Keeping You Informed "One Blog At A Time"

Great Closing Today - Fabulous Attorney and Fabulous Short Sale Listing Agent

August 26th, 2010 1:16 PM

Had another GREAT closing again yesterday. My borrower Paula Coleman purchased her new home and thanks to Terrie Shank for once again being the fabulous closing attorney you are.

Thanks also to Becky Babcock Real Estate and her team for getting this Short Sale approved so quickly by the seller's lender. I have never been involved with a short sale that went so smoothly and quickly.

Posted by Kathy Delbridge on August 26th, 2010 1:16 PMPost a Comment (0)

FHA Changes / MI Increases / Will Affect Homebuyer's Monthly Payments

August 9th, 2010 1:38 PM

There are FHA Changes coming soon that will affect a Homebuyer's Monthly Payments.

What are the changes?

The Upfront Mortgage Insurance Premium is decreasing
The Monthly MI premiums will be increasing ( currently at a .55 factor and will be increasing to .90)

These changes will be effective with FHA Case #'s assigned on or after September 7, 2010. Case #'s are generally assigned upon completion of a borrower's signed application and upon receipt of making a binding offer on a home for new purchases.

Want to know how these changes WILL affect your Monthly Mortgage Payment, Click on this link to view a comparison Chart.

With Interest Rates at historical lows, homes being sold well below previous values and now these changes, don't delay if you have been considering purchasing a home, especially if you'll be obtaining FHA Financing.

I can be reached directly at 678-773-0651 and via email at kathy@kathydelbridge.com.

Posted by Kathy Delbridge on August 9th, 2010 1:38 PMPost a Comment (0)

Small Changes Make a BIG Difference - Is it time for You to Refinance

July 28th, 2010 4:07 PM

So, just how much do you need to lower your rate for a refinance to make sense?

Should I pay points? Should I roll the closing costs into the loan?

Bottom line is this.

You always want to be able to hit your "break even" point within 2.5 to 4 years ( at least that's what I hope for my clients).
Your Break Even point is established by taking the true amount of your closing costs and dividing those by your monthly payments. ( IE: $3500 in closing costs divided by $100 monthly payment savings, break even point is in 35 months)

In ths example, if the homebuyer stays in their loan for 5 years, then their loan saved them $2500, not to mention the payment they probably skipped when they refinanced, and their escrow refund they also probably got back).
This average client would be about $4500 - $5000 richer in 5 years.

For a little more in depth view, view the attached link, Small Changes Make a Big Difference

Hope you enjoyed this little "insight" and if you have questions or want to know if now is the time for you to refinance, give me call. The call costs you nothing but your time and it could SAVE You a lot.

Posted by Kathy Delbridge on July 28th, 2010 4:07 PMPost a Comment (0)

Donate To Find A Cure For Crohn's and Colitis.

July 24th, 2010 9:13 PM

Donate To Find A Cure For Crohn's Disease and Colitis.

There are two ways you can help donate to find a cure for Crohn's Disease and Colitis.

The first way is to purchase a raffle ticket, for a one week stay at a villa in Tuscany, Italy. The proceeds will go to the Crohn's and Colitis Foundation of America. Only 1,000 tickets will be sold. The winner will also receive $3,500 in cash!!!

The second way is for Crohn's and Colitis members. Let me know you are a member of the Crohn's and Colitis Foundation of America and I will donate 10% of my commission, for the closed loan, to the Crohn's and Colitis Foundation of America. You will receive a certificate stating that a donation has been made on your behalf to help find a cure for Crohn's Disease and Colitis.

To find out more about Crohn's and Colitis, visit www.ccfa.org.

To purchase a ticket on our secure website, please visit: http://www.cherokeewcr.org/WinTripToItaly

Every dollar raised gets us one step closer to finding a cure. So please, donate to find a cure for Crohn's Disease and Colitis.

Visit me on Facebook.

Posted by Kathy Delbridge on July 24th, 2010 9:13 PMPost a Comment (0)

LOW RATES, LOW RATES, LOW RATES!

June 23rd, 2010 11:45 AM

Well, you probably guessed by the Subject Line that rates are LOW right now.

They are actually near their ALL time low.

The last time they were this low was January 22, 2007 and it lasted for about 1 hour.

While it's certainly evident they'll stay low a "little" bit longer this time, it's still evident they will not stay this low forever.

What does this mean to you? Does it affect you?

It means that you could get a 30 year FIXED rate as low as 4.375%, without payng any discount points.
If you are about to buy or already own and want to take advantage of these low rates for your new home purchase or to refinance your current mortgage - ACT NOW!

You can call me directly at 678-773-0651 or email me at mailto:kathy@kathydelbridge.com

It costs NOTHING to call ( just a little bit of your time), but could save you thousands of dollars - you never know!

Talk to you soon!

Kathy

Posted by Kathy Delbridge on June 23rd, 2010 11:45 AMPost a Comment (0)

Investors can now Purchase HUD REO Properties with as little as 3.5% Down

February 23rd, 2010 2:17 PM

Home Savings of America is proud to announce that we now have the abillity to offer Financing to Investors that wish to purchase HUD REO homes and they can do so with as little as 3.5% down.

Here are the details:

FHA Program
• 203b REO with Repair Escrow up to 110%LTV/ or 203b REO w/no Repair Escrow to 96.5%
• Investor purchases allowed based on acceptable approved Pemco contract

Requirements
• Investor must hold title to property for 12 months after purchase
• Minimum Fico score is 640/Minimum Investment 3.5%
• See product guidelines for all requirements (link below)

Target Audience – Investor who:
• Possibly owns more financed properties than currently allowed by Fannie and Freddie
• Wants a low interest rate
• Understands how to leverage money/Seeks minimal cash investment
• Is competent and an established real estate investor

Benefits
• Investor can purchase FHA REO HUD owned foreclosures marketed by HUD PEMCO with FHA financing
• Investor’s min cash investment is 3.5%*
• No restrictions on the number of current financed properties owned
• The investor can include the cost of required repairs in the maximum mortgage amount up to 110%LTV

Terms Available
• 30 Year / 15 Year

Exposure Limitations
• Maximum exposure to one borrower is 3 loans to one individual – a 4th maybe available on exception basis. (Additional FHA restrictions could apply. If interested in more than one loan, please discuss with me first.

Posted by Kathy Delbridge on February 23rd, 2010 2:17 PMPost a Comment (0)

Significant FHA Changes - Every Buyer, Realtor, and Real Estate Investor Needs to be Aware of

January 20th, 2010 9:37 PM

1/20/10 - FHA Announces Policy Changes to Address Risk and Strengthen Finances

Proposed Policy Changes that will affect your borrowers.

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
- The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge. Current Upfront MIP is 1.75%
- If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP. The annual MIP is currently .55% for loans with a LTV > 95%.
- This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
- The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
Reduce allowable seller concessions from 6% to 3%
- The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
- This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

1/15/10 - 90-day Seasoning Waiver Expanded for Re-sales

This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.

Here are the 6 things you need to know about these changes:

Waiver takes effect February 1st, 2010 for a period of one year unless extended.
Investors are now exempt from the 90-day seasoning rule.
All transactions must me arms-length.
No identity of interest can exist between buyer and seller.
If sale price is 20% or more of the seller's acquisition cost, the lender must:
a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.
The waiver is limited to forward mortgages only.

To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

12-16-09 - Short Sales and Payoffs

In a mortgagee letter dated 12/16/09, HUD announced the following guidelines for buyer's that have had a short sale or short pay.

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to do one of the following:

Take advantage of declining market conditions, and
Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Conclusion

The above changes will certainly make a significant change to our market and affect your potential homebuyers. I hope you find this information invaluable and that you will be better prepared to work with your buyers.

The best news of these changes is obviously the 90-day seasoning waiver that has expanded. Make sure your Investors are aware of these changes. This will help them tremendously.

I will continue to monitor these changes and keep you up to date as needed. Thank you for your business and support.

Kathy Delbridge

Posted by Kathy Delbridge on January 20th, 2010 9:37 PMPost a Comment (0)

Home Buyer's Tax Credit Update

November 10th, 2009 10:52 AM

Home Buyer's Tax Credit - Updated Novemeber 6, 2009

General Rules:

A "first time home buyer" is defined as someone who has not owned a home in the last three years. If you are a "first-time home buyer", your tax credit will amount to 10% of the purchase price of your new home not to exceed $8,000.
A "long-time resident" is defined as someone who has lived in the same primary home for 5 out of the past 8 years. If you are a "long-time resident", your tax credit will amount to 10% of the purchase price of your new home not to exceed $6,500.
The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.
The home must be purchased for less than $800,000 before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces, and others.
If you are married, both spouses must qualify for the credit. If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $8,000 (or $6,500 for "long-time residents").
Alternatively, if only one of the unmarried buyers qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. The credit applies even if you have co-signers on your mortgage loan. The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.

How does the tax credit work?

A tax credit is kind of like a gift certificate that you can use to pay your taxes - it reduces your income tax bill on a dollar for dollar basis. Imagine paying your bill at IRS Restaurant, and then later getting an IRS Restaurant gift certificate.
Normally, you would need to go back to IRS Restaurant and buy more food in order to use your new gift certificate. But what if IRS Restaurant allowed you to just turn in your gift certificate for cash? That's how the home buyer tax credit works! All you need to do is file a form with the IRS after you buy your new home and they will send you a refund check for $8,000 (or $6,500) - just like the example of IRS Restaurant that allows you to exchange your gift certificate for cash! Remember though, you'll receive the $8,000 (or $6,500) from the IRS AFTER you purchase your new home, so you cannot use the funds to help with your down payment.

For more information about the home buyer tax credit or other recent updates to the mortgage and real estate markets, just give me a call. I would be happy to assist you with your mortgage in the purchase of your new home!

To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another person any transaction or matter addressed in this communication. I recommend that you consult with properly licensed legal, tax and investment advisors for specific advice pertaining to your individual situation.

Posted by Kathy Delbridge on November 10th, 2009 10:52 AMPost a Comment (0)

Taylor Bean and Whitaker - Ceases Operations Immediately - May Affect your FHA Loan

August 5th, 2009 3:16 PM

Yesterday evening we sent out an email to our Realtors to protect their pipeline if they had a buyer who was securing their FHA financing via Taylor Bean & Whitaker.

Today, it was made official that Taylor Bean and Whitaker has Ceased Operations Immediately.

If you know someone who was in the middle of securing an FHA loan for their purchase or their refinance, you may want to advise them to call their loan officer to see where their file had been sent for underwriting. Their loan officer should other lenders to send the FHA deal; if not, we would be happy to assist.

See below for the following press releases!

TBW Press Release

HUD Press Release

This is a tough blow to our industry as TBW has been a major FHA lender and there are a great deal of individuals who will be affected by this and our thoughts go out to them during this time!

Posted by Kathy Delbridge on August 5th, 2009 3:16 PMPost a Comment (0)

Foreclosure Suspension Plan

November 21st, 2008 2:01 PM

We received this notice via email yesterday and it looks like there may be some relief for some homeowner's in jeapardy of losing their homes.

*********************************************************

For Immediate Release

November 20, 2008

Statement of FHFA Director James B. Lockhart

“The foreclosure suspension announced today by Fannie Mae and Freddie Mac will help homeowners and servicers utilize the new streamlined loan modification program (SMP) announced by FHFA, Fannie Mae, Freddie Mac and HOPE Now. With this suspension, seriously delinquent borrowers may have an opportunity to avoid foreclosure and work out terms to stay in their homes.”

**********************************************************

United Press International recently posted the following on their website:

WASHINGTON, Nov. 20 (UPI) -- Fannie Mae (NYSE:FNM) and Freddie Mac. (NYSE:FRE)Thursday announced details of a plan to halt foreclosures and evictions from Thanksgiving until a week after New Year's.

Click on the following url to read the entire post:

http://www.upi.com/Top_News/2008/11/20/Fannie_and_Freddie_suspend_foreclosures/UPI-25861227233075/

Posted by Kathy Delbridge on November 21st, 2008 2:01 PMPost a Comment (0)