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Mortgage Modification Rejections Can Be A Good Thing

Jul 7

Posted by admin in Personal Finance

It’s just part and parcel of the mortgage modification process in 2010 – REJECTION! Lenders can’t deliver performance levels that satisfies anyone in spite of over two years of work and over eighteen months of financial incentives from the President’s Making Homes Affordable Modification Program (HAMP). Even well qualified applicants are getting rejected. Sometimes, more than once.

I’ve come to think that rejection is a good thing! Recently, I reviewed our files and in the past 6 months not a single mortgage modification was granted without first being rejected. Every one of the modifications I have completed for clients this year have been rejected before being accepted. Even when Trial Modifications were in place, rejection of the permanent Modification took place before finally getting approved. Several of the mortgage modifications I have successfully managed in 2010 were rejected as three times before being approved.

It’s hard enough to meet the challenging application procedures and follow-up effectively to keep your application on-track. To have to also escalate your rejections to supervisors, managers, Directors , Vice Presidents and CEOs and to contact your local congressperson, the regulatory agencies, the trade associations and even the press in order to get it done? This is tough stuff!

But, hey, quit with the whining! That is the way it is – so cope! You will get rejected for one of about two dozen common reasons. Sometimes I think they are posted as a type of “cheat sheet” on the computer monitors of new Loss Mitigation Agents. Things like “Your loan investor does not participate in modification programs”, “Failed the NPV calculation”, “Income too high”, “Your income is too low”, “You have too many assets”, “Your 4506-T has expired”, “Your Ratios are wrong”, “You did not provide updated docs”, “We need a note from your mommy (O.K., I made this one up!)”, and etc., etc., etc.

All of the reasons above can be valid. Sometimes they are. But, all too often, they are simply erroneous, and are the result of the lender having mismanaged the file or simply untrue statements that slow or end the application process if the borrower does not object. So, when you get rejected, press on. At least you’re not being ignored! Immediately demand (nicely!) an explanation of exactly why you were rejected. Go through several agents and escalate to a supervisor if you must to get the answer. Then, deal with it. Supply the missing document or sign the updated form or correct the data entry error on your income (No, it’s not $85,000 per month. It’s $850!) or do whatever it takes to get them back on track. You can request reconsideration when you submit the information or correction to the agent.If you have submitted a good and accurate application upfront, you will eventually be accepted and get the relief that the mortgage modification programs were intended to provide.

So, don’t be dicouraged when you get rejected for a mortgage modification. It’s significantly better than getting the dreaded “Your application is under active review and no further action is required of you at this time. Please call back in 10 days”. Oh, it’s even hard for me to write those words! Rather, take the rejection as encouragement that you are actually getting some traction and will likely get approved very soon. Takes a lot of perseverence, eh?

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The 2010 Real Estate Market in British Columbia

Apr 23

Posted by admin in Real Estate

The British Columbia real estate market had experienced a brief cooling off period. Now, this exciting and beautiful Canadian province has started to make a strong recovery. A distinct bounce back in consumer demand has turned a possible gloomy 2010 into a very strong year for home sales. The interior housing markets are also seeing vigorous demand because of stronger market conditions and current low mortgage rates that are boosting home sales. Vancouver, BC has recently seen a large jump in quarterly sales. According to figures released by the Canadian Real Estate Association, Vancouver is fast becoming one of the hottest real estate markets in Canada.

Real Estate developers are not only attracting retirees, but they are also attracting an innovative young work force. Many developers are responding to consumer demands for a private piece of paradise where people can enjoy the beautiful scenery, but still have access to a vibrant and culturally diverse city such as Vancouver. Whether you are looking for a cozy and private residential home or looking for new real estate investment opportunities, British Columbia provides many real estate options for the informed investor.

Investors and home buyers are recognizing these opportunities. For instance, the average annual MLS (R) residential price in the province is expected to rise 2 per cent. In 2010, many experts are also expecting to see another increase of 4 per cent in the price of real estate. More specifically, home sales in 2010 are projected to increase an additional 8 per cent. Many regions across the Province are now seeing strong home sales. For instance, home sales in the Fraser Valley and the city of Victorian have seen a rapid growth in home sales. In fact, sales in Vancouver, the Fraser Valley, and Victoria have boosted the province’s overall home sales total to almost record levels. In December of 2009, The British Columbia Real Estate Association reported that Multiple Listing Service (R) residential sales in the province have made a remarkable increase this past November.

However, it is important to note that the demand in these residential sales markets is expected to level off in 2010 as demand is exhausted and home prices begin to rise again. With the current low interest rates available on mortgages, many experts suggest that it may be a good time to look at the real estate investment opportunities in British Colombia. As the economy slowly rebounds, one may find themselves with a lucrative investment in a beautiful province.

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Lennar Corporation: Buy Or Sell

Apr 10

Posted by admin in Stocks Mutual Funds

As many investors look into equity searches to diversify their portfolio, housing always comes up as an enigma especially with the so called bubble it has been put in. Coming off record sales and inventory numbers from a few years back, the housing market has struggled the past few months on increasing interest rates and a slowdown of the economy. As I type this, you may think I am foolish for even suggesting looking into housing venture as an equity investment, but on the contrary as an investor you should know to do the reversal of what everyone expects in this situation.

Looking at a specific stock in Lennar Corporation (LEN) as just an example can define why now is a good time to invest in the housing market. Over the previous five years, after incredible gains of near 300% from 2002 to 2005, Lennar has appeared to depreciate in 2006 posting capital losses for investors of nearly 33%. Such a fall can be attributed to the increasing interest rates which make consumers wary to buy new houses. When prices are inflated and mortgages are at all time highs, there is going to be a cornucopia of unsold houses in the market which does not bode well for corporations such as Lennar. However, now with interest rates looking to be hiked for the last time and possibly even cut in the near future, the housing market may see the thrills shown during the glory days of a few years back. While everyone supposes that the economy is going through a recession, I expect a soft landing situation which does not affect the economy too negatively. With interest rates having a strong probability to decrease in the following months, buying shares of a housing company like Lennar can be strongly advocated at such a low price.

While most any large capitalization equities will be adequate for potential investors, I chose Lennar for both its technical and fundamental aspects. Always having excellent margins in terms of growth in revenue and profit from year to year, I expect such earnings to continue to grow even higher. While the next few quarters may not be suitable to the envisions potential investors have, such news is already taken account of in this rational expectation market as the only indicators which should have any affect on the stock would be positive corporate news or a decrease of interest rates. With the probability of such statements higher than the negative sentiments turned into reality, Lennar should have now hit its low and continue its rise.

Already grown nearly 8000% in its near 20 year career, housing will continue to be a tremendous factors in the coming decades and should prove to be no problem in terms of future competition or structurally ousted fundamentals. Supporting positive surprises each quarterly update, investing in Lennar, while of course risky during this stage of the economy, can become a tremendous asset this time next year. Having already felt the effects of the ?housing bubble? sentiment, I can only see future growth in terms of shares for the company and capital gains for investors.

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Property Prices in Australia

Apr 9

Posted by admin in Real Estate

Property prices in Australia have always been fairly affordable compared to some other destinations and as such it’s always been a popular place to migrate for people looking to move away and give themselves a slightly more stress free lifestyle. Particularly in Western and Southern areas of Australia such as Adelaide, it’s possible to live within a small budget (due to the cost of properties as well as the cost of living) and potentially without a mortgage.

At the same time though, the economic crisis that’s lately been crippling property prices across the UK hasn’t been affecting Australia that badly, and in fact house prices rose by around 4.3% between March and June this year. This suggests that Australian homes are not only affordable investments, but fairly secure investments. Were it not for the poor climate those houses would likely have seen significant growth, and as parts of the world are beginning to recover from the recession, now is the time to make a purchase.

There are several reasons for the relative safety of the Australian property market. The first of these is that the relatively low starting prices and the low price of living has meant that moving to Australia has become a solution to the economic crisis. For those who are suffering stress and distress at work trying to support their families and pay their mortgage, moving to Australia suddenly seems like a viable option. For those who are constantly stressed the allure of Australia might lie in its reportedly laid back attitude, as demonstrated by the country’s ‘catch phrases’ of ‘g’day’ and ‘no worries!’. For those who are struggling to pay their mortgage due to financial difficulties, moving to Australia offers cheaper living costs. Meanwhile for those out of work, Australia is currently looking hard for skilled labourers so carpenters, plumbers and builders have almost guaranteed jobs lined up.

Moving to a warmer climate has also always been fashionable, and this is even truer in some areas now that global ‘warming’ is actually making the climate of countries like England colder. Moving to Australia is a way then to get away from two of the big issues currently upsetting the nation and to enjoy relaxing outdoors in the sun. Australia also has incredibly varied scenery, with the blue mountains at one end of the spectrum and the quiet sandy beaches at the other. In between you have jungles, rain forests and cities as well as the incredible wildlife from kangaroos to koala bears.

Currently the average house price in Melbourne is at 363,000 Australian dollars (around £153,000 in the UK or $290,000 in the US), around 500,000 Australian dollars (around £210,000 or $400,000) in Sydney and 310,000 Australian dollars (£130,000) in Brisbane. For those with a little more disposable income however there are still some more expensive options such as Toorak and South Yarra in Melbourne. Here you will find large plots of land with sweeping driveways and expect to pay up to a million dollars. At the other end of the spectrum Pahran and Albert Park are the favourites of young professionals with 200,000 Australian dollars being the asking price for 1 bedroom apartments.

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Basic Facts About Corporate Housing

Feb 12

Posted by admin in Finance, Real Estate

A person might have to relocate himself or have to visit different places for his job. In such cases, it is often very difficult to find a comfortable accommodation facility. Corporate apartments are meant only for the business travelers who need accommodation for a temporary period of time. Most of the business travelers prefer to live on the corporate housings than on the hotel.

Many cities these days have corporate housing to accommodate the business travelers. The executive housing in Boise is located in general complexes. They are managed and owned by the leasing companies. Business travelers and corporate guests prefer these housing as they are convenient and comfortable than the hotels. The furnished apartments in Boise meant for the business travelers have all the amenities and facilities.

The executive housing in Spokane as well as in Boise is available at multiple sizes. Amenities and facilities also vary from one housing to other. A person can select the housing which suits his requirement. Corporate housings are planned in such a manner that they can suit with every lifestyle. The rents of the corporate housings also vary. Thus, one can easily select a housing that fits within his budget.

Public transportation facilities are located in close proximity from the corporate housings. Therefore, one would not face much difficulty to visit different places. Civic amenities like stores, Internet cafes, hubs and restaurants are also within a short distance from these places. As the apartments are completely furnished, the business travelers do not face any inconvenience for temporary or extended stay. Someone who is relocating to a new place can also opt for accommodation in these apartments.

The rent of furnished apartments varies from place to place. Rents of the apartments also depend on the size of the apartment as well as the facilities one can get from the apartment. Most of the furnished apartments in Spokane charge reasonable rate from the business travelers. A person who would have to relocate with his family for professional reasons can stay in these apartments for an extended period of time. These apartments would provide them a comfortable shelter at an affordable price.

Someone who can spend more money for his accommodation can opt for the corporate apartments in Spokane which provide all the standard facilities. Most of the reputed apartments in Spokane and other cities provide standard facilities like clubhouse, playground, tennis court and fitness centers. In the reputed apartments one can also get a swimming pool and a tanning bed. Thus, one would not have any problem during his stay in the housing.

Business travelers can select the corporate apartments in Boise which has all the kitchen facilities like dryer, washer, icemaker, dishwasher, microwave oven and refrigerator. Someone who has a pet can opt for the housings which allow pets. Generally, the terms of the housings are flexible and a person can easily avail them. Incentives and discounts are also provided by some apartments which make the deal affordable.

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Great Things Paramus Real Estate has to Offer

Jan 17

Posted by admin in Real Estate

First inhabited by Indians who named the place Perasmus or the fertile land, is now a community housing over thousands of residents. It is now officially known as Paramus. The place has many things to offer to its residents. It also a great place to start a home and a family with. If you are looking for a place to settle in, you may want to look for houses available in Paramus real estate. The place has many things to offer to its residents. Here is some of the things you can expect to find in Paramus.

Paramus real estate is a community oriented for the family and other things to its residents. The public library of Paramus has storytelling sessions for the children and other lively programs as well. This is for the creation of an environment wherein the child can grow and learn at the same time. In addition, there are also malls, restaurants and recreational areas for teens to enjoy. The Paramus real estate houses six major shopping centers that provide the needs of its residents.

For the adults, there is golf course in Paramus where they can enjoy a good 18 hole golf game. Moreover, the estate also has gyms, sports centers and other similar facilities for the grownups. This allows them to maintain a good health while living in a great place.

There is also an art museum, which is Bergen Museum of Science and Art that displays fossils, rocks, artifacts and tools used by the early Indian settlers. In the nature section of the museum, you will find live animals, amphibians and even reptiles. This makes the place like a little safari adventure for the family. This museum of the Paramus real estate also features travelling and regional exhibits of arts. It may also have displays of Holocaust and music programs. This makes the place perfect for a Sunday activity of the family.

As of now, the place has more than 25,000 residents. The location Paramus real estate is in central Bergen County. It has stunning residential areas and lively people in the community. The place is just located along the state routes 17 and 4 so you will surely not miss it. It is also located along the Garden State Parkway. It also just a few minutes drive from New York City. This makes the place great for the New Yorkers who wants to experience a quieter neighborhood but is still close to work.

The place is also known as the shopping crossroad of the Northeast. This is for the reason that the place houses thousands businesses, a dozen parks, municipal swimming pools and a community centers. If you are looking for a house, why not try Paramus. With all the advantages of the place, you will surely like your stay here. It can meet all the needs of your children in both academics and recreation. You can also enjoy other things the place has to offer. Look now for listings of houses available in Paramus and live a happy life.

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How To Sell Your Home in a Down Economy

Jan 4

Posted by admin in Real Estate

Okay, so, the economy’s down and you’re feeling down because of it. You had planned on putting your home up for sale by now. You’re discouraged, though, because on your street alone you see three other homes for sale. How can you compete, you wonder, with so many other homes on the market? Don’t lose heart, you’re about to learn how. Stand Out. The challenge you have ahead of you is how to make your home stand out from the rest. The way you do that may not be in the way you think, though.

Before you contact a realtor to put your home up for sale, there are several things you’re going to have to take care of. The first is to sit back and take a breather. Now, grab a tablet and a pen.

You’re going to need to walk through your home from one end to the other. Your mission is to make note of every little thing that needs to be repaired or completed. You need to note absolutely everything. Only note projects you’ve started or items that are in obvious need of repair. Do not note anything that you would like to get done on the home, but never started.

Organize your list according to room. After you’ve walked through each room of your home, walk outside and take more notes. What about your yard? Are there any bare spots you need to fix, plants that are dying or dead, stones or yard bricks out of place? How about the exterior of your home? Any repairs needed there? Also, the color. Is it neutral, or did you paint it that bright blue to match the color of your spouse’s eyes?

Make note of it all
Next, you’ll need to make a plan as to how you’re going to get it all done. Assess how much time you think all of it will take, and make a schedule as to what days and times you’ll commit to work on it. Set goals as to when you want to have each room finished. Set a final goal for the date you want to have the house ready for market.

Get your spouse and children involved in the project. You can create some memories. Your family will always remember how you all worked together to get that home sold. Ask extended family and friends to help out, if you need it. Try to keep on task and complete your repairs by your due dates. You’ll be glad you did.

All repairs are finally done and everything’s checked off your list? Then, there’s one more thing you need to consider. Once you contact a realtor, you’ll be provided an estimate as to how much your home is worth in the market. Want to be an aggressive seller? List it for a percentage less than the market value of your home. Use the percentages as follows:
- Up to $150,000 = 10%
- $150k to $500k = 8%
- $500k to $1m = 5%
- $1m and up = 2%

You have to keep in mind that new home listings get the largest viewing audience. If you don’t price it right going into the listing, you’ll miss out on major opportunities to sell your home to the right audience. Your home will get less viewing after it’s been on the market after a few weeks. Even if you lower the price several weeks after you’ve listed it, the home has lost some significant value and luster in the eyes of the buyer. You probably won’t get what you’re asking for. Some other considerations you might include are incentives for an agent to sell your home, or incentives for a buyer to buy your home. Offer to pay half of the closing costs.

Now that you’ve given it much thought and decided on a competitive sale price, it’s time to call your realtor. Interview several in your area before you decide on one. Call the actual realtor office and find out who the top sellers are. These people are the ones you want listing your home. Find the right realtor, and have your home listed for sale.

You are now equipped and empowered to put your home on the market and watch it sell itself. If you follow through with all that’s needed, you’ll be hugely successful in the sale of your home.

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