West Palm Beach and US Virgin Island Mortgage News

[CITY] Mortgage News

October 7th, 2011 3:20 PM

In the current real estate market you must identify opportunity within the crisis. In South Florida it is much cheaper to own than to rent. We are saving clients as much as $500.00 per month by making them home owners instead of renters. A comparable 3 bedroom 2 bath apartment that rents for $1400.00 per month is no comparison to a 3 bedroom 2 bath 1 car garage townhouse that is selling for as little as $85,000.00 per month. The savings is still striking even when you include an assocation fee.

The low mortgage payments are also a great opportunity for younger people, lower income families, and single parents to make a move to own a home while remaining within their financial means. By purchasing a home in the current market conditions you can end up reducing your monthly debt by taking advantage of the lower prices and rates. The opportunity for moderate and higher income families is even greater as they often buy their dream home well under true market value and within a comfortable monthly payment range.

If you are thinking about purchasing a home, this is a great time to make that move and take advantage of historically low home prices, historically low interest rates, and a great chance to actually become a homeowner while reducing your monthly housing debt. For additional information please contact Derrick D. Berry of The Good Pirates at 561-312-7777 or 1-800-579-9677. My email address is Derrick@thegoodpirates.com.

Posted by Radha A Berry on October 7th, 2011 3:20 PMPost a Comment (0)

I Did A Short Sale. When Can I Own Again?

June 3rd, 2010 3:44 PM

After executing a short sale life as you know it is not over. Within 24 months of selling your home you can qualify to purchase another home using a conventional loan as long as you can put 20% down as and provide proof that you had a hardship. There are several things that a bank will look for to determine if you qualify to purchase again.

1. Rebuilt Credit.

2. Proof of 12 months rental history with no 30 day lates.

3. Short Sale agreement verifying the terms of the short sale.

Rebuilding your credit is critical to preparing to purchase again. The first thing to evaluate is how many open active accounts that you currently have. If you don’t have any you will need to open 3 to 4 accounts. Your credit score will not make the necessary improvements without having multiple open and active accounts. If your options are limited I would recommend opening several secured credit cards. Try your local banks first and then turn to the internet. Remember these cards should be used at least once every three months and only for minimal purchases. Do not max out the credit cards as this will trigger a high risk borrower’s activity and lower credit score. The lower your credit card balances, the higher your score.

Twelve months of rental history is also critical to owning in the short term. Underwriters will not usually sign off on a loan unless they can positively verify that the person(s) have shown 12 months of rental history without having a 30 day late. If you are living in an establishment that is managed by a management company your rental payment history can be verified through the management company. However, if you are paying your rent in cash I would recommend that you use checks or at a minimum cashiers checks/money orders. Make copies of the checks so that you can submit positive proof of rental payment history.

The Short Sale Agreement will verify the terms of the short sale which may verify that you are not obligated to repay the debt or that the debt was completely dissolved. If the short sale agreement confirms that you are repaying a portion of the debt then the debt must be included on your loan application. The short sale agreement and the HUD-1 or settlement statement should also be submitted to confirm the date of sale.

This information is intended to put former homeowners back on track to home ownership. The faster you start the process of rebuilding your credit the easier it will be for you to qualify in the future. Don’t allow fear to stop your progress. Chances are good that you will purchase a similar home for much less than you did before and at a more sustainable monthly payment. Credit scores are usually improved over time and the more time you have a trade line on your credit report, the more points you will receive on your credit score.

For additional information or questions please contact Derrick D. Berry at 1-561-312-7777 or email me at Derrick@thegoodpirates.com.

Posted by Radha A Berry on June 3rd, 2010 3:44 PMPost a Comment (0)