Posts Tagged ‘lender Negotiation’

FHA Waives 90 Day Seasoning Rule

Jan 17th, 10 / 0 Comments

This is great news!
While I’m not an attorney, the legal speak in the pdf below tells me that FHA is now going to allow a buyer using FHA financing to purchase it even if the seller has not been on title for a minimum of 90 days.

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

The 90 day seasoning rule was instituted to try to keep “Illegal flips” from occuring. I have “illegal” in quotes because it is only illegal if someone is committing fraud by getting an appraiser to appraise the property for MUCH higher than the real value of the property.

This is totally illegal and I’m pretty sure you can be put in jail for that. Again, I’m not an attorney so don’t take my word for that.

However, the way most of these transactions are happening is this. An investor purchases a property either from a bank or from a homeowner in distress at a substantial discount because of the distressed situation.

Banks do NOT want to spend money to fix up foreclosed homes.

Homeowners that are having trouble making house payments do not want to make repairs either. They are struggling just to pay their bills.

Why would they continue to repair a home they are likely going to lose in foreclosure anyway?

So these properties NEED an investor buyer to step in and buy the home and rehab the home back to move-in ready condition.

Well, in these times of tight credit, it’s next to IMPOSSIBLE to get a decent rate on a long term loan for an investor. So, rather than holding the property as a rental, the investor fixes up the home using high interest loans.

The investor then turns around the property and finds an end buyer that wants to live there. Typically, the end buyer still gets a really good deal on now an updated home rather than a distressed property.

Well, when FHA decided to implement the 90 seasoning rule, that eliminated a TON of buyers, especially first time home buyers that typically rely on FHA programs to get in with low down payments.

They don’t typically have extra money to fix up a home.

So, I welcome this change for everyone involved. It is going to speed up the acquisition of these distressed properties because now the investor will have an easier time finding a buyer.

What do you think of this plan?
Leave some feedback below.

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Negotiating With Lenders – Loan Modifications

Oct 30th, 09 / 2 Comments

Do you have homeowners calling your office that DO NOT want to lose their home?
Have you heard about doing loan mods? Many of you may have heard about them, but don’t know what they really are or who would be a good candidate for a loan modification.

This is an area that I want to know more about as well and have found someone that is an expert in this area. I know some of the basics, but I like to know more about a topic before I actually try doing something, I don’t like to just know a little bit and then try to wing it.

So, what is a loan modification?
A loan modification is when you work with a lender to modify the original terms of a note to bring them more in line with what the borrower can afford. Lenders don’t want everyone to know about these because they stand to lose a bunch of money. This is very understandable. However, in the back offices of the banks and mortgage companies, they are becoming more popular because it helps keep them from having to foreclose on a home when the borrower is underwater. The other reason they are becoming more appealing to the lender is because of our Government’s involvement in the banks affairs. That’s right, our Government is pushing lenders to do loan modifications as well. You may have even seen a headline or two about it, but it’s all very mysterious stuff unless you learn from an expert.

I have a webinar scheduled for Tuesday, November 3rd, at 9PM EST with Richard Geller, one of the truly cutting edge people in the Loan Modification industry. Richard has been doing loan mods and teaching loan modification for several years.

There is no charge for the webinar but we only have 200 spots.

Register here
http://RapidREIresults.com/loanmod

Richard is going to go over the following topics, plus many others.

* Loan mods and violations, forensic audits and how they fit in to get principal reductions – this is HUGE.
* You can still do loan mods for profit and Richard will show you how to do it LEGALLY, and why you would even want to!
* Why investor owned properties NEED loan mods and how to get them.
* Turning Cash-Flow Negative deals into Cash-Flow Positive
* Repairing your credit (or your client’s credit
* How to use loan mods to attract people who want you to buy their house as a short sale opportunity.

Plus, many other great tips. He will definitely over deliver on this webinar.

Don’t delay, register now, your clients need you to know this information and we only have 200 seats for this webinar.

Register here
http://RapidREIresults.com/loanmod

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Notice: While there is absolutely no charge for this webinar, since I’m referring you to this webinar, if you decide to buy something down the road from Richard Geller, I will likely get a commission on the sale. However, the fact that I have sent you over there, will NOT change your price at all, it is just a way for Richard to thank me for sending a potential customer his way.

P.S. Do you have a website for your business yet? What about your own domain for your business e-mails? Raise your businesses credibility and get your own domain name. It’s easy to do.
24×7 support, world class service.
http://www.RapidWebDomains.com

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Forbearance and Loan Modifications, Short Sale Investing & Pre-Foreclosure, Uncategorized

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