Industry Leader, Lew Ann Strickland forges ahead in tough economy

As things continue to tighten in the mortgage industry, we are proud of the service we have been able to provide, over the past 12 years, to the families in and around Central Florida. Our Founder and CEO built this company with an enthusiasm for working with people and making homeownership afforable. With over 25 years experience with financing, her education coupled with an unmatched talent for numbers, has solidified her position as a leader in the home financing industry.

Congratulations Lew Ann, personally helping thousands of families realize their dream of homeownership is no simple task!

www.premieronline.com

now that is what you call a mobile home!

Excerpt from NY Times shows hopeful trend in RE Market

SACRAMENTO — Is this what a bottom looks like?

This city was among the first in the nation to fall victim to the real estate collapse. Now it seems to be in the earliest stages of a recovery, a hopeful sign for an economy mired in trouble and anxiety.

Investors and first-time buyers, the traditional harbingers of a housing rebound, are out in force here, competing for bargain-price foreclosures. With sales up 45 percent from last year, the vast backlog of inventory has diminished. Even prices, which have plummeted to levels not seen since the beginning of the decade, show evidence of stabilizing.

Indications of progress are visible in other hard-hit areas, including Las Vegas, parts of Florida and the Inland Empire in southeastern California. Sales in Las Vegas in March, for example, rose 35 percent from last year.

get full story: copy and paste this link to your browser: http://finance.yahoo.com/real-estate/article/107037/Where-Home-Prices-Crashed-Early-Signs-of-a-Rebound

Greetings from the Reception Area!

We know you're very busy and important. And not being treated that way by the businesses you support (holding for 30 minutes when calling your telephone company) these are not the customer service standards that are reflective of the friendly, hometown accomodations you will receive at our company.

However, like many real estate related industries, we are trying hard to not lay off employees and stay in the "black" and with a slow down we made a difficult decision to have our call in number, automated. Now, this is not the automation that requires you to push 4 options before you speak to a real person, but just enter your party's extension or speak to an operator. This was quite a tough decision as we have always had a smiling face greet our customers in the reception area and on each phone call. We certainly realize the value of this initial greeting, but the savings was significant. Where do you weigh in? Leave your input in the comment portion and help keep Premier the best mortgage company around!

Appraisal Schush-maizal

Appraisers often have a thankless job - many borrowers and even industry professionals often don't quite understand all that their position in our transaction requires. They dont understand:

A) why they want to paid up front for the service, regardless of the potential closing possibility?
B) "Why is the report taking so long? He left my house an hour ago?"
C) "$400.00 for him to spend 10 minutes at my house, is he kidding?"
or, my personal favorite...

D) "Please call your appraiser and let him know I've already purchased the soil for the azaleas I'm planting this weekend. My home value will definately have increased by Monday"

Appraisal reports are intensive with ... dah dum... an actual science and true formulated calculations that must follow strict federal guidelines. These licensed individuals are heavily regulated and often provide the absolute most valuable component to the transaction and/or financing process (sorry Realtors, it's not the contract).



New guidelines will require even more of these real estate partners.

As of April 1st all FHA appraisals are required to include a Market Conditions Addendum a.k.a FNMA Form 1004/MC or FHLMC Form 71.

Even more requirements will son be in effect for all FHA appraisals, as per the hud mortgagee letter (read in full by clicking link). Here are a few in lay terms as they pertain to those in Declining Markets.

Appraisals of properties located in declining markets must include at least two comparable sales that closed within 90 days prior to the effective date of the appraisal. In markets where this isn't available than a detailed explanation must be given, and the appraiser is expected to include at least two sales that are as similar as possible, to the subject and has closed 90 days of the effective date of the appraisal, in order to show recent market activity.

Appraiser must insure that active listings and pending sales are "market tested" and have reasonable market exposure, to avoid the use of "over priced" properties as comparables. Reasonable market exposure is determined by typical marketing times, for the specific neighborhood. Adjust active listings to reflect list to sale price ratios for the market.

Include the original list price, any revised list prices, and total days on the market (DOM). Appraiser is also required to provide an explanation for DOM that do not approximate time frames reported in the Neighborhood section of the appraisal reporting form or that do not coincide with the DOM noted in the Market Conditions Addendum.

Yikes... how much do they make again?

East Polk Association of Realtors

enjoyed the 7th Annual Spring Fling Luncheon today, where our Real Estate partners had the opportunity to explore and learn more about our affiliates. Each also enjoyed a spring basket raffle!

New FHA Guideline for Cash Out Refi's

Declining Markets have become a dirty word in our office. Is any market in Florida not considered "declining"? With so many home appraisals falling short of their estimated appraised value, it is no wonder that HUD has now adjusted the guideline in reference to cash out refinances. While very few homeowner's have significant equity, in their homes (regardless of original downpayment) the new guideline restricts refinances structured with "cash out" to a total Loan-to-Value Ratio to 85%.

What does this mean?
EXAMPLE
700-Score Suzie wants to consolidate her credit card and refinance her home. She purchased her home in 2006 for $210,000 with a sizeable down payment. Over the last few years Suzie made additional principal payments, on her mortgage, in hopes to save thousands in interest over the long run.

The current principal balance of her mortgage is $150,000. She would like to pay off 2 high-interest credit cards totaling $7,000 and take advantage of today's low rates. Suzie home appraisal just came back at $180,000. A previous foreclosure just sold down the street for dirt cheap and is now a new comparable in her market. Suzie is no longer eligible for this loan as her Loan-to-Value ratio is greater than 85%.

Files, Cords and Boxes, OH MY!

KC gets her new office (the one with a great window!) organized!

"Trisha, where will you sit?"

Diane, Trish and Lew Ann are too many cooks in the kitchen, determining the perfect spot for the Splenda!

Lisa is not happy that the boxes are multiplying!

Seemed as though everywhere we turned there was yet another tub of office supplies or inactive files that needed to be delt with. As a professional that deals with clients in the midst of anxiety and stress that is a natural part of moving, it was good for our staff and company to experience what our clients may be feeling or going through each day. Personally, I have (what I like to call an Occupational Hazard) a moving addiction. Seeing so many gorgeous homes with unique features, every day on my job, I get a two year itch. Two years is my typical committment to a home so far (and it has been as little as 11 months). I really love my personal residence as well as our office, and think we will not be going anywhere for a long while! Here are some fun pics of us sorting through the chaos :-)

Settling in our New Home!

The office relocation is complete and our new building is buzzing. The Premier gang is settling in and enjoying the new energy in our Avenue K location. Any move is always grueling and exciting. We did experience a few gliches in our carefully constructed plan, but it was executed well! Kudos to Justin (moving coordinator) and the team of "movers" and friends that shared in our transition. We love our new building!

I recently had a customer ask me how the Federal Reserve cutting interest rates affects mortgage rates and what exactly that means... (of course the next question was whether or not I thought they would go any lower). While, I do not have a crystal ball, I do have the information to more clearly define the Fed rates.

Current Fed Funds Rate 0.25

What it means: The interest rate at which banks and other depository institutions lend money to each other, usually on an overnight basis. The law requires banks to keep a certain percentage of their customer's money on reserve, where the banks earn no interest on it. Consequently, banks try to stay as close to the reserve limit as possible without going under it, lending money back and forth to maintain the proper level.

How it's used: Like the federal discount rate, the federal funds rate is used to control the supply of available funds and hence, inflation and other interest rates. Raising the rate makes it more expensive to borrow. That lowers the supply of available money, which increases the short-term interest rates and helps keep inflation in check. Lowering the rate has the opposite effect, bringing short-term interest rates down. - Source bankrate.com

"Moving on Up!"

Obama Administration Rolls out Stimulus...What's in it for you?

The new plan is a wide reaching effort to expand refinancing opportunities for up to 5 million loans and encourage the modification of up to 4 million additional loans.

The plan is broken into 4 key parts:
Increase Refinancing Opportunities - through Fannie/Freddie with expanded qualification criteria including first mortgage LTV up to 105%.
Encourage loan modifications through a combination of:
Financial payments to lenders & borrowers to complete a modification and perform on the loan over time.
Standardized guidelines for loan modification. These guidelines will be posted on the Internet. (more to come)
Forced participation for banks receiving aid or institutions that are federally supervised.
Some form of forced judicial modification during bankruptcy.
Maintaining low mortgage rates by providing additional support and capacity for Fannie & Freddie.
Some key features of the plan include:
No Reduction of Principal Balance
Primary Residence Only
Borrowers Who Are Still Current Are Fully Eligible to Participate Including Additional Financial Incentives for Modification of Current Loans
Modifications Do Not Apply to 2nd Mortgages
Today's announcement didn't include specific details about how these programs will work. Additional details will be released between now and March 4th, by the Administration. Stay tuned!!

Meaningful Rewards

There isn't much that can compare to heartfelt gratitude and our team at PHM have always been so customer focused, that commissions/fees/payments can hardly measure to a customer who understands and appreciates your hard work. Recieving a thank you letter, knowing someone actually took time out of their busy day to think of you and appreciate truly makes all the difference. Over the years, I have recieved flowers, candy, cards, notes and letters. I treasure each of them and have a drawer in my office just for these "pats on the back" for when the day gets really tough! This one I recieved today was especially kind, and couldnt have come at a better time. This market has taken our job stress to a whole new level, but on this pre-valentine's Friday - I am re-juvenated!

Learning from Teaching

Recently, I taught a class to a group of Real Estate Professionals through the affiliates brown bag lunch, hosted and organized the East Polk Association of Realtors group, where I am a member. I attempted to impart on this experienced group of Associates, what I think, they need to know, to better facilitate the transaction from contract to closing. What happens in the middle, during processing/underwriting. I hoped this would help the Mortgage Broker/Realtor partnership; allowing us all to be more efficient and close more transactions in a way that better services the mutual client. It was a lovely lunch and I was grateful for the lively Q&A session and such a captive audience.

I immediately wanted to learn their side of the process as best I could. To ensure that this partnership (that is often much like an arranged marriage - forced to be together and hoping to fall in love) I was giving 110%. I started researching articles and other (Realtor) blogs, and came up with a top 10 principals for other mortgage folks out there, wanting to increase your own satisfaction!

"I am so proud and grateful for the families we have served and the company my mom and I have built, based on the principles of trust and relationships. We are in the relationship business. First with our clients and second with our industry partners that also focus on service to their clients."

10 Principals that Realtors appreciate in their Mortgage Partners:

1. Don't pop by the office. Productive agents are busy and the "pop in" is unscheduled and not respective of time their or my own.

2. Communication, when there is lack thereof, both parties feel anxious, most important the client.

3. I need to know you are in this for the long haul, and proactive in problem-solving. The best mortgage pros see a problem before it is a problem.

4. My real test for you is when it's crunch time and you need to perform under pressure.

5. "Sorry folks, but if you just discovered FHA, I'm not giving you a loan." -this was a direct quote from a Realtor. No rookies, please!

6. If you advertise no closing costs, I worry about what catches there are for my buyer, all loans have closing costs.

7. Tell me how you will solve the problem without scaring me.

8. Make it seem easy and smooth. Real pros make their job seem easy, we all know it isn't.

10. When you explain the loan to me, I am imagining you are explaining it to the client. We shouldn't assume others know our business, we aren't experts in their field.
BONUS :-)

11. I just might call you to sight unseen if I like your blog. Blogs are personal, reflective and illustrate a passion for that which you are blogging about!

"House Hopping "is new Red Flag for Mortgage Underwriters

No it isn't referring to the arrival of the Easter Bunny or a new song about Peter Cottontail, but an emerging trend that has resulted from a struggling mortgage economy.
House Hopping is defined as leaving your current residence and purchasing a new home with a lessor mortgage and then letting the bank foreclose on your former residence.
These trends, due to the current market climate, have lenders tightening the ropes and now requiring what seems like, excessive verification to prove this is not happening, as it is becoming more common.

Scenarios:
If selling current primary residence (owned) and buying a new home the guidelines now require the following
• Must provide MLS listing for current home
• Must provide good explanation for move
• Must qualify with both payments considered debts

If keeping current primary to lease and buying a new home:
• Must provide lease agreement with proof of deposit of first months rent (FHA). On Conventional it is to the Underwriter’s discretion.

Common Closing Delays

An often challenging part of the financing process occurs when we hit "speed bumps" or sometimes, road blocks due to common borrower activities. Here are among the most common that you can avoid a speed bump in your own loan's process.
Do not quit your job, for obvious reasons :-) SO if the boss has been particularly demanding that day...bite your tongue!
Do not move money around in checking, saving, 401k or other asset accounts. If a bank verification shows a recent increase in your accounts an explanation of the increase will be required.
Avoid making any large purchases that could change the debt to income ratio, from which your financing was approved. If all of the sudden a new tradeline appears on your credit report and reflects a new car payment for example, it could jeopardize your loan approval.
Try to avoid cash advances or other large purchases or debits on your credit card.
Try to maintain your current liquid cash deposits and accounts.
To the same tune, do not make a large deposit into your account, other than typical income from employment, social security, etc. A large deposit will have to be verified and explained, so be sure to have a paper trail. Example, if a parent gives you a gift for your purchase or downpayment, be sure that they keep the deposit slip and we can verify that it came from their account and deposited into yours. *Note, gifts for downpayment are only allowed on FHA loans from a relative.
Don't allow any additional inquiries (credit checks) on your credit, this could drop your score.
Do not open or close any accounts.
Continue to make ALL of your payments as agreed, especially your mortgage even when you are refinancing your loan. This is a common question. If your payment is made and you close the next week, then your payoff will reflect such, therefor reducing your mortgage payoff (on a refinance) and you will simply get more cash at closing. Either way, that payment is going to be made. When borrowers have opted not to do so in the past, there is a surprise when the settlement statement is calculated as now their could be additional late fees from the current mortgage company.
Quickly return all documents from the lender or settlement company.
Inform your Mortgage Broker of EVERYTHING. We eventually find out, by telling us up front allows us to correctly handle the issue and avoid a potentially bigger and more costly problem. Your Mortgage Professional is your friend :-)

Of course lowering your interest rate will lower payments, but

many clients are realizing an added bonus when their escrow payment calculations are recast based on a new, lower property taxes. Obviously the recent drop in interest rates have homeowners anxious to lower their payments, we have seen an influx of past clients and typically those with excellent credit. We are locking loans left and right at 4.875!
In addition, many families are surprised to learn that their property taxes have been reduced significantly, with the additional homestead, and declining property value assessments. When refinancing, the escrows are set up based on the previous years' tax bill. Now that 2008 tax figures are available, these bonusing borrowers are loving the icing on the cake!

Polk Property Tax Appraiser Discuss Save Our Homes

On Wednesday, I had a chance to meet with Polk Property Appraiser, Marsha Faux regarding the property tax issues and challenges of 2008. Of course Amendment one passed in last year's election adding an additional $25,000 homestead to the list of possible exemptions. In 2008, 79,652 properties recieved an aditional exemption, lowering property taxes for homeowners at a times they really needed it.

Additional key point of interest is the assessment limitation, Amendment 10, is commonly referred to as the "Save Our Homes" cap. The law limits value increases to 3% or an amount equal to the Consumer PRice Index - whichever is less. Due to the recent decline in home values this cap seems useless as most homes have not appreciated causing their to be a cap on increased taxes. Congress is in special session this week to discuss potentially reducing that cap to 5%. This is especially significant on commercial property owners, as those properties have experienced a more "normal" valuation changes in the past two years. Most studies confirm that the commericial property owners are those who spend more locally. Whether it be on retail goods and service, entertainment, etc. protecting their bottom line and disposable income, trickles down to a better economy for all residents. This was an interesting insight to how an outdated Amendment's current affect. Amendment 10 was passed in 1992 when increasing appreciation was thought to be a given.

2009 Manufactured Home Super Show

ONE OF EVERY FIVE new homes sold in Florida is a manufactured home, and it's no wonder. Today's manufatured homes offer you the foremost in quality, affordability and value.

This week a few of our staff will be enjoying the warm Florida winter weather at the 2009 Manufactured Home Super in Lakeland. We always enjoy this event as it gives us a chance to meet past clients and new ones while visting with our preferred Manufactured Home Dealers. We work closely with these dealers all year long to prequalify their buyers and take them through the home buying process. In addition, I anxiously anticipate each year, seeing the gorgeous homes and decor on display at the event.

The sterotype of a Florida Manufactured home can have a derogatory stigma, but we want you to know the facts...

MYTH: Manufactured homes are not well-made.
FACT: You are assured of first-rate construction, because all manufactured homes built since 1976 must meet the strict performance standards of the U.S. Department of Housing and Urban Development (HUD). The department's code requires the highest standards in every phase of construction and its requirements are comparable to the Standard\ Building Code for site-built homes. Also, all manufacturers have their own quality assurance programs, and every home's design and construction is inspected and approved by an independent outside source.

MYTH: Manufactured homes are not safe.
FACT: Your Florida manufactured home is designed to withstand even hurricane-force winds. As for fire, a Foremost Insurance Company study concluded that the chance of fire in a site-built home is twice that of today's manufactured home. Thanks to stringent building codes, safety inspection standards and the state's anchoring requirements, a Florida manufactured home may be the safest home you can buy.

MYTH: Manufactured homes are difficult to finance.
FACT: Financing a manufactured home is no more difficult than financing any other home. Personal property financing is readily available. Conventional, VA, FHA and other financing programs, with terms of up to 30 years, are available when a home is financed as real property. Lenders are active in financing manufactured homes because studies prove that the appreciation of these homes is comparable to the appreciation of site-built homes.

MYTH: Manufactured homes are not attractive.
FACT: Seeing is believing, so step inside and you'll experience all the appeal and comfort you expect in a high-quality home. There's a spacious, stylish and beautiful manufactured home for every taste, budget and lifestyle. Whatever you want in your next home, you can have it in a manufactured home, just take a look at these gorgeous, affordable homes.

Stop by and say hi! Tigertown Stadium, Jan 3 - Jan 11, 2009.
Sponsored the Florida Manufactured Housing Association.

Unprecedented Rate Cut

The central bank said today it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent.
Today we actually locked in an interest rate at 4.875%. This is an enormous savings for so many homeowners that could save so many homes. We have rolled out a new streamline loan product that allows the borrower to basically have a "redo" on their mortgage with no appraisal, even if you have been late on a payment. This simply allows borrowers to lower their mortgage payment and save their home.
I feel so enthusiastic and much more positive about things to come, hoping that I can help my clients stay in their homes!

Premier Hosting Lunch & Learn for area Realtors & Affiliates

"Thursday, January 22th from 12:30 p.m. to 1:15 p.m. enjoy a brown bag lunch presented by Leslie Heimer of Premier Home Mortgage and gain a new understanding of the financing process critical to increasing your volume. Bring your lunch…drinks & dessert will be provided."

Premier Home Mortgage has been a Polk County leader in real estate financing and we will provide you with an insider's understanding of the financing process from contract to closing. Understanding the processes in this evolving mortgage marketplace is simply a must for those agents wanting to maintain a high level of production in the real estate business. This informative lunch and learn will educate you on those trends and components that are currently affecting your transactions and how you can speed up the process and avoid pitfalls.

Declining Market Appraisal Requirements
"House Hopping" Guidelines
Underwriter Red Flags
Conditional Approval Line Items
Guidelines and Turn times
Short Sale Contract Pitfalls

Don't miss out, this will be one lunch hour well spent!
To sign up, visit www.EPCAR.com, click the blue “Online Member Services” button, log in and click on “Register for Classes”.

how do you define "family"?

Our business was built on making loans for friends and family. My mom started very small and displayed such excellent customer service, that simple word of mouth marketing literally built a small empire. Lew Ann instilled that same friendly attitude in myself and I believe that mortgages cannot exists as only processing paperwork and researching guidelines, but and understanding of the borrower's lifelong goals and family priorities. We remember every one of our clients' names. It's true, our entire staff. 10 years probably equates to around 4,000 loans closed at Premier, and each one could call today and we would probably even recognize their voice.
Our personal friendships and clients depend on us to assist in their own financial transactions or save their homes. We are so grateful to still be in business and thriving. Our team at PHM is a real family. We often have diagreements and have even shed tears, but just like a real family, we are always there for a consoling hug or a shoulder to lean on. Ours is not an easy job now-a-days and it is truly our team that is our biggest assett, and always has been. They have shaped what is the most warm and friendly service that is a true hometown mortgage lender.

$500 Billion from Feds to buy Mortgages

The Federal Reserve announced a massive new program today to buy mortgage-backed securities. Up to $500 billion in funds will be used to buy mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae and up to $100 billion in funds will be used to buy up debt issued by those housing agencies.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally." The Fed said in their statement.
This latest step strikes at the heart of the current financial crisis, which is the struggling housing market. Mortgages are staging a huge rally in response to the news, and we hope to see interest rates fall significantly as a result.

Halloween Safety Tips

Can you find your favorite Premier staff member? Congrats to our costume contest winner: Diane Miller

Red Cross Halloween notes the following safety tips for your family to have a safe and happy Halloween!

With witches, goblins, and super-heroes descending on neighborhoods across America, the American Red Cross offers parents some safety tips to help prepare their children for a safe and enjoyable trick-or-treat holiday. Halloween should be filled with surprise and enjoyment, and following some common sense practices can keep events safer and more fun.

Walk, slither, and sneak on sidewalks, not in the street.
Look both ways before crossing the street to check for cars, trucks, and low-flying brooms.
Cross the street only at corners.
Don't hide or cross the street between parked cars.
Wear light-colored or reflective-type clothing so you are more visible. (And remember to put reflective tape on bikes, skateboards, and brooms, too!)
Plan your route and share it with your family. If possible, have an adult go with you.
Carry a flashlight to light your way.
Keep away from open fires and candles. (Costumes can be extremely flamable.)
Visit homes that have the porch light on.
Accept your treats at the door and never go into a stranger's house.
Use face paint rather than masks or things that will cover your eyes.
Be cautious of animals and strangers.
Have a grown-up inspect your treats before eating. And don't eat candy if the package is already opened. Small, hard pieces of candy are a choking hazard for young children.

Feds Cut Interest Rates - YAY!!

The U.S. Federal Reserve has cut short-term interest rates by half a percentage point in a co-ordinated international action. The banks said Wednesday morning they were acting to ease "the recent intensification of the financial crisis," in a move that will provide "timely and significant support" to the economy. The banks say inflationary pressures have started to moderate, "partly reflecting a marked decline in energy and other commodity prices."
With the U.S. and international financial system in disorder, Federal Reserve chairman Ben Bernanke and his colleagues resumed a rate-cutting campaign which had been halted in June amid worries about inflation.
"The pace of economic activity has slowed markedly in recent months," the Fed said.
"Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."
The central banks are trying to encourage shell-shocked banks, consumers and businesses to borrow, lend and spend more freely.

Government Bailout

The news has reported that we will know this week what the government's plans are to aid in the mortgage and economic crises. Many experts have many opinions, and while I am no expert, my opinion is certainly that the Government has to step in and do something. As you know, those of us here at Premier are like a family. Independently owned and operated, we often jokingly refer to our company as "friends and family mortgage." That said, we truly care about our clients. It is difficult to remove yourself, separating work and home, in this business. We are deeply invloved in a customer's entire financial overview and their complete credit history. This creates a great deal of trust and intimacy which has always been one of the most rewarding parts of my job.For example, seeing a new family cross the threshold of their new home, saving money for families and watching them cut up credit cards and save money (I have had a number of clients send me cut up credit cards attached to the thank you bouquet!).
The other side to that is the hopelessness I feel when a client calls and I cannot help them. Lately, there are so many more "no's." Job losses, super low home values, and very limited loan products leave very few options these days.
That said, we feel very fortunate that our company is still in business and my employees can still feed their families. We are closing a solid amount of loans each month and look forward to seeing the changes introduced and the effect on our mortgage making abilities!
More information today http://www.msnbc.msn.com/id/3683270/

Company Overhead

Our Accounting Department needed a little more room on Monday and asked if the conference room was available so she could utilize some "quiet-time" for uninterrupted quarterly evaluation of our expenses. As with so many companies, the amount of overhead required to originate, process, and close one mortgage can be quite high. Paperwork, paperwork! So in an effort to keep our services affordable for our clients, we frequently analyze all of our billing to ensure that we are operating at the most cost efficient methods. I had to share this photo from our conference room!

Top Producer - August

Congratulations to Mike Meyer, Loan Officer and Senior Broker, who was our Top Producer for the month of August. Mike closed more than half a million dollars in volume transactions last month. Mike works closely with his team of referring associates and mentors originators. His timely and smooth closings depend heavily on Processing Manager, KC Cusic, as she is the resident expert in all FHA loans. Mike is married to Tania and they have 3 boys, Dustin, Bradley, and C.J. (who keep Mike and Tania at the baseball and tee-ball fields most evenings). Kudos to Mike for his success in work and family!

Facing Foreclosure? Consider all your options.

In today's market and plummeting housing prices, many homeowners with mortgages could very possibly owe the lender more than their home is worth. This is not incredibly detrimental if you can afford your monthly payments. But many mortgagees are experiencing difficulty due to job loss, an adjustable rate mortgage, or rising fuel and food costs. If this is you, it may not be as bleak as it might sound. Negotiating a short sale with the lender could be the solution. This means the seller or the seller's agent sells the home to a buyer at market, or slightly below market value, and the lender agrees to accept the proceeds as payment in full on the mortgage, even though the sales price is less than the existing encumbrances.
The downside is that lenders are not required to negotiate discounted payoffs, and there is no guarantee your lender will let you do a short sale. In addition, lenders typically will not consider this option until the mortgagee (current owner) is months behind on his/her mortgage.
A short sale in real estate can sometimes be a lengthy and complicated transaction.
There are many ways to lose a home, but signing away ownership in a manner that destroys credit, embarrasses the family, and strips an owner of dignity; is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
If you are considering a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:
• Obtain advice from a competent mortgage professional
• Call an accountant to discuss short sale tax ramifications
This is a case of a distinction with a difference: If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss with the bank’s blessing, the bank agrees to eat the loss (although they could still demand the homeowner make some kind of payment or share the loss).
That’s the really short version of how it works. The experts say you’ll probably need to find a real estate agent willing to work for a smaller commission (which makes the bank a little more willing to absorb the loss), and you’ll also need to scale back your own spending.
Banks hate to take over homes, especially in a declining market, so you shouldn’t underestimate the willingness of a bank to make concessions.

Fay Freezes Homeowner's Insurance

Prior to the news interruptions during your favorite television program, you will find the staff of brokers and processors shouting down the halls of the Premier office to "bind your policies." Closing can be delayed and contracts expired if insurance policies and coverage cannot be obtained prior to the new home purchase. Depending on the carrier, agencies institute a freeze in writing new homeowner's insurance policies based on the hurricane's distance and anticipated path. As hurricane Fay warnings scatter throughout Central Florida, we are now on hold for new policies.

Your Credit Score

Your credit score is very important, as you probably know. What many people do not know is that having credit, properly managed, is the greatest positive impact on your report. For example, after college, and working full time, I disciplined myself to pay off and consolidate my small department store credit cards, as they had a higher rate of interest. I decided to maintain one card, with a low rate, for emergencies, etc. Having one card with a large balance (close to its maximum) really hurt my credit score. Instead I should have maintained multiple cards with very low balances.
It should never appear as though you have exhausted all possible funds, this is the greatest negative impact on your credit. Additionally, the more recent a derogatory tradeline (i.e. late payment), the worse it is for your credit report. Lastly, do not be afraid to dispute things. We very often see errors in credit reporting with similar names or social security numbers transposed. Keep an eye on your report and don't be afraid to ask for help. We are happy to assist clients clean up their credit, in the end it saves us all money!

No Money Out of Pocket

Despite the current mortgage market, FHA loans still require a very minimal downpayment. Among the most underestimated loan product is one involving Down Payment Assistance (DPA). Currently DPA is a viable means, to which, borrowers can rely upon, to aid in the downpayment required (typically 3%) on an FHA loans on home purchases. HUD has initiated many measurers to combat a weak mortgage industry including the enhancement of afforadable housing programs, including increasing the FHA loan limits, in ours and surrounding counties. For further information on how you can make a downpayment on your property AND finance your closing costs, resulting in little to zero money down, feel free to contact us for a NO obligation consultation. It is truly our passion to educate and faciltate Central FL on affordable home loans and lending opportunities. We look forward to meeting your family!