I will assume your loan officer helped you complete your application and explained all the disclosures, including the Good Faith Estimate and Truth-In-Lending, and they gathered much of your documentation to support your income, assets and credit-worthiness. Further, they ran your credit report and maybe even obtained an approval through an automated underwriting system. Of course they advised you as to loan product options and discussed rate lock choices. For most, the amount of information can be overwhelming. But what happens next?

The Processor

Your file is submitted to the Processing Department. The main function of the Processor is to verify all the information on your application, as well as order the appraisal. They will verify your employment history and income via the mail, the phone and/or confirmation from the IRS. They will source the necessary funds for closing and reserves; they will help dispute and/or explain any credit reporting challenges. They will review the Contract of Sale and the appraisal.  Then they will assemble all of the relevant documents and submit them to the Underwriting Department.

The Appraiser

The Appraiser is an independent third party who gathers information about the home and gives their opinion of value. Appraisers weigh many factors- comparable homes that have sold recently in similar locations, homes currently for sale, the condition of the property, the replacement cost, what the home could rent for, etc. The appraiser is supposed to protect the borrower and the lender. No one wants the buyer to pay too much, and the lender needs to make sure their cash investment is satisfactorily secure. The appraiser is not usually an engineer. They do not certify as to the “life expectancy” of the home or its improvements; however, they do often raise issues that should be addressed by a home inspector.

The Underwriter

I have long referred to underwriting as “the speed bump of the mortgage process”. Underwriters are charged with protecting the company from fraud and unsound decision making. While the borrower, the loan officer and the processor are pushing to get a closing, the underwriter says “slow down”. They look at the quality and consistency of the documentation. They add common-sense to the factual analysis of the automated systems. Files are approved, suspended or rejected.  (If the LO and Processor did their jobs correctly, rejections are rare.)  Most of the time, the underwriter will find some areas that need further clarification or documentation….and so the file goes back to the Processing department.

The processor and LO work with the borrower to satisfy the conditions. The file is then given back to the underwriter for review and hopefully the issuance of a Clear To Close.

The Closing Department

The Closing Department is focused on making sure the lender is covered legally. They review the title report (checking for gaps in the chain of title, certificates of occupancy, real estate tax numbers and payments, as well as judgment, bankruptcy and Patriot Act searches). They prepare the closing documents for the lender and have them executed and delivered for recording.

As you can see, there are many people who are working towards a successful closing. Each of them are trying to make sure the borrower is qualified and informed of what their future holds, and, at the same time, they are trying to protect the lender from making faulty underwriting decisions.

The new forms made changes like eliminating all forms of roof coverings with exception of metal and shingle roofs. Metal roofs if properly installed are more resistant to wind, but shingles are not more resistant than tile roofs properly installed. There are also issues with visibility, ie. if an inspector can’t verify something you lose the credit, even if that was inspected and approved by your local building department or previoius home inspectors.

There are other issues, but enough to say that this new form was not properly reviewed or vetted with local building officials and it should be withdrawn until a clear criteria is developed and reviewed by Florida Construction industry experts and building officials.

There may be a window of opportunity if you write to Insurance Commissioner Kevin M. McCarty at insurancecommissioner@floir.com before tomorrow October 1, 2010 at 5:00 PM. Write and tell him how it may affect you and your customers.

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RealtyTrac, a leading online marketplace for foreclosure properties released its Q2 2010 U.S. Foreclosure Sales Report, which shows that foreclosure homes accounted for 24% of all residential sales in the second quarter of 2010 and that the average sales price of properties that sold while in some stage of foreclosure was more than 26% below the average sales price of properties not in the foreclosure process—down slightly from a 27% average discount in the first quarter.

A total of 248,534 U.S. properties in some stage of foreclosure—default, scheduled for auction or bank-owned (REO)—sold to third parties in the second quarter, an increase of nearly 5% from the previous quarter, but still down 20% from the second quarter of 2009.

“While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the home buyer tax credit that expired during the quarter,” said James J. Saccacio, chief executive officer of RealtyTrac. “That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs.”

Foreclosure sales by type in second quarter
A total of 151,290 bank-owned (REO) properties sold to third parties in the second quarter, up 3% from the previous quarter but down 28% from the second quarter of 2009. REO sales accounted for nearly 15% of all sales in the second quarter, down from nearly 19% of all sales in the previous quarter and down from nearly 20% of sales in the second quarter of 2009. REOs sold for an average discount of nearly 35%, close to the average discount of 34% in the previous quarter and also to the average discount of just over 35% in the second quarter of 2009.

A total of 97,244 pre-foreclosure properties—in default or scheduled for auction—sold to third parties in the second quarter, up nearly 8% from the previous quarter but down 3% from the second quarter of 2009. Pre-foreclosure sales accounted for 9% of all sales, down from nearly 12% of all sales in the previous quarter but nearly identical to the 9% of all sales in the second quarter of 2009. Pre-foreclosure sales, which are often short sales, sold for an average discount of nearly 13%, down from an average discount of nearly 16% in the previous quarter and down from an average discount of 19% in the second quarter of 2009.

Nevada, Arizona, California post highest percentage of foreclosure sales in second quarter
Foreclosure sales accounted for nearly 56% of all sales in Nevada in the second quarter, the highest percentage of any state despite a decrease in foreclosure sales from the previous quarter and from the second quarter of 2009. Nevada pre-foreclosure sales jumped 29% from the previous quarter and were up 2% from the second quarter of 2009, but Nevada REO sales decreased 14% from the previous quarter and were down 43% from the second quarter of 2009.

Arizona foreclosure sales accounted for 47% of all sales in the second quarter, the second highest percentage of any state. Pre-foreclosure sales in Arizona increased 9% from the previous quarter and 15% from the second quarter of 2009 while REO sales increased 15% from the previous quarter but were down nearly 34% from the second quarter of 2009.

Foreclosure sales accounted for 43% of all sales in California in the second quarter, the third highest percentage among the states. California pre-foreclosure sales increased nearly 8% from the previous quarter but were down 4% from the second quarter of 2009. California REO sales increased 1% from the previous quarter but were down 45% from the second quarter of 2009.

Other states where foreclosure sales accounted for at least one-quarter of all sales were Rhode Island (37%), Massachusetts (35%), Florida (34%), Michigan (33%), Georgia (27%), Idaho (27%), and Oregon (25%).

Ohio, Kentucky, California post highest foreclosure discounts
Ohio foreclosures sold for an average discount of nearly 43% in the second quarter, the biggest discount of any state. Ohio pre-foreclosures sold for an average discount of nearly 24% while the average discount on Ohio REOs was double that at nearly 48%.

With foreclosures selling at an average price that was 41% below the average sales price of non-foreclosure properties, Kentucky posted the nation’s second highest average foreclosure discount in the second quarter. Kentucky pre-foreclosures sold for an average discount of 27%, and Kentucky REOs sold for an average discount of 48%.

California foreclosures sold for an average discount of 39% in the second quarter, the third-highest discount among the states. California pre-foreclosures sold for an average discount of 29% and California REOs sold for an average discount of 46%.

Other states with average foreclosure discounts of more than 35% were Michigan, Tennessee, Pennsylvania, Georgia, Illinois and Iowa, along with the District of Columbia.

For more information, visit www.realtytrac.com.

As part of the Obama Administration’s continuing effort to provide quality housing counseling to the nation’s homeowners, buyers and renters; the U.S. Department of Housing and Urban Development announced the availability of more than $5.1 million in grants for housing counseling training. HUD’s goal is to fund eligible organizations to deliver training in the full spectrum of counseling services. HUD Secretary Shaun Donovan made the announcement while meeting with borrowers and homeowners receiving counseling at an event in Oakland, California.

“Every day, our HUD-approved counseling organizations help families to make more informed choices about buying or renting,” said Secretary Donovan. “Right now, these counseling programs are critical in helping thousands of families avoid foreclosure and remain in their homes. That’s why we’ve increased the funding for housing counseling by 36 percent in this year’s HUD budget.”

HUD-approved counseling agencies provide homeownership counseling as well as financial literacy education to renters and homeless individuals and families. This year, HUD’s Housing Counseling Grant program is providing approximately $79 million for comprehensive counseling, Reverse Mortgage Counseling, and supplemental funding for Mortgage Modification and Mortgage Scam Assistance. There is also a heightened focus on providing services in languages other than English.

The counseling training funds are available to provide training activities designed to improve and standardize the quality of counseling provided by HUD-approved housing counseling agencies, multi-state organizations, and state housing finance agencies. The Notice of Funding Availability (NOFA) provides funding details and requirements. It is posted on the HUD website.

Applicants must be public or nonprofit organizations that have tax exempt status under section 501(a) and have at least two years of national experience providing the majority of types of housing counseling training services. They must propose to provide training nationwide. The training program must contain both basic and advanced courses, and include topics such as general counseling, credit and financial literacy, matching clients with loan products, home buyer education, avoiding delinquency and predatory lending, foreclosure prevention, reverse mortgages, rental housing, and mortgage fraud counseling.

For more information, visit www.hud.gov.

From I-75 take Miramar Parkway west to the end.  Turn left into Sunset Lakes Grand Isles.  Call 305-308-8627 for gate code.  After gate go right, home will be on your right hand side.

Offered at $449,000.  We look forward to seeing you on Sunday!

RA Sushi Bar Restaurant

The Pub

Apartment rentals include The Resort at Pembroke Pines, The Falls of Pembroke, The Marquesa, Pembroke Landings, Camden Portofino, Windsor Pines, The Winston, Harbour Cove, Blue Lake Villas, and Pembroke Gardens.

There are so many communities to buy here as well, and if you want to be put on a search please contact Lindsey Penn, PA, EWM Realtor, at Penn.l@ewm.com or 954-817-9930.

Un rêve inaccessible en France à cause de la loi littoral.

On peut également trouver sur le marché des maisons offrant une plage privée, caracteristique exceptionnelle pour un terrain à Miami. Ces propriétés sont très prisées.

Voici 1 offre actuellement sur le marché:

-Tahiti beach road, 10 chambres, 9 SdB, 1500m2, plage privée, 16.900.000 dollars

Listed by Mayi De La Vega

Si vous désirez plus d’information contactez-moi 305-546-5421 ou consultax mon site à www.isamiami.com.

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“Great Real Estate Application”

This application puts you in touch with a knowledgeable realtor in South Florida. She used the application along with other modern media to do business which for busy professionals is great. This application allows push notices of new listings that may be of interest and gives great exposure for listings. Great and innovative idea for marketing real estate!

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