Foreclosures: Where Does Your State Rank?

It seems that all you hear about when you turn on the news is the gloom and doom of the Real Estate market.

Yes, foreclosures have hit an all time high, more people are defaulting on their loans than ever before, and the housing market is a mess.

But as homeowners and buyers you still have options.

Here is a great link to see where your state ranks in foreclosures:  CLICK HERE

If you would like to know what options are available to you, please give me a call and I will help you make an educated decision and come up with a strategic game plan.  Just visit my website:  http://www.utahsmortgageguy.com

~Kelly

What You Need to Know About VA Loans

VA loans offer a truly unique, money and deal-saving option that few understand. While you may know that VA has a seller concession limit of 4% of the sales price, you might not know WHAT is included in that 4%. Would you like to know what is included?  I thought you may be interested:

Sellers can pay up to 4% in sales concessions to include:

• Buyer’s funding fee
• Prepaid taxes and insurance
• Gifts such as television or microwave
• Interest rate buy down points
• Temporary buy down funds
• Payoff of credit balances or judgments on behalf of the buyer (amazing but true).

Payment of closing costs and normal discount points (that aren’t for the purpose of buying down the interest rate) are NOT included in the 4% limitation.

So don’t look at a sales price of $200,000 and calculate that a seller can only pay $8,000 (4% of $200,000) on behalf of the borrower. A seller could pay $8,000 towards the buyer’s prepaid taxes and insurance and debt PLUS $3000 towards the buyer’s closing costs, totaling $11,000 paid by the seller.

This would still comply with the 4% limitation because closing costs are not included in the 4% limitation.

Call me, Kelly Whytock for complete information on assisting your VA borrowers!

Should You Monitor Your Child’s Credit Report?

 

Would you believe there are thieves out there trying to “sell” social security numbers to help people boost their credit scores?  Unbelievable?  Yes.  It’s true.

The FBI says that quite a few of these numbers are actually Social Security numbers belonging to children.  Since children must now have their own Social Security Number, hackers are finding ways to stealthem and sell them to people who want to create a new identity or are using it to apply for credit—then never paying the creditors back. 
 
Of course, the people both buying and selling the numbers are committing fraud—but your child’s credit could be ruined—and you 
might not even know about it for years.  The FBI is urging parents to check your child’s credit report at least once yearly.  By law, you are entitled to three free credit reports every 12 month; one each from Equifax, Experian, and TransUnion, the national consumer credit reporting agencies. If you haven’t requested free credit reports in the past year, visit the credit agencies and get a copy of your credit report now.

How can you protect your child from identity theft? Don’t give out your child’s Social Security number unless it’s absolutely necessary.

Parents can check your child’s credit report. The credit reporting agencies do not knowingly maintain credit files on children. A check of your child’s credit should turn up nothing until she turns 18, unless child is a victim of identity theft.  So if you run a credit check on your child and something shows up, you will want to investigate further and find out if someone has illegally obtained and used his/her social security number.

After the Foreclosure Debacle

One of premier housing analysts for Moody’s Dismal Scientist, Celia Chen recently co-authored these projections for the housing industry:

“Prices could decline more than anticipated next year, once the processing issues are resolved. The number of loans affected by recent servicer-imposed moratoriums and the length of those freezes will determine their effect on the housing market and the broader economy.”

“…self-imposed moratoriums affect approximately 27% of all properties in foreclosure.”

“About 38% of foreclosure filings and 41% of foreclosure inventory are in judicial states, according to RealtyTrac.”

“…Fannie Mae has suspended sales of properties purchased from their servicers.”

“Since, according to RealtyTrac, foreclosure sales represent 31% of combined US new– and existing-home sales in September, the foreclosure suspensions could depress home sales by 84% until they are lifted. This would lower the foreclosure share of home sold to 25%, a substantial reduction that would tend to cause house prices to rise rather than fall.”

“Once the [foreclosure] issues are resolved and foreclosures are completed, distress sales will cause house prices to dive again.”

“The foreclosure freeze means that it will take longer to work through the huge backlog of distresses homes.”

“Uncertainty…will hold banks back from lending to both businesses and households. Despite being flush with cash, banks will remain reluctant to lend more aggressively without clarity about the impact on their capital positions and profitability.”

“Servicers are optimistic that few loans have been improperly processed…Further, the whiff of improperly foreclosure filings may embolden borrowers and their lawyers to tie up foreclosures in the legal system.”

“Higher borrowing costs could weigh on housing demand…Servicers will pass along the costs of the current delays – for property preservation, taxes and insurance, additional court filings, attorney fees. And labor – to consumers in higher mortgage interest rates.”

“Constrained credit will constrain housing demand…Buyers who were planning to buy non-distressed homes may put off purchases until the situation is resolved, fearing another wave of foreclosure sales that could drive down values. Additional, buyers might be wary of purchasing foreclosed homes from any servicer, knowing the potential for litigation. The consequence of this deterioration in confidence will be some combination of fewer home sales and lower prices.” If you live in Utah and you are ready to purchase a home or if you just have mortgage questions, give me a call.  There is no obligation, no pressure, just a lending hand to give you sound mortgage advice.  You can visit my website:  www.utahsmortgageguy.com  See you there!