Adjusting ARM, but Your Upside Down... Now What?

Many people are finding themselves in exactly this situation... the payments have been affordable, up until now, but their ARM (Adjustable Rate Mortgage) is adjusting, and maybe more than a little. This could be the difference between "a house you can afford" and one you can't. Originally when you took this loan, you figured you would be ready to sell by now, but it's a different world than you expected. You'd refinance, but you're upside down and don't have a bunch of cash to bring to the table. So now what? There is a product that might help you. It won't help everyone, but it will help some.... a lot of people, actually, if they know about it. So tell everyone you know! It's called an FHA Streamline Refi. They don't look at your income, your credit, your debt, or even the equity you have in your house... they ONLY look at your mortgage payment history. If, up until now, you've been paying your mortgage payments every month, on time, then you probably qualify. You can borrow up to the amount you originally borrowed. If you have not paid down your mortgage at all, then you may have to come "out of pocket" for closing costs. But, if you've paid down a bit of your loan since you originally got it, it may not be that much. So, it's worth checking into. I recently met with sa couple who owned 2 homes, and they could not afford them. They were considering doing short sales on both to get out from under the debt, but they really do need "somewhere" to live and they really do love their home and want to stay there. Being upside down is not what bothered them, it's the fact that they would soon have no savings left and would not be able to continue to make the monthly payments. After having them talk to a lender that I work with, we were able to determine that if they brought about $3,000 to the settlement table to cover closing costs, they'd be able to refi using this product and drop their rate from 7.35% to about 5%, saving them $500-600 a month... yes, A MONTH. It does not take a rocket scientist to realize that this would make a significant lifestyle difference for them. True, they may still short sell the second home, but that is yet to be decided. They think they can continue to pay both payments with the new payment amount....and that is a big win for everyone. Interested in learning more? Visit my web site, and talk to one of the Preferred Lenders listed there.

It's a Great Time To Buy Investment Real Estate, But How?

Everyone realizes it's a great time to buy investment real estate, but how? Many people have longed to own investment real estate, realizing it is often the best way to long term wealth. But, coming up with the cash down payment, and taking on the extra liability of another mortgage are often obstacles. There is a great way, however, to invest in real estate without worrying about these obstacles, and most people don't even know it's an option. You can legally, and without penalty, use your retirement funds to purchase real estate, through a self directed IRA. Let's say you have $50,000 in your retirment account (we won't talk about what it was last year). You can use $30,000 to use as a down payment on a $100,000 investment property, and get a 70% mortgage. In this market, sellers will often cover your closing costs, so your funds go strictly toward the purchase price of the property. These loans are available to your IRA (not you), and the lenders do not consider your credit, your income, or your debt. To be honest, they don't care about YOU at all. This is an investment, and it is your IRA that is investing. You can purchase the property, rent it, own it, and eventually sell it... all in the name of your IRA. Sure, this type of investment is not for everyone. But, for those of us with more trust in the real estate market than the stock market, it might just be the type of transaction that allows YOU to finally get into real estate investing. We regularly coordinate webinars on this subject. If you're interested in registering, please contact me directly at vchrisner@kw.com.

The Unhealthy Home - Asbestos

Do you have asbestos in your home? Insulation and building materials made of asbestos were commonly used until the late 1980s, and continue to be used today for some products. (Click here to learn about what asbestos products were banned in 1989) Left undisturbed, these products pose no danger. In fact, asbestos is very, very good at what it does - insulate. So, if you have asbestos insulation that is safely contained behind a wall, you are encouraged to keep it in place. But, when asbestos fibers are disturbed, breathing them in can be deadly. It can cause mesothelioma (a deadly form of cancer with no cure), lung cancer or asbestosis. And, beware, Asbestos is not just found in insulation. It can be found in flooring, roofing materials, shingles, siding, gaskets, and even the little embers in the gas fireplace, especially in homes built with materials manufactured pre-1989. So, before remodeling, find out what asbestos materials are in your home; and then hire a qualified contractor who is familiar with abatement protocals to remove these products. Generally, I am a big supporter of calling uncle Joe to do the work for you and save you a few dollars, but if he is not familiar with the protocals involved in abating (removing) asbestos materials, please, save his life and your own, and call a qualified contractor who will follow the EPA guidelines for removal. If you need help finding a local contractor who is qualified in Asbestos abatement, please contact me. Read more about this important subject by clicking here.

The Unhealthy Home - Lead Based Paint

Lead Based Paint:

Lead Based Paint can pose serious health hazards to family members. It was commonly used prior to 1979, which means that most of us grew up in homes with lead based paint and never knew it. But now, years later, we're all too aware of the repercussions of having this hazard in our homes.

The highest risk falls with children. Like it or not, children do chew on trim and window sills. If the home was built prior to 1979, it is likely that lead based paint was used in the house. When children put their mouths on the painted surface, they can ingest this poison. Children are not only more likely to have contact with lead based paint and other lead sources, but their little bodies absorb lead at a higher rate than adults. And because their brains and organs are still developing, it can lead to more serious, even tragic, conditions.

Even adults who assumably do not chew on painted materials can be at risk. Paint peels. Pets scratch at doors and on walls. People bump into and scrape painted surfaces while moving around. All of these things can cause small flakes of lead based paint to fly through the air, circulating through our duct systems. We breathe it in. We touch things in our house before we pick up our food to eat, and we ingest it. It's easier than you'd think. And, adults exposed to lead have significant health risks, too. We're all exposed to lead throughout our daily lives, but overtime, continued exposure, especially from something within our own homes, will cause an increase in the lead levels in your blood.

Lead Based Paint was commonly used prior to 1979, for that reason, there are federal laws requiring specific disclosures for anyone renting or selling any home. I often hear people say "but this house has been painted since then"... that does NOT remove the lead based paint. Covering it up does not make it go away, and even buried under other coats of paint, it can still cause significant risks.

Learn more about how you can prevent lead poisoning in your home....Click here to be directed to the EPA web site which can tell you more about this serious threat.

Investors can get more mortgages!

Fannie Mae realizes that investors "can play a key role in the housing recovery", and has changed their guidelines now allowing investors to have up to 10 properties financed! There are some restrictions, like a minimum credit score of 720, and maximum loan to value ratios of 70-75%, no bankruptcy or foreclosure in the past 7 years and no late payments in the last 12 months. Plus, any rental income on properties used to qualify must be supported by 2 years tax returns. But, take note... investors are being welcomed back into the mortgage market!