Banks might be taking too long or not returning your calls, right?
If you are looking for a mortgage, you may have been advised that it’s better to go through a mortgage broker.Now a days if you are still in the business, you must have done something right, because the downfall of the SubPrime Loans has weeded out a lot of the bad brokers in our business. This seems to make sense because most major lenders (ALL THREE OF THEM) will take an average 45 days to close a loan, forget about getting pre-approved or a return call, they are so busy that they cannot handle the work loan. Brokers are experts, aren’t they? This is generally true. But it doesn’t mean that you have to accept everything the broker says, or be completely uncritical. There are some things you need to look out for.
At one time just about anyone could set up as a mortgage broker.
All brokers are supposed to offer advice and a recommendation. Beware of a mortgage broker who claims only to offer information. This may be to forestall potential complaints.
Be extremely wary of a broker who encourages you to bend the truth in order to get the mortgage you want. It’s part of the mortgage broker’s job to make sure you get a mortgage which you can afford and which is right for your circumstances.
Some mortgage brokers will tell you that they are “whole of market” when they only in fact have access to a representative panel. This may not necessarily be a bad thing in itself, but you should be careful of a broker who you think is trying to mislead you. Check just how many lenders the broker has access to.
A mortgage broker who works on a commission basis may seem cheaper. But can you really be sure that the broker is recommending the product that is best for you, rather than being swayed by the commission? Of course most brokers are honest and genuine. And they are actually bound by their professional code to give the advice that is in the client’s best interests. But if this is a worry for you, choose one that operates on a fee basis.
If you do use a mortgage broker who operates on a fee basis, avoid one who expects you to pay the bill before completion of the transaction. This can cause problems if things change or break down later on. Check at the beginning when the broker expects the fee to be paid.Always remember you are the customer. Don’t let yourself be over-awed by the broker’s expertise. A good mortgage broker will always be happy for you to check everything and ensure that everything is being done in your best interests.
Most important advise for you to follow, get all the fee and rate quotes in writing and make them guarantee it. WE CAN! WE CAN CLOSE IN ABOUT 15 WORKING DAYS TOO!
For more help or inquiries, call Ken Go at (562) 697-7028 or write to kennethgo@verizon.net.
Tuesday, September 22, 2009
Monday, September 21, 2009
What can tenants do when the owners are no longer paying the mortgage?
What can tenants do when the owners are no longer paying the mortgage?
I hope this would be the last stages of the foreclosures that are occurring in our state. I had predicted that the past 3-6 months might have reduce the homeowners with Sub-Prime loans that are going into foreclosures. But we have a new problem here in our state, which is “Unemployment” and that has been the leading factor for this new trend of homeowners not able to pay their mortgages.
For homes that are tenant occupied, here are some Recent Laws:
Helping Families Save Their Homes Act of 2009 ----
1) Federal Law took effect May 20, 2009.
2) Law requires that for any residential real estate foreclosure, the immediate successor in interest to the property (i.e. foreclosing lender or third party purchaser) to send a Notice to Vacate effective at least 90 days after the date of the Notice to the “bona fide” tenant.
3) To be a “bona fide” tenant All of the following must be met:
a. The tenant is not the borrower, former owner or their immediate family member.
b. The lease or tenancy was an arms-length transaction, and
c. The lease or tenancy requires that rent that is not substantially less than fair market rent, unless subject to federal, state or local rent controls.
4) Additionally, the Notice must advise any tenant that entered into a “bona fide” lease of the tenant’s right to occupy the property through the end of the lease term, unless the successor in interest intends to use the property as a principal residence in which case the 90 day Notice would still be in effect.
5) Notice must still be given, but Successor in interest is not required to abide by the terms of the lease if it was oral: month to month; set to expire within 90 days after the foreclosure sale; entered into subsequent to receiving the first foreclosure notice.
California Foreclosure Prevention Act --- effective June 15, 2009
1) The lender must wait an additional 90 after the expiration of the three-month waiting period before a Notice of Sale can be filed if ALL the following conditions are met:
a. The loan was recorded from January 1, 2003 to January 1, 2008;
b. The loan is secured by a first deed of trust; and
c. The borrower occupied the property as the borrower’s principal residence at the time the loan became delinquent
2) It is possible for a lender to receive an exemption from the new law by implementing a comprehensive loan modification program that is approved by either the Department of Corporations, the Department of Real Estate or the Department of Financial Institiutions.
3) This law is set to remain in effect from June 15, 2009 to January 1, 2011.
So, far Loan Modifications for homeowners in need of such assistance has proven to be unsuccessful, lenders are prolonging the foreclosure process, which in tern could either help the homeowners find other sources of income to come up with the mortgage payments or for them to wait for better modification solutions in place compared to what is available.
I believe and repeatedly explain to my callers that in order to understand how a Bank/Lender can help you, you should see the big picture and not get emotional or personal about this. Banks will always put themselves ahead of you, remember that. Therefore when you are calling a bank to ask for help, remember here are the reasons why they should or can help you:
1) Your loan is a “Negative Amortization Loan”, these loans are called the “Teaser Loans” the banks are trying to get rid of these types of loans as fast as they can.
2) You have a predatory loan ( loans rates that are either short term adjustables or high interest yielding fixed rates ).
3) You qualify for hardship for hardship due to some of these major factors:
a. Death in the family.
b. Lost of employment or reduction of employments hours.
4) The key factor why a bank would want to help you is that they have to see that you can make your payments once they have decided to modify your loan. They need to see the “Ability to Repay” the debt. They will calculate your possible lower rates including the taxes and insurance to assure these obligations paid consistently every month. Otherwise, once after the trial period you might fall back into the same scenario and not able to pay again.
By understanding how the lenders sees you as a borrower that will eliminate a lot of confusion about why lenders would rather foreclose rather than modify. Another major factor is that your lenders ( BOA, Chase or Wells Fargo ) to name a few might not be the actual “INVESTOR” of your loan, they might just be servicing the loan. That means any type of modification to the original note has to be approved by them.
Please call for to discuss your situation and hopefully I have the answer you are looking for. Please call Ken Go of 1st Innovative Finance Group at (562) 697-7028 or write to kennethgo@verizon.net.
I hope this would be the last stages of the foreclosures that are occurring in our state. I had predicted that the past 3-6 months might have reduce the homeowners with Sub-Prime loans that are going into foreclosures. But we have a new problem here in our state, which is “Unemployment” and that has been the leading factor for this new trend of homeowners not able to pay their mortgages.
For homes that are tenant occupied, here are some Recent Laws:
Helping Families Save Their Homes Act of 2009 ----
1) Federal Law took effect May 20, 2009.
2) Law requires that for any residential real estate foreclosure, the immediate successor in interest to the property (i.e. foreclosing lender or third party purchaser) to send a Notice to Vacate effective at least 90 days after the date of the Notice to the “bona fide” tenant.
3) To be a “bona fide” tenant All of the following must be met:
a. The tenant is not the borrower, former owner or their immediate family member.
b. The lease or tenancy was an arms-length transaction, and
c. The lease or tenancy requires that rent that is not substantially less than fair market rent, unless subject to federal, state or local rent controls.
4) Additionally, the Notice must advise any tenant that entered into a “bona fide” lease of the tenant’s right to occupy the property through the end of the lease term, unless the successor in interest intends to use the property as a principal residence in which case the 90 day Notice would still be in effect.
5) Notice must still be given, but Successor in interest is not required to abide by the terms of the lease if it was oral: month to month; set to expire within 90 days after the foreclosure sale; entered into subsequent to receiving the first foreclosure notice.
California Foreclosure Prevention Act --- effective June 15, 2009
1) The lender must wait an additional 90 after the expiration of the three-month waiting period before a Notice of Sale can be filed if ALL the following conditions are met:
a. The loan was recorded from January 1, 2003 to January 1, 2008;
b. The loan is secured by a first deed of trust; and
c. The borrower occupied the property as the borrower’s principal residence at the time the loan became delinquent
2) It is possible for a lender to receive an exemption from the new law by implementing a comprehensive loan modification program that is approved by either the Department of Corporations, the Department of Real Estate or the Department of Financial Institiutions.
3) This law is set to remain in effect from June 15, 2009 to January 1, 2011.
So, far Loan Modifications for homeowners in need of such assistance has proven to be unsuccessful, lenders are prolonging the foreclosure process, which in tern could either help the homeowners find other sources of income to come up with the mortgage payments or for them to wait for better modification solutions in place compared to what is available.
I believe and repeatedly explain to my callers that in order to understand how a Bank/Lender can help you, you should see the big picture and not get emotional or personal about this. Banks will always put themselves ahead of you, remember that. Therefore when you are calling a bank to ask for help, remember here are the reasons why they should or can help you:
1) Your loan is a “Negative Amortization Loan”, these loans are called the “Teaser Loans” the banks are trying to get rid of these types of loans as fast as they can.
2) You have a predatory loan ( loans rates that are either short term adjustables or high interest yielding fixed rates ).
3) You qualify for hardship for hardship due to some of these major factors:
a. Death in the family.
b. Lost of employment or reduction of employments hours.
4) The key factor why a bank would want to help you is that they have to see that you can make your payments once they have decided to modify your loan. They need to see the “Ability to Repay” the debt. They will calculate your possible lower rates including the taxes and insurance to assure these obligations paid consistently every month. Otherwise, once after the trial period you might fall back into the same scenario and not able to pay again.
By understanding how the lenders sees you as a borrower that will eliminate a lot of confusion about why lenders would rather foreclose rather than modify. Another major factor is that your lenders ( BOA, Chase or Wells Fargo ) to name a few might not be the actual “INVESTOR” of your loan, they might just be servicing the loan. That means any type of modification to the original note has to be approved by them.
Please call for to discuss your situation and hopefully I have the answer you are looking for. Please call Ken Go of 1st Innovative Finance Group at (562) 697-7028 or write to kennethgo@verizon.net.
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