Archive for February, 2007
Tuesday Turbulance Warning: Are You Getting A Gift To Make That Purchase? Watch Out!
Be careful however. these are turbulant waters. You don’t want to start the process with false hopes. Here are a few points to consider:
1- Usually a 20% gift make things totally acceptable.
2- The gift usually must come from a family member, non profit organization, or employer.
3- The gift must be accompanied by a letter stating it is not to be repaid.
4- Less than 20% gift means you probably will have to use some of your own money.
5- In some cases you are better using 100% financing and then after closing using to pay off some of the mortgage you took out. (Probably a second).
6- A gift of the home equity, can be done, but is scruitinized for inflated value.
7- Non profit gifts were popular but under fire. In these cases, the price was raised to cover the gift from the non profit. Read the following warning if you are considering going non profit:
HUD Cracking Down on Downpayment Assistance
The Department of Housing and Urban Development has initiated a rulemaking process to crack down on downpayment assistance programs that have bolstered Federal Housing Administration single-family loan originations but also led to rising FHA defaults and foreclosures, according to the HUD inspector general.
If all this sounds like it is full of maybes and what if’s, it is. That is another reason not to use someone that may be incompetent, like your friend who just got into the business. Sorry friend. Larry Cragun
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And The Winner In The Mortgage Category Is……..
The 10 Year Interest Only ARM. Yep it is my favorite product. It offers more flexibility. You can amortize it or just pay the interest. A large principle payment is going to immediately reduce your required payment. You can qualify for more home with the same income. It is a winner despite what the press says. Larry Cragun
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It Has Been Just Much Too Serious And Heavy Around Here.
[url=http://blogyaz.com/mydakar/]buy cialis[/ur
I just deleted approximately 200 messages that looked like this above.
Understand you must speak a foreign language to get the full meaning. I will translate it for you. Larry Cragun
Oh The Tranlation: SPAM
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FINAL NOTICE: APPLY BY MARCH 1ST & MAKE NO MORTGAGE PAYMENTS UNTIL MAY 2007
The Option ARM fraud tri-fecta hit me today. First on the radio, second on a fax a relative sent me, and third a phone call I received. The radio add was clearly deceptive, the fax I will share some of with you, and the phone call full of hope and a prayer about a friends great offer. A loan officer friend. I hate this.
As I listened to the radio add I wanted to just throw up. No pictures here I promise. (I did think about it). Then my relative and the phone call seemed so hopeful and the offer so full of crap I wanted to send them all to jail. Why the government doesn’t address this false advertising I dont know. They should start by making an example of the big boys, the on line lead generators that lead with this 1% full of baloney product.
The heading: OLD TERMS and the current lender info
followed by their data and the heading:
INTEREST RATE: 1 %
Payment TYPE: FIXED
No one is going to give you a 1% fixed rate. NO ONE NO ONE NO ONE NO ONE NO ONE. GET IT!
For your tender review, here is part of the fax I received and some commentary.
Dear (My relative)
REDUCE YOUR MORTGAGE PAYMENT TO $772 PER MONTH.
(My relative) after carefully reviewing your original first mortgage loan amount of $(the amount) with America’s Wholesale lender, we have PRE-QUALIFIED you for a new mortgage payment of $772 per month. This is a fixed payment
Commentary: My relative thought it was her lender by the way the heading was organized. She loved the payment amount. It is not a fixed payment except through being a negative amortization loan. You pay $772 and the difference is added to your mortgage balance.
There are three more paragraphs of fluff suggesting they could take cash out and go have a spending party.
My new Friday Fantasy is that some day someone will write me and say they read my tirades and were saved.
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