September 29, 2010
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From Realty Times, 30-Yr Mortgage Rate Nears 3.875 Percent by Ed Ferrara
Mortgage-backed securities prices, which drive mortgage rates their opposite, posted gains Monday and Tuesday consecutively, pressuring mortgage rates to move downward again from already record low levels where they began the week.
30-year fixed mortgage rates, currently at 4% for well-qualified borrowers who pay 1 point origination, are very near 3.875%. 30-year fixed mortgage rates have never been below 4% before. 15-year fixed mortgage rates remain at 3.5% but could improve any hour as well.
FreeRateUpdate.com surveys over 2 dozen wholesale lenders' rate sheets for brokers daily to determine the most accurate mortgage rates available to highly qualified borrowers at a standard origination fee.
FHA loan rates continue to mirror conforming mortgage rates. Today's 30-year fixed FHA loan rate is also 4%; however, MI and other FHA closing fees make APR higher than that of a conforming mortgage at the same note rate and origination.
Jumbo mortgage rates are improved from last week and today's jumbo 30-year fixed loan rate is 4.875%, a record low.
Wells Fargo mortgage rates, as advertised on their website, are unchanged with 4.375% (4.559 APR) being their offering on a conventional 30-year fixed mortgage.
Mortgage refinance applications have been flat according to the MBA, who posts figures weekly, since spiking as rates slid into the low 4's.
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Copyright © 2010 Realty Times. All Rights Reserved.
Wednesday, September 29, 2010
Friday, September 24, 2010
Fixed-Rate Mortgages Unchanged
September 24, 2010
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From Realty Times - Fixed-Rate Mortgages Unchanged While ARMs Are Mixed
McLean, VA – Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.
30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.
15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.
1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, "In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week."
"Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."
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Copyright © 2010 Realty Times. All Rights Reserved.
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From Realty Times - Fixed-Rate Mortgages Unchanged While ARMs Are Mixed
McLean, VA – Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.
30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.
15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.
1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, "In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week."
"Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."
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Copyright © 2010 Realty Times. All Rights Reserved.
Tuesday, September 21, 2010
Attack on Homeownership
The Attack on Homeownership by Bob Hunt September 21, 2010
Homeownership is under attack in America. A small sampling: "The Case Against Homeownership" by Barbara Kiviat, Time Magazine cover story, Sept. 6, 2010; "Downsizing the Dream" by Washington Post columnist, Robert Samuelson, August 29, 2010; and "The Un-American Dream" by Don Watkins and Yaron Brook of the Ayn Rand Center, in Forbes.com, August 27, 2010.
Certain aspects of the attack are not, strictly speaking, against homeownership itself. Rather, they are arguments from principle against government policies that promote homeownership. These are principled arguments in the sense that they derive from beliefs that oppose all government attempts to influence any of our choices. Thus, Watkins and Brook write, "A government crusade to promote homeownership is un-American." "In America, the government’s job is to protect our freedom to pursue our values, not to dictate what our values are. Its homeownership policy should be the same as its toaster oven policy: laissez-faire."
Others may not in general oppose government intervention and attempts to influence our choices, but they suggest that, in the particular case of promoting homeownership, the cost to government is simply too high. Kiviat says that the mortgage interest deduction "cost the government some $80 billion in lost revenue in 2009." Samuelson estimates, "Tax breaks (mainly the deductions for mortgage interest and property taxes, plus preferential treatment of capital gains on homes) exceeded $120 billion in 2009."
Of course these figures may amount to chump change in the context of the multi-trillion dollar estimates regarding the cost of bailouts and the "stimulus". Moreover, the "lost revenues" attributed to tax-advantaged housing may well be offset by the variety of positive social outcomes (e.g. lower crime rates) that have been attributed to neighborhoods with high ownership rates.
Perhaps the wildest attack comes in the Time Magazine article by Kiviat: "The dark side of homeownership is now all too apparent: foreclosures and walkaways, neighborhoods plagued by abandoned properties and plummeting home values, a nation in which families have $6 trillion less in housing wealth than they did just three years ago." But she is mistaken. All those regrettable events were not caused by homeownership; they were caused by foolishly-easy credit and by reckless lending programs.
In August of 2010 the National Association of Realtors® (NAR) released a paper entitled "Social Benefits of Homeownership and Stable Housing". The timeliness of this document was probably not coincidental. The paper is a "review of existing academic literature that documents the social benefits of homeownership." There is not room here to recount the detail, but the study concludes "…there is evidence from numerous studies that attest to the benefits accruing to many segments of society. Homeownership boosts the educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime rates and lessens welfare dependency." "Public policy makers would be wise to consider the immense social benefits of homeownership for families, local communities, and the nation."
The NAR study is clear that the social benefits of homeownership are tied to stability (the lack of high turnover in neighborhoods). But Kiviat, in the Time Magazine article, even questions the value of that. "Homeownership may provide a sense of stability to families, but stability in today’s economy isn’t always a virtue." She quotes economist Andrew Oswald, "The economy is changing all the time, and we need people to be mobile in order to drop into the right job slots."
What to make of all this? Well, I don’t think homeownership is about to be banned. But you can sure expect to see some chipping away at its tax advantages as the government tries to figure out how it’s going to get out of the financial hole that has been dug. There will be a lot of economic arguments.
Can we put a value on homeownership? Ironically, the best answer may be contained in an anecdote that appears in the Time article. Kiviat writes, "Star Korajkic, one of America’s newest homeowners, doesn’t particularly care about all this financial history. What she cares about is being able to paint her daughter’s room purple without asking anyone’s permission."
And what is the value of that? Priceless.
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Copyright © 2010 Realty Times. All Rights Reserved.
Homeownership is under attack in America. A small sampling: "The Case Against Homeownership" by Barbara Kiviat, Time Magazine cover story, Sept. 6, 2010; "Downsizing the Dream" by Washington Post columnist, Robert Samuelson, August 29, 2010; and "The Un-American Dream" by Don Watkins and Yaron Brook of the Ayn Rand Center, in Forbes.com, August 27, 2010.
Certain aspects of the attack are not, strictly speaking, against homeownership itself. Rather, they are arguments from principle against government policies that promote homeownership. These are principled arguments in the sense that they derive from beliefs that oppose all government attempts to influence any of our choices. Thus, Watkins and Brook write, "A government crusade to promote homeownership is un-American." "In America, the government’s job is to protect our freedom to pursue our values, not to dictate what our values are. Its homeownership policy should be the same as its toaster oven policy: laissez-faire."
Others may not in general oppose government intervention and attempts to influence our choices, but they suggest that, in the particular case of promoting homeownership, the cost to government is simply too high. Kiviat says that the mortgage interest deduction "cost the government some $80 billion in lost revenue in 2009." Samuelson estimates, "Tax breaks (mainly the deductions for mortgage interest and property taxes, plus preferential treatment of capital gains on homes) exceeded $120 billion in 2009."
Of course these figures may amount to chump change in the context of the multi-trillion dollar estimates regarding the cost of bailouts and the "stimulus". Moreover, the "lost revenues" attributed to tax-advantaged housing may well be offset by the variety of positive social outcomes (e.g. lower crime rates) that have been attributed to neighborhoods with high ownership rates.
Perhaps the wildest attack comes in the Time Magazine article by Kiviat: "The dark side of homeownership is now all too apparent: foreclosures and walkaways, neighborhoods plagued by abandoned properties and plummeting home values, a nation in which families have $6 trillion less in housing wealth than they did just three years ago." But she is mistaken. All those regrettable events were not caused by homeownership; they were caused by foolishly-easy credit and by reckless lending programs.
In August of 2010 the National Association of Realtors® (NAR) released a paper entitled "Social Benefits of Homeownership and Stable Housing". The timeliness of this document was probably not coincidental. The paper is a "review of existing academic literature that documents the social benefits of homeownership." There is not room here to recount the detail, but the study concludes "…there is evidence from numerous studies that attest to the benefits accruing to many segments of society. Homeownership boosts the educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime rates and lessens welfare dependency." "Public policy makers would be wise to consider the immense social benefits of homeownership for families, local communities, and the nation."
The NAR study is clear that the social benefits of homeownership are tied to stability (the lack of high turnover in neighborhoods). But Kiviat, in the Time Magazine article, even questions the value of that. "Homeownership may provide a sense of stability to families, but stability in today’s economy isn’t always a virtue." She quotes economist Andrew Oswald, "The economy is changing all the time, and we need people to be mobile in order to drop into the right job slots."
What to make of all this? Well, I don’t think homeownership is about to be banned. But you can sure expect to see some chipping away at its tax advantages as the government tries to figure out how it’s going to get out of the financial hole that has been dug. There will be a lot of economic arguments.
Can we put a value on homeownership? Ironically, the best answer may be contained in an anecdote that appears in the Time article. Kiviat writes, "Star Korajkic, one of America’s newest homeowners, doesn’t particularly care about all this financial history. What she cares about is being able to paint her daughter’s room purple without asking anyone’s permission."
And what is the value of that? Priceless.
--------------------------------------------------------------------------------
Copyright © 2010 Realty Times. All Rights Reserved.
Avoid Foreclosure
From Realty Times - Avoid Foreclosure by Carla Hill on September 21, 2010
In a country with a growing foreclosure rate, new default notices being sent every day, and an unemployment rate over 9 percent, the chances of foreclosure affecting you or someone you know is on the rise.
RealtyTrac.com reports that in August 2010, foreclosure filings rose by 4 percent, with 338,836 new filings, affecting one in every 381 households.
If you find yourself struggling to make your payments, here are some ways to avoid foreclosure.
First, be realistic about your situation. Answer phone calls from your lender and open your mail. This is the time to face your problem head on. Could a foreclosure be on the horizon? Be aware of warning signs.
Warning signs can include significant life changes, such as the death of a spouse, loss of job, illness, divorce, and steep increases in your mortgage payment.
If you are having trouble making monthly payments on other bills, now is the time to pay attention. Your mortgage could be the next bill that becomes too much. In order to curb missed payments, prioritize your spending.
Establish a budget and cut out any unnecessary spending (e.g. movies, cable, eating out, shopping) until you are in a more stable financial state. Apart from healthcare, there is nothing more important than your home. If you have assets to sell off, then do so! The cash may be better spend in helping you save your home.
Next, call your lender to explain your situation and to see what options are available. In these tough economic times, many lenders have programs that may help you stay in your home. Foreclosures do more than run ruin on your credit score, they also affect a lender's bottom line. If working out an agreement with you can help them save that bottom line, the changes of them helping you are high.
When you speak with your lender, have proof of your monthly income, as well as your budget on hand. You will also need to have an explanation of why you are unable to make your payments. Has someone lost their job? Has there been a medical emergency? It is best to be honest and upfront with your lender regarding your situation.
Some options you may discuss with your lender include refinancing, reinstatement (where your lender allows you to pay the money you are behind in one lump sum and by a certain date), forbearance (a temporary reduction or cessation of your mortgage payment), a new repayment plan, and loan modification (a permanent change to some of the terms of your existing mortgage).
Beware of scammers during this process. Help and counsel from your lender should be free of charge. If you come across someone requesting a fee in order to facilitate help, chances are it is a scam.
The Making Home Affordable Program is also available for those who are struggling to make their payments. This program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure.
The sooner you contact your lender, the better. Don't wait until you are days away from being foreclosed. The process of working out an arrangement with your lender could take multiple phone calls and weeks of time.
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Copyright © 2010 Realty Times. All Rights Reserved.
In a country with a growing foreclosure rate, new default notices being sent every day, and an unemployment rate over 9 percent, the chances of foreclosure affecting you or someone you know is on the rise.
RealtyTrac.com reports that in August 2010, foreclosure filings rose by 4 percent, with 338,836 new filings, affecting one in every 381 households.
If you find yourself struggling to make your payments, here are some ways to avoid foreclosure.
First, be realistic about your situation. Answer phone calls from your lender and open your mail. This is the time to face your problem head on. Could a foreclosure be on the horizon? Be aware of warning signs.
Warning signs can include significant life changes, such as the death of a spouse, loss of job, illness, divorce, and steep increases in your mortgage payment.
If you are having trouble making monthly payments on other bills, now is the time to pay attention. Your mortgage could be the next bill that becomes too much. In order to curb missed payments, prioritize your spending.
Establish a budget and cut out any unnecessary spending (e.g. movies, cable, eating out, shopping) until you are in a more stable financial state. Apart from healthcare, there is nothing more important than your home. If you have assets to sell off, then do so! The cash may be better spend in helping you save your home.
Next, call your lender to explain your situation and to see what options are available. In these tough economic times, many lenders have programs that may help you stay in your home. Foreclosures do more than run ruin on your credit score, they also affect a lender's bottom line. If working out an agreement with you can help them save that bottom line, the changes of them helping you are high.
When you speak with your lender, have proof of your monthly income, as well as your budget on hand. You will also need to have an explanation of why you are unable to make your payments. Has someone lost their job? Has there been a medical emergency? It is best to be honest and upfront with your lender regarding your situation.
Some options you may discuss with your lender include refinancing, reinstatement (where your lender allows you to pay the money you are behind in one lump sum and by a certain date), forbearance (a temporary reduction or cessation of your mortgage payment), a new repayment plan, and loan modification (a permanent change to some of the terms of your existing mortgage).
Beware of scammers during this process. Help and counsel from your lender should be free of charge. If you come across someone requesting a fee in order to facilitate help, chances are it is a scam.
The Making Home Affordable Program is also available for those who are struggling to make their payments. This program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure.
The sooner you contact your lender, the better. Don't wait until you are days away from being foreclosed. The process of working out an arrangement with your lender could take multiple phone calls and weeks of time.
--------------------------------------------------------------------------------
Copyright © 2010 Realty Times. All Rights Reserved.
Real Estate Outlook
From Realty Times - Real Estate Outlook: Foreclosures Rise by Carla Hill on 9-20-10
For some real estate investors this week -- it could be good news. The National Association of Home Builder's latest Multifamily market index reports that current and expected demand for rental apartments improved significantly in the second quarter of 2010 compared to the first quarter.
David Crowe, NAHB's Chief Economist remarked that "as the supply of additional units declines and pent-up household formations re-emerge when the labor markets improve, demand for traditional rental apartments will rise. It is possible that the supply of new units will not arrive in time to meet the emerging demand and some shortages will occur in some markets."
This promising piece of news was followed by new on consumer spending.
Consumer spending is on the rise, even if its only a modest gain. The Commerce Department reports that spending rose 0.4 percent in July, and that is after remaining flat during the month of June.
The Wall Street Journal reported that consumer spending is on track to grow at a 2 percent annual rate in the 3rd quarter. So, it's slow, but not a stand still.
Unemployment across the nation is still affecting millions. Around 15 million to be more precise. The first week of September saw a fall in initial jobless claims -- down 27,000, the lowest level in quite some time. And experts are seeing signs of sustainable growth, even with the rate of unemployment still around 9 percent.
Are you one of the many homeowners living in neighborhoods hit hard by foreclosures? The Obama Administration and HUD announced it has awarded an additional $1 billion in funding to all states along with a number of counties and local communities struggling to reverse the effects of the crisis.
The grants are designed to reverse the effect foreclosed properties have on their neighborhoods and home values. Among other things, the grants will be used to offer downpayment and closing cost assistance to low to moderate income homebuyers.
Foreclosures are still overwhelming many markets, rising 4 percent in August. RealtyTrac.com CEO, James Saccacio reports that "the trend lines of decreasing default notices and increasing bank repossessions converged in August, with virtually the same number of new default notices and bank repossessions for the month — a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."
Are you a borrower over the age of 62 looking to make ends meet? Chances are, then, that you've heard of reverse mortgages. These loans tap into the equity of a home, in turn helping those in need of fast cash.
The Federal Reserve Board has proposed new rules to help stop unfair practices that exist with these -- many times costly -- loans. We should see the proposal for new regulations by this November. We'll keep you informed.
--------------------------------------------------------------------------------
Copyright © 2010 Realty Times. All Rights Reserved.
For some real estate investors this week -- it could be good news. The National Association of Home Builder's latest Multifamily market index reports that current and expected demand for rental apartments improved significantly in the second quarter of 2010 compared to the first quarter.
David Crowe, NAHB's Chief Economist remarked that "as the supply of additional units declines and pent-up household formations re-emerge when the labor markets improve, demand for traditional rental apartments will rise. It is possible that the supply of new units will not arrive in time to meet the emerging demand and some shortages will occur in some markets."
This promising piece of news was followed by new on consumer spending.
Consumer spending is on the rise, even if its only a modest gain. The Commerce Department reports that spending rose 0.4 percent in July, and that is after remaining flat during the month of June.
The Wall Street Journal reported that consumer spending is on track to grow at a 2 percent annual rate in the 3rd quarter. So, it's slow, but not a stand still.
Unemployment across the nation is still affecting millions. Around 15 million to be more precise. The first week of September saw a fall in initial jobless claims -- down 27,000, the lowest level in quite some time. And experts are seeing signs of sustainable growth, even with the rate of unemployment still around 9 percent.
Are you one of the many homeowners living in neighborhoods hit hard by foreclosures? The Obama Administration and HUD announced it has awarded an additional $1 billion in funding to all states along with a number of counties and local communities struggling to reverse the effects of the crisis.
The grants are designed to reverse the effect foreclosed properties have on their neighborhoods and home values. Among other things, the grants will be used to offer downpayment and closing cost assistance to low to moderate income homebuyers.
Foreclosures are still overwhelming many markets, rising 4 percent in August. RealtyTrac.com CEO, James Saccacio reports that "the trend lines of decreasing default notices and increasing bank repossessions converged in August, with virtually the same number of new default notices and bank repossessions for the month — a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."
Are you a borrower over the age of 62 looking to make ends meet? Chances are, then, that you've heard of reverse mortgages. These loans tap into the equity of a home, in turn helping those in need of fast cash.
The Federal Reserve Board has proposed new rules to help stop unfair practices that exist with these -- many times costly -- loans. We should see the proposal for new regulations by this November. We'll keep you informed.
--------------------------------------------------------------------------------
Copyright © 2010 Realty Times. All Rights Reserved.
STRIPPING FORECLOSED HOMES
ARIZONA INFORMATION TO ASSIST THE ARIZONA MORTGAGE BROKER©
(May 18, 2009)
FBI AGENTS AND LOCAL LAW-ENFORCEMENT HAVE ARRESTED FIVE PEOPLE THIS PAST MONTH FOR STRIPPING THEIR FORECLOSED HOMES
FACTS
FBI agents and local law-enforcement personnel have arrested five people in the past month for stripping their foreclosed homes of appliances, cabinets, countertops and plumbing fixtures. That includes cases in Fountain Hills, Anthem, Phoenix and Surprise of some of the more egregious violators who are taking everything they can out of homes.
To combat the theft, the Mortgage Fraud Task Force is going after violators who have stripped multiple investment properties that investors are losing to foreclosure, rather than homeowners who have lost their home. But the enforcement effort is also trying to discourage those thefts as well.
One realtor has been recently arrested for this type of theft. The task force recently arrested Kailash Bhatt, 43, after officials say he advertised the sale of cabinets, granite countertops, an oven, microwave and dishwasher on craiglist.org. Bhatt, who owned a foreclosed home in Anthem, was indicted last month by a Maricopa County grand jury on charges of theft and defrauding creditors. Bhatt, who operates a Web site listing foreclosed properties, accepted $2,000 from an undercover task force agent, according to the Maricopa County Attorney's Office.
The FBI Mortgage Task Force, which got its start last June, is also continuing to investigate mortgage-fraud cases. Prosecutors are working on plea deals or to take those cases to trial, said Halferty, the task force supervisor. Some of the new cases involved schemes with losses of $10 million to $100 million, she said. Agent Tolhurst said a number of people employed in financial services and real estate have come forward to assist the task force. (azrep51409)
MORAL
First buy the investment property, then strip it and then win the prize of going to prison . Remember, everyone is innocent until convicted. I trust he has a good attorney. If not, I can recommend one.
(May 18, 2009)
FBI AGENTS AND LOCAL LAW-ENFORCEMENT HAVE ARRESTED FIVE PEOPLE THIS PAST MONTH FOR STRIPPING THEIR FORECLOSED HOMES
FACTS
FBI agents and local law-enforcement personnel have arrested five people in the past month for stripping their foreclosed homes of appliances, cabinets, countertops and plumbing fixtures. That includes cases in Fountain Hills, Anthem, Phoenix and Surprise of some of the more egregious violators who are taking everything they can out of homes.
To combat the theft, the Mortgage Fraud Task Force is going after violators who have stripped multiple investment properties that investors are losing to foreclosure, rather than homeowners who have lost their home. But the enforcement effort is also trying to discourage those thefts as well.
One realtor has been recently arrested for this type of theft. The task force recently arrested Kailash Bhatt, 43, after officials say he advertised the sale of cabinets, granite countertops, an oven, microwave and dishwasher on craiglist.org. Bhatt, who owned a foreclosed home in Anthem, was indicted last month by a Maricopa County grand jury on charges of theft and defrauding creditors. Bhatt, who operates a Web site listing foreclosed properties, accepted $2,000 from an undercover task force agent, according to the Maricopa County Attorney's Office.
The FBI Mortgage Task Force, which got its start last June, is also continuing to investigate mortgage-fraud cases. Prosecutors are working on plea deals or to take those cases to trial, said Halferty, the task force supervisor. Some of the new cases involved schemes with losses of $10 million to $100 million, she said. Agent Tolhurst said a number of people employed in financial services and real estate have come forward to assist the task force. (azrep51409)
MORAL
First buy the investment property, then strip it and then win the prize of going to prison . Remember, everyone is innocent until convicted. I trust he has a good attorney. If not, I can recommend one.
Wednesday, September 8, 2010
Improve Your Credit Score Before Searching for a Home
From RISMEDIA via Lowes -
Improve Your Credit Score Before Searching for a Home
By Paige Tepping
RISMEDIA, September 8, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
Lowe's Customer Care(CON8) 1065 Curtis Bridge Rd. Wilkesboro, NC 28698.
© 2010 by Lowe's®. All rights reserved.
Improve Your Credit Score Before Searching for a Home
By Paige Tepping
RISMEDIA, September 8, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
Lowe's Customer Care(CON8) 1065 Curtis Bridge Rd. Wilkesboro, NC 28698.
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