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Dale Rogers's Articles in Mortgage

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Mortgage Lenders Are Dropping Like Flies With Their Little Legs Turned Up And Kicking The whole key for Bob, or any other contrarian, is to make lots of offers based on a valued analysis. If you don’t get the deal let someone else take the hit. There is desperation in the market place and it IS a BUYER’S MARKET. The professionals tune out the bad financial news and move out of the living room and put some serious cash to work. A year ago sellers would laugh bottom feeder buyers out of town. No one is laughing now. There Was This Guy Banging On The Door… Inquiring About Lis Pendens Foreclosure Action On His Home This had been quite a turn of events for Bobby, a single dad, recently divorced with full custody of his two boys. His ex-wife had taken off with a new love found on the Internet. She said it was real love this time. During the strain of the divorce and loss of half the household income things began to slide into disarray. The latest salvo was receipt of the Lis Pendens action served by a “friendly” process server with a phony smile. A week after service there was a long line of “investors” and other inquires by mail all about “saving” Bobby from his plight. If Vince Lombardi Ever Addressed Members Of The Mortgage Industry…His Message: May Have Been…Back To Basics Somewhere between the Stated W-2 Wage Earner Loan and the New Century Mortgage (large subprime mortgage lender) filing for Chapter 11 Bankruptcy protection mortgage practitioners lost track of the basics of the mortgage lending practices and procedures. When Vince Lombardi opened training camp at the Green Bay Packers at the first practice of the year he gathered all around and held up a football to the players and told them…"this is a football". Finally ‘Suitability’ Test Arrives At The Mortgage Industry’s Gate…How Bad Does It Have To Get The National Association of Stock Dealers (NASD) police and license stock brokers through the Series 6 and/or 7 licensing requirements as well as other controls on a nationwide basis. If an elderly person with fixed assets has a disportionate share of their assets in pork belly futures, index options or maybe a wild derivative product, this would be a case of crossing the line on suitability. Investment needs require matching with risk. Like In The Most Horrific & Scary Movie…The Audience Cries Out…'Watch Out!!!'…While The Actors Hear Nothing One has to wonder about borrowers signing up for a new Option ARM (Adjustable Rate Mortgage) with negative amortization and low teaser rates really know what is ahead of them. The slick computer models showing ‘what if scenarios’ make the case based on given assumptions. The term negative amortization is something that will be in front of their faces real soon. With a minimum payments starting in 1%, 2%, 3% etc. the real fully indexed rate which includes an underlying base of a chosen index plus the margin to make the real rate ticking away at maybe 4% to 6% higher. Honey…The Bank Is On The Phone…Since We Were Two Days Late On Our Payment Unlike previous down mortgage cycles, lenders are pulling out all the stops to blunt foreclosures. From the use of computer models focusing on customers that “might” fall down together with a lender commitment to slow down any borrower from falling into a non-performing loan. So if a borrower is say two days late from a normal payment pattern, customer service is on the phone to find out what is going on. Options may range from refinancing the loan with different payment terms or even consider a short sale (settling for less than what is owed) if the borrowers are selling. With many homeowners’ just packing up and leaving after not being able to sell many lenders are trying to perform an intervention before the borrowers panic and disappear. With a slow resale market lenders are not setting back and waiting for payments to get down three or four payments. Soft Market + Motivated Seller + 6% Seller Contribution = 5.50% Fixed Rate 30 Year Mortgage Rate Buydown An anomaly is defined as a deviation from the normal order. At this very moment in many real estate markets in many parts of the country a soft market can lead to opportunities for many buyers. This anomaly will not last. It is a buyer’s market so why not maximize the buyer’s benefits by applying part of the 6% seller’s contribution to buy the loan down. Where are these opportunities to be found? In any area look for vacant homes, on a lock box with some sort of sale pressure. If the lender allows for a 6% seller contribution of the contract price on say an 80% Loan To Value loan then why not go for it. Many of these potential properties can be searched and identified using a Realtor and the local MLS system. Builders who are setting on a huge inventory of homes may be willing to grant major concessions in order to keep the price levels consistent until the home prices firm up. Buyer’s need not leave any money at the closing table. Just put your lips together and whistle. Ask and you shall receive, if not, go to the next and whistle again. Someone is bound to love your tune when the seller motivation is high.

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