About Short Sales

A home buyer should know that there are 2 stages to mortgage loan approval. We have heard of preapproval. When the buyer submits the loan application to his loan officer for preapproval, Stage 1 begins.

When pre-approval is requested, it will be a preliminary home mortgage approval indicating that the mortgage will likely be approved for a certain down payment and purchase price.

This preliminary approval will not matter once the application goes to review for the actual mortgage loan. Stage 1 ends when the “underwriter”, not the loan officer becomes involved.

Stage 2 of the process occurs when a mortgage underwriter is reviewing credit, income, assets, job history and probable other things. It is the job of the underwriter to insure that the buyer can meet the lending institution’s criteria for loans.

This procedure should be a formality if the Stage 1 loan officer did an appropriate job. Usually this stage moves along as anticipated. However, sometimes the buyer changes his loan “risk” without intending to do this, but affecting the mortgage approval. The buyer doesn’t mean to decrease his loan probability, it “happens.”

During the mortgage approval process, the buyer must not do anything that will increase his loan risk during the time between Stages 1 &2. Risk needs to remain consistent. The following are 6 things of the “Honey Don’t” list for this interim period:

1. Don’t quit your job, change careers, or accept a “commission only” position. 2. Don ‘t miss a payment to a creditor 3. Don ‘t buy a new car or increase any vehicle payments 4. Don’t accept cash gifts without talking to your loan officer(there are gift rules) 5. Don ‘t open a new credit card no matter how great a deal 6. Don’t transfer large amounts of cash in/out of bank accounts

There’s other items, too, but this a good start. Now, avoiding these mistakes may not be practical for everyone. Therefore, if you know you’re going to violate a “rule”, check with your loan officer first. There are a lot of “gotchas” in mortgage lending and it helps to have professional guidance for your individual questions.

Fannie Mae was a semi-independent company that carried out its last act as such several weeks ago. This year Fannie Mae has carried out 22 updates.

The new guidelines first set a limit on the number of properties that can be owned by one person. Formerly, one person could own 10 properties. Now, mortgage requests for a loan for second homes or investment properties will be denied if the mortgagee already
finances more than a total of 4 properties.

This limit can be avoided if the properties have the loans in the name of a corporation, and the property owner is the single owner of the corporation. If the properties are held in such a manner, Fannie Mae won’t count them as part of limited properties.

Investors, therefore, should consider moving their properties into a corporate structure to avoid triggering Fannie Mae’s 4-property limit. Investors often take this step for liability and taxation reasons, but it’s now a good idea for mortgage approval reasons, too.

Secondly, some of the guidelines do not have such a loophole. All investment property mortgages will be assessed with new loan-to-value based loan fees by Fannie Mae.

Loan-to-value less than 75 percent : 1.75% loan fee
Loan-to-value 75.01-80.00 percent : 3.00% loan fee
Loan-to-value 80.01-90.00 percent : 3.75% loan fee

These fees, along with other risk fees assessed by Fannie Mae are mandated to be paid by the buyer. The other risk fees are a minimum of % for investors.

Since its Fannie/Freddie takeover, government officials have not addressed whether mortgage guidelines will be rolled back to “a looser time”. If they are, it would be a big deal for real estate investors because, as many are finding out, low rates don’t matter much if you can’t qualify for them.

In summary, if you are considering one or several investment properties, it may be more advantageous, and less expensive, to buy over the near term . Definitely consider placing the properties you do own into a corporation.

Foreclosure Secret’s Revealed. Insider Access to Canada Real Estate Pre-Foreclosures Alberta B.C. Site Promotion Blog Article. There is a tremendous opportunity for people to make a good living. Tired of your nine to five job? This could be your chance to be your own boss. Click Here! to visit the official website.

Get this program and Discover How A Small Group Of ‘Insiders’ In B.C. & Alberta Make huge Profits By Getting Foreclosures Before The Public Knows About Them. Even get the foreclosures before realtors. My family lives in Canada. It is really beautiful there. You could use this program to buy your dream house or just buy and sell for a huge profit.

The Canada Foreclosure List Site has videos, testimonies,and tips. It is exciting to read how ordinary folks like us are turning great profits by purchasing Canadien Foreclosures at great prices. It is easy to find Canada foreclosures when you have the Canada Foreclosure list.

That’s what this foreclosure program offers. You get the list before everyone else. You get the first crack. Jump ahead of the competition. The Canada Foreclosure List helps you find premium homes at discounts up to 50% off. You can’t beat a deal like that!

This incredible system shows How You Can Make Serious Cash in Foreclosures. Canadien Foreclosures. The profits that others have made is profiled at the Click Here!to view the checks some of these folks are getting. All I can say is Wow. Let me in on the secret to securing foreclosures in Canada.

I hope you the Canada Foreclosure List blog Article. I hope you get the list and start securing foreclosures. Homes you never would have found without this Canada Foreclosure List. To top it off a program like this is worth thousands of dollars in my opinion. The price they are charging for this program is unbelievable. It is way under my initial estimate. I’m sure you will be pleasantly surprised. All I can say is jump in and make some serious cash.