Author Archive: realtyrooster

Featured Today: “The New Lending Paradigm”

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A Must Read for Realtor Professionals and Your Clients!

Get Your Free Copy Today

Much has changed in the world of finance. Banks have made getting a mortgage a challenge for some and a nightmare for others.  No one is safe, whether you need $100k or $5M. Even the best of borrowers are finding it difficult to get a loan.
  • What is SAFE Harbor and how does it affect the Buyer?
  • How to prepare for new government regulations that are tying the hands of lenders and in turn increasing costs to consumers? 
  • Which lending professionals are educated, tested & licensed? Here’s a hint- They’re not at the big banks.
  • Which  lenders make common sense decisions and have fair rates and fees?
  • Find out how to get a Jumbo Loan at Great rates even when borrowing more than the Fannie Mae limits.

You and your clients can learn more about these and other issues in a white paper called “The New Lending Paradigm”.

It’s a valuable and easy read for anyone buying or refinancing a home. 

Here is Your FREE Report

Doesn’t Mortgage Insurance Cover a Default?

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Naples, FL Realtor,Don Breen recently was asked a question about mortgage insurance and shares his answer here. 

“If I pay mortgage insurance and default on my loan, why wouldn’t that cover the deficiency amount? Max.”

on the short sale.

There are a couple of problems. Many mortgage insurance companies have gone bankrupt. They can’t pay on their claims. 

In 60-75 percent of all short sales, you won’t owe a deficiency. The other problem is that many mortgage insurance companies have terms written into the mortgage that they can pursue you for the loss.

Here is my answer to Max’s question: Yes, the mortgage insurance should pay your lender for any loss. So that reduces the amount that your lender will lose They are more aggressive with trying to be repaid. In the few short sales we have negotiated and the lender asked for a promissory note, the person requesting it usually was the mortgage insurance company.

But, they only ask for a promissory note about half the time. In addition, the promissory notes are usually for an amount lower than the loss.

For example on one short sale, the loss was around $59,000. The seller agreed to a promissory note of $10,000 to be repaid over the next 10 years with zero interest. Their monthly payment was $83.33.

We won’t know if they will ask for a promissory note until the short sale is in progress. If you know you have mortgage insurance, then you need to find and aggressive short sale agent.

They will work to get an promissory note or deficiency waived.

The Fall And Rise Of The Real Estate Market

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by: Svein Groem
This series of articles will help you determine what to offer on any kind of wholesale (and other investment) properties. The key to success as a real estate investor is to have a proper offering system in place. Knowing what to offer on a property is necessary in order to even stay in business for long. Our web-based offering software makes this process easy and quick.

But let's get into it.

The fall in the real estate market over recent years has provided some unique opportunities for real estate investors to make some kick-butt deals in the market. And with every sign pointing to a stronger economy in the near future, the timing has never been better to invest with the chance of a quick turnaround. This means that you need to invest both quickly and carefully. Attempting to complete this alone can leave you confused with hundreds of numbers applying to dozens of investment properties, and hiring others to help can cost thousands. You need to get in the market fast, but you also need an intelligent and precise approach.

That's where what2offer comes in. Using our offering system, you will be able to make kick-butt real estate offers in seconds. Imagine how many more offers you can complete with a system that takes care of the process for you, from searching for the best deals to closing on your investment properties, in a matter of seconds with minimal effort on your part. Imagine being able to determine the most profitable opportunities before negotiations even begin, and how much more time and money you will have to secure those opportunities. Wewill provide you with the tools to make these kick-butt real estate offers in seconds, enabling you to maximize your profitability.

Another great feature you will find on our site is our kick-butt offer to you: a 14 day free trial. As a member, you will find several videos that will help you get started quickly. And during your first 14 days, you will be able to make kick-butt real estate offers in seconds without even paying us anything in return. All you have to do is visit what2offer.com to start making kick-butt real estate offers in seconds.

To Your Success,

Tom & Svein

What2Offerdotcom


Real Estate and Social Responsibility

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by: KerrySimer Smith

The recent Great Recession highlighted the interdependency of the U.S. social structure to the real estate industry. As the real estate market froze to a standing halt, so did the whole U.S. economy. Government officials and regulators should have expected such results as real estate employed more Americans than any other sector.

Prior to the Great Recession, 60% of U.S. assets were tied to real estate. This occurred due the free market philosophy entrenched within the U.S. economic foundations. Real properties are mortgaged to pay for sales or to enable owners to access their equity. Mortgages are bundled and divided up in accordance to average credit rating of total borrowers and other variables. Investment banks and other financial institutions purchase and trade mortgage bundles to acquire more capital. In addition, insurance companies and retirement funds purchase mortgages to increase cash flow needed to cover for monthly payments.

Furthermore, the real estate industry employed many Americans. Most individuals are quick to recognize real estate agents and brokers. In addition, the real estate industry includes appraisers, construction workers, civil servants employed at all government levels and many more. Many other industries are also connected to real estate. Production and manufacturing of construction materials, as well as points of sale and transportation of goods to construction sites from sales locations are few of such connected industries. For example, in order for a house to be build, the builder must purchase a real property, conduct a soil test, contracts an engineering firm for designing and drawing, hires a licensed contractor to build, and purchase all the material needed.

The U.S. real estate industry is very influential in domestic politics. Following the collapse of real estate prices, many real estate associations lobbied the government to enact restrictions against foreclosures. The government was split between supporting the frontend (sales and home owners) and the backend (financial institutions and holders of liens). As a result, the government passed special tax credit to stimulate real estate sales and offered government backed modification through HAMP. As for the backend, the government invested heavily in many of the different banks who operated within the United States. Commonly known as “bailout”, government assistance to financial institutions allowed those organizations to survive the worst recession in modern history of humanity.

By offering a double deal to help both sides of the equation, the government acted in accordance with the principle of social reasonability. Many homeowners faced growing harsh times and needed the government to force holders of mortgage deeds to accept renegotiated mortgage agreements. At the same time, financial institutions are some of United States biggest employers. By saving them, the federal government curbed the down spiral of collapsing economy. In addition, saving such big businesses helped the United States maintain its attraction as a fertile ground for economic growth.