It is a great time to buy in the Poconos! IF you can get a

mortgage!!

What Month October has been for Home Buyers trying

to secure financing!

The words…”Frustrating” …”Hopeless”….”Painful”

“HOMELESS” have been used by

Many buyers lately.

Why is it that we have a Mortgage Approval BUT can’t

get a clear to close?

Why does my Loan Officer keep changing the

requirements?

Why do I have to bring More Money to closing?

Why is the Mortgage Insurance payment SO HIGH!!!

Points?? I don’t want to pay Points??

Why do I feel like I was LIED TO?!!!

Hard Questions to face. Harder Answers to Accept!

My experience has shown that the root of many of these

frustrations lies 1^st in the choice

of loan officer and 2nd the Broker, Banker or Bank

they work for.

Confused? Join the club! Many buyers do not

understand the differences.

Let me try to explain….

The “Loan Officer” or LO for short is the order taker.

The person who gathers the

Information for your loan and the one who initially

gives you the details you need to

make a decision. The person you believe is an expert

and is the ultimate decision maker.

Problem is many LO’s have no control over the final

outcome of the process. They are

not the decision maker, they WORK for the person who

works for the person who works

for the person who makes the final decision. There are

many hands in the process, many

layers of approval, a system of check and balances..or so

we thought.

If the person taking your mortgage application can not

answer this simple question “Who

is funding this loan at closing” you may wish to

reconsider your choice.

Rather than ask what the Interest Rate is going to

be…ask “How Much is this loan going

to COST me?? Up front and IN MY MONTHLY

PAYMENT?”

Pretty simple questions right? Not Necessarily……………

The Loan Officer sends the paperwork to a processor

who then gathers more information

including and appraisal and title insurance binder.

Once the entire file is bulging at the

seams it goes to an “underwriter” for approval. THEN

if you have less that 20% down on

for purchase the entire “package” goes through another

approval process..MORTGAGE

INSURANCE APPROVAL!

So you see the Loan officer is the 1^st person in the

process, but never the FINAL decision

maker!

Now if you go directly to a Bank or Credit Union, you

may be “cutting out the middle

man” and saving a step or two in the process, BUT they

can be stricter with their

guidelines. If you have good credit they are a good

choice..especially LOCAL lenders

and those who do NOT sell their loans to the secondary

market.

So before you start shopping for a well priced home, get

connected with a lender who can

Answer your questions and provide you with a solid

mortgage.

Remember you wish to own your home NOT have your

home own YOU!

LAG

“Short Sale” requests are on the rise here in the Poconos!

·        What is a short sale?

·        Who is qualified?

·        How does it work?

·        What is the Benefit?  

Great questions …. with no set answers.  A short sale is typically an agreement between a lender and homeowner, where the lender agrees to accept a payoff of the existing mortgage that is LESS than the current amount owed by the homeowner.

However, homeowners should not believe for a moment that it is a quick easy solution to recovering their loss in equity.  Typically, the homeowner, through “no fault of their own, is unable to pay their mortgage, is in default of the loan agreement and in risk of foreclosure proceedings.

In other words, the homeowner needs to prove hardship, such as loss of job, illness, divorce and so on.  If they are able to pay their mortgage, they  will have a hard time qualifying for a short sale.

The process is long and sometimes frustrating as the bureaucratic red tape on the lenders end can seem endless.

Contrary to popular belief the home must be sold at or close to “current fair market value” which will be verified by appraisal.  So investors who believe they are getting the home “far below market value” may be surprised to learn that this is not the case.

So why would any homeowner agree to go this route?

My experience shows that most homeowners believe it is the “right thing to do!” They want to preserve some dignity and credit as well. They want the phone calls and letters to stop, they want to get on with their lives without the fear of having the sheriff knock on the door ordering them to leave now!

Losing a home to foreclosure is more than just a financial loss, it has a very negative emotional and physical effect on the entire household.

While homeowners will receive no money at closing, they also don’t typically need to sign a repayment agreement for the ‘balance owed’ .

Emotionally, they have SOLD their home, NOT lost it to foreclosure!  It provides the homeowner some control over the timing of their move versus a sudden disappearance in the middle of the night.

So what kind of Real Estate Professional would be helpful?

The most important thing is to choose a Real Estate Professional who has worked with several homeowners under these conditions.  An agent who  understands the ins and outs of the process.  One who has the time and patience to deal with the lender(s).   An Agent who truly knows what the current “Fair Market Value” is.

As I mentioned before, it is not a “quick and easy” solution. It is time consuming.

Many people ask me “Why do you spend so much time working a Short Sale?”

To preserve market values. 

That’ right “PRESERVE values!”     

Experience shows that the price  a “short sale” home sells for is  greater than the price a foreclosed home sells for!

Most homes that have been foreclosed on in our “Pocono Market” need repairs.  They have been abandoned.  Some have been vandalized.  During the winter months, many experience frozen pipes.  Overall, the value declines rapidly between the time the homeowner leave and the Lender takes over.

Overall the process is time consuming and requires patience along with quite a bit of expertise, but the benefits of a “Short Sale” are far reaching.

LAG

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