"How can I improve my credit score fast"- a common question | mortgage series Part 5

"How can I improve my credit score fast?" -- Arizona mortgage company helps  provide an answer

This is part five of a five-part series on the mortgage lending process. In the first 4 parts of this series Arizona  loan officer Craig A. Bohall took us on a journey that began with an introduction to the mortgage process, followed by "thinking like an underwriter" to get your loan approved, the "4 C's" of mortgage lending (with a 5th "bonus C"),  the important " when do I lock my interest rate," and finally In part  5 Craig will talk about what's on many people's minds: "how can I improve my credit score fast?"

Credit repair is not something that can be accomplished overnight.  If you are applying for a loan from an Arizona  mortgage company  there are certain things you should understand.  Craig will take you on a video tour and provide tips on improving your credit to help you get a mortgage loan.

Credit repair will help you in the mortgage lending process.  Credit is made up of five primary categories:

1.  payment history
   
2.  amounts owed
   
3.  blanks of credit
   
4.  new versus old credit
   
5.  types of credit

This video will help you start the process of repairing your credit that you can purchase a home.

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process.  There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the  lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years.  Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage.  I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona.  Picking the wrong mortgage company can cause a lot of grief.

  Still wondering "how can I improve my credit score fast?"

Part 4 of the series

Entire Series

Get a Mortgage Loan Approved

Should I refuse this Chase short sale listing?

Am I wasting everyone's time if I accept this Chase short sale?

The seller has a first and second mortgage with Chase. Both mortgages are purchase money mortgages. The would-be sellers tried doing a loan modification over the summer but they gave up because the result of the loan modification was a "higher" monthly payment. Go figure that one. My potential clients did not make their July 1st payment after the loan modification failed. However, they waited until one week ago to ask me to short sale their house. Take note of the fact that the loan is 149 days past due.

I received authorization to talk to Chase about the potential short sale yesterday. Fortunately, and because the sellers tried a loan modification, Chase never sent a notice of default and there are no foreclosure proceedings in process. The first mortgage would not talk to me about the second mortgage and sent me on a long hunt to find the correct number to talk to the second mortgage department. Here is what I found out after six phone calls/transfers:

• the "home equity collections department" handles the second mortgage until it is 119 days past due
• the second mortgage was still residing in the home equity collections department because of the attempted loan modification
• my phone call brought attention to the fact that the loan modification process is over and my potential clients are simply delinquent
• the home equity collections department will no longer talk to me because the delinquent loan is past the 119 day marker
• they said the account was being sent to the "recovery" department (oh oh) as of November 1
  

I was able to talk to the recovery department about the prospect of a short sale. The recovery department, which of course is not nearly as much fun as the collections department, was much more serious about the matter. Here I was told that the focus of this department was to recover as much of the $52,000 balance as possible. I was told they would start out by asking for between 50 to 60% of the balance to approve the short sale.

I don't know my sellers very well, but I do know that proposition doesn't stand a chance. Faced with such a large amount, my sellers would forego the short sale process and let the property go into foreclosure. After reminding the person in the recovery department that Arizona is a non-deficiency state -- and that there was no real benefit to Chase in letting this go to foreclosure -- the person on the other side of the phone gave me these options:

1. convince my potential client to bring some money to the table
2. Hope that the first mortgage (held by a different department of Chase) would do more than allocate the standard $3000 to the second mortgage; this "recovery department" person suggested that perhaps the first mortgage Department of Chase could allocate $20,000 -- $25,000 to the second mortgage Department to make a short sale work

I reminded this person that no one wanted to waste their time by taking a potential buyer through the short sale process and then finding out that the second mortgage Department (excuse me -- the recovery department) would nix the sale. I also reminded him that both departments were in the same company and that he was simply talking about an exercise in accounting.

This recovery department person seemed to be unfazed. He suggested that I take the short sale listing, find a buyer, present the contract and short sale package to Chase and "see what happens."

I really don't consider this to be "profound" or worthwhile advice.

Anyone have any experience with this situation and Chase (JP Morgan)?

Understanding the short sale process

Phoenix area homes for sale

$8,000 Tax Credit Fraud Under IRS Scrutiny

$8000 Tax Credit Fraud under IRS Scrutiny

According to the Wall Street Journal, the IRS is reportedly examining more than 100,000 suspicious claims for the $8000 dollar tax credit and is investigating 167 "criminal schemes" involving the credit. IRS officials declined last week to describe the suspected schemes or provide additional details. However, they did say they have identified the different types of potential fraud and matched them against their compliance program.

We could speculate about how people are trying to commit fraud with the $8000 tax credit.  Perhaps they are modifying closing statements, commonly known as HUD-1's to make it appear the house was purchased in the correct tax year. Perhaps they are taking incorrect tax advice from their accountants.  Perhaps people are modifying HUD-1's to make it appear that they bought a house -- when in fact they did not. Regardless, the IRS taking it very seriously.

The IRS says it has received more than one million claims for the $8000 tax credit.  Housing industry experts estimate the credit helped to generate at least 350,000 additional home sales. The $8000 tax credit to set to expire on November 30, 2009 but leaders in the housing industry are lobbying Congress to extend it.

It would seem that widespread abuse would be relatively easy because of the loose standards for claiming the credit. In other words, the IRS never set anything in place with title and escrow companies to document the tax credit at time of sale.  Free money has had a history of attracting people with dishonest intent, and $8,000 is a good deal of money. This is just the kind of trouble that will delay or eliminate the proposed extension of the program, or even it's conversion to the much talked about "$15,000 tax credit."  It's always sad when dishonest people potentially destroy a good program they can benefit the masses.

On the other hand, does our country really need an extension of the $8000 credit, or even a new $15,000 tax credit?  Has our country, which already has enough debt to choke 20 medium-sized countries, need to be giving out more money it doesn't have?  It does seem that many citizens have developed an attitude of "entitlement" and expect the government to just keep giving out more and more money. But I digress...

According to the IRS website , the IRS successfully prosecuted its first fraudulent tax credit case in July 2009. A Jacksonville, Fla. tax preparer, James Otto Price III, pled guilty to falsely claiming the $8000 tax credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

A quote from the IRS's website:

“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.

Metro Phoenix homes for sale

Get your mortgage loan approved

Mortgage Lending Process| Arizona Mortgage Loan |Part 4

Mortgage Lending Process| Arizona Mortgage Loan

This is part four of a five-part series on the mortgage lending process to educate and inspire potential homebuyers.  In the first three parts of this series Arizona mortgage broker (turned banker) Craig A. Bohall took us on a journey that began with an introduction to the mortgage process,   followed by "thinking like an underwriter" to get your loan approved, and finally the "4 C's" of mortgage lending (with a 5th "bonus C"). In part 4 Craig will talk about the most important topic to date: when to lock your interest rate on your Arizona mortgage loan. 

Do you want to appear like a knowledgeable consumer? What questions should you ask when applying for an Arizona mortgage loan? What questions make you look like a "novice" when speaking to a mortgage broker? Here is a sample of the wrong questions to ask when interviewing a potential mortgage company:

• what are the interests rates today?
• what kind of interest-rate can your company give me?

Here is the right question to ask:

• what are the markets doing today?

Watch this video and learn what your mortgage broker should know about interest rates. Beware of any loan officer in an Arizona mortgage company who is not aware of (or can not talk about)  jobless claims, the consumer confidence number, unemployment numbers, or when the Federal Reserve Chairman and Board of Governors are meeting.

Watch this video and learn the basics about the markets and economic indicators that affect interest rates. But don't be concerned -- you don't have to be an expert mortgage broker to get the best interest rates.  You simply simply need to find an expert in the mortgage lending process who will guide you through the intricacies of obtaining a mortgage loan and locking your interest rate at the correct time.

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process.  There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the  lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years.  Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage.  I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona.  Picking the wrong mortgage company can cause a lot of grief.

Part 3 of the series

Get a Mortgage Loan Approved

Tempe Town House Rental

Tempe Town House Rental in Broadmor near ASU --

Beautiful and spacious 1,760 sq. ft. Tempe town house with 2-car garage
is ready to be your next rental. The kitchen in this house is gorgeous
and newly remolded with cherry wood cabinets. Town house is an ideal
rental bacause it has 3 bedrooms and 2.5 bathrooms.

Tour this Town House Rental

The master bedroom
is large with a vaulted ceiling, fireplace, wonderful placement of
windows, and a large walk-in closet. This Tempe house rental has a big
2nd bedroom with a large walk-in closet and Jack & Jill bathroom.
3rd bedroom has a balcony.

Ready to move in! All appliances come with
this house to include: washer/dryer, range/oven, refrigerator/freezer,
and dishwasher. All appliances in this Tempe rental house are in good
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and phone wired in all 3 bedrooms and downstairs. This Tempe town house
rental overlooks a new pebble-tech pool-just footsteps away.

Centrally
located and just minutes from Tempe Town Lake, ASU, shopping, downtown
Tempe and Mill Ave. Hurry- this rental will go
quickly! Rental available for move in Nov. 1, 2009. $1,350 monthly
rental includes all HOA fees, including COX cable. Call Ron Wilczek,
designated broker, Metro Phoenix Homes, 480-445-9480 to make this Tempe
town house your next rental.

ValleyWideHomes.com     Arizona mortgage company      Tempe Arizona homes for sale

Arizona Mortgage Company Lending Process | Part 3

Arizona Mortgage Company talks about the lending process

This is part three in a five-part series that explains what you should know as a potential homebuyer about obtaining a mortgage loan.  In this video you will hear a detailed account of how to successfully obtain a loan in Arizona and pick the right company for you.  Part one of this series was an overview of the mortgage lending process and part two provided some insightful comments about how to get your loan approved by "thinking like a mortgage company underwriter."

This video  will discuss the four "C's" lenders evaluate when you apply for a mortgage loan in Arizona (and throughout the country). Here's a quick preview of the four C's:

1. credit - a look into credit and how your payment history comes into play during the mortgage process
2. capacity - essentially your ability to cover your debt
3. cash - how much do you have and what the loan underwriter sees when evaluating your finances
4. collateral - this is essentially the value of the house you want to buy

Don't miss the bonus footage on the "5th C" that you rarely hear about.  The 5th "C" can have a dramatic impact on your ability to qualify for a mortgage loan in Arizona.  Make sure the Arizona mortgage lenders you interview are aware of how to use these criteria to ensure your best chance at getting a loan and purchasing your dream house.

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process.  There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the  lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years.  Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage.  I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona.  Picking the wrong mortgage company can cause a lot of grief.

Part 2 of the series

Get a Mortgage Loan Approved

Arizona Mortgage Lenders | Lending Process Part 2

Arizona Mortgage Lender talks about the mortgage loan process

This is part two in a five-part series that explains what consumers should know about obtaining a mortgage loan.  In this installment you will hear what it takes to get a loan approved from a lender.  Do you know one of the best secrets to getting a loan approved? Think like a mortgage company underwriter.

Although your Arizona mortgage lenders are your point of contact, the investor's underwriter has the final say on whether or not your loan will be approved.  It's important to know that underwriters get paid to "smell risk." What kinds of risks do the underwriters look for in the mortgage lending process:

• The most obvious is probably the borrowers credit; that's the most basic place for any underwriter to start.
• What about your job history? Do you change jobs like you change underwear, or are you a stalwart company veteran, or are you somewhere in between?
• Hear Craig talk about more important factors that go into the underwriter's approval process.

A good loan officer will make sure your loan application doesn't have the smell of risk in it.

An explanation from the last post:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process.  There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the  lending process.

We used Craig's mortgage lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years.  Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage.  I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona.  Picking the wrong mortgage company can cause a lot of grief.

Part 1 of the series

Get a Mortgage Loan Approved

Arizona Mortgage Company | Loan | Process Part 1

Arizona Mortgage Company talks about the mortgage lending process

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process.  There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the mortgage lending process.

This introductory video will give a "birds eye view" of obtaining a mortgage loan, whether it be in Arizona or elsewhere.  Many times a buyer doesn't get all the information that he or she requires because they don't know how to ask the right questions.  Perhaps the mortgage lender/company assumes the buyer knows certain facts about mortgage lending that the buyer really doesn't even have a clue about. I think that happens in all industries -- the industry professional knows so much about the industry and sometimes assumes it's common knowledge. So we used Craig's mortgage lending experience and my video camera / production knowledge to produce a five-part series on the mortgage process.

Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years.  Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage.  I would highly recommend Craig if you are looking for a mortgage loan in the state of Arizona.  Picking the wrong mortgage company can cause a lot of grief. In future series Craig explains many topics  that are important to the mortgage process.

The Arizona real estate market is volatile enough.  The last thing you need is to work with an Arizona mortgage lender that is not experienced and doesn't know how to watch the key indicators when locking a mortgage rate. We hope you enjoy these videos.

Mortgage Loans in Arizona

September 2009 Phoenix home sales keep pace with August 2009 - foreclosures still dominate

September 2009 Phoenix home sales keep pace with August 2009 - foreclosures still dominate

Of the almost 31,000 Phoenix homes for sale, 7,942 homes were sold in the metropolitan Phoenix area in September 2009. That's 97 homes less than the total sold in August. A majority were Phoenix foreclosure type properties. 2009 has been a very good year for homes sales in the Valley of the Sun. At current sales levels, I expect to see approximately 90,000 homes sold in the Phoenix area for 2009, making it the third best sales year for housing in the last decade. As of this writing, 72,451 homes have been sold in and around Phoenix. The only two years with more home sales were the “boom” years of 2004 in 2005 -- with 98,100 and 104,000 sales respectively. The next closest year was 2003 with 79,500 sales.

It seems clear that the Phoenix foreclosure market, the $8,000 tax credit, low interest rates, and the overall affordability of Phoenix area homes has done much to stimulate sales. This post is not about whether or not the $8,000 tax credit is spoiling the Americans into a feeling of entitlement. It is simply reporting on the sales trends in the Phoenix area and confirming that local residents have cast a vote of confidence in returning to the home market. Having said that, it must also be noted that some figures indicate that approximately 30% of all Phoenix home sales in 2009 were from investors.

Foreclosures continue to dominate Phoenix area sales

67% of all home sales in the Phoenix area during September 2009 were foreclosures, foreclosures being either REO property (bank owned homes) or real estate short sales. This has been a trend in the Phoenix area for the last year.

October 2008 was recorded as the first month that foreclosure sales exceeded 50% of total sales. Foreclosure sales increased from 51.4% in October to a high of 75.9% in March 2009. The decrease in REO property (bank owned homes) has been a significant factor in the gradual reduction of foreclosure sales beginning in April 2009. My post in the next few days will show that Phoenix foreclosures are increasingly being affected by real estate short sales, a trend barely noticeable 12-18 months ago. Short sales deserve a look if you are considering making a purchase from the inventory of Phoenix homes for sale.

Mesa Homes for Sale - Augusta Ranch

Ron Wilczek, Broker/Owner
Metro Phoenix Homes
480-445-9480

Market conditions for the Phoenix area	Foreclosure trends around Phoenix	Search Tempe homes
Search Scottsdale homes	Search Chandler homes	Search Gilbert homes

Mesa Arizona Real Estate - Augusta Ranch

Mesa Arizona Real Estate - Augusta Ranch
Today we visit the Master Planned community of Augusta Ranch, located near the intersection of Interstate 60 and the loop 202 freeways, but more specifically just south of the crossroads of Ellsworth and Baseline Roads. Augusta Ranch is a golf course community that features an 18-hole, 3,800 yard, par 61 golf course that offers discounts to residence of the community. The facility has a large outdoor pavilion with seating for up to 120 people for weddings or special events. These are all desirable ammenities for Mesa Arizona Real Estate.
The community of Augusta Ranch offers some beautiful scenic views, as well as common areas with ramadas for family picnics, two volleyball courts, two basketball courts and a community pool -- depending on your individual community.
Augusta Ranch is is made up of over 15 subdivisions (or parcels). Most homes are single-family residences ranging from 1,200 sq ft in Parcel 11 up to 4,200 sq ft in Parcel 13.
Park Central at Augusta Ranch is a community built by a division of Trend Homes called Classic Communities. Though legally classified in Mesa Arizona Real Estate as condominiums, these are unique two and three story homes. Some have their own separate structure, while others are two homes in one structure sharing a common wall. Because they are technically different from condominiums and town homes, classic communities coined the phrase "Gemini twin homes" (this term is found in the MLS when searching Mesa Arizona Real Estate). The home is this video is 1,550 sq ft. model has a two-car garage and 1 bedroom - complete with bathroom - on the first floor. The second floor contains the kitchen, living room, the 2nd bedroom, and a bathroom. The 3rd story is the master bedroom and bathroom. Classic Communities developed a unique floorplan for this area and Mesa Arizona real estate.



On the northern edge of Augusta Ranch there are two 6 acre, neighborhood shopping centers complete with major grocery stores, restaurants, and specialty stores. You'll never be more than a few minutes away from the necessities of daily life if you live in this Master planned community. 1 mile to the east of Augusta Ranch is the 22 acre, superstition Gateway Center that includes major stores like Wal-Mart, Best Buy, Kohls, and Ross, to name a few. 3 miles to the west of Augusta Ranch is the 18 acre, regional shopping center known as Superstition Springs Mall. National retail stores and restaurants are found in abundance. These are desirable community amenities when it comes time to resell your Mesa, Arizona real estate.
If you are considering a move to East Mesa and Mesa Arizona Real Estate, Augusta Ranch is worth a look.
Active homes for sale in the October 2009 Phoenix area
See Mesa Homes for Sale

"Active" homes for sale in Metro Phoenix remain consistent - October 2009

The total number of "active" homes for sale in Metro Phoenix remained consistent at just over 31,000 homes for the fourth month in a row. As the chart indicates, that's 20,000 homes less then we experienced during 2008 and all the way up March 2009.


The number of active foreclosure listings has also been steady at just under 12,000 homes over the last four months -- after reaching a high of over 22,000 homes for sale in the Phoenix area in February 2009.

Metro Phoenix foreclosures have accounted for the majority of home sales over the last 12 months, reaching as high as 75.9% of all Metro Phoenix homes for sale in March 2009. Those figures will be updated in the next few days on this blog. The foreclosure market has severely impacted the Phoenix area and the prices of all homes for sale.

Distressed Markets and private mortgage insurance

Distressed Markets and private mortgage insurance

co-authored by my mortgage guy, Craig Bohall, Academy Mortgage

Have you ever wanted to know who decides what "distressed markets" are and what is not distressed? Well here is your chance to see a map.

Who is the "all knowing wizard" who determines that? Well for the most part it is the Mortgage Insurance (MI) companies. Fannie Mae and Freddie Mac also have their own lists. When a home gets sold at the trustee's sale, the Mortgage Insurance company likely had a policy on that home and, thus, they paid out on that policy. So imagine how many pay outs they have had in the last several years.

Guess how many they are planning on having the next few years? That's right -- their goal is "zero" mortgage insurance payouts! So in order to minimize risk and maximize profits they don't want to give mortgage insurance to loans that they feel might be risky for THEM.

What makes a loan risky you ask.... could be 1.) an investor loan rather than an owner occupied loan, 2.) a manufactured home rather than a "stick-built" one, 3.) a second home, 4.) any higher "loan to value" loans and, 5) a loan in a HIGH foreclosure area. Regarding the latter, they decided they would determine which areas had more losses and call those areas high risk or "distressed markets." Other factors go into it like % of price deterioration and % of REO's to resales and such, but all in all - distressed markets - is pretty self explanatory.

The good news is when you click on this map it is not one solid color - YES, it was at one time. People used to ask me what areas are distressed and I basically said "South of Canada and North of Mexico!

Now click on this Map of distressed markets in the US to see what areas they have deemed to be distressed. If you are buying in those areas then having mortgage insurance is going to be less available - or in other words - there will be a much bigger list of loans for which they DON"T want to give mortgage insurance.

To see that list of loans not eligible for Mortgage insurance click here. The interesting thing about this list (at the top of the page) is that a few years ago all, or most, of those items COULD have mortgage insurance. So now you can see what they consider to be risky. Basically everything except 20% down!

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