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What is New in Reverse Mortgages? By Steve Westmark

by Steve Westmark

New Mortgage Guidelines by Steve Westmark

by Steve Westmark

 

Fewer Sellers Under Water in the Fall of 2013, by Steve Westmark

by Steve Westmark

Changes in Real Estate Financing, August 2013 by Steve Westmark

by Steve Westmark

 

STEVE:  Hi, this is Steve Westmark, Counselor Realty.  Thanks so much for watching my video blog this week.  I thought I’d give you some new updated information that I received from a loan officer that I work with, Jill Meets of Bell Mortgage.  I had called her to find out for people that are struggling with financial challenges has the marketplace changed in the lending area.  And there have been some very significant changes.  There’s three different types of financing.  One is FHA financing, which is a 3.5% down type of mortgage through the government.  Next is VA financing for the Veteran’s Administration if you’re a veteran.  And then the last one is conventional financing.  And what I wanted to point out is the changes that have gone on in the marketplace.

 On this chart, it shows that if you had a short sale, that’s where you had to sell a house that you were upside down in.  You bought it for 200,000; the price dropped to 150.  You didn’t feel you were going to be able to get out of it, so you decided to sell in a short sale.  The bank will many times allow sellers to be able to do that.  And I had a client who came to me and wanted to know the difference between what I went into foreclosure versus short sale.  Well, the interesting thing is that if you have a short sale under FHA, it’s only about one year and you can get an FHA mortgage after everything is cleared.

Under VA, it’s two years, and under conventional, it’s four years.  But if you had a foreclosure on this chart it shows that instead of one year on FHA it takes three years.  It’s the same thing for VA at two years, but under conventional, it goes out as long as seven years.  If you do what’s called a deed in lieu of foreclosure where you just call up the bank and say you had decided to I’m just going to sign my deed over to the bank and you just take over the problem, it’s basically the same as a foreclosure on FHA and it’s the same for VA.  But on conventional, it drops back to four years.

And the last thing that some people have gone through, which is tough, is bankruptcy.  And under bankruptcy, FHA will consider giving you a mortgage two years after the date of your discharge.  VA is very much the same way as two years and on conventional, four years.  Now the reason I wanted to share this with you is many times you run into friends or relatives who have gone through some of these difficulties and they may feel that they’re shut out of the market.  There are ways to get people into housing quicker than what they think they can, and I just thought that I would share these good news information for you in the marketplace.  Well, hopefully this has been helpful for you today.  Make it a great day.  Thank you!

This is Steve Westmark, Counselor Realty.  Thanks so much for watching my video blog this week.  Today, I thought I would talk to you about evaluating what happens when you have a blip on your credit score or what changes your credit scores. And I’m going to give you a few illustrations and you’ll look from this chart what happens when you start with a credit of 680, 720, or 780. The higher the credit score, the better your credit is.

But I’m going to just stay with the consumer one at the 680. If you have a 30-day late on your mortgage payment or probably even a credit card payment, your credit score drops from 680 down to 600 to 620. If you have a 90-day late on your mortgage, it also is just the same. Kind of surprising I thought.

The next one to look at is where you have a short sale or a deed in lieu of foreclosure where you give a deed back to your mortgage company and just say I don’t want foreclosure or you settle with no deficiency on your mortgage, your credit score gets hit by 610 to 630, which is really pretty good compared to what some of these other 60- and 90-day lates are.

The ones where you really get hit is where you have a short sale with a deficiency. That’s where the bank agrees to a partial short sale but then wants you to pay something back or you have a foreclosure where you go into total foreclosure. That drops you down to a 575 to 595, and then the bottom one shows you what happens if you go through bankruptcy. That drops you down to a 530 to 550.

 

In a former video I had in a credit repair expert, and I’d encourage you to go to my website and look at how do you go through credit repair to improve your credit so you can go out and get a mortgage in the future.

Well, thanks so much for watching my video this week. I hope it was very informative for you and the very best to you. Make it a great day. Bye.

How Long Before You Can Purchase Again, by Steve Westmark

by Steve Westmark

Hi. This is Steve Westmark, Counselor Realty. Thanks so much for watching my video blog this week. Many people go through difficult times in their life, and hopefully you haven’t, but maybe you know of someone that has. I’m going to give you four different items that can happen in a person’s life. One is a foreclosure can happen where they lose their house through foreclosure.

Second is called a deed in lieu of foreclosure. That’s where you find you’re upside down on the house. You just give the deed back to the mortgage company and it’s called a deed in lieu. Third is the area of short sale where a person sells their house on a short sale because they’re upside down on it, but the work something out with the bank and the bank forgives the difference of what they owed.

And the last two areas are what are called bankruptcy. There’s a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. What I’ve done is I have this chart here that was given to me that shows how long you have to wait under these different circumstances to get different types of mortgages. So as you’ll see across the top, there is FHA, which is Federal Housing Administration, which is a 3.5% down type financing.

VA financing. That’s for our veterans who can go zero down in purchasing. The USDA is a another type of financing. Fannie Mae/Freddie Mac is another type of financing, which is conventional financing. And the last one is called jumbo mortgages, and that’s for basically mortgages in the Twin Cities area over $417,000. Now if any one of these things have happened to you in your life, there are different years to deal with it.

So for instance, if you had a foreclosure on your record and you lost your home through foreclosure, you can get an FHA mortgage within three years. You can get a VA mortgage within two years, but it takes you seven years to get a conventional or a jumbo type of mortgage if you have a foreclosure on your record. The positive things that happen in the area of short sales is that you can find that if there are some changes that happened that in the short sale under a conventional mortgage it can be shortened up to five years rather than seven years.

But the other things remain the same in the area of short sale, VA, and other types of financing. Under bankruptcy, the Chapter 7 is two to three years, as you’ll see on this chart, but still four years on a conventional and seven years on a jumbo. And on a Chapter 13 bankruptcy, one year for the first three, two years on the Fannie Mae, but still seven years on the jumbo. These are all very important things to keep aware of as you’re trying to make decisions if you’re going through the process on how you want to affect your credit, but also planning.

If you’ve had these things in your life, what are the types of financing that I can do as I’m moving through and trying to get past this difficult time we have in our economy. I hope you gained some insight on this. Make it a great day. Thanks so much for watching.

 

 

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The Steve Westmark Team
RE/MAX Advantage Plus
14451 Highway 7 Suite 100
Minnetonka MN 55345
612-978-7777
877-SOLDING
Fax: 952-241-1600