My New Blog

GREAT NEWS: One of our lenders is allowing the $8000 first-time home buyer tax credit to be used for the down payment. Here's how it works:

1. The borrower calls me and gets pre-approved.
2. You find the borrower a property, an offer is made, and accepted.
3. The borrower amends his 2008 returns, using form 1040x, completes form 5405, then files with the IRS.
4. After 12 to 16 weeks, the check arrives.
5. The borrower then completes the purchase and becomes a homeowner!

***This is obviously a strategy that will work better with short sales (where banks take forever to approve a sale anyway), and with private party purchases (where the seller is ok with a 90-120 day escrow) rather than REO's. However, if a short sale approval is taking too long, and you included language that allows you to get out of the deal, you could always find your client another property. The primary goal now is to get the amended return and form 5405 filed ASAP!!!

***The borrower should consult a tax professional for advice, as I am NOT an accountant. I'm only telling you the procedure from a lending point of view.

WE ARE RUNNING OUT OF TIME. THE CREDIT EXPIRES DECEMBER 1, 2009 and checks can take up to 4 months to arrive so your clients must ACT NOW!!!

*The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
*The tax credit does not have to be repaid.
*The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
*Single taxpayers with incomes up to $75,000 and married couples with  incomes up to $150,000 qualify for the full tax credit. A partial credit may be an option.

NOT SO GREAT NEWS:  Beginning 8-1-2009, closings could take up to 11 days longer, because of new disclosure regulations. Once we take an application, we will send out the initial disclosures, and the client has 3 days to review. Until the 4th day, we can not order an appraisal. The second part of the new rules deals with APR changes. When its time to order DOCS, if the APR is more than an 1/8 % different, the lender is required to send out new disclosures, allowing 4 days for mailing, and 3 more days for review. To avoid any per diem penalties, I suggest 45 day escrows at a minimum.

FHA "as is" OFFERS: An FHA purchase can not really be as-is, because the property must be deemed "livable", and repairs must be completed before COE. "As-is, except for FHA required repairs" is a better option. Check with your Broker for specific language.

FHA 203k (fixer upper loan): Up to 35K in money for repairs can be rolled into the loan (no structural or pool repairs) and completed AFTER COE, so this is a nice option for those dumpy houses that the borrower falls in love with anyway.
 
AND, If you have any leads that you haven't had time to follow-up on, please send them to me and I'll follow-up immediately and get them approved...

Thank You,

Dan Sherbondy
"Dan The Loan Man"
Senior Mortgage Banker
Dan@TheDreamLoan.com
Direct Access Lending
702.326.7469

I have 10 proud years in the industry and primarily focus on NEVADA and CALIFORNIA but can also loan in Idaho, Utah, Florida, New Mexico, Missouri and South Carolina.

All Types of Loans for All Types of People....FHA, VA, 10% down investor loans, First-Time Buyers, HomePath, $100 down HUD, Conventional, Refi,  105% LTV Refi, FHA Streamline Refi, Short Sale, 1/2 off for teachers, cops and firefighters and More.

Gordon Team - Weekend Report - July  31 , 2009

INTEREST RATES ARE DOWN SLIGHTLY  THIS WEEK.     

Interesting end of the week.  Yesterday, rates went up from fear that
the Federal government will need to pump more money into the economic
recovery, which creates more fear of inflation.  Then today came a
better than expected unemployment report for the second quarter so we
head into the weekend with low rates...lower than 5% again on some
loans.  

WEEKEND RATES - PLAN ON AROUND:

4.875 % (APR 5.123) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED
OR SECOND HOME) with  1.000  points, NO ORIGINATION FEE!

4.875 % (APR 5.156) FOR A 30 YR FHA / VA LOAN, WITH  1.375  POINTS, NO
ORIGINATION FEE! 

5.625 % (APR 5.881) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.125
POINTS, NO ORIGINATION FEE!

5.125 % (APR 5.352) ON A 5 YR JUMBO ARM OVER $417,000 with  0.875
POINTS, NO ORIGINATION FEE!  

6.125 % (APR 6.405) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER
$417,000 WITH 20% DOWN with 1. 125   POINTS, NO ORIGINATION FEE (720 mid
score)!

5. 375 % (APR 5.653) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER
$417,000 WITH 25% DOWN with 1. 250  POINTS, NO ORIGINATION FEE (720 mid
score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE.   Rates subject to change
until locked.   

===============================================

TIP OF THE WEEK :     "The Indian Home Loan Guarantee Program"

Did you know if you are Native American, Alaskan Native, or a New
Mexican Pueblo homebuyer, you can may be able to get special low cost /
low down payment financing with no mortgage insurance?

HUD Section 184 Native American Mortgages can be secured by primary
residences that may be either owner-occupied or leasehold estates
located on both fee simple homes (all over Clark County) and restricted
lands like Indian reservations.

Here are the highlights:

Down payment of only 1.25% (loan less than $50k) to 2.25% (loan over
$50k) vs.. 3.5% on a regular FHA loan.
Refinance eligibility for those who own their home.
The Maximum loan is 150% of the FHA mortgage limit or $600,000 locally.
No private mortgage insurance or monthly MIP.
No extra monthly premium.
Eligibility includes: New construction and resale homes.
Loans are assumable.

There is no income limit and the seller may contribute up to 6% of the
sales price towards closing costs and prepaids.

============================================

QUESTION OF THE WEEK :   

"I made an offer of $135,000 on a house listed for $115,000 but the
selling bank accepted one for $115,000.   Why wouldn't they take that?"

Many buyers today make offers over list price because they believe that
will make them the highest and best offer.   

The banks won't consider these offers in some cases because they know
the buyer is only offering that high number to try and win a bidding
war. 

If the bank believes it won't appraise for that high number and they
will have to reduce sales price when the appraisal comes in anyway, your
offer may not have the affect you intended.   It could be looked at as
simply a ploy.

Consider removing the appraisal contingency and offering to pay the
difference in cash if it doesn't appraise.   

If you are doing an FHA loan with 3.5% down, you will need to show the
selling bank you have the financial ability to do this in your offer.
This could make your offer stronger.

Have a great weekend!!

 
Best regards,
 
Aaron M. Gordon
Bank of America Home Loans
Senior Mortgage Loan Officer
Platinum Club - Bank of America Top 5% in Nation
 
Phone: 1.702.283.2333
Fax: 1.866.905.7922
aaron.gordon@bankofamerica.com
www.aarongordon.net 
 
10190 Covington Cross Dr. #190
Las Vegas, NV 89144
 
Assistant: Leah Fusco
Phone: 1.702.304.8906
leah.fusco@bankofamerica.com

Expert expects trend to end as foreclosures increase

By Brian Wargo (contact), In Business reporter

Fri, Jul 24, 2009 (3 a.m.)

After a record number of existing-home sales in June at 4,663, SalesTraq reported that the inventory on the Multiple Listing Service fell to 12,653 or a 3.4-month supply — a level not seen in several years, President Larry Murphy said. The listings are the fewest since 11,497 homes were on the market in December 2005.

The dwindling supply of foreclosed homes is one reason existing-home prices have stabilized in the last couple of months, housing analysts said.

The median price of $125,000 in June is the same as it was in May, SalesTraq said. The research firm revised its April existing-home price down to $120,000, signifying that prices have rebounded slightly since that low-water mark was reached.

Murphy, one of the housing statistic gurus in Las Vegas, said the inventory decline matches anecdotal evidence by real estate agents, who are saying the lower-priced foreclosure supply has been picked over by buyers.

Foreclosed properties accounted for 62 percent of the sales in June, down 2 percentage points from May, and sold for a median price of $113,900. The nonbanked-owned properties sold for a median price of $145,000 in June, according to SalesTraq.

Murphy said he doesn’t see anything positive in the numbers, even though inventory has declined and the record number of sales surpassed May’s by more than 600.

“The bottom line — my gut feeling — is that we can tell ourselves there has been an improvement and prices have stabilized, but I don’t see anything significant. Nothing jumps out at me that says the worse of it is absolutely behind us and happy days are here again,” he said.

Murphy said he expects the local housing market to thump along the bottom for a while and prices to stay in the range they are in.

“I don’t think it’s any great news,” Murphy said. “It’s more of the same.”

One red flag is home repossessions, Murphy said. In June, 2,486 homes were foreclosed, 717 more than May and the most since August’s 2,810. He said he wouldn’t be surprised if as many as 3,000 homes are repossessed in July.

From March to May, fewer than 2,000 foreclosures a month were reported, with the low being 1,289 in April.

Murphy said it’s starting to be obvious that the dip in foreclosures was because of a self-imposed moratorium by lenders that for many ended in early March. That should increase the supply of homes in the coming months and hopefully there will be buyers to match the bigger inventory, he said.

Data released last week by California-based RealtyTrac point to more foreclosures in the pipeline.

In June 8,726 default notices were filed against Nevada homeowners, and 3,786 homes were repossessed statewide.

RealtyTrac said unemployment-related foreclosures account for much of the increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes are worth represents a significant risk.

Overall, foreclosure filings rose by 9 percent compared with May and were 115 percent higher than June 2008, RealtyTrac said. There was one filing for every 59 households, which leads the nation.

The second-worst state in foreclosure filings was California with one filing for every 132 households. Arizona was third with one filing for every 158 households.

For the first six months of the year, Nevada foreclosure filings were up 61 percent compared with last year’s period. They were 23 percent higher than the second half of 2008, RealtyTrac reported.

Las Vegas housing analyst Steve Bottfeld, executive vice president of Marketing Solutions, said the latest housing statistics tell him that Las Vegas has hit bottom.

The stabilizing of home prices is one reason and the decline in inventory is another. New- and existing- home sales hit their highs in June, he said.

Existing-home sales exceeded the number of foreclosures created for the fourth consecutive month, he said. Even though the moratorium has ended, he said he thinks that trend “now looks solid.”

Financial institutions have about 13,000 repossessed homes that have yet to be put on the market, down from 16,400 in February, Bottfeld said.

SalesTraq said the 474 sales in June was the highest monthly total this year, but is still paltry by historic comparisons. Sales were down 46 percent compared with June 2008.

The median new-home price was $209,382 in June, about $2,000 less than May. New-home prices have held steady for the past five months because builders say it is hard to make a profit by cutting prices much further.

Despite the dip in median prices, the price per square foot for new homes rose in June. They sold for $107.65 per square foot in June, up by $1.06 per square foot compared with May

The number of active subdivisions fell to 288 in June, 37 percent below the 460 active subdivisions in June 2008.

The average sales per subdivision in June rose to 1.65, the highest since December when it was 1.81 sales per subdivision, SalesTraq said.

Home construction remained tepid by historic standards, but 343 permits issued in June are the most taken out by builders since 396 were issued in October.

Gordon Team - Weekend Report - July 24, 2009

INTEREST RATES ARE UP SLIGHTLY  THIS WEEK.    With housing affordability
the highest its been in years, rates on fixed-rate home mortgages rose
slightly this week, as recent housing indicators suggest that the worst
of the housing downturn may have passed.  

WEEKEND RATES - PLAN ON AROUND:

5.250% (APR 5.493) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED
OR SECOND HOME) with 0.875 points, NO ORIGINATION FEE!

5.250% (APR 5.493) FOR A 30 YR FHA / VA LOAN, WITH 0.875 POINTS, NO
ORIGINATION FEE!

4.250% (APR 4.438 ) FOR A 5 YR FHA HYBRID, WITH .375 POINTS, NO
ORIGINATION FEE!

5.750% (APR 6.017) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.000
POINTS, NO ORIGINATION FEE!

5.250% (APR 5.509) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINTS,
NO ORIGINATION FEE!  

6.250% (APR 6.520) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER
$417,000 WITH 20% DOWN with 1.000  POINTS, NO ORIGINATION FEE (720 mid
score)!

5.750% (APR  6.012) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER
$417,000 WITH 25% DOWN with 1.000 POINTS, NO ORIGINATION FEE (720 mid
score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE.   Rates subject to change
until locked.   

========================================

TIP OF THE WEEK :    

The $8,000 First-Time Home Buyer Tax Credit Expires 

Please keep in mind that the first-time homebuyer tax credit expires on
December 1, 2009.  

If you are a first-time home buyer, or you haven't owned a home in the
last three years, and you plan to use the credit you will want to
consider starting to look for houses ASAP.

You must be closed on your new home on or before December 1 to be
eligible for the tax credit.

Finding a house may take longer than you think.   

Bank-owned inventory is low today.  Short sale purchases can take up to
120 days or longer when successful.

There are time consuming challenges when you buy a bank-owned home.
Like waiting for seller closing approval , HOA demands  or title /
ownership corrections.   These, too, can add weeks to your closing.

As a result, the average loan takes about 30-45 days to close today.

If the tax credit is important to you, and you want to take advantage of
it, October 15, 2009 is a very good target date to be in contract on a
home by.    This is less than 3 months from now.   

 
==============================================

QUESTION OF THE WEEK :   

"Is the appraisal fee refundable if I don't close escrow on a home
purchase or if the bank doesn't accept my short sale offer?

The appraiser goes out independently to your home while you are in
escrow to determine the opinion of value.  He then writes a report, the
actual appraisal, and submits to the lender.  You get a copy as well.
He collects a fee for this service.   

This fee is not contingent on a successful close of escrow.  He gets
paid for the job he does, no different than if you hired a home
inspector to tell you about the quality of the home or a plumber to come
fix the sink.

Have a great weekend!!

 
Best regards,
 
Aaron M. Gordon
Bank of America Home Loans
Senior Mortgage Loan Officer
Platinum Club - Bank of America Top 5% in Nation
 
Phone: 1.702.283.2333
Fax: 1.866.905.7922
aaron.gordon@bankofamerica.com
10190 Covington Cross Dr. #190
Las Vegas, NV 89144
 
Assistant: Leah Fusco
Phone: 1.702.304.8906
leah.fusco@bankofamerica.com 
 
 
This communication from Bank of America - may contain privileged and/or
confidential information.  It is intended solely for the use of the
addressee.  If you are not the intended recipient, you are strictly
prohibited from disclosing, copying, distributing, or using any of the
information.  If you received this communication in error, please
contact the sender immediately and destroy this material in its
entirety, whether electronic or hard copy.   This communication may
contain nonpublic personal information about consumers subject to the
restrictions of the Gramm-Leach-Bliley Act.  You may not directly or
indirectly reuse or re-disclose such information for any purpose other
than to provide the services for which you are receiving the
information.
 
Rates are subject to change and may not include risk-based adjustments.

 
If you don't wish to get these rates from me each week any longer,
simply reply REMOVE with this email intact, and I will remove you
immediately.   
 
Equal Housing Lender. Member FDIC. Trade/service marks are the property
of Bank of America or their respective affiliates and/or subsidiaries.
Some products may not be available in all states. This is not a
commitment to lend. Restrictions apply. All rights reserved.   
 
Provided to Real Estate Professionals for information only. Not intended
or authorized for public or consumer distribution.   
 
 
 
   
 
 

5.125% (APR 5.388) FOR A 30 YR FIXED CONVENTIONAL LOAN with 1.125 points, NO ORIGINATION FEE!

5.250% (APR 5.526 ) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION  FEE! 

4.250% (APR 4.448 ) FOR A 5 YR FHA HYBRID, WITH .500 POINTS,      NO ORIGINATION FEE!

5.750% (APR 6.004 ) ON A 30 YR JUMBO LOAN OVER $417,000 with .875  POINTS, NO ORIGINATION FEE!

5.250% (APR 5.485 ) ON A 5 YR JUMBO ARM with .750  POINTS, NO ORIGINATION FEE!   

6.000% (APR 6.266 ) ON A 30 YR INVESTOR LOAN UNDER $417,000 WITH 20% DOWN with 1.000  POINTS, NO ORIGINATION FEE (720 mid score)! 

5.500% (APR 5.780   ) ON A 30 YR INVESTOR LOAN UNDER $417,000 WITH 25% DOWN with 1.250 POINTS, NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE.   These rates     are for purchases only.  Refinance rates are slightly higher. 

TIP OF THE WEEK :    

"THE BORROWER'S NEEDS LIST"

In a "full doc" environment, here is what you want to prepare to have
ready for your loan. 

Preferably you will have this at the time of application to ensure the
timeliness and ease of loan processing:

30 DAYS OF CONSECUTIVE PAYSTUBS TO SUPPORT CURRENT INCOME

LAST TWO YEARS OF W2'S TO SUPPORT HISTORICAL INCOME

IF HE IS SELF EMPLOYED, LAST TWO YEARS OF TAX RETURNS - ALL     PAGES, ALL SCHEDULES

TWO YEARS OF HOUSING HISTORY INCLUDING LANDLORD INFO, IF RENTING

LAST TWO MONTHS STATEMENTS FOR ALL ASSET ACCOUNTS (CHECKING, SAVINGS,
401K, STOCKS AND BONDS, MONEY MARKETS, CD, ETC.)

AN EXPLANATION FOR EVERY LARGE DEPOSIT ON ASSET STATEMENTS AND AN
EXPLANATION FOR ALL NON-PAYROLL DEPOSITS

SOURCING OF EARNEST DEPOSIT MONEY

AN EXPLANATION FOR ALL INQUIRIES ON HIS CREDIT REPORT AND FOR     ANY CREDIT
CHALLENGES AND/OR COLLECTIONS

===============================================

QUESTION OF THE WEEK :   

"I am buying an investment home.  My brother is buying a home to live
in.  My appraisal was more expensive.  Why?"

When you buy an investment property, the lender may require that the
rental property appraisal include a rent survey to document the rents
being charged on similar homes in the area as well as the property's
income statement.   This is a useful survey for you as an investor as
well to understand market rents in your area.   There is usually an
added charge for this.

 
Have a great weekend!!
 
Best regards,
 
Aaron M. Gordon
Bank of America Home Loans
Senior Mortgage Loan Officer
Platinum Club - Bank of America Top 5% in Nation
 
Phone: 1.702.283.2333
Fax: 1.866.905.7922
aaron.gordon@bankofamerica.com
www.aarongordon.net
 
10190 Covington Cross Dr. #190
Las Vegas, NV 89144
 
Assistant: Leah Fusco
Phone: 1.702.304.8906
leah.fusco@bankofamerica.com
 

Under rules adopted Tuesday by the state Supreme Court, homeowners facing foreclosure will have a chance to modify loan agreements with their mortage
 
The court action put into effect a law passed by the 2009 Legislature.

Under the rules, lending companies that file notices of foreclosure must also provide to delinquent buyers applications to allow them to request mandatory mediation hearings.

The lender and homeowner must each submit $200 in these applications to trigger a hearing before Supreme Court-appointed mediators. Mediators will meet with both parties to see whether a mutually acceptable loan change can be reached.

The rules and the application can be found on the Supreme Court's Web site: www.nevadajudiciary.us. Under state law, the rules go into effect in 30 days.

Chief Justice James Hardesty predicted that 1,200 to 1,500 residents per month would file for foreclosure hearings. Hardesty said the hearings would start in August.

He said that more than 420 former judges, lawyers and trained mediators have filed applications to serve as mediators.

The rules adopted by the high court put into effect Assembly Speaker Barbara Buckley's Assembly Bill 149, which was overwhelmingly approved in the Legislature and signed into law by Gov. Jim Gibbons.

During legislative hearings, Buckley, D-Las Vegas, predicted the mediation program would prevent 17,700 residents from losing their homes. About 77,000 Nevadans lost their homes to foreclosure last year.

The program is designed to help homeowners who still have jobs and can make some kind of payments on a mortgage.

Lenders, however, are under no obligation to make loan modifications that keep homeowners from losing their homes. But the hope is that many lenders will agree to the changes because of factors such as the glut of foreclosed homes on the market and the 34 percent decline in Las Vegas home values in the last year.

Under the rules, the homeowner must submit copies of financial records and indicate the amount of a mortgage payment that he or she can make. The lender must submit to the mediator current appraisals of the value of the home and estimates of what the home could sell for in a "short sale."

Short sales occur when lenders sell foreclosed homes for less than the mortgage on the home.

In documents submitted to the mediators, both the lender and homeowner must propose ways to keep the owner from losing the home.

A homeowner's failure to act in "good faith" with the mediator could result in the home being lost to foreclosure. Lenders who fail to provide the necessary documents could prompt the mediator to ask the court to stop the foreclosure. Lenders must send someone to the mediation hearing who has the ability to modify the loan.

Requests for mediation can be filed only on owner-occupied homes, not vacation homes or second homes.

Court spokesman Bill Gang said the justices have been receiving calls from many people who have gotten notices of foreclosure from their lenders. The rules currently can do nothing to help them.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.

CARSON CITY -- A former casino executive will direct the new state program designed to reduce the number of home foreclosures. Verise Campbell, who administered the development of a resort casino in Macau, China, was appointed by Supreme Court Justice James Hardesty as the Nevada Foreclosure Mediation Program administrator.

She will oversee a program under which homeowners facing foreclosure can request a mandatory mediation hearing with their lender in an attempt to see whether they can be given more favorable loan terms that keep them from losing their homes.

The 2009 Legislature passed a bill to create the program and the Supreme Court agreed to find mediators and train them to preside at the hearings.

"We believe that Ms. Campbell's expertise and abilities will make this program one of the best of its type in the nation," Hardesty said. Campbell will begin work today and earn $81,140 a year. Mediation hearings are expected to begin in August.

Funds for her salary come from a filing fee on foreclosures, not the state general fund.

She will be based in Las Vegas, where previously she worked as director of administration for Cosmopolitan Resort and Casinos. Kathryn Ely has been hired for $61,950 a year to help coordinate the selection and training of mediators. She will be based in the Administrative Office of the Courts in Carson City.

Ely has 13 years of experience as a mediator. She is also a paralegal and certified civil litigation specialist.

Under the new law, a homeowner who receives a foreclosure notice on Wednesday or afterward can request an opportunity to sit down with the lender and a trained mediator and try to work out a mutually agreeable loan resolution.

By ED VOGEL/LAS VEGAS REVIEW-JOURNAL CAPITAL BUREAU