Private Investors Dominate Foreclosure Market

Cities and municipalities are having trouble spending the money allotted by the controversial Neighborhood Stabilization Program, which was passed by Congress last year to acquire houses in blighted neighborhoods.

The goal was to buy vacant properties at 1 percent less than appraised value, rehab them, and either sell or rent the homes to low-income residents.

The stumbling block is that the houses are being purchased by private investors and more affluent home buyers at cheap prices.

Some people don’t see that as a problem. “If the private market is coming back and buying houses and crowding the government out, that’s not a bad thing,” said Joseph Pigg, senior counsel at the American Bankers Association.

In some areas, the nonprofit National Community Stabilization Trust is working with banks to give government access to foreclosed homes before they are put on the market. But that may be too little, too late. “It’s very unclear when the dust settles how much real change in neighborhood stability and quality of life we’ll see,” said housing expert Alan Mallach of the Brookings Institution.

Source: CNNMoney.com, Tami Luhby 

Can You Still Buy Without a Fixed Mortgage?

Buying a house doesn’t necessarily require getting a 30-year, fixed-rate mortgage.

More and more people are exploring alternative financing plans as it gets harder to get a conventional bank loan.

Here are some creative ways to pay for a home, according to some financial experts:

  • Securities-backed loans. The lender gives the borrower 80 percent of the value of his stock portfolio. Then the lender holds the stock for between three and 10 years while charging a 3 percent to 5 percent interest on the loan. At the end, the borrower gets his original shares back. Both win if the stock has increased in value.
  • Two-step mortgages. This fixed rate mortgage is amortized over 40 years, but the payment schedule is adjustable.
  • Constant-amortization mortgage. Buyers start with a higher payment, but the loan is constantly re-amortized, so principal is reduced faster than with a conventional loan.
  • Family loans. In the most successful arrangements, the family puts the agreement in writing and the lender charges the borrower a rate of interest high enough to pass IRS scrutiny, thus avoiding any gift tax.
  • Assuming a mortgage. Buyers interested in purchasing a house in the pre-foreclosure stage might ask the lender if they can assume the mortgage. In some circumstances this can be a good deal.

Source: Forbes, Matt Woolsey (01/26/09)

Mortgage Lenders

Renovation Mortgage Plus

Mario E. Boles/ Diego Hodge

FHA/203K/Fannie Mae (Homestyle)/Freddie Mac (Renovation Mortgage)

2475 Northwinds Parkway, suite 200

Alpharetta, GA 30009

Office: 770-753-6239 

mario.boles@renovationmp.com

diego.hodge@renovationmp.com

*Vonda Henry, Loan Officer (West End Resident)

Advertent Mortgage 

 404-374-3557 

*Bank of America Mortgage

Darren Smith

Mortgage Loan Officer

Assistant Vice President

6075 Roswell Rd

Atlanta, GA. 30328

 404-256-6326  Phone

 866-517-8923  Right Fax

404-358-6883 Cell

 

*Sam Thompsonread my blog:  http://samthompson.thewrittenblog.com

Home Mortgage Consultant

Home Services Lending, LLC

An Affiliate Of Wells Fargo Home Mortgage

MAC M2046-030

3391 Town Point Drive, Ste 325

Kennesaw,  GA  30144

(678) 355-0785 Tel

(770) 301-0527 Cell

1-866-737-9015 E-Fax

sam.thompson@hsl-ga.com

 

web address to apply on-line:

www.homeloans.com/sam-thompson

 

 

*Jayson Duff (can also do FHA loans for 550- 580 credit score!)

Mortgage Banker- REMN, Inc.

500 Town Park Lane Suite 145

Kennesaw, GA. 30144

Office:  770-373-5410 

Cell:  678-360-1969 

jduff@remn.com

www.remn.com

www.jaysonduff.com

 
*Countrywide Bank, FSB

Brian Rains

Home Loan Consultant
4531 Olde Perimeter Way, Suite 200
Atlanta, GA 30346
Cell:   (404) 964-4803

Email: Brian_Rains@Countrywide.com