My New Blog

This is a hot topic but the media is not really telling what is happening in the mortgage place:

1. The majority of foreclosures could be prevented if the lien holders would modify the loans to the price they end up listing the foreclosures for sale for.

2. Foreclosed/REO homes are less expensive than short sales and less hassle.

3. Short sale lien holders are turning down offers for more money than they end up listing the property for after foreclosure. Contact me if you want specific examples in Jacksonville, FL. bkgravitt@comcast.net

4. REO companies marketing foreclosures are giving the buyer only 5 calendar days for inspections and 15 days to close if a cash transaction. If it is a financed transaction they are only giving 14 days for loan approval. Most mortgage companies can not get a loan approval in 14 days, especially if the buyer is using down payment assistance. Therefore, the buyer is at risk of losing their binder deposit.

5. With down payment assistance the process works like this: once you have a fully executed contract the appraisal is ordered and takes about 7 days to get the written report, then the appraisal is given to the H2H inspector and he takes another 7 days to file a report. During this time the WDO inspection and the home warranty inspection must be completed and paid for by the buyer. At this point the buyer will have almost $1000.00 invested in inspections and $1000 for their binder deposit, all of which the buyer is at risk of losing if the deal does not close.

6. It takes a minimum of 45 days to close a loan with down payment assistance if everything works like clock work, which it usually doesn't.

7. If you are a first time home buyer you must close on your new home by Nov 30, 2009 or you will not be eligible for the IRS tax credit of up to $8000.00.

Advise: Before you select a home have your loan company send your application through their underwriting department, Not just a pre-approval. This means that all documents like employment verifications, bank verifications, etc. are ordered and sent with your package through underwriting.

Don't bother with short sales unless you have a lot of time and are prepared for disappointment. If your offer is not within 80% of the sellers loan amount, then you are wasting everyone's time.

Be prepared to make any repairs required by your lender out of your own pocket before closing without causing your loan application to be jeopardized.

Ask for the seller to pay up to 6% of the purchase price for buyers closing costs, prepaids, and discount if you are getting an FHA loan or 3% if you are getting a conventional loan. Even if you have to raise the sales price to do this.

For more assistance if you are planning to purchase a home in Jacksonville, FL contact Brenda Gravitt CRS, GRI at bkgravitt@comcast.net

Mortgage guidelines have tightened and purchasers need a credit score of at least 620 to get approved for a loan.

The $8000 tax credit can not be used to satisfy the 3.5% down payment required by FHA but it can be used for closing costs and down payment over the 3.5% required.

I advise to get qualified for a mortgage before looking for a home so you will know that you qualify for the homes you are looking at.

Brenda Gravitt CRS, GRI

bkgravitt@comcast.net

Well,

The government has agreed that you can use the tax credit to use toward your down payment at closing by setting it up similar to a "bridge loan". However, the mortgage companies have not figured out how to implement this. They are concerned that they can't require the buyer to either amend their 2008 return or file their 2009 return so that the money can be assigned to them by IRS. Also, they are not assured that the credit will not be used to pay back debts that the taxpayer owes.

IRS has the right to keep any tax refund to go toward any federal or state past debt, as well as debts owed for back child support, student loans and other debts owed to state and federal agencies. This could potentially reduce the amount of credit the mortgage company would be sent.

In addition, the down payment assistance programs have guidelines that do not allow for other liens agaisnt the property because the down payment assistance is set up like a "silent" second and third mortgage. They are still working the kinks out.

Solution: If the buyer will agree to submit a completed and signed amended 2008 return at closing to the settlement agent this can be forwarded to the mortgage company along with the other closing documents. The mortgage company can then submit the return to IRS along with an assignment of the refund to them. Consumers can make this suggestion on a case by case basis and see if they can get their mortgage company to try this option.

Investors are back in the market! This could work to a first time home buyers advantage. Many of the properties under $70000.00 will not qualify for FHA financing because of the repairs needed. However, if an investor purchases the property and makes the repairs needed to qualify for FHA financing then more properties will be available to individuals who also qualify for down payment assistance and the $8000.00 income tax credit.

Contact me to find your home and I have investors that will make the repairs before you close. Don't let the condition of the property stop you from getting the home you need now! I am a problem solver, let me assist you with your home buying needs.

Brenda Gravitt CRS, GRI

bkgravitt@comcast.net

Sorry folks! My website was mistakenly deactivated. I am starting over in designing this one and it may take me some time to get all the information included that you need to purchase or sell a home in the current market. If you have suggestions about what infomation you would like included, please email me at bkgravitt@comcast.net.

Some topics I plan to include are:

1) List of first time home buyer loan programs and contact information for certified down payment assistance loan officers in the Jacksonville, FL area.

2) Information on properties I think are currently the best deals on the market, especially for investors

3) Income Tax Credits available for first time homebuyers - deadline for closing is prior to Dec 1, 2009

4) Information on the short sale process - be prepared to be patient - these will take 3-5 months to close on

5) Information on foreclosures - quicker closing than short sales

6) Staging recommendations for homes for sale and pricing strategies

With my background in financial management I am familiar with the process of establishing budgets. I am a problem solver by nature and would like to assist you in solving your housing issues. No one cares how much you know until they know you care. Deal with a Realtor that cares, call me!

Brenda Gravitt CRS, GRI