BiggerPockets

A Rhetorical Reminder

Tuesday, March 30

Is It The Right Time To Purchase Real Estate

Tuesday, March 30

What's behind curtain no.1

Monday, October 27

I find it rather disturbing when our top executives, politicians and other top officials try to sugar coat critical issues. With that said, I ran across an article which explains the so called modification program, what’s very interesting is; when this program was initiated it was intended to help those struggling with their current over priced mortgages.  The program was designed to prevent foreclosures and lower rates.  “Well, here we have the old bait and switch again". Of course it’s nothing new since the announcement of this program, but I would like to know who is really calling the shots, is it the banks, or the government? How can the banks say we will do what want, when the government is the author of the program?

The last thing that lenders want to do is forgive debt. Last month, executives from the four biggest mortgage servicers testified before the House Financial Services Committee, and all of them made it clear that they would exhaust all loan-workout options before considering debt forgiveness, which in banker lingo is called "principal reduction."

An executive for Bank of America told the committee that his bank would consider debt forgiveness for people who already are in the process of foreclosure. A Wells Fargo executive, Mary Coffin, said, "We have found that the same affordability can be reached through a 2 (percent) to 3 percent interest rate reduction and term extension, as can be reached through a 25 (percent) to 30 percent principal reduction."

In other words, Wells would rather reduce the interest rate for five years, and extend a 30-year loan into a 40-year loan, rather than forgive some of the debt.

If a lender can be persuaded to participate in Hope for Homeowners, here's how it would work: The lender would forgive all the debt over 90 percent of the home's currently appraised value, and allow the homeowner to refinance with an FHA-insured mortgage.

For example, let's say someone owes $125,000 on a house that has lost value and is now worth $100,000. The owner can't afford the higher payments because of a rate adjustment. The lender would forgive $35,000 of the debt, allowing the owner to refinance with another lender for $90,000. That loan would be insured by the FHA, and would have an upfront FHA insurance premium of about $2,700. In most cases, that $2,700 would come out of the hide of the old lender, on top of the $35,000 in debt forgiveness. Faced with these figures, some lenders might figure that it might be cheaper to foreclose.

Still Needing Help.......

Thursday, October 16

Will this new bail out program help you the average citizen? Or was it design to continue bailing out the same banks and investors etc.etc.etc.  I was reading a piece about a gaping hole which remains a mystery in the bail out. Under the new bail out bill; it failed to implement any type of down payment assistant (DPA) for the first time home buyer or others who may want to purchase a home.  You would think if our government was genuinely concerned about all citizens, they would have come up with revised programs for qualified buyers.  In my opinion this bail out wasn’t designed for consumers, more or less it was about saving their buddies bank accounts, hedge funds, and certain political advancements. Many have no clue on the importance of real estate, it’s very vital to our economy.  No jobs, no real estate movement,  Inflation on the rise no real estate movement; and with all of the down payment assistant programs getting tossed like yesterdays trash, I’m afraid we are going to still witness a weak real estate market if incentives and/or assistance programs aren’t implemented back into the consumers main stream.  To clarify assistance programs so many won’t misinterpret this classification, these were programs designed by private companies to help with the purchase of a home.

 Before these programs disappeared Oct 1^st of this year, programs such as the (GAP) Grant America Program, Acorn and Nehemiah  just to name a few;  were created to assist consumers with assistance with their down payment or closing cost if the consumer was short of funds; the granted amount was 3% of the loan amount.  These programs were not loans but rather gift funds with limited stipulations which were offered by private entities.  As we look closer, interest rates are rising rather quickly, as of today for a 30 year fix rate you are looking at 6.5% vs. a week ago rates were hovering around the 5.98% range.  Suggesting a hand out is not the language I’m trying to use, I’m merely suggesting bringing back the programs which worked well with FHA, so our first time home buyers and others can purchase homes to soften our inventory overload.

 Having the amount of homes just sitting there, is equivalent to having an aircraft grounded. Without that aircraft flying, carriers will not make money; it’s useless to the fleet if they can not get this craft back into active service. Let’s see what happens in the next couple of weeks, I wonder how long will it take for these politicians to realize something needs to be done about this and how urgently they need to address this sinking ship.  

Economic Crises Opinion

Friday, October 10

STOCK MARKETS DOWN TURN = OPPORTUNITIES

Wednesday, October 08

I would like speak on an opportunity which will maximize your cash flow within a short period of time. I’ve came across an offering which is unique and benefiting to you the investor. The proposed term on the project is approximately 14 months, you can earn 25% on cash or cash flow- monthly is based on 18% annual interest. 

 A little about the project, Lima Peru is one of the fastest growing cities in South America.  This country has out performed and still out performing most well known countries, including the United States, the country has a 0% deficit which is very attractive to investors and business ventures such as ours. Our company purchases land, and partners with others to build condominium complexes and other developments, the loan you make will be a recourse agreement, reducing the risk - with high interest, keep in mind any business opportunity has risk, but this opportunity is backed by sound business practices, making it less risky.  These properties are being built in prime locations with pre-sold tenancy as well.

 The interest is paid out in two ways; both of them preferred to clients.  You get an 18% annual preferred return, paid in monthly checks or receive 25% ROI after completion of the project. **NOTE** both of these are preferred returns-the project sponsor makes nothing until you the investor has recouped your returns. 

 For further information please contact me at mmcommercialdeals@gmail.com or michael.mosely@alltrustrealestate.com  I will be more than happy to assist you in getting started to maximize your monies. To learn more now! please joint our webinar presentation.

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