Sunday, October 14, 2007
Monday, May 14, 2007
Inherit: The American Dream
Inherit: The American Dream
The American Dream
By Robert Summers
Indianapolis, Indiana between: 1950-1959.
180 homeowners built 180 homes using self help or sweat equity. "Sweat Equity" is a term used to describe the contribution made to a project by people who contribute their time and effort. It can be contrasted with financial equity which is the money contributed towards the project. This is an African-American community where the men of the families were all WWII Veterans; whom all had to work full time jobs 40 hrs per week, have good credit, plus put in a minimum of 20 hours per week building their own home and assisting their neighbor the women was not allowed to contribute financial or labor wise. I stumbled up on this fact when attending a community meeting with my wife whose own parents built in this community which sits on the Historic Register. Now that it is 2007 most of these homeowners' are in there mid 80's some in there 90's, some have passed. What a wonderful heritage to leave your heirs the American Dream an inheritance that will last the ages. Not so in some communities and this is a fact currently in this community 30% of the homes have been lost to lack of knowledge, that's 54 homes at a whopping $4,050,000.00 in lost equity. Majority of these homes were all free and clear. Lost, for unpaid taxes; not wanted by the children who had already bought homes and did not want the responsibility of another home. Some were foreclosed on others sold to investors for pennies on the dollar. Diminishing, the value of the other homes in the community, and losing the inheritance that could have leveraged the playing field when it came to having a better way of life for themselves and their children.
What to do when you have inherited a home?
Mortgagism Rule No 1.
Try to get the title transferred before deaf of the owners so that the taxes can remain the same. If there is a mortgage left make sure that you have adequate insurance to cover it in case of death
Mortgagism Rule No 2.
If there is 2 or more individuals involved in the heir ship of the property and one wants out have the property appraised to find out its fair market value.
Mortgagism Rule No 3.
Inherited properties can be refinanced to pay off existing mortgages, heirs, liens or past creditors as long as the individual who is refinancing does not receive any cash.
Mortgagism Rule No 4.
Inherited property requires no seasoning on selling or refinancing unlike property flips whereas a person or entity may acquire a property for a quick dollar artificially inflating the value. Inherited property was not acquired by the sell of the property but by a loved one who left the home so that the heir may have a better way of life so the property can be appraised at the full market value and sold at that value.
Mortgagism Rule No 5.
Inherited properties fall outside of the scope of the intended scope established by HUD in 2003 and is not considered property flipping and can save a lot of heartache and help put the heirs on the road to financial freedom.
Robert B. Summers
Southwest Funding, LP Branch 777
41 E. 37th St
Indianapolis, In 46205 317-925-1877 Office 317-925-1871 Fax
This work is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
The American Dream
By Robert Summers
Indianapolis, Indiana between: 1950-1959.
180 homeowners built 180 homes using self help or sweat equity. "Sweat Equity" is a term used to describe the contribution made to a project by people who contribute their time and effort. It can be contrasted with financial equity which is the money contributed towards the project. This is an African-American community where the men of the families were all WWII Veterans; whom all had to work full time jobs 40 hrs per week, have good credit, plus put in a minimum of 20 hours per week building their own home and assisting their neighbor the women was not allowed to contribute financial or labor wise. I stumbled up on this fact when attending a community meeting with my wife whose own parents built in this community which sits on the Historic Register. Now that it is 2007 most of these homeowners' are in there mid 80's some in there 90's, some have passed. What a wonderful heritage to leave your heirs the American Dream an inheritance that will last the ages. Not so in some communities and this is a fact currently in this community 30% of the homes have been lost to lack of knowledge, that's 54 homes at a whopping $4,050,000.00 in lost equity. Majority of these homes were all free and clear. Lost, for unpaid taxes; not wanted by the children who had already bought homes and did not want the responsibility of another home. Some were foreclosed on others sold to investors for pennies on the dollar. Diminishing, the value of the other homes in the community, and losing the inheritance that could have leveraged the playing field when it came to having a better way of life for themselves and their children.
What to do when you have inherited a home?
Mortgagism Rule No 1.
Try to get the title transferred before deaf of the owners so that the taxes can remain the same. If there is a mortgage left make sure that you have adequate insurance to cover it in case of death
Mortgagism Rule No 2.
If there is 2 or more individuals involved in the heir ship of the property and one wants out have the property appraised to find out its fair market value.
Mortgagism Rule No 3.
Inherited properties can be refinanced to pay off existing mortgages, heirs, liens or past creditors as long as the individual who is refinancing does not receive any cash.
Mortgagism Rule No 4.
Inherited property requires no seasoning on selling or refinancing unlike property flips whereas a person or entity may acquire a property for a quick dollar artificially inflating the value. Inherited property was not acquired by the sell of the property but by a loved one who left the home so that the heir may have a better way of life so the property can be appraised at the full market value and sold at that value.
Mortgagism Rule No 5.
Inherited properties fall outside of the scope of the intended scope established by HUD in 2003 and is not considered property flipping and can save a lot of heartache and help put the heirs on the road to financial freedom.
Robert B. Summers
Southwest Funding, LP Branch 777
41 E. 37th St
Indianapolis, In 46205 317-925-1877 Office 317-925-1871 Fax
This work is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Monday, April 16, 2007
Tuesday, April 10, 2007
Whats with the FHA?
-----Original Message-----From: Anonymous To: Mortgagism Sent: Tue, 10 Apr 2007 9:38 AMSubject: RE:
#I , was just reading your blog.I have a question ,your right with the fallout of all the hard to do lenders whats with the FHA ..give me an example of someone i could send you to get pre qualed FHA.The bulk of our leads as you know where low credit scores or hard to get done loans .With the depletion of all of the programs our business has come to a screeching halt .I am more then grateful that I get leads everyday but what good is it if they all have bad credit.I guess in a nut shell Im really just asking for you to exsplain to me what kind of person qualifies for FHA and who should I be sending your way?
Answer: Anonymous
FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
For refinances credit report should have less than two thirty day lates in last two years.
Can be in Chapter 13 and 2 years out of Chapter 7 Bankruptcy
Your customer can have no credit score at all alternative credit can be used, utility bills, buy here pay here, rental or lease accounts, etc.
Most collections ignored; excluding judgements and tax liens
Gift funds for down payment and closing costs are allowed
Up-front Mortgage Insurance Premium can be financed
Less cash out of pocket required
The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
Non-occupant co-borrowers are allowed for qualifying purposes
"Kiddie Condos" allowed - high loan-to-value loans for the purchase of condominiums meant to be used by children at college. Assumable, with qualification of buyer
Please feel free to ask any other questions you may have!
#I , was just reading your blog.I have a question ,your right with the fallout of all the hard to do lenders whats with the FHA ..give me an example of someone i could send you to get pre qualed FHA.The bulk of our leads as you know where low credit scores or hard to get done loans .With the depletion of all of the programs our business has come to a screeching halt .I am more then grateful that I get leads everyday but what good is it if they all have bad credit.I guess in a nut shell Im really just asking for you to exsplain to me what kind of person qualifies for FHA and who should I be sending your way?
Answer: Anonymous
FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
For refinances credit report should have less than two thirty day lates in last two years.
Can be in Chapter 13 and 2 years out of Chapter 7 Bankruptcy
Your customer can have no credit score at all alternative credit can be used, utility bills, buy here pay here, rental or lease accounts, etc.
Most collections ignored; excluding judgements and tax liens
Gift funds for down payment and closing costs are allowed
Up-front Mortgage Insurance Premium can be financed
Less cash out of pocket required
The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
Non-occupant co-borrowers are allowed for qualifying purposes
"Kiddie Condos" allowed - high loan-to-value loans for the purchase of condominiums meant to be used by children at college. Assumable, with qualification of buyer
Please feel free to ask any other questions you may have!
Monday, April 9, 2007
Road Map to Develop your warm market
Over the years, I have read hundreds of training manuals of both real estate agents and mortgage loan officers. They all have a few pages on the warm market and they all say basically the same thing: make a list of everyone you know and everyone you come in contact with. They even give you a reference to start with: family,friends,neighbors,parents of childrens friends, and on and on. New agents and loan officers alike have a huge turn-over rate. There's a wide-open front door. There's also a wide-open back door. In other words, the turnover rate for new agents and loan officers is high. "I've been told the drop-out rate in the first year is close to 80 percent. "You have to be very committed and ready to work full-time." Lets see what happens if you were to follow the instructions of the manuals. The authors of the manuals tell new agents and loan officers that it is not unusual to have a hundred or more names on the lists. To make a hundred phone calls and actually speak to a person could take weeks. And if everyone you spoke to became buyers/ sellers or loans there would be no time to show or originate. the concept is great, as it is a tremendous fast-start program. The problem lies in how to effectively use your warm market list.If mined properly it is a perpetual goldmine of potential customers, referrals, new recruits and high commission checks, if(!) properly mined. If you rush through the list calling everyone, you will end up with chaos. The secret lies in your view of the list and what it represents. Lets face it, the shelf life of new agents and loan officers is short. During the working cycle, new agents and loan officers starts with the eagerness of an 11 year old on a sugar rush. Pretty soon the sugar burns off. Then the agent and the loan officer hit a dead spot; with no prospects, loses faith and becomes silent never to be heard from again.
The reason for this failure is that we "VETS" rushed the new guy or gal. We told them to develop their warm market. We were so eager for them to succeed we caused them to fail.
To save your new Agent and your new LO follow this road map.
- The warm market will always be a warm market: family and friends are not going anywhere so there is no rush to call everyone on your warm list.
- Selective calling and follow up is the key.
- Figure how many appointments you can possibly have in a week, not how many you would like to hold. If your time restraints will only allow you to have 3 appointments then don`t schedule 6
- Expect to spend 4 hours calling leads the rule of thumb is a 10% close ratio so if you spent 4 hours calling 60 warm leads expect to sell or close 6.
By selective calling time management and follow-up the new LO or Agent can extend there work life. Teaching your agents and loan officers how to prospect they will have a greater chance for success and not look for greener pastures elsewhere.
Spend the rest of your time sending out mailers to the ones you did not contact and then follow-up.
Saturday, April 7, 2007
FHA to the Rescue!!!!
FHA to the Rescue!
Don’t let the subprime market bring you down. FHA is here to help. You must have a lender that knows how to do FHA loans to survive in this new and changing market. Southwest Funding is ranked as the 6th largest lender!
Why do I need a FHA lender?
$$$$$$$$$$
Huge Flexibility
Great Rates
96.5% loan to value
LOW MI
Non-Occupant qualifying co-borrowers allowed
Manufactured Homes
Manual Underwriting
No Minimum Credit Score
Can be in Chapter 13 and 2 year out of Chapter 7 Bankruptcy
Don’t let the subprime market bring you down. FHA is here to help. You must have a lender that knows how to do FHA loans to survive in this new and changing market. Southwest Funding is ranked as the 6th largest lender!
Why do I need a FHA lender?
$$$$$$$$$$
Huge Flexibility
Great Rates
96.5% loan to value
LOW MI
Non-Occupant qualifying co-borrowers allowed
Manufactured Homes
Manual Underwriting
No Minimum Credit Score
Can be in Chapter 13 and 2 year out of Chapter 7 Bankruptcy
When your credit is far from perfect, Call Southwest Funding, LP Branch 777
With the fallout of 50 Subprime Lenders, real estate agents and new homebuyers need a new mortgage format, other than;
100% 580 score (gone)
100% 550 gone
1 Day out of Bankruptcy 600 100% (gone)
1 Day out of Foreclosure (gone)
And a host of other mortgage programs that are obsolete with the mortgage fallout!
For mortgage programs that fill the void of the fallout
Call 317-925-1877
email: thesolution@branch777.com
www.branch777.com
We offer:
100 % No Score
100% One Score
we even give a hundred percent more! For true FHA loans call 317-925-1877.
Or post your Scenario
100% 580 score (gone)
100% 550 gone
1 Day out of Bankruptcy 600 100% (gone)
1 Day out of Foreclosure (gone)
And a host of other mortgage programs that are obsolete with the mortgage fallout!
For mortgage programs that fill the void of the fallout
Call 317-925-1877
email: thesolution@branch777.com
www.branch777.com
We offer:
100 % No Score
100% One Score
we even give a hundred percent more! For true FHA loans call 317-925-1877.
Or post your Scenario
Friday, April 6, 2007
Mortgage the Definition: The History
mort·gage
(môrgj)
n.
1. A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.
2. A contract or deed specifying the terms of a mortgage.
3. The claim of a mortgagee upon mortgaged property.
tr.v. mort·gaged, mort·gag·ing, mort·gag·es
1. To pledge or convey (property) by means of a mortgage.
2. To make subject to a claim or risk; pledge against a doubtful outcome: mortgaged their political careers by taking an unpopular stand.
[Middle English morgage, from Old French : mort, dead (from Vulgar Latin *mortus, from Latin mortuus; see mer- in Indo-European roots) + gage, pledge (of Germanic origin).]
Word History: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, "dead," and gage, "pledge." It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt. If the mortgagor does not, then the land pledged to the mortgagee as security for the debt "is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the [mortgagee]." This etymology, as understood by 17th-century attorneys, of the Old French term morgage, which we adopted, may well be correct. The term has been in English much longer than the 17th century, being first recorded in Middle English with the form morgage and the figurative sense "pledge" in a work written before 1393.
(môrgj)
n.
1. A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.
2. A contract or deed specifying the terms of a mortgage.
3. The claim of a mortgagee upon mortgaged property.
tr.v. mort·gaged, mort·gag·ing, mort·gag·es
1. To pledge or convey (property) by means of a mortgage.
2. To make subject to a claim or risk; pledge against a doubtful outcome: mortgaged their political careers by taking an unpopular stand.
[Middle English morgage, from Old French : mort, dead (from Vulgar Latin *mortus, from Latin mortuus; see mer- in Indo-European roots) + gage, pledge (of Germanic origin).]
Word History: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, "dead," and gage, "pledge." It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt. If the mortgagor does not, then the land pledged to the mortgagee as security for the debt "is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the [mortgagee]." This etymology, as understood by 17th-century attorneys, of the Old French term morgage, which we adopted, may well be correct. The term has been in English much longer than the 17th century, being first recorded in Middle English with the form morgage and the figurative sense "pledge" in a work written before 1393.
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