How Soon Can I Buy?

Waiting Periods for Foreclosure, BK, and Shortsale:

Answer for Fannie Mae:

Foreclosure:  7 years

Short Sale:     4 years
BK:                  4 years from discharge

  

Answer for Freddie Mac:

Foreclosure:   7 years

Short Sales:    not allowed

BK:                   4 years

  

Answer for FHA:

Foreclosure:          3 years

Chapter  7 BK:       2 years from discharge

Chapter 13 BK:      1 year from payout period

Consumer Credit:  1 year from payout period

Short Sale:             Not eligible if pursued on principal residence simply to take advantage of declining market & purchase a similar or superior property 

Answer for VA:

Foreclosure:          2 years

Chapter  7 BK:       2 years from discharge

Chapter 13 BK:      1 year from payout period

Consumer Credit: 1 year from payout period

Short Sale:              2  years

Answer for USDA:

Foreclosure:          3  years

Chapter  7 BK:       3 years  from discharge

Chapter 13 BK:      3 year from payout period

Short Sale:              3 years

'When can I start the loan process after a derogatory event?'

Below please find some helpful guidance on what can be done in the loan process after a short sale (SS) or foreclosure (FC).

FHA
Measure by recording date of SS/FC to the date of the new note/case number: 3 years

When can I start? Nothing can start before the case number is ordered, which cannot occur until the 3 years seasoning has passed. Since a case number cannot be ordered without an application, neither can the application be taken prior to the seasoning met.

VA
Measure by recording date of SS/FC to the date of the new note: 2 years

When can I start? Nothing can start before the date of the initial application.

FNMA
Measure by recording date of SS/FC to the date of the new note : 4 Years for SS/ 7 years for FC

When can I start? Contract can be signed/ loan can be locked/ application and credit can be taken before the waiting period is up- cannot draw the loan before the seasoning period has elapsed.

FREDDIE MAC

Measure by Recording date of SS/FC to the date of the initial application = 7 years for FC. SS allowed if we get an Accept/ eligible.

When can I start? LPA evaluates Significant Derogatory Credit (SS/FC)- if LPA issues an 'Accept/eligible', the seasoning is deemed to have been met and the transaction can move forward.

USDA
Measure from the date of the short sale or foreclosure to the loan application- 3 years.

When can I start? Only the contract can be signed prior to the three year seasoning (No credit pulled prior 3 year seasoning)

Call to Action

What is a Call to Action?

A call to action is meant to provoke a reaction from the target audience. It is a non-demanding request made by a marketer. The most effective marketing strategies combine several CTAs creating a behavioral pattern that is easy for the audience to follow. CTAs are essential parts of permission marketing as well as inbound marketing and are often used in websites. The aim of incorporating them is to turn visitors to the website to clients.

An effective call to action should reduce or completely eradicate the risk to the audience. In some cases this is by giving the potential client a chance to sample the product for free for a specified period before they can start purchasing.  CTA should also direct the audience on what they are to do. It could be to click a specific button or choose a color. Effective CTAs should also encourage an immediate reaction instead of giving the people to sit back and think about it as they might find alternative products and services.

The call to action should be preceded by properly laid groundwork that involves helping the customer recognize their need for your product. It should offer something extra in order to entice the customer to respond to it. An effective CTA communicates urgency as is indicated by expiry dates for offers or rewards for immediate action. A CTA should use a different color from the general theme color so as to ensure it stands out and captures attention.

Having a call to action on a website is essential and this is not limited to ecommerce sites .It helps the audience focus the attention to the site and also provides you as the owner of the website, a way to measure the effectiveness of your site. But also of importance, a call to action gives the customers directions helping them get the most from you while giving you their contacts so you can reach them in the future especially in mail marketing. A call of action, such as asking the customers to sign up for the newsletter also ensures the customers will always be updated on the new products and services, giving you an avenue to interest them even more and hopefully, change them into paying customers.

Dream Home Search

Facebook Live Feature

Definition

Facebook live is a product from Facebook that allows one to share different perspectives and experiences in real-time to friends and family or to fans. Since these live videos are exciting and captivating to the audience, more people are able to tune in and engage with the broadcasters directly at that moment. The concept was developed to capture a larger audience as live videos are watched more than those videos that are not. The platform is now accessible to android users as well as the iPhone users and is therefore accessible by more people in the United States. It is very easy to use as all one need to do is choose the audience and then start broadcasting. You are able to see the number of people viewing and can respond to the comments. The video is saved to the timeline allowing you to keep it or delete it.

Impact of Facebook Live on Business

Facebook live though initially verified for public figures is now available to all verified pages on the platform. It was initially made available to the elite with the hope of controlling the demand on bandwidth and set a higher standard on video streaming.  With social marketing being of great importance to marketing, Facebook live cannot be underestimated in value. I real estate especially, Facebook live can help create greater levels of awareness as properties are show cased and the video features the interior and the exterior allowing customers to get a more complete picture. Live videos are also shared more and the clients can view the products and still return to the news feed to review the video if they need clarification. This also allows them to share the links with friends in order to get a second opinion before purchase.

Facebook Live’s Impact on Open Houses

Open houses in the real estate business are important as they allow clients to view the product without having booked an appointment. Agents can use Facebook live to let more people know about the event in advance. The news feed can be to the public but it is important to create a large following in order to increase the number of people reached. As people are watching the video, the agent can invite them to subscribe and whenever the agent is live, they would get notified. By enabling Follower, you are able to get an even larger audience. On the day of the open house, it would also be prudent to post another live video showing the event as it progresses and featuring the different aspects of the house indoors and outdoors. Ensure the videos are saved on the timeline so that the followers can access them later. The increased traffic to the Facebook page would mean more potential clients who can then become home owners. Those unable to attend the event due to distance or previous commitments would also experience the open house and hopefully book an appointment later.

Marketing a prelisting

Prelisting packages are meant to foster a relationship with the sellers, so that they are confident the real estate agent would do their best to get the best price within the shortest time possible. Facebook live would allow the agent to make a live video showing the houses they have already sold. If the previous seller is willing, he or she can be part of the video, recommending the agent as the best at what she or he does.

Virtual Tour

Agents could take advantage of Facebook live by posting virtual tours of the properties they are listing. The videos should be given a catchy title and made of the best possible quality so that customers can see the properties in the best light. The virtual tours should also be archived once they have been broadcasted until the property is no longer available. This would allow the agent to reach even those far from the location of the property allowing them to make a decision and only come in for a final viewing before purchase.

What is a Mortgage Broker?

A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. They go between the borrower and the lender (usually a lender backed by Fannie and Freddie) and negotiate on your behalf so it’s hassle and stress free.

Traditionally, banks and other lending institutions have sold their own products. However, as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular as personal relationship outshine 800's . Today most mortgage brokers are the largest sellers of mortgage products for lenders.

Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking.

The majority of mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer; however, the extent of the regulation depends on the jurisdiction.

Locally operating in Coastal Delaware since 2005 my focus is individualization of the right program for your particular needs when buying or refinancing. 

If looking to buying or refinancing take the action now:

                                                               Inquriy Now

Search for Properties

Periscope Open House Trends & Ideas

Definition

Periscope is a live video streaming App that was launched in March 2016. It was acquired by twitter before it was publicly launched. Four months after its launch, the app already had over ten million active accounts in it. The app has been adopted by both android and apple users. Periscope users have the option of tweeting out a link to their live stream and can choose who views the video.

Importance of Periscope to Businesses

Periscope brings a different aspect to marketing as buyers who are away can watch the video stream and those who are close by can be enticed to join in the event. Furthermore, the connection of periscope to twitter means that the business reach is quadrupled. By building the number of clients who follow your account on twitter, Facebook and other social media sites, your reach as a business is immerse. Periscope can be used when launching a product, showcasing the current merchandise with more focus on the features and even just to show other events that the business participates in such as CSR. With the beach being close by, periscope offer those in Delaware a chance to participate in the event from a far.

Periscope’s Impact on Open Houses

Open Houses are important occasions in real estate as they allow prospective buyers to view the house without having to book an appointment. Not only can periscope be used to create awareness of the open house and invite more buyers to show up, it can also be used to market to those who can’t attend as they watch the different aspects of the house and decide to book an appointment later. By linking the video to twitter and other sites, the video of the open house could be watched by customers in different parts of the country and they could repost it giving your business more views. It would allow you to make sales to clients you are yet to meet.

Marketing a prelisting on Periscope

A prelisting package aims to ensure sellers are aware of who you are as a real estate agent, the agency you represent and what you can do to make the sale of their house quick and get them the best possible price. Periscope would help real estate agents with this as they could easily make videos of themselves and what they do then post them on social media. They could also link different videos of open houses or other related events they have participated in and the clients can see how they work and how successful they are. With the ability to offer feedback and answer questions, periscope offers a new way to connect and communicate.

Virtual Tours

Another feature in marketing that real estate agents could take advantage of is the virtual tours that they can make then post on periscope. The videos taken would capture the different features of the properties and at different angles so that potential buyers can get a more rounded experience. The virtual tour video could be accompanied by a voice over that would give more information on the best aspects of the property. This video when posted on periscope has a higher viewing and is more effective as a marketing tool.

Searching for Real Estate and Mortgages in Coastal Delaware - Click Here

Bi-Weekly Mortgage Myths

Retirement with a Mortgage Case Study: Biweekly Payment Plans - Myths, Misconceptions and Alternatives

Maybe you are considering or paying on a mortgage every two weeks, in most cases, the loan servicer is paying the loan monthly. A consumer who buys into a biweekly plan is actually loaning the servicer half of your mortgage payment, interest free, for at least two weeks every month.

In addition, the convenience of biweekly payment programs comes at a cost. Of the top five mortgage-servicing institutions, four charge enrollment fees that range from $295 to $379. Three also levy additional charges on every transaction. If your elect to pay biweekly , thus avoiding the hefty upfront charge, fees from the same top five servicers range from $4 to $9 a month.

The truly beneficial aspect of biweekly mortgage payments is the two additional half-payments going toward the principal each year. In other words, by making 26 biweekly payments, you are effectively making 13 monthly payments instead of the customary 12. Depending on specific loan terms, one extra payment a year may enable you to pay for your home an average of six to eight years ahead of schedule

Myth #2: Paying twice a month reduces the mortgage’s compound interest.

A true biweekly mortgage, set up at loan origination or during refinancing, is rare, and is not offered by all lenders; however, it is possible to get many of the benefits of a biweekly payment schedule without the extra costs.

Alternatives include:

• paying an additional one-twelfth of the mortgage payment each month, while specifying on the payment stub or coupon that the amount should go toward the principal.
• inquiring about the option of sending a half-payment every two weeks without enrolling in the bank’s biweekly program.
• adding the equivalent of one extra payment to the mortgage, possibly from the proceeds of a bonus or tax refund. The consumer should specify that the additional money is meant to go toward repayment of the principal.
• for borrowers who are paid biweekly, taking half of the amount of the mortgage payment from each paycheck and putting it in a savings account, then using all of the funds in the account to pay the mortgage each month. At least twice a year, the borrower will be including the equivalent of an extra half-payment.

Contact Information

If you made it here it's because you saw my blog , post on social media. Your information submitted comes directly to me , Steve Morgan - I and only I get this info and I will be reaching out to each inquiry.

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Things you can do!

4 Steps to Enhance Your Credit

We all know that a high credit score can help streamline life events like buying a house or landing a new job. But do you know how to boost your score? Try these four moves to give it a quick lift.

Fix Credit Errors -- Don't wait for a lender to check your credit before reviewing it yourself. Request a credit report from each of the three major bureaus every year, reviewing the accuracy of your personal info, credit limits and the open or closed status of each account. Dispute any errors immediately.

Ask for Forgiveness -- If you have blemishes on your credit, try clearing them up. Negotiate paying an old debt if the creditor will mark your account "paid as agreed." For a late payment on a long-held account, write the creditor, acknowledge your otherwise good history and ask for a goodwill adjustment that will wipe it from your credit report.

Make Strategic Repayments -- You may not be able to pay off your credit cards quickly, but you can strategically pay them down. Start by dividing each card balance by its limit. Demonstrate restraint to lenders by keeping each card balance below 30 percent. If your card debts are higher, make a plan to pay balances down to reach a more desirable ratio.

Increase Your Credit -- Another way to reduce your debt-to-income ratio is to ask for an increased limit. It's a bit of a numbers game, but if you keep future spending in check, you can end up with a lower ratio. (Experts say this ratio accounts for up to one-third of your credit score.)

Credit Scores

Fair, Isaac and Company (a.k.a. FICO) came into being in 1956 to help lenders determine the likelihood of consumers to repay loans. By issuing credit scores ranging from 350 to 900, FICO estimates that the higher the consumer's score, the more likely he is to pay back money borrowed timely and in full. 

Five factors comprise the credit score: payment history (35%); credit balances (30%); length of credit (15%); credit types (10%); and recency of inquiries (10%). 

If a borrower is required to pay a higher interest rate on money borrowed due to credit problems, his credit rating will improve once payments are made on time, creating opportunities to refinance to a lower interest rate.

Did you know...

...the Wait Periods for Derogatory Credit?

If you have filed for bankruptcy, did a short sale and lost your house, perhaps you think you’ll never be able to own a home again. Fortunately for you, you’re wrong! With bankruptcy becoming more and more common these days, mortgage loans have been developed to help finance those who want to try again. Don’t assume lenders are not willing to lend you money, you'll just have to pass the waiting periods above. 

Overall, the best strategy to getting back into a home after bankruptcy is to wait.  It won't be a walk down easy street though; you’re going to have to work harder but that easy working with the right mortgage broker. 

Find out more today with just a few clicks below.  Steve Morgan - Fairfax Mortgage Investments 302-541-5363.

Social Media - Realtor, Post, Likes & Leads

Realtors and Agents Only

I'm seeking agents that are interested in teaming up to find leads out of Facebook that I qualify and you sell. If your interest in getting results like my post 20 hours ago, 3,412 reached, 127 Likes and Shares, 393 Post Clicks -  just take a minute to fill out the form below. 

See Post on Facebook

Because of the  upfront effort and time I'm limiting it for now to 3 to 4 new agents. A baseline understanding and believe in social media is required to ensure the highest success in working together.

Affordable Housing - Locals

Is there a gap to make affordable housing that's reasonable priced for locals and within a budget similar to renting?

From my experience of doing pre approvals at Fairfax Mortgage as Mortgage Broker over the last 11 years I said "YES".

Affordable housing in Sussex County Delaware is tough;  anybody that has looked at homes in the price range of $140-$199k typical finds dated designs, places far inland and most needing capital to modernize.   Locals and new locals can see that there are tons of inventory of new construction homes and communities priced high 230's and up.

At my office we are seeking homeowners that want to own new construction, stick built homes; typically three bedroom two bath with garage similar to the picture above.  Most of these homes are located in Dagsboro where the property location qualifies 100% financing by USDA.

My office Fairfax Mortgage is seeking out homeowners who are interested in affordable homes in the price point of $199k to $229k.  Some basic information to help you determine if you should fill out the form below; stable jobs for last two years with verifiable income and living history of last two years.

We at Fairfax Mortgage ask if the builder is willing to pay for the closing costs, so the cash to close  at settlement can be $1k to 2k, in some cases less that rent and a security deposit,  payments typically for these homes are projected about $1100 -$1200.

USDA requires a borrower have a credit score of 620 or better to qualify and  one's  annual household income should  in the range of $50k to $79k .

If you know someone that is seeking an affordable home, share my blog; ask them to fill out the questionnaire below.  We work on finding solutions; we might be able to help whether it's today or for buyers who are planning a purchase within the next 18 months.

How much can I afford?

A Home Mortgage: How Much Can I Afford?


Home-owning is the American dream. If it is one of your dreams, you may be wondering how you can ever make it a reality. Home prices in many areas today are very expensive, in some areas prices have even doubled during the past five years because of the housing boom. The key to becoming a home owner is determining just how much of a house you can truly afford.

One of the most basic measures of how much you can afford to pay for a home is to choose a property that costs two to two-and-a-half times your yearly income. So for example, if you make $50,000 each year, the guideline suggests that you look for a home that costs between $100,000 and $150,000. If you live in one of the former real estate hot spots like Florida, Arizona, or California though, you may complain that even a salary twice that of the example would barely pay for a decent home. Fortunately this basic measure is not the only way you can calculate how much you can afford.

One of the ways most lenders determine your eligibility for a certain mortgage loan amount is by figuring out how much debt you have. They will plug that dollar total into a debt-to-income ratio. The ratio consists of two numbers. The first is the amount of money you plan to spend on your mortgage payments, divided by your monthly income. Lenders like to see this number under 28%, but some will accept higher percentages. To calculate how much money you can put towards a monthly mortgage, find a sum that meets the 28% ratio. The formula is to multiply your monthly income by 28% or 0.28. For example, if your monthly income is $4500, multiply that number by 0.28, and you find that the amount of money you should be able to devote to your monthly mortgage payment is $1260.

The second number in the ratio may change the real total of how much you can afford. This ratio takes into account your total debt. The basic principle is that the more debt you have, the less able you are to take on new debt, like a home mortgage. This ratio is calculated by adding your proposed monthly mortgage debt to your other total monthly debt and dividing that by your monthly income. Lenders prefer this ratio to be below 36%, although there are of course lenders who will make exceptions to this rule.

Beyond simple income qualifications and calculations, in order to determine how much mortgage you can afford you must take into account the down payment requirement. Traditionally lenders required a down payment that was 20% of the value of the loan. Contributing that much today is still preferable and will secure a great loan with a nice, low interest rate but such a sum is sometimes impossible for borrowers to scrape together today. Fortunately there are lots of lenders who will accept some lesser percentage. There are even some programs that offer a no-down payment feature. Be aware those that these types of loans will cost you in points and the interest rate. You should plan to make some sort of down payment, even if it is just 3% or 5% of the home price. This means taking money out of your savings, money you will not be able to use for further mortgage payments. Be sure to calculate how much a down payment will set you back in the home owning process.

There are many things to consider when figuring out how much home you can afford, including many personal and lifestyle preferences. Be sure to consult with a financial or mortgage professional to help answer your questions about the right house price range for you.

In life we always have changes, it's planning , planning and still more planning - the world didn't stop 12/31/1999 at 11:59 pm.  Will there be a learning curve for real estate agents, builders , lenders and mortgage professionals - 100%!  There's always a way of finding how to keep business moving - great ones are already doing so - PreApprovals are still part of the business.

FROM Origination News

The TRID Loophole the CPFB Says Is Legit

by Ari Karen

MAY 28, 2015 

Anyone who's closely read the nearly 1,900-page final rule for the TILA-RESPA Integrated Disclosures likely noticed a nifty loophole when it comes to how lenders can issue mortgage pre-approvals.

For everyone else, the Consumer Financial Protection Bureau recently clarified how a loan pre-approval doesn't automatically trigger TRID's three-day window for delivering initial disclosures.

The workaround was mentioned during a webinar hosted by the CFPB and Federal Reserve Board that also addressed new rules that prohibit lenders from requiring a borrower to provide verifying documentation prior to providing the Loan Estimate.

The CFPB first pointed out that TRID only prevented lenders from "requiring" such information, but that if voluntarily provided by the borrower it was permissible. Of course, the agency immediately followed up by explaining that a lender that explicitly or implicitly requires such documentation would be violating the law.

This obviously creates risks for lenders who expect to rely upon the borrowers' "voluntariness," since a borrowers' subjective belief they implicitly had to provide documentation could create risks for a lender.

However, it is only after all six pieces of information are collected that the requirement of a Loan Estimate is triggered. The CFPB also indicated that as long as a lender did not collect the six pieces of information necessary to trigger the Loan Estimate, a lender could obtain verifying documentation.

"The bureau does not believe that the definition of application will restrict creditors' ability to provide prequalification cost estimates or grant pre-approvals, because creditors could provide prequalification estimates and grant pre-approvals without obtaining all of the six elements of information that make up the definition of application," Pedro De Oliveira, counsel at the Consumer Financial Protection Bureau, said during the webinar.

Hence, as long as the lender does not, for instance, obtain the subject property address, the lender has no obligation to provide the disclosures and/or Loan Estimate.

Accordingly, those lenders that wish to provide pre-approvals may be well advised to consider making pre-approvals general, as opposed to specific to a designated property.

Ari Karen is an attorney at Offit Kurman.

BK, Short Sale & Foreclosure

Do you know someone that wants to own property again?

Especially after a BK, Short Sale or Foreclosure ...  A lot of people got caught in that BUY high and ops - had to hit the reset button.   The question I get often - how long do i have have wait?

Listen to the YouTube Clip

Fill out the form below ...

Luxury 2nd Homes

Lower interest rates on mortgages, in recent years, have encouraged more and more people to invest in real estate. Most of them are opting for buying vacation homes. In fact, a recent survey from National Association of Realtors suggested that vacation home sales surged as much as 30 percent in 2013 compared to 2012. Popular places for buyers include Bethany beach, Ocean city, and Panama City beach.

Investing in second homes 

Some people buy second luxury homes as a place for relaxing with their families. Some buy it for generating passive income. Others purchase it to spend their post-retirement days in a calm and serene place. It’s all about personal preference.

Getting mortgage for a second home has been difficult for an average borrower after the new mortgage lending regulations. Now, mortgage lenders screen consumers’ complete financial picture before lending them home loans. The regulations also suggest that a borrower’s entire debt payment should not exceed 43 percent of their gross income prior to tax withdrawal.

If you are planning to buy a second home in Coastal Delaware can help you to qualify for a second home loan even under such stringent regulations. They usually suggest you to make a down payment greater than 20 percent of the price. My clients are just blow away when they discover they can make that dream happen as little as 10% down.

If you feel that investing in a Scoond home is what you need and you can afford it right now, then by all means fill out the form below. Having a home where you can spend your post-retirement days in peace is a dream for many and reality for a select few. Having a second home in a popular vacation spot can have its own perks in terms of a healthy passive income too.

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Hockessin Properties

Hello Clip from Steve Morgan - Mortgage Broker

 

 

 

Would you do business with this loan guy?

Have you seen this house old Mill Road?

Anybody driving by wondering what's going on with this particular property, what kind of financing,  affordability, can I buy a house with no money maybe, what are payments for something like this for a brand new home ...reach out to me I can tell you all about it. 

http://www.bethanybeachlender.com/freeReports/Affordable%20New%20Construction/