Blog | America's Premier Realty | Because it's not just a house, it's your home

Foreclosure Fever!

Come now, you can’t honestly tell me that you’re not aware of the current foreclosure epidemic and it’s devastating effect on the economy. I mean, how have you not noticed the for sale signs lining every single block with a rider labeled “foreclosure” in big bold letters. However, I am willing to bet that you have never been sat down and had someone explain to you what good can come from this. Well get comfy in that faux leather rolling office chair. Cause that’s exactly what I’m about to do for you. Like I said, the media is quick to point out every little terrible thing about our situation because they know you’re tuning in to see how you can protect yourself from it. ITS ALL FOR RATINGS! DON’T LISTEN! They wont mention the fact that although property values have completely fallen of the face of the earth, millions of people stand to gain from this. Those of us who have made decisions wisely in the past and have managed to keep our heads above water through it all, have an amazing opportunity to buy a house between 35-75 percent cheaper than they were only a couple of years ago. For instance, the property i have pictured up at the right hand side of this article was sold for $550,000 in 2006. It is currently a foreclosure and on the market for $345,000. That is a 38% percent discount from what you would’ve paid just two years ago! Savings like this are the norm these days as more and more people are coming out of hiding to take advantage of this feeding frenzy. Not to mention the fact that the days of odd mortgage loans such as pick-a-payment and other adjustable rate mortgages are long gone. Yes, we can all breathe a little easier now. The bad taste left in lenders mouths from terrible ideas such as those, partnered with their hemmorhaging of money trying to stay afloat, has caused them to drop interest rates immensely to entice buyers to purchase a home. Currently, an interest rate in the high 5′s low 6′s is not uncommon. Which in comparison to a few years ago, when fixed rates were in the 7-10% range and adjustable rates were reaching ungodly numbers, are very welcomed figures. And probably the best reason to buy now is the First-time home buyer tax credit available to, you guessed it, first-time home buyers, of up to $8,000(for more information on the first-time home buyer tax credit, CLICK HERE). So here it goes, I’m about to sum up to you, the VERY interested reader, why you should be calling our office right now to look for the next place to put that very trendy sofa and love seat combo you recently bought. First off, You’re buying a house at almost half the price (no brainer right there). Which will be financed at a low, steady interest rate that wont put you on thirty different kinds of blood pressure medication. And for those very lucky individuals who swallowed the urge to buy their first home during the boom, drum roll please, UP TO $8,000 to do whatever you want with! HOW MUCH BETTER CAN IT GET?! So yeah, here’s the number to our office you were about to go lookup, (305) 275-7455. GO AHEAD AND CALL!!! And for those of you who have transcended flawlessly into the 21st century and prefer all inquiries via the web, Click Here to visit our contact page.

Good credit score: The key to locking-in the best mortgage rates

Below is a guest column from Jay Robins, who is often referred to as “America’s #1 credit expert.” His opinions expressed do not necessarily reflect those of Foreclosure.com or its staff. He will lead an enlightening webinar later this evening called “How To Save $100,000 On Your Mortgage.” Read below to find out what it’s all about and to register for the educational session.

Over the past 10 years, I’ve worked with thousands of people to get them the credit they need to buy the homes they really want. Today, I start with this warning:

If you’re hoping to qualify for a trustworthy lender’s best-value mortgage in 2011 or 2012, you will need to work at improving your credit score, even if you always pay your bills on time. And if you’ve had a short sale, foreclosure or bankruptcy, you will need to work even harder.

But you can quickly build it up again if you know how to play the game like a professional.

Ever since the real estate meltdown, the big lenders and the three major credit bureaus that service them have come up with practices to reduce lender risk at any cost to consumers. This new bag of tricks contains a nasty surprise for home buying or mortgage re-financing— your mortgage credit score, as reported by the “Big Three” credit bureaus, may have been downgraded without your knowledge.

And new rules put you in catch 22 trap that can guarantee one of two outcomes: You will pay more (a lot more) in monthly payments and closing costs and/or you may not qualify for a fairly-priced mortgage at all.

Here are just three of the “Worst 2011 Mortgage Credit Score Traps:”

Trap #1: Your Mortgage Credit Score Is Not Your Consumer Credit Score

You pull your own credit score exactly as the “Big Three” credit bureaus — Experian, Equifax and TransUnion — urge you to do, paying them a fee, of course. But the credit score your lender sees is a different, lower number. (A client just referred to me this month by a very decent lending officer was suddenly disqualified for the mortgage she wanted for this exact reason, until I helped her quickly raise her score.)

Trap #2: Creditors Slash Your Credit Lines For No Fault Of Your Own

Banks can panic and cut your credit lines without warning. Say your credit card lines have been cut in half. Now your conservative debt of, say, 30 to 40 percent of your credit lines have jumped overnight to a “dangerous” 60 to 80 percent debt-to-credit ratio. The credit bureaus mathematical “algorithms” respond to this new debt load by automatically lowering your credit score.

Trap #3: Lender Rules Automatically Lower Your Score When It Matters Most

A client had a 660 credit score to qualify for a government-backed mortgage, so was pre-approved. But the lender applied the perfect catch 22. Its rules dictated that his credit report be pulled again five days before the closing. The act of pulling his score again lowered his score by 20 points as a “new inquiry,” which meant the lender rejected him for the mortgage.

You couldn’t make this stuff up. But I have two remedies to offer, right now, to put you back in control of your credit score.

First, join my Webinar this evening, Thursday, June 23, at 8:30 p.m. ET called “How To Save $100,000 On Your Mortgage,” at the invitation of Linda Yates, Education Director for the most authoritative real estate website for consumers, Foreclosure.com.

Be sure to sign up now before the registration window closes — spots are limited and filling up fast. Click here.

You can beat an unfair system.

Because my business — my only business — is showing you exactly how to boost your credit score. This Webinar will help you focus on what you can do, how you can do it legally, and when you should do it for optimal results.

Join me tonight and, together, we’ll get you the credit score you need to buy the home you really want.

Free property title search

When it comes to distressed real estate, a clean title absolutely essential.

Title searches become especially critical for short sale and foreclosure transactions because liens on a property transfer with property ownership. That means that you could be stuck with an outrageous bill even though the previous owner caused the lien to occur in the first place if you’re not careful.

Indeed, any encumbrances incurred by the previous owner could become the next owner’s problem. And if that next owner is you, you may be in for a very unwelcome shock.

The July 2011 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which familiarizes you with title searches and how to get them done, for free if you’re so inclined (and diligent), as painlessly as possible.

Your success as an investor depends on it.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.