Keith Parrett's Blog

Article From BuyAndSell.HouseLogic.com

By: G. M. Filisko
Published: March 30, 2010

You’ve found your dream home. Make sure missteps don’t prevent a successful closing.

A home purchase isn’t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. Here are five tips for avoiding mistakes that cause a home sale to crater.

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

2. Hold off on big purchases

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.

Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

More from HouseLogic

How maintenance adds to home values (http://www.houselogic.com/articles/value-home-maintenance/)

Reducing closing stress (http://buyandsell.houselogic.com/articles/7-steps-stress-free-home-closing/)

 Other web resources

More on calculating closing costs (http://www.hud.gov/offices/hsg/ramh/res/sc3sectb.cfm)

More on the closing process (http://www.homeclosing101.org/closing.cfm)

G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2011.  All rights reserved.

Article From HouseLogic.com

By: Gwen Moran
Published: October 20, 2010

Military families who’ve suffered a tragedy or injury may find foreclosure relief in a new Fannie Mae program that offers forbearance.

If you’re a wounded military member or surviving spouse facing foreclosure as a result of an active-duty injury or death, you may be eligible for payment forbearance (http://www.knowyouroptions.com/Military) for up to 6 months from Fannie Mae.

Eligibility requirements

Under the provisions of Fannie Mae’s Unique Hardships guidelines for forbearance:

          •You can lower payments or even temporarily suspend your monthly payment for up to 6 months-giving you time to get back on your feet.

          •You may be eligible regardless of your income, the size of your mortgage, or the amount in arrears.

          •You won’t get a black mark on your credit report related to your mortgage loan during the forbearance period.

          •Your lender, with Fannie Mae’s approval, will decide if you’re eligible for forbearance.

To see if you qualify for forbearance, just contact your lender and ask about the Fannie Mae program. You’ll likely need to follow up with a letter and possibly provide other documentation of the death or injury.

Catch up after forbearance

After the forbearance period has ended, you’ll need to repay the amount that was suspended. However, you usually have a few repayment options:

          •Move the payments to the end of the mortgage, which will lengthen the term.

          •Make a one-time payment for the amount.

          •Add a specific amount to the payments each month until the entire amount is repaid.

Learn more about the forbearance program

 Visit: Fannie Mae’s KnowYourOptions.com/military (http://www.knowyouroptions.com/Military) for more info about what to do if you’re experiencing a hardship.

Call: 877-MIL-4566, a military hotline for the Fannie Mae forbearance program.

Visit: U.S. Department of Urban Development housing counselor directory (http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm) to find independent housing counselors near you.

Other lifelines for military families

If you incurred your mortgage debt before your military service, you may also be protected under the 2003 Servicemembers Civil Relief Act (http://www.hud.gov/offices/cpd/about/hudvet/library/scra.cfm) (SCRA). It temporarily protects active-duty or deployed service members from legal obligations related to a variety of civil and financial responsibilities, including mortgage payments, credit card debt, unpaid taxes, and civil trials.

New program, big hopes

“This happens to be our first real foray into something we could concretely do together [with the military],” says Jeff Hayward, senior vice president of Fannie Mae’s National Servicing Organization. “We’re still talking, and we hope to do more.”

Gwen Moran is a freelance business and finance writer from the Jersey shore. She’s the co-author of The Complete Idiot’s Guide to Business Plans and writes frequently about real estate.

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2010.  All rights reserved.

Keith Parrett
CDPE (Certified Distressed Property Expert)
Realtor
Realty World Pigati and Russell
Direct: (925) 580-4650
Efax: (866) 404-4934
Email: keith@keithparrett.com

http://www.keithparrett.com/

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