Loans at Risk For Some Buyers!

Fannie Mae's new "Loan Quality Initiative" went into effect on June 1, 2010... which means that loans may be at risk for some buyers. Here's what you need to know-and what you need to do- to keep your deals from blowing up right before closing.

Undisclosed debt is a leading cause of mortgage fraud and early payment loan defaults. That's why, as of June 1, lenders who originate mortgages that will be sold to Fannie Mae are being advised to pull a second credit report on many transactions just before the loan closes. By reviewing a second credit report, lenders can find out whether other creditors have recently requested information about the mortgage applicant, or uncover situations in which an applicant might be trying to obtain other loans for things like a new car, home furnishings, etc. If this creates any negative changes to the credit report, the result could be a higher interest rate and/or fees, or, even worse, the loan could be denied altogether!

So, please read below the top 10 credit don'ts during the loan process so you will know exactly what you need to do and not do when in the process of purchasing a home.

Please don't hesitate to contact me if I can answer any questions at all for you about this important news from Fannie Mae.

1. Don't do anything that will cause a red flag to be raised by the scoring system.
2. Don't apply for new credit of any kind.
3. Don't pay off collections or charge offs during the loan process.
4. Don't max out or over charge on your credit card accounts.
5. Don't consolidate your debt onto 1 or 2 credit cards. It appears your are maxed out.
6. Don't close credit card accounts. It will appear to the FICO that your debt ratio has gone up.
7. Don't pay late!
8. Don't allow any accounts to run past due-even 1 day!
9. Don't dispute anything on your credit report once the loan process has started.
10. Don't lose contact with your mortgage and real estate professionals.

You Can Afford to Buy and Haven't...Are You Crazy?

This may be the best buyer’s market that we’ll see in our lifetimes. There are lots of legitimate reasons why a person should be taking advantage of this market if they are able.

Obviously, if a person doesn’t have the down payment or credit score, they won’t be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn’t the time to buy.

On the other hand, if a person doesn’t own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.

Top Ten Reasons to Buy a Home NOW

1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn’t be overlooked. The average mortgage interest rates for the past four decades were: 1970’s 8.9%; 1980’s 12.7%; 1990’s 8.1%; 2000’s 6.3%. Most experts agree that they’re going to rise this year.

2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.

3. Selection is good – In a seller’s market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.

4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer’s closing costs, pre-paid items or interest rate buy down.

5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.

6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.

7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.

8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.

9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.

10. The combination of reasons to buy a home may never be stronger than now.

Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.

A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.

EXIT Realty Educates the Public in Free Webinar June 8: Real Estate After April 30th...What Now?

Company's U.S. President, Tami Bonnell, explains what home buyers, sellers should know now
So you didn't buy a home before the first time homebuyer tax credit expired on April 30th... what now? Are there still good deals to be had? EXIT Realty Corp. International will be hosting a free, live, public webinar designed to help consumers make smart decisions before they buy or sell a home. U.S. home buyers and sellers are encouraged to tune in for the discussion.

Entitled "Real Estate After April 30th - What Now?", the 30-minute webinar will be hosted by real estate expert and President of the US Organization of EXIT Realty Corp. International, Tami Bonnell, and will be held at two times, 4:00 pm ET and 7:00 pm ET on Tuesday, June 8th. This webinar is the second in the popular series hosted by Bonnell.

"There are still many good reasons to jump into the real estate market," says Bonnell, "but you really need to know what to look for. Educated buyers and sellers make the best decisions for their families and that's what we hope to do through this webinar series - educate. No hype, just the facts."

Bonnell will address low mortgage rates, tax deductions, 203k loans and affordability among other topics.

To register, click:

https://www2.gotomeeting.com/register/914090834 for the 4:00 pm ET session or

https://www2.gotomeeting.com/register/543685610 for the 7:00 pm ET session

About Tami Bonnell: Tami Bonnell is a thirty-year veteran of the real estate industry and was instrumental in building three major brands. Among her many achievements, she was recognized by real estate trend-watcher, Stefan Swanepoel, as one of the 100 Most Influential Women in Real Estate.

Ms Bonnell has been a featured speaker at the National Association of REALTORS® convention to the Top 500 Power Brokers, The Women’s Council of REALTORS®, Inman News Connect Conference and she will be speaking at the opening session of RISMedia’s Leadership Conference next week in New York. Along with several other national and local speaking engagements, Ms Bonnell hosts quarterly webinars educating the general public on real estate issues.

She is a wife, mother of three and grandmother of two. In her spare time she is a martial artist, coach, judge and referee.

Ms. Bonnell has been the President of the US Organization of EXIT Realty Corp. International since 2001.

Mid-Shore Maryland Sees 812 Foreclosures in 2009

For homeowners, the thought of losing their home and all the hard work they have put into maintaining it can be paralyzing. But residents should know that there are programs available to help them keep there home, and that early action is the best prevention against foreclosure.

In 2009, there were 812 foreclosures filed in circuit court on the Mid-Shore- 219 in Queen Anne's County, 192 in kent, 154 in caroline, 146 in Talbot and 101 in Dorchester, according to Sandy Brown, executive director of Mid-Shore Pro Bono. (Mid-Shore Pro Bono is a new non-profit organization that provides free legal assistance to low-income families).

As soon as a homeowner sees they are going to be unable to make payments on their mortgage, contact me or Exit Gold Realty to speak to a Default Resolution Specialist. You don't have to lose your home.

CASA-What is this?

CASA of Queen Anne's & kent Counties screens, trains, and supervises volunteers to advocate in the best interests of abused, neglected, and abandoned children with the goal of ensuring they are placed in safe, permanent homes. Once trained, the volunteers are sworn in as officers of the court and become Court Appointed Special Advocates (CASA). CASA is part of a nationwide organization that was started in 1977. Since that time, more than 2 million children in the foster care system throughout the United States have been helped by the organization.



What does a CASA do?

A CASA serves as an officer of the court and acts as the eyes and ears of the judge.

Forms a unique relationship with the child and meets with all those who are involved in the child's life.

Provides information to assist the judge in making well-informed decisions.

Helps to ensure that the child receives appropriate services and feels safe, comfortable,and secure.

Is sometimes the only consistent supporting person in a foster child's life.



I just recently heard of this organization and had an opportunity to hear some of the children describe their plight of abuse and neglect, and how, with the aid of CASA now have loving supportive families. I was truly moved, not only by the children, but of the volunteers who act as voices for the children. I plan on becoming a part of this organization because I want to make a difference, not only in the real estate world, but to make a difference in the life of a local child...our future.

Bridal Show & Auction

Listen up everyone,

January 24th at the Elks Lodge on Kent Island will be holding a bridal show and auction from 12-4pm. Designer dresses will be arriving from NYC. The designers will be reducing the price of the dresses 75% to begin the bidding process. You can't beat that! There will be many vendors there offering their services as well including myself. So, if you know of anyone getting married or may be looking to buy or sell real estate, come and visit us. The entry fee is $10 and $8 for bride with a paying guest. Door prizes will be given away as well. I hope to see you there. Also, if you know you will be coming, and want to have a list of homes waiting for you to pick up, just give me a call with your specifics and I will have them ready. Feel free to call me as well...443-786-4200

Free Home Owner Seminar: How to avoid or Stop Foreclosure!

FREE HOME OWNER SEMINAR - Are you upside down in your mortgage? Have you been laid off? Do you or someone you know have any other troubles regarding mortgage payments, then you should attend the FREE Seminar.

Exit Gold Realty has invited Mid Shore Pro Bono to speak at a Homeowner's Seminar on Foreclosure on Wednesday, November 18,2009 from 6:30-8:30 pm at Matapeake Elementary School on Kent Island Maryland. Mid Shore Pro Bono, a non-profit organization provides free or reduced fee legal services to qualified residents with civil issues. Volunteer attorney, Sasha Drobnick Esq., and MSPB Foreclosure Prevention Pro Bono Project Coordinator, Beth Jacobsen, will facilitate the event.

This workshop is designed for homeowners with questions regarding late mortgage payments, general foreclosure issues and what options might be available. It's not too late to ask for help. They will discuss loan modification options as well as the new home affordable modification plan (HAMP). All are invited to attend at no cost. There will also be time to ask questions.

Please call Exit gold Realty for further information or to RSVP. Walk-ins are welcomed. 410-643-4111