'Karen Bloggin on the Walls!

New Home or new Car, Boat, Furniture?

July 9th, 2010 1:51 AM

Friday, July 09, 2010

Buyers,

Do not and I mean do not go out and buy, breathe or inhale in another debt prior to closing on your new home that you are approved for! It is hard enough to get approved nowadays, and let me tell you, your credit will be without a doubt re-pulled prior to closing. Have you purchased anything new after the lender pre approved you based on your credit score and (pay attention to the next 2 words) debt ratio?? Which was fine until you the buyer decided that a house full of furniture or that car you have been dreaming of to park in your new driveway would just be great!!! I mean now that you have been approved and all? What could it hurt? Let's explore, your final underwritten approval....JUST DON'T DO IT!!

Your credit will be re-pulled...

LOUDER....

Your credit will be re-pulled prior to closing!

That you can take to the bank literally!

As tempting as it may be to run to a furniture store, or auto, boat, recreational dealer! Hold on to your britches! You are not out of the woods yet!! It is stringent and hard right now to get a loan! Don't make it easier for a bank to turn you down!

Don't go having credit card companies, retailers re-pull your credit report to get that stainless steel zero refrigerator trimmed in cherrywood, something you just have to have in your new home! Untighten your belt, get a grip and take a deep breath and say this can wait,,,,I can do this...practice yoga, run, walk and do this by staying away from financing any thing other than your home while being considered for the final loan approval! I am speaking from experience with clients who have lost homes due to the very issues I raise! And if you decide to spend your closing costs...DO NOT I REPEAT

DO NOT BORROW FROM A CREDIT CARD OR OBTAIN A OUTSIDE BANK LOAN TO BORROW FROM TO BUY A HOME BECAUSE YOU CAME UP SHORT with $$$$ when time to close!!!

Gift funds from family can be used along with a gift letter provided by your lender but there are guidelines to that as well!

Trust me...your credit shall be re-pulled and banks want to know if you can afford this purchase!

IF YOU CAN'T WAIT UNTIL A LOAN IS APPROVED TO TAKE ON ADDITIONAL NEW DEBT..

before you even close, then maybe a home purchase is not in your best interest!

PATIENCE IS A VIRTUE!!!! Be Virtuous and throwing in frugal helps! I hope this also does not encourage especially 1st time buyers to incur a bunch of debt after purchasing their first home. Keep in mind ..that placed banks in the position they are in now to blame the new applicants for the banks past mistakes of lending and predatory lending that they now over scrutinize for their past sins and foibles (which I am darn mad about and find it unfair to buyers of today) and it is becoming harder to get approved on its face, so don't fall for, you are approved until you have closed...I believe moreover the TARP money was used as it should, to LEND, stimulate the housing market etc Friday, July 09, 2010. So, we have to be wise!

Trust me ...I understand,,TEMPTATION CAN BE MEAN SPIRITED!

Good Luck!

After all if we all knew everything, we wouldn't have a reason to spread knowledge!

Posted by Karen Walls on July 9th, 2010 1:51 AMPost a Comment (0)

TAXES:Free Help filling in Tax Tribunal by JULY 31st

July 22nd, 2010 1:09 AM

Thanks to Kim Cook for sharing information to help other people out there who need tax help ASAP!

1. Free Help filling in Tax Tribunal form CLICK HERE

Filing drop dead date 7/31/2010 do not miss

Must do this to lower your property taxes if you are not happy with

March Board decision....

3. Class schedule CLICK HERE

Classes on Real Estate and the

2 day Real Estate Blast last time this year

CLASS SCHEDULE

Date	Day	Class	City	Time	Price	Material Fee
9/28/2010	Tuesday	HUD	HFCC	6:30-8:30 PM	$11.00	0
10/6/2010	Wednesday	HUD	Birmingham	6:30-8:30 PM	25	10
10/7/2010	Thursday	HUD	Southgate	6:30-8:30 PM	15	10
10/19/2010	Tuesday	Beg. Investor	Birmingham	6:30-9:30 PM	32	20
10/20/2010	Wednesday	Beg. Investor	Southgate	6:30-9:30 PM	39	25
10/26/2010	Tuesday	Landlord	Birmingham	6:30-9:00 PM	34	10
10/27/2010	Wednesday	Condo	Birmingham	6:30-8:30 PM	20	0
10/28/2010	Thursday	Landlord	Southgate	6:30-9:00 PM	42	25

10/30/2010	Saturday	Adv. Investing	Livonia	9:30-12:30 PM	45	25

11/3/2010	Wednesday	Short Sale	Birmingham	6:30-7:30 PM	20	10

11/4/2010	Thursday	Short Sale	Southgate	6:30-7:30 PM	20	10
11/9/2010	Tuesday	Fin. Analy.	Southgate	6:30-8:30 PM	42	15
11/17/2010	Wednesday	Quickbooks	Birmingham	6:30-7:30 PM	20	15

11/20-11/21/2010	Sat/Sun	Weekend Blast	Livonia	9:00 AM- 5:00 PM	179
12/1/2010	Wednesday	Adv. Investing	Southgate	6:30-9:30 PM	42	15
12/2/2010	Thursday	Quickbooks	Southgate	6:30-7:30 PM	20	15
12/4/2010	Saturday	Fin. Analy.	Livonia	10:00-12:00 PM	45	25

1. Free Help filling in Tax Tribunal form CLICK HERE

Filing drop dead date 7/31/2010 do not miss

Must do this to lower your property taxes if you are not happy with

March Board decision....

3. Class schedule CLICK HERE

Classes on Real Estate and the

2 day Real Estate Blast last time this year

Free help

Free help filling out tax tribunal forms.

Things you need....

1. Transfer affidavit

2. Deed

3. Board of appeals decision letter

We do appraisals for the tax tribunal please call for pricing

WHEN
Call now , 2010

Email: georgia@addedvaluereaty.com

Call: 248-787-7325
Email: mandy@addedaluerealy.com

CLASS SCHEDULE

Date	Day	Class	City	Time	Price	Material Fee
9/28/2010	Tuesday	HUD	HFCC	6:30-8:30 PM	$11.00	0
10/6/2010	Wednesday	HUD	Birmingham	6:30-8:30 PM	25	10
10/7/2010	Thursday	HUD	Southgate	6:30-8:30 PM	15	10
10/19/2010	Tuesday	Beg. Investor	Birmingham	6:30-9:30 PM	32	20
10/20/2010	Wednesday	Beg. Investor	Southgate	6:30-9:30 PM	39	25
10/26/2010	Tuesday	Landlord	Birmingham	6:30-9:00 PM	34	10
10/27/2010	Wednesday	Condo	Birmingham	6:30-8:30 PM	20	0
10/28/2010	Thursday	Landlord	Southgate	6:30-9:00 PM	42	25

10/30/2010	Saturday	Adv. Investing	Livonia	9:30-12:30 PM	45	25

11/3/2010	Wednesday	Short Sale	Birmingham	6:30-7:30 PM	20	10

11/4/2010	Thursday	Short Sale	Southgate	6:30-7:30 PM	20	10
11/9/2010	Tuesday	Fin. Analy.	Southgate	6:30-8:30 PM	42	15
11/17/2010	Wednesday	Quickbooks	Birmingham	6:30-7:30 PM	20	15

11/20-11/21/2010	Sat/Sun	Weekend Blast	Livonia	9:00 AM- 5:00 PM	179
12/1/2010	Wednesday	Adv. Investing	Southgate	6:30-9:30 PM	42	15
12/2/2010	Thursday	Quickbooks	Southgate	6:30-7:30 PM	20	15
12/4/2010	Saturday	Fin. Analy.	Livonia	10:00-12:00 PM	45	25

Posted by Karen Walls on July 22nd, 2010 1:09 AMPost a Comment (0)

Michigan Foreclosure Help!! Hardest Hit Fund Public Workshop!

July 9th, 2010 9:58 PM

This is very informative option to avoid a foreclosure!!

Thursday, July 22, 2010-NOCBOR is offering its members and the general public an opportunity to learn about a special housing assistance program, which is being offered in only 5 states in the country! Known as the “Hardest-Hit Fund,” the states of Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion in federal funds to help homeowners, who are currently drawing unemployment benefits, and are struggling to make monthly mortgage payments. The $154.5 million in federal funds, allocated to Michigan, is expected to help more than 17,000 Michigan households to avoid foreclosure, due to unforeseen circumstances, such as a medical emergency. The Michigan State Housing Development Authority (MSHDA) was selected as the Housing Finance Agency (HFA) to share in the “Hardest-Hit Fund.” Michigan will be the first of the nation’s five states to implement its program. To register for the workshop, scheduled Thursday, July 22, 2010 at 6:30 p.m. at NOCBOR, call 248-674-4080.

Posted by Karen Walls on July 9th, 2010 9:58 PMPost a Comment (0)

Well??? Land Contract or Lease Option?

July 8th, 2010 12:11 AM

7/7/2010

Well today I decided to post something else other than my bloggin about situations that I can't change for right now. However, here is a question I get allllll the time with all the foreclosures, short sales and folks just want alternative to leases. What is a land contract and how does it differ from a lease option to buy? I remember when I did these years back like it was going out of business...well they're backkkkkk! So, thought I'd supply this info so aptly detailed by Nat'l Home Lending. Since I get this question all the time as of late,, Karen, should I go lease or land contract? Well now you can decide which works for you! Good reading! Have a good week!

Can you tell me basic information about a land contract?

Land contracts were very popular in the late 1970s and early 1980s. Back then, installment sale contracts, sometimes called contracts for deed, offered more attractive financing terms over the higher rates and rigid qualification standards of institutional lenders. note:way before my time :))))

Land contracts began to disappear when loan requirements softened and rates dropped below 8%. But they have not vanished all together and, in fact, tiptoed back into the market in 2006.

What is an Installment Sale Land Contract?

·         Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee.

·         The Vendor agrees to sell a property by financing the purchase for the Vendee.

·         The Vendor retains legal title and the Vendee receives equitable title.

·         The owner-carried financing can include an existing mortgage balance or the property can be free and clear.

·         Upon payment in full, the Vendor hands the Vendee a deed to the property.

All-Inclusive (Wrap-Around) Land Contracts

·         Wrap-around contracts contain an existing mortgage.

·         The Vendee makes one payment to the Vendor.

·         Upon receipt of the payment, the Vendor pays the underlying lender's payment and keeps the rest.

·         If the existing mortgage has a lower interest rate than the rate on the contract, the Vendor earns extra interest on money that does not belong to the Vendor.

This is how it works.

1.    Say the sales price is $100,000.

2.    The Vendee puts down $10,000.

3.    The Vendee agrees to make payments on $90,000, bearing interest at 6.5%, payable $567.

4.    The existing underlying loan is $50,000, payable at 5% interest with a payment of $268.

5.    The Vendor earns 6.5% interest on $40,000 of equity, PLUS 1.5% interest on the existing mortgage of $50,000 and pockets $299 a month.

Straight Contracts

There is no override of interest in a straight contract. The Vendee can agree to pay the existing lender directly and make another payment to the Vendor, or the Vendee can send one payment to the Vendor, and the Vendor will disburse payment to the underlying lender. Let's look at the previous example on a straight contract:

1.    Sales price of $100,000.

2.    Vendee puts down $10,000.

3.    Vendee makes one payment of $268 on the existing loan balance of $50,000, bearing interest at 5%.

4.    Vendee makes a second payment to Vendor on $40,000 owner-carried financing, bearing interest at 6.5% and payable at $253 per month.

5.    Total of both payments is $521, which saves the Vendee $46 per month over the wrap-around.

Buyer Tips

·         Get an appraisal.

·         Obtain title insurance.

·         Engage the services of a holding company to retain possession of an executed deed and the original documents.

·         Talk to a real estate lawyer.

Seller Tips

·         Pull the buyer's credit report.

·         Include both Vendor and Vendee names on the existing insurance policy.

·         Hire a disbursement company to handle contract collection.

Talk to a real estate lawyer

Timely Information provided by National Home Lending Have a good July!

Posted by Karen Walls on July 8th, 2010 12:11 AMPost a Comment (0)