Big Changes to Income/Employment Rules – Fannie SEL 2012-4 – Effective 5-15-12

(TheNicheReport) — In Fannie’s latest announcement, SEL 2012-4, they covered 3 separate issues, but the one you need to really sink your teeth into are the changes to the new way income and employment will now be viewed. Before I get into some of the changes, right now, these apply to manually underwritten files, with the DU implementation right around the corner.

 

First, there are a total of 60 changes that affect 9 distinct topics that now show up in the Selling guide.

Here’s a highlight of some of them…

1. You’ll find a new section describing how to determine variable income such as overtime, bonus, and commission income

2. A new section called “continuity of income” now states that if the income does not have an expire date, the lender should conclude that it’s likely to continue and no need to document the 3-year continuance. This goes for SS, Disability and retirement income

3. The 4506T only has to be signed one time.

4. VOE can be used in lieu of paystub, W-2’s

5. If your borrower has rental income, only need 1 year’s tax returns—instead of 2 and the operating statement is no longer required.

6. Now allows for employment offers and contracts to use the income instead of delaying the closing to get a 30-day paycheck stub.

7. Child support proof has been reduced to 6 months

8. And if the borrower receives retirement income, there are new requirements.

These all went into effect on May 15 but be sure to follow up with your lenders and their overlays.

As you can see, some of these changes are going to make your life easier but you’ll need to read every single one of them and review the files you have in process now. This is one of the bigger changes we’ve seen in employment and income underwriting in years.

More info can be found http://www.MortgageCurrentcy.com

Are You Still Aware of The Real Estate Trends?

In the last few years the real estate business has undergone many changes. Tax reforms, the market reality oversized, changes in the structure of financial institutions and new forms of national environmental regulation all contributed to a real critical time for the real estate industry of the United States. In short, the nature of business has changed significantly, affecting a wide range of business activities, including competitive strategies, relationships between buyers and suppliers of market methods and development systems for control, coordination and motivation, the product development, financial management, development and human resource management. The way real estate organizations respond to these changes will directly affect their future success. Strategic planning in the real estate business involves a variety of disciplines such as organizational analysis, tax planning, market analysis, deal structuring, investment planning and financial analysis, to name a few.

Corporate Strategies While that strategic planning can benefit many organizations, much of the demand for strategic planning derives from three corporate types, a type are the Diversified conglomerate with substantial real estate and often devalued. Such institutions often wish to improve their properties with global corporate purposes and / or real property used in the financial restructuring or simply to generate income. A second type of corporate entity might be looking for a way to enter the real estate industry again. A good example would be a regulated public utility seeking to establish real estate subsidiary unregulated. Third type involves corporate real estate firms seeking relocation to the market or expands into other markets or areas. To achieve these goals, they also may need to restructure themselves in their organization and finance.

Situation Analysis The purpose of the situation analysis is to establish common goals and objectives, and document the key variables that affect the business plans of an organization. Hopefully, these activities will lead to the ultimate goal of establishing a consensus among the participants in the overall strategy. The situation analysis involves a number of issues, beginning with a determination of the organizational structure of the company and its goals and overall objectives business. It could also include an analysis of global business trends and local market conditions, an inventory of current real property, and a review of external factors affecting business, including regulatory restrictions, the tax position, the capital structure, etc.. A situation analysis includes actual interviews with key executives in the organization, reviewing important documents, property inspections and site, and the definition of short and long term. This process may require data from other specialists outside the real estate, such as organizational consultants, tax, and accounting. Once the situation analysis is complete, top executives gather in a special workshop to review the results. This workshop is critical to the overall success of the meeting for three important reasons. First preference is establishing a consensus between the client and outside counsel with respect to the center of the process. Second, it provides a mechanism for the heads of departments in the organization to participate in the strategic planning process. Finally, it provides a common basis of understanding? What is it, to reach the goal? What will be?

Strategy Final In the final step in the strategic planning process, all decisions are documented in a final plan of business strategy. Naturally, the format of the final document will tend to reflect the organization’s own preferences, but a convenient summary can emphasize the main points of the plan. Once the documentation is complete, strategic planners run a final workshop to gather all the details are in the process of decision making. A major focus in this process is the assignment of implementation responsibility for various components of the plan to specific individuals. It is also important to establish procedures for specific monitors. Ultimately, strategic planning can be a huge benefit for many types of organizations, especially in the real estate industry that is often turbulent. Historically, the real estate community has consisted of independent individuals, aggressive negotiators who were in the real estate business to make money. Today, however, the real estate industry is maturing, primarily due to increased competition and market saturation. The conclusion is that real estate companies now have to worry about business strategies for the real estate industry as a whole, not simply as individual projects.

Bio: The author is a real estate analyst for global real estate markets and enjoys a great deal of satisfaction in sharing the trends and analysis.

This article is free for republishing
Source: http://www.articlealley.com/trends-in-the-real-estate-business-2429260.html

A Remortgage – What is It?

You say tomato, I say tomahto. You say remortgage, I say refinance. Yup, you guessed it. They both mean the same thing. The only difference is “remortgage” is the term used primarily in England where as “refinance” is used in America. Since the housing crash hit, more and more people are searching out for a new loan once their existing rate starts adjusting. This is typical for those who went with a 3 or 5 year ARM instead of locking in a 30-year fixed.

Has your number been called yet in the UK or are you just looking for a better overall mortgage rate? If so, now is the time to start looking while interest rates are still reasonable. The hardest part is finding the right person or loan broker to work with (at least in my experience) but with the internet at your fingertips, it’s much easier.

As I mentioned in my previous post about researching home insurance policies, using a search engine comparison site is the best way to compare and find deals catered for you. This is also true when it comes to just about anything these days. Before I order things online, I use shopping comparison sites like Froogle. When I’m searching for health insurance I’ve used ehealthinsurance.com. Now, if you’re living in the UK and looking for a remortgage, I would try a site like remortgage.org.

Remortgage.org makes it easy to speak with a mortgage professional for free advice regarding a remortgage in the UK. After completing 3 steps on their site, you’ll get access to one of their professional remortgage brokers. They will then answer your questions regarding advice on a mortgage or remortgage in the UK. I have yet to personally try them out since I don’t live in the UK but their site is pretty clean and useful which presumably means their staff is professional too.

If anyone has used remortgage.org, I would love to hear about your experiences by commenting below. Our goal is to help share knowledge and real estate information that is useful to all.

thanks,http://www.realestateweblog.org/a-remortgage-what-is-it.php by David.

Do You Really Need a Residential Real Estate Lawyer?

Congratulations! You’ve found the home of your dreams. You might think it’s unnecessary to hire a lawyer to sit with you at the closing table when you buy a home. Most states don’t require that you use one. Closing is the last step in the process, so why spend the extra money?

The fact is, for most people buying a house is the largest purchase they will ever make. When you are signing your name to a transaction that may affect you for years to come, hiring a lawyer now might save you a lot of headaches later. A lawyer’s help can be valuable throughout the process.

A Lawyer Understands Legalese

When you make an offer on a home, your real estate agent assists you through the negotiation process. When you strike a deal, whether you’re the buyer or the seller, the agent will draw up a contract for sale. When you sign it, you lock yourself into the deal. Lawyers are experts in contracts.

If there’s any language included in the contract that you don’t fully understand, you need a real estate lawyer. A lawyer not only explains what you’re signing but also tells you if it’s in your best interests to do so. A lawyer can suggest changes to the standard contract.

A Lawyer Will Research a Home’s Title

Someone has to make sure that the home you are buying is free and clear of liens. Any liens against the property transfer to you after you purchase it. You might think this is what you are paying a title company to do – to make sure the home has clear title.

But lawyers usually do more to protect your interests. They’ll look for things like third parties’ rights to use a portion of your property. A utility company, for example, might have buried a power line in your back yard or have an easement allowing it to do so in the future. You could never put a pool there.

Some Lenders Require a Lawyer at Closing

If you don’t hire a lawyer, much of the work involved in buying a home falls to the title company. Some title companies won’t accept that responsibility and require that you hire a lawyer. Some mortgage companies won’t let you attend closing without counsel, either.

You Need Someone on Your Side

Not everyone involved in the purchase or sale of your home is on your side. Your real estate agent wants the deal to go through because that’s how real estate agents get paid. The seller’s real estate agent feels the same way. If something occurs at closing that you are not comfortable with, the various professionals will likely urge you to sign the deal anyway.

You can be sure your lawyer will not. Your lawyer will straighten out the problem or protect you from making a commitment that might cause you problems later.

A Real Estate Lawyer Can Help

The law surrounding residential real estate is complicated and the financial commitment is large. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact a real estate lawyer.

(from http://real-estate.lawyers.com/residential-real-estate/Do-You-Need-a-Residential-Real-Estate-Lawyer.html)

The Return of the Agent’s Long-Lost Friend

After all these years, the mortgage originator wants to rekindle the relationship.

There are some business relations that just seem custom made for each other. Imagine an automobile manufacturer without the dealership, or the textbook publisher without the university. For most of the latter half of the last century, real estate sales professionals and mortgage loan brokers would have fit nicely into this category. That changed about 10 years ago when historically low interest rates and easy access to capital turned home finance salespeople into order takers. It might be about to change again.

Since the beginning of the downturn, the ranks of mortgage originators, especially mortgage loan brokers, have been dwindling. The first to go were call center employees who had nothing to do when the phones stopped ringing, and no real prospecting skills to reload their empty pipelines. These were followed by professional closers who had previously survived by taking apps from borrowers pre-qualified by call center workers.

Today, the professional loan originators that remain in the business are true salespeople, and that’s fortunate for the home finance industry. Never before have lenders found themselves so desperate for front-line salespeople. According to HousingIntelligence, nearly 40% of real estate transactions that occurred in 2011 didn’t even involve financing, as investors rushed in and buried their cash in real estate in the hopes of future appreciation.

For mortgage lenders, 2011 was the worst year since 2000, according to Inside Mortgage Finance, with loan originations topping out at $1.35 trillion, down 17.2% from 2010. This year doesn’t look much better, with Des Moines, Iowa-based iEmergent forecasting 2012 originations of between $825.6 billion and $914 billion. In a word, dismal.

So what does all this mean to the professional real estate sales person? That knocking you hear at the door is probably a loan originator. Before you send out the dogs, there are a few good reasons you should consider letting your former partner in.

Why now is the time to ally with an originator

The professional home finance salespeople who are left in the business today are the best the industry has ever fielded. They understand the mechanics of cultivating business. They know how to seek out and find qualified applicants and how to get those deals to the closing table. It is true that they are currently suffering through some loan officer compensation and licensing challenges, but lenders expect these compliance hurdles to be overcome in short order.

The biggest challenge these salespeople will encounter in 2012 will come from competitors intent on reaching qualified applicants before they do. To combat this, today’s front-line loan originators are using every marketing trick in the book, including leveraging social media and web-based video. But most will go back to the old ways of generating leads, getting more involved in their local markets, advertising, and forming alliances with trusted third parties, including real estate agents. These tried-and-true methods will serve them well.

As part of this push to beat the competition, loan originators will be calling on real estate brokers and their agents again. Some, who felt abandoned when loan brokers got so busy with refinance business that they forgot their real estate agent friends, may resist this, but that’s a mistake. The best reason for real estate agents to embrace these relationships now is because the mortgage industry currently needs real estate partners more than real estate companies need originators, putting you in an excellent position to capitalize on the relationship. Besides, lenders are bringing more to the table today than ever before.

Better originator technology eases sales

Real estate companies that forge alliances with mortgage lenders now will find that the technologies originators can bring to bear on the process today are light years ahead of where they were 10 years ago. Consumer-facing technology provided by lenders can make it easier to close deals that require financing because consumers can find the answers they need more quickly.

A few years ago, when mortgage technologists first began working hard on web-based portals, there was some confusion as to who would be left in control of the transaction. While many agreed that the consumers needed to feel like they were controlling the home buying and financing processes, neither the real estate company nor the mortgage lender wanted to relinquish control.

Today’s mortgage origination software is much more sophisticated, providing interfaces that make it seem like all parties are in control. The result is a borrower that feels better educated and more in control, which empowers them to close deals faster.

Many modern mortgage loan origination systems (LOSs) have built-in functionality that allows the lender to create micro-websites for each loan transaction. This allows the lender to share information in a secure fashion with any party it chooses. In most cases, lenders are sharing status updates with real estate agents and borrowers.

It’s not just the lender’s primary processing technology that is providing benefits to real estate agents – a number of upfront marketing tools have been employed in this area as well. A number of Product & Pricing engines have spawned web widgets that can be placed on a real estate agent’s website in order to providing production information to site visitors. MarksmanLMP from Mortech, Inc., Lincoln, Neb. is a good example.

 

When it comes to earning consumer trust, nothing beats providing solid information that doesn’t change at the closing table. Tools like the mobile loan closing cost estimator provided by Ernst Publishing can provide an estimate of the cost to close or, if the lender or agent pays a fee, a guaranteed cost to close a given loan. By offering this type of information to the real estate agent, lenders are doing their part to help agents build trust and close loans faster.

Originators have more to offer now

But it’s not just technology that today’s originators bring to the partnership, it’s also the promise of more work. In the old days, the lender often promised to bring partner agents any deals that originated in the institution, but in practice the results were not impressive. Lenders were not good at watching their portfolios for signs that their existing borrowers were ready to trade up, and those that were ready often reached out to a real estate agent first.

Today, loan originators can bring real business to real estate agents in the form of Real Estate Owned (REO) listings. There are currently hundreds of thousands of properties owned by banks. While the lion’s share of this REO has been handed over for listings to the nation’s largest real estate companies, their inability to sell it quickly is making some lenders reconsider their property disposition approach. This could open the door for other real estate brokers and their agents to get in on this action.

 

The only caveat here is that lenders are still working through a backlog of loans in default, and that means that more lenders are under government pressure to avoid foreclosure by any means necessary. For some, this means pushing for a short sale that can benefit everyone – the existing borrower, a new homeowner, the loan servicer and the investor. Not an easy thing to accomplish even when you consider that the real estate agent, the party most likely to bring a buyer to the table, isn’t really even considered.

Short sales are a touchy subject, and they have done a good job to keep loan originators and real estate agents from forging tighter relationships, to the detriment of both. Don’t let a less-than-desirable method of stopping foreclosure keep you from working closely with an originator who may be able to bring you more lucrative deals as the year progresses.

As lenders work their way through the remainder of 2012, the most successful will deploy professional salespeople back into the market who are very likely to make their local real estate companies primary targets of their lead-origination efforts. While some agents may harbor ill will over the way these same originators abandoned them in the face of walk-in business during the historic refinance boom, those that forge new relationships with lenders are likely to be the winners.

 
Originators are bringing more to the table than ever before, including new technologies that will make it easier to close transactions and increase the real possibility of REO listings. These reasons should be enough to compel most real estate brokers and agents to welcome originators back to the table.

(from: Rick Grant is founder of RGA Public Relations. He has been a real estate and mortgage finance reporter since 1997. Follow him on Twitter at @nyrickgrant.)

Online Classes VS Live Real Estate Classes

Who doesn’t love internet out there?

However, ask yourself this question: Is the Internet a suitable substitute for an actual mentor?

Listening to our competitors, you would think so. They try to sell students on the idea that online classes are more effective in teaching than live classes. We completely disagree.

The Department of Real Estate requires that a student take 3 classes in order to qualify for a sales person license and 8 for a broker license. Each one of those courses has 45 hours of credit. The California Department of Real Estate requires that for a home study course there be 10 pages per course hour in each textbook used by a real estate school. Each textbook, by statute, must be at least 450 pages. (45 hours x 10 pages = 450 pages) Now, ask yourself this: If you were to receive three (You need Real Estate Principles, Real Estate Practice, and an Elective course, remember?) 450 page books in the mail, would you have the patience and discipline to read each and every page line-by-line, absorb the material, take the exams online, and subsequently pass the state exam? Even if you made it through each book, how much do you think you would really learn from reading 1500 pages worth of course materials on your own? Taking an online course does not compare to the knowledge and guidance we have to offer through our live real estate program.

Why then are so many other real estate schools online only?

The answer to this question is probably a combination of several factors. First of all, from a business perspective live real estate courses are much more costly to run than a strictly online model. High quality instructors must be compensated for teaching and classroom space must be procured. These costs create a strong incentive for education companies to keep overhead to a minimum and do “online” only.

All of our instructors are licensed and active real estate agents, and most are brokers. Isn’t this the caliber of educator you would prefer in helping you begin a new career in real estate?

Our program gives you the greatest chance at success. With the proper guidance and enough determination, every student can ultimately achieve their ambitions of becoming a licensed and successful real estate agent.

(from: http://www.adhischools.com/blog/online-classes-vs-live-real-estate-classes/)

When Will Real Estate Values Begin to Appreciate Again?

When will the nation’s property values begin to appreciate again? This is the $64,000 question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market.  Like everyone else, I can’t predict the end of this crisis either, but what I can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again. Without an investment, real estate is as worthless as the Dollar is today.

Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”.  They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.

The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $800,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $800k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?

Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.

So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream” which has turned into the “American Nightmare”; she can only be rebuilt by hard working Americans, not by Wall Street.

Aubrey Clark is a Syndicated writer, author and editor for Direct Banc, a low interest rate credit carddirectory.His current project outlines how to choose the best Airline Miles Credit Card and how to maximize the benefits when using it.

from: http://www.realestateweblog.org/when-will-real-estate-values-begin-to-appreciate-again.php

Short Sales This 2012 and Related Real Estate Law Now Revealed!

Afraid of bringing damage to your credit and wants to avoid foreclosure? Then you have to consider few things before deciding to do short sale because selling a house less than what you really owe to your lender has deficiency and tax consequences.

Thank God it’s 2012 and as they said, if you decide to do a short sale in this year, there are a few favorable laws that you should know that are currently in effect until the end of December 31, 2012. But, the clock is ticking. So the time to act is now if you wish to complete the short sale process on your house before these laws and their benefits will expire!(click here for moreCalifornia Short Sale Law)

In order to complete short sale, most of the lenders will require you to have professional real estate agent. Yes, there is zero out of pocket money for you when you use us as your short sale real estate agent Team, as the lender pays commissions out of the proceeds of the sale but this will guarantee good outcome in the end.

You must always remember that Short sales take time. We are all possibly familiar with the horror stories about short sales taking months on end to close or worst being victims of short sale scams as I wrote in my last article. But, that has never been our experience. We’ve found and tested that when documents are properly managed, and consistent communication with the lenders is performed, that short sales can be completed in a very reasonable time frame as possible.

When short sale is the consideration, experts highly suggest to always seek out guidance of a local professional real estate.  Here in Redwood City, it is our job to clearly explain your options and to guide you in the right direction  to get your home sold for a fresh start.  As evidence, you can read the Testimonials from our clients describing their experience with us.

If you would like to have a similar experience with your Listing Agent Team and if you want to be guided on related real estate laws, just email us or call us and we’ll get back to you as soon as possible.

I am interested in selling my home. Please call me at telephone number below (required)

1060 El Camino Real Suite G, Redwood City, CA 94063
Direct :	(650) 587-1551
Cell :	(510) 209-3677
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Web Page:	http://www.realtorchristina.com
CA DRE License Number:	01900915

A New Way To Sell Your House – Bury St. Joseph In Your Yard

Are you religious (or not) and looking for a new way to speed up the process of selling your home? If so, you may want to try what one person did to help sell her home in Brooklyn, N.Y. during this difficult real estate market. She has turned to an unlikely source for help: St. Joseph.

St. Joseph is a Catholic saint who has long been believed to help with home-related matters. And according to lore now spreading on the Internet and among desperate home-sellers, burying St. Joseph in the yard of a home for sale promises a prompt bid. After she and her husband held five open houses, even baking cookies for one of them, she ordered a St. Joseph “real estate kit” online and buried the three-inch white statue in her yard.

These statues are flying off the shelves as an increasing number of skeptics and non-Catholics look for some saintly intervention to help them sell their houses. Talk about desperate measures. You might as well put your house up on eBay and/or Craigslist and see if anyone makes a bid. Regardless, I guess at this point I would try anything and everything to help sell my home.

You can read the entire article on the RealEstateJournal website.

Update: I received an email from the seller and her house has sold! Congrats to her and apparently burying St. Joseph in her yard helped. 

(This article came from David last February 12, 2011 in his site http://realestateweblog.org)

Kelsey Grammer Keeps Flip, Flip, Flippin’ Homes; Lists in Bel Air (PHOTOS)

Kelsey Grammer has ants in his pants – if, for sake of this discussion, ants are homes and his pants the greater Los Angeles area. Minutes after buying in Beverly Hills, CA, Grammer has switched gears and is now selling in Bel Air, CA. According to the Huffington Post, the actor, who just the other day plunked down $6.5 million on a Ralph Flewelling-designed home, is reportedly selling his Holmby Hills manse for $18 million.

Purchased by Grammer from baking soda heir Michael Armand Hammer (think Arm & Hammer) for $13.7 million, the now 10,567-square-foot English Country style estate was originally built for composer Henry Mancini in 1980. The home offers a grand total of seven bedrooms and nine bathrooms, along with seven fireplaces. And as the HuffPo points out, there’s even a fireplace in the gym – a workout must for Dr. Frasier Crane, apparently. Other highlights include a dual-gated motor court, tree-covered patio areas, and a pool and spa.

For more LISTINGS in east bay area, just visit RealtorChristina.com

For Property Management in Redwood City visit ItoscaRentals.com

Read more: Kelsey Grammer Keeps Flip, Flip, Flippin’ Homes; Lists in Bel Air (PHOTOS) | REALTOR.com® Blogs