payments than a fair market rent payable on a comparable home. So for those homeowners letting a home go into a delinquency and subsequent foreclosure doesn’t make any sense and moving or relocating means using more personal income on rental housing payments.
The reason for this is pretty complicated. Firstly walking away from a signed promissory note of a mortgage obligation now seems to be socially acceptable and we are seeing it happen all the time and it is constantly being reinforced by our elected officials. Just a couple of days ago we saw the new Attorney General Eric Schneiderman offering 1 Million Dollars to defend those homes currently in foreclosure that was built on the presumption that homeowners were somehow tricked into buying homes and promissory notes that homeowners have signed were somehow to their detriment and not to be considered as binding at all. It means that all promissory notes of mortgage loans are being signed by Robo signers for Robo promissory notes for foreclosures by people who are not making any payments for mortgage loans.
In other words, we can say that we have created a National climate where not making a payment is a reasonable option, even when you are in a position to make a payment. It begs the question that where on your promissory note does it say that until I feel I do not want to do the payment any more. That’s the message coming out from the actions of our elected representatives.
The first time FHA Mortgage Loans Albuquerque homebuyers who feel the weight of the obligation from day one of buying a home than at any point of their life feel that the equity in the home has gone down the drain and feels reasonable to let the home go into a foreclosure as the binding clause in the FHA mortgage loan papers has been compromised in today’s market.
The statement of Wells Fargo’s officials that they are not concerned about rising FHA Mortgage Loans Albuquerque delinquencies may be correct a few years age due to bad loans, balloon payments, adjustments, rent is cheaper than owing a home, free falling equities in homes etc; but at this point of time it’s strange and absurd. It is more of a systemic problem in the real estate industry which is not at all considered in this whole debacle. The promissory note which 20 years ago was binding on the mortgage homeowners is completely compromised now. Until every one feels that the promissory notes on which they have signed and taken a mortgage loan is binding, the end of the housing mess will remain a mirage towards which we seem to walk all the way but never seem to get to it.
The mindset in the mortgage industry is we don’t refinance any loans right now, but wait for you to default on your loans to modify the loans. If you can’t modify the loan, you can simply walk out of the home. The rising delinquencies in the FHA Mortgage Loans Albuquerque must be a cause for concern and until our approach and attitude to the promissory note is changed, we will never solve the housing crisis.
Personal accountability has gone and we have to ask where it has gone right now. We have identified the problem in the housing crisis and its worse effects. I think we have to start with us as originators and real estate sales people because we’re dealing with these clients. We have to convey to first time homeowners and all those venturing out to invest in the real estate market that personal accountability should be brought into play by every one and fulfill all the obligations in the promissory note like paying off the mortgage loans in full without walking away from the homes after 2 or 3 years in the home without caring for the disastrous consequences. We should make it a point that our word in the promissory note is binding, until and unless we fix this personal accountability, we will see the same mess happening again and again in the housing industry. Each and everyone in the housing industry a buyer, lender, seller or a sales agent must take it to their heart and take forward that personal accountability factor while moving this week.
Do us a favor and subscribe to this site for free. You can always forward and share this one with any one you think might use it. See you again soon for more FHA Mortgage Loans Albuquerque, yours Wes Moore.