700 Billion Dollar Solutions… Charlotteville real estate
March 2, 2009
Special thanks to Gabe Houston for his proposed “SOLUTIONS” document on the subject. After months of encouragement, Mr. Houston has memorialized our collaborative thoughts and conversations to paper. The proposed SOLUTION is a response to a letter sent from Leo W. Gerard of the United Steel Workers Union to Treasury Secretary Paulsen, dated October 28, 2008. In this letter Mr. Gerard clearly outlines the short comings of the actions taken by the Congress with the $700 billion dollar bail out.
This document provides an economically responsible and realistic solution that was ignored in the frenzy of the last actions of an exiting administration.
Mr. Houston and I have first hand knowledge of the banking sectors’ unwillingness to take losses and liquidate their non-performing assets. There have been an innumerable amount of investors standing in line offering to buy billions of non-performing REO assets from the banks holding the properties. These investors are simply seeking to assume the risk and gain any potential profit in converting non-performing assets into fully performing investments.
The greed of the banking sector prevailed as banks were unwilling to liquidate their REO holdings for relatively small realized losses. The banks refused offers by fund managers, portfolio managers and individual investors to purchase both individual properties as well as bulk REO portfolios at 50-75 cents on the dollar. The banks to date have refused to liquidate their losses at any amount below 80-95 cents on the dollar. Thus plunging the credit market into what the banks conveniently and erroneously label “liquidity problems”. Lack of liquidity implies there are no willing buyers for a willing seller. The current “lack of liquidity” in the housing market is simply a result of the banks unwillingness to sell their REO holdings to the market at current market prices. Today’s prices are deemed “too low” by the banks. Selling at the current bid price requires the banks to take a loss on their investment as a result of their poor and irresponsible investment underwriting. Instead of realizing these losses, the banks sought and received a governmental bailout on the backs of the U.S. taxpayer. Read more
Charlottesville real estate | New 2009 Conforming Loan Limit by Zip Code
February 12, 2009
Here are the new updated conforming mortgage loan amounts as well as jumbo loans. Please CLICK HERE for a detailed look by zip code. If you have any underwriting questions please do not hesitate to ask. The guidelines are tight and we may have some great tips for getting the loans to fund. If you do not have Excel then comment this article with you Zip and I will shoot you back the amount.
Thanks,
Roy Slater / www.Hathaway-realestate.com
Charlottesville Home Sellers Face the Deaded Financing Contingency
October 18, 2008
The buyer financing contingency has left many sellers bitter and back on the market. How can this happen? The buyers had a pre-approval letter. What went wrong?
As a mortgage broker licensed in numerous states and one that has come from direct lending institutions such as GMAC-Ditech.com and LendingTree.com, this issue is one that I could write a book about. But I will try to keep it simple and to the point.
The reason why the financing contingency gets used so much is because most Realtors do not have access or foreknowledge of the mortgage process nor do they have access to mortgage lender guidelines to know what the reality is with respect to what a qualified borrower really is. Couple this to the fact that lender pre-approval letters are all conditional until an underwriter reviews and approves. Moreover, add in the fact that your loan officer is not an underwriter and his pre-approval may be incorrect.. The summation is a recipe for disaster.
So, how do I avoid this mess as a seller?
Well… you need to choose you Realtor wisely. Selling your home is not just about a Realtor’s fancy marketing plan. It is about a Realtor’s ability to also identifying quality offers and in scoring buyer risk should you accept an offer. It is about having the where-with-all to ask a buyer the appropriate questions in the negotiation process in order to score buyer risk and eliminate financing contingencies.
Within minutes a knowledgable mortgage person can know whether or not a buyer is solid or not. So, if you can ask for the following items in your buyer counter offer it will help tremendously: (related article click here)
- credit report
- ask how the buyers get paid( w2, 1099, or self employed) key questions to score risk. if there is 1099 or self employed income then risk goes thru the roof. For more info on this drop me a comment and I will go thru why.
- a copy of asset statement showing down payment.
- require loan officer name, phone number and access to all loan information
This information can really help you sore risk and leave a prospective buyer no out with respect to a financing contingency escpecially when this information is used correctly. Of course this information is useless unless your Realtor knows how mortgages work, current product guidelines and the knowledge of current programs available.
end
Roy Slater
Hathaway Real Estate
- Charlottesville Real Estate
- Southern California Real Estate
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