Every year the United States Department of Agriculture (USDA) ?guarantees thousands of home loans to borrowers who have?an income of up to 115% of the median income for the area. Funding for the program is always uncertain and there is generally a period during which funding for the program is not available and that time usually is late in the year. Read the rest of this entry »

— Ken Cook NMLS ID 208452

— Ken Cook NMLS ID 208452

Buying a first home, even buying any home, can be a nerve racking and tedious adventure. As with anything else experience is the best teacher but short articles on blogs can help, too! Obviously it is not possible within a few lines of text to provide an in-depth education and exposition of the process of buying a first home. However a few short pointers of do’s and do not’s can be highly valuable. Follow that up with a contact form and you will be well on your way! Read the rest of this entry »

— Ken Cook NMLS ID 208452

Continuing the great and enlightening discussion on the topic of short sales it has come time for the bane of the web: a poll. Actually polls are not the bane of the web but they are also usually skewed and completely unscientific when used in this manner. However, which is the same as but, your opinion and perspective is invited on this particular matter.

Having taught and “done” short sales for a number of years, in fact well before they were one of the biggest buzz-words in the industry, I have had the chance to work with many agents, sellers, buyer, banks, and lenders in multiple aspects of the process. Still there are “gaps” in understanding, approach and even the timing of a short sale. Moreover, and more personally important to me as the lender offering financing to people who are purchasing short sales, the timing of when a property officially becomes a short sale. Read the rest of this entry »

— Ken Cook NMLS ID 208452

You have almost certainly heard the phrase “short sale” over the last several months. As the nation’s housing market imploded and millions of people began falling behind on their mortgage payments and started facing foreclosure short sales have become much more popular. Many “short sales experts” began showing up around 2007 who had not even heard the term until the attended a class or read an article by someone who may have been familiar with short sales for many years.

Opportunity also breeds scams and the short sales opportunity almost immediately saw hundreds of websites come into existence claiming to be part of a “Government Loan Modification Program”. If you are facing foreclosure and you are searching for help online be warned -- NEVER pay anyone upfront for help avoiding foreclosure or to negotiate a short sale for you. NEVER assign your deed or sign a contract giving another party control of your property. Consult a reputable personal asset protection attorney in your area and ask them how much experience they have had with short sales. The same goes for any real estate agent who says they have short sale experience.

Almost every lender will “consider” a short sale. If you are a home buyer or a buyer’s agent looking at a “short sale listing” the very first question to ask is “has the short sale been approved at a specific dollar amount?” If it has then you have a short sale and you should make your offer based on that knowledge. However, if the answer is “the short sale has been approved and they will consider offers” then it is not a short sale. It is a listing for a home for sale with the possibility of negotiating a short sale.

If the short sale has not been approved to a specific dollar value plan on 45 to 180 days of negotiating. If the short sale has been approved to a specific dollar value and you want to offer less than that amount ditto.

— Ken Cook NMLS ID 208452

September of 2009 brought devastating flooding to many areas of metropolitan Atlanta, Georgia. During this time flood waters from the Chattahoochee River, the Yellow River, Peachtree Creek and hundreds of other small tributaries and?reservoirs?crested to record levels. During a 24 to 48 hour period as much as 15 inches of rain deluged the already water soaked landscape and created a new line of?demarcation?between flood zone and safe zone.

At least eight people lost their lives, hundreds were injured and thousands left homeless as the Georgia flood receded. What it left behind, as does any flood or other disaster, is wounded lives and dashed hopes and dreams. As a grim reminder of the loss of property there is a raw video feed from CNN attached. Read the rest of this entry »

— Ken Cook NMLS ID 208452

Regardless of the industry there are certain buzzwords or words that seem like they are created simply to confuse the outsider. Near the bottom of the list for business goals should be confusing customers. Unfortunately it does happen and the one who stands the highest chance for damage is the most valuable of all; the customer.

Mortgage professionals throw around terms like an alphabet soup that would frighten even Vanna White. Words like ten oh three (1003) and respa (RESPA – Real Estate Settlement and Procedures Act) fall out of their mouths like jelly beans out of a pinata.

Making it even a little more confusing for you different agencies use the same term to apply to different meanings and vice versa. Streamline and streamlined for example.

The Federal Housing Administration (FHA) makes available a couple of different “streamline” loans. Freddie Mac (FHLMC) has their “streamlined” loan. Essentially they are the same product and if you phone an FHA lender and ask for a “streamlined” loan they will neither laugh at you nor hang up on you.

For all practical purposes streamline loans, whether a streamline refinance or otherwise, indicate something less is required or they go faster than a standard loan. For the FHA streamline refinance a little less documentation is required and sometimes less evidence of value is required.

Read the rest of this entry »

— Ken Cook NMLS ID 208452

Changes always make for great conversation. Just a few years ago that conversation was relatively limited in reach to inner office or group communication. With the advent and proliferation of the Internet and all it brings information truly spreads at the speed of light. With everyone having the same amount of reach regardless of having the same knowledge and experience the “playing field” for readership is equalized.

The Federal Housing Administration, the arm of the Department of Housing and Urban Development which insures mortgages on millions of home, recently adopted some changes and announced a smattering of proposed changes which have the potential of making it more difficult for struggling Americans to enter the housing market or make a change in housing. Read the rest of this entry »

— Ken Cook NMLS ID 208452

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON – In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes. Read the rest of this entry »

— Ken Cook NMLS ID 208452

The IRS has released their new form for the first time homebuyer’s tax credit.

The most important new line is here:

If you are claiming the credit on your 2009 (or later) tax return, you must attach a copy of the properly executed settlement statement (or similar documentation) used to complete the purchase (see instructions).

It seems the IRS finally wised up that people were fraudulently stating they had already purchased the home when indeed the purchase had not yet been completed.

Link to the document http://www.irs.gov/pub/irs-pdf/f5405.pdf

— Ken Cook NMLS ID 208452