Mortgage Fraud Affects Real Estate Homeowners
M ortgage fraud is at least partly to blame for the mass of foreclosures that sit on the books of the nation’s biggest banks, many of which the taxpayers bailed out. As underqualified buyers applied for loans, brokers found ways to make the numbers “work,” so the underwriters would sign off on the loan. However, as rates adjusted and values fell, those underqualified buyers were the first to lose their homes, exposing inflated incomes and other falsified documents. While the foreclosures brought to light the ways in which mortgage fraud was being commited, it certainly did not stop it from occuring. In fact, the occurances of mortgage fraud have only increased in recent years. Ki Gray explains more about mortgage fraud, and who is being targeted...
Expand Your Knowledge About the Short Sale Process
T he short sale process has become the new staple for many REALTORS® working in states like California, Florida, and Arizona, to name a few. The ever-changing regulations that affect this process further emphasize the need for Realtors to continue their education if they want to be seen as an expert in this arena. Knowing what is involved and the delays that can occur will help you give your clients an accurate timeframe to work with. Erin Attardi posts about the new delays caused by mortgage insurance companies: “With the bulk load of short sales that I am negotiating, there is an interesting phenomena I am running into more and more these days. Lenders are placing their own mortgage insurance policies on loans. This is not your typical private mortgage...
Is it Better to Rent or Buy?
U ncertainty surrounds much of the current Real Estate market and the economy as a whole. While it is a good time to buy, being hasty at such a fragile time could prove disastrous. Potential buyers have to ask themselves very serious questions about their employment, rising interest rates, and falling home values before moving forward with a purchase. If it doesn’t feel like the right time, maybe renting is the best option. Or maybe with a little research and a lot of number crunching, a buyer can take advantage of unprecedented deals in Real Estate. Karen Highland anwers the question, “Is it better to rent or buy in this Real Estate Market?”: “’Is it better to rent or to buy in this real estate market?’ he question is asked...
Strategic Defaults in Today’s Market
I f your house is worth less than you owe, you are said to be underwater. This is the situation that tends to lead to a short sale of foreclosure, unless the homeowner can afford to continue making payments on the home and wait out the negative equity. By now, the term “underwater” has become commonplace. A related term that is being talked about a lot lately is “strategic default,” or the act of walking away from a home that is underwater but the homeowner can still afford to pay their mortgage. What are the consequences of choosing this route and what about the moral issue of leaving that debt for the banks to deal with? Bob Stahl explains why some homeowners are choosing a strategic default: “On July 27, I wrote about the nuts and...
Navigating a Changing Real Estate Market
R EALTORS® continue to write about the changing market and how practices need to change to keep up with it. What worked during the years of the Real Estate market boom aren’t working now due to falling home values and changing attitudes. Closing on a home, for instance, always had its share of difficulties, but now they start sooner and only get more complicated. Beginning with loan difficulties and finishing with long closing periods with countless delays, navigating a Real Estate transaction takes endless patience and a lot of know how. John Giggy posts an article by Dian Hymer that will help Realtors navigate a changing Real Estate Market: “Tailor your offer price to the specific house you want to buy. How much you offer should depend on how much...