Essential Techniques and Resources for Success

Cash Back Offers for your Home Loan

by CRESTICO | Apr 24, 2012 | CRESTICO

With Real Estate market again getting heated, the mortgage marketing campaigns in the financial institutions may also be heating up. Just about the most common in the offers tempting consumers will be the offer to get cashback for your mortgage business. This often is accessible for new purchases and also the Refinancing of existing mortgages.

It was only a couple of years ago once this was the hottest new offer in the industry. In today&rsquos market it appears that every other lender in the country is offering this cash return option.

An example of the standard cash return offer out there is 3% cash return whenever you subscribe to a condition of five years. Now here’s the place that the catch also comes in. Typically if you accept this offer you’re taking the amount of money back option in the place of a rate discount.

Just what exactly does this mean to consumers? Keep in mind I would recommend that you crunch the numbers when you jump at the offers available on the market. In today&rsquos market it’s not unreasonable for consumers with a good credit rating and verifiable income to command a single% discount on closed term mortgages. Some consumers are even able to get 1.05% off posted rates about the closed term of the choice.

To find out how a numbers figure out, let&rsquos check out a comparison between what you get coming from a cash return offer versus what you save having a 1% rate discount. Let&rsquos assume that you require a whole new $150,000 mortgage that you intend to amortize over two-and-a-half decades (the common). Lets also assume that the posted rate on a 5-year term is 8.35%. With the cash return provide you with will get $4,500 at the time the mortgage is advanced and as a consequence pay a rate of 8.35%. Assuming that all you do is make your minimum payment per month then in the term with the mortgage your total payments will amount to $70,710. After the phrase the main balance outstanding is going to be $138,736.90

If you successfully negotiate 7.35% with a 5-year term (with a 25-year amortization) then your total payments over the term are $64,994.40. After your term the complete principal balance outstanding is $137,158.98.

Which means not only do you think you’re making $5,715.60 less in whole payments in the term, but you need to $1,577.92 less principal balance outstanding at the end. Suddenly $4,500 money back doesn&rsquot seem so appealing?

I still believe today&rsquos real estate prices and low mortgage rates represent an excellent opportunity for owning a home. If getting 3% cash return helps to make the difference between you being able to afford your house and renting i quickly say do it now. Still, no financial decision must be made without weighing out each of the alternatives.

Remember: when the offer seems too good really was &ndash it’s always.

Three tips for staging your home to sell

by CRESTICO | Feb 6, 2012 | CRESTICO

Today’s buyers are looking for turnkey homes. That is, they want to move right in without having to do a lot of work. Buyers with busy lifestyles pay a premium for listings that are in prime condition. Staging can make the difference between a listing selling or not, the time it takes to sell, and the ultimate sale price.

Sellers who are financially strapped often have a hard time accepting that they’ll need to invest in preparing a house for sale even though they may sell for less than they paid. Fix-up costs can mount up; your agent can help you prioritize so that you don’t waste money. It’s important to keep your goal in mind, which is to sell your house in a difficult market.

Recently, a home in an affluent city came on the market in “as is” condition. It had been lived in for decades without much upgrading. Although located in a desirable area, the listing was vacant, dark and showed poorly. The sellers refused to do any work to improve its appeal.

After months on the market with no significant interest, the sellers pulled the house off the market and made improvements. The wall-to-wall carpet was pulled up to reveal hardwood floors that were then refinished. Painters lightened the interior and a professional stager was hired to bring in furniture, artwork, house plants and accessories. The listing was put back on the market with a fresh look and sold right away.

HOUSE HUNTING TIP: Although listings staged by a good decorator show well and often sell quickly, you don’t need to spend a lot to put your home into shape for marketing. Most homeowners have too many personal possessions in their home from a sale standpoint. Decluttering is something most sellers need to do.

Consider hiring someone to help you sort, pack, donate and recycle items that you no longer want. You may be able to take a tax deduction for things you donate. Make sure to get a receipt. Your Real Estate agent should be able to recommend someone who can help you clear your house of clutter if you are overwhelmed by the project.

Your agent, or stager, may ask you to put away collections of art, personal photos, etc. This can be difficult for most sellers because, for them, it’s part of the emotional appeal of their home. Your house won’t look like your home after you’ve removed personal possessions and moved what’s left around to display the house to its best advantage.

That’s the point of the preparation process. You don’t want prospective buyers focusing in on your personal property; you want them to focus on the house. Keep in mind that how you live in your home and how it should look when it goes on the market are not the same.

Some sellers complain that their house looks too stark without all their possessions. Even so, it helps you to detach yourself emotionally from the property. Also, less personal property usually gives homes a more spacious feel. When buyers are looking for the most for their money, bigger is usually better.

To close the deal, a listing should be spotless and inviting. Bring in new house plants to put in strategic locations, like orchids in the bathrooms. In dark spots that need a dash of warmth and color, use bromeliads.

THE CLOSING: If you can’t pull this together yourself, or with the help or your agent, hire a good stager for a consultation or a proposal for full or partial staging.

By Dian Hymer

How to sell my house fast

Foreclosure inventory sets record high

by CRESTICO | Dec 6, 2011 | CRESTICO

A new analysis suggests that the tide of home foreclosures isn’t going to recede soon. The report from the Center for Responsible Lending, “Lost Ground, 2011,” finds that at least 2.7 million mortgages loaned from 2004 through 2008, or about 6%, have ended in foreclosure and that nearly 4 million more Home Loans (roughly 8%) from the same period remain at serious risk. Put another way, “The nation is not even halfway through the foreclosure crisis,” says the report, which analyzed 27 million mortgages
made over the five years. Across the country, low- and moderate-income neighborhoods and neighborhoods with high concentrations of minorities have been hit especially hard, the report found. The report also noted that certain types of loans have much higher rates of completed foreclosures and serious delinquencies. They include loans originated by brokers; hybrid adjustable-rate mortgages, option ARMs, loans with prepayment penalties and loans with high Interest Rates (subprime). African Americans and Latinos were more likely to receive a high-cost mortgage with risky features, regardless of their credit. For example, among borrowers with good credit (a FICO score of over 660), African-Americans and Latinos received a high-interest-rate loan more than three times as often as white borrowers.

Delinquencies down, foreclosure inventory sets record high

The October Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows mortgage delinquencies continue their decline, now nearly 30% off their January 2010 peak. Meanwhile,
foreclosure inventories are on the rise, reaching an all-time high at the end of October of 4.29% of all active mortgages. The average days delinquent for loans in foreclosure extended as well, setting a new record of 631 days since last payment, while the average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month. Judicial vs. non-judicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from
state to state, with non-judicial foreclosure inventory percentages less than half that of judicial states.

This is largely a result of the fact that foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial. Non -judicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in non-current loans percentages. The October data also
showed that mortgage originations are on the rise, reaching levels not seen since mid-2010. Mortgage prepayment rates have also spiked, as much of the new origination is related to borrower Refinancing; loans originated in 2009 and later are the primary drivers of the increase. While FHA origination activity
is down, GSE and FHA originations still account for the vast majority of all new loans – nearly nine out of every 10 new mortgages.

Jobs up, looks better than it is

Job creation remained weak in the US during November, with just 120,000 new positions created, though the unemployment rate slid to 8.6%, a government report showed Friday. The rate fell from
the previous month’s 9.0%, a move which in part reflected a drop in those looking for jobs. The participation rate dropped to 64%, from 64.2% in October, representing 315,000 fewer job-seekers.
The actual employment level increased by 278,000. The total amount of those without a job fell to 13.3 million. The drop in participation rate is significant in that had the labor force remained steady, the jobless rate would have dropped to 8.8%, according to Citigroup calculations. If the labor force had
followed trend growth, unemployment would be at 8.9%. “Overall, the continued modest employment gains reflect an economy that plods along at an uninspiring pace,” Kathy Bostjancic, director
of macroeconomic analysis at The Conference Board, said in a statement. “These modest job gains are still not enough to propel economic growth to a sustainable 2%-plus growth path.” The
measure some refer to as the “real” unemployment rate, which counts discouraged workers, also took a fall to 15.6% from 16.2%,its lowest level since March 2009.

However, economists were treating the rate drops with skepticism. “When the unemployment rate declines, we want to see both employment and participation increase as discouraged workers
return to the labor force. Today, we got the former, but not the latter, making the 0.4% drop look a bit suspect,” Neil Dutta, US economist at Bank of America Merrill Lynch, told clients. “We would not be surprised to see the unemployment rate give back some of its decline in the coming month(s).” Average earnings were essentially flat, up two cents to $23.18 an hour. Private payrolls increased 140,000, considerably less than a report earlier this week showing that nongovernment jobs were up by more
than 200,000 for the month. Government payrolls fell 20,000, including a 4,000 drop in federal positions.

Long-term unemployment remains a big problem: The average duration for joblessness surged to a record-high 40.9 weeks. Stagnation in wages also continues, as more employed workers took
on second jobs. There were just under seven million multiple job-holders for the month, the highest total in 2011 and the most since May 2010. Traders offered little reaction to the report.
Futures already had been indicating a positive open but lost some ground in the ensuing minutes after the Labor Department report hit the tape. “At this pace of job growth, it will be more than two decades before we get back down to the pre-recession unemployment rate. Moreover, a shrinking labor force is not the way we want to see unemployment drop,” said Heidi Shierholz, economist at the Economic Policy Institute. “At this rate of growth we are looking at a long, long schlep before our sick
labor market recovers.”

Remember:
All these scary reports create opportunities for the investor no matter where you live.

Europe continues to control U.S. markets

by CRESTICO | Nov 10, 2011 | CRESTICO

Yesterday there was a passing thought that Italy’s debt problems would deal a serious blow to the country with its Interest Rates at record highs since the EU began. Yesterday another passing thought that the EU would eventually be restructured based on comments from French Pres Sarkozy that a two tier EU may be the best thing eventually. Yesterday the stock market dropped 389 points, the 10-Year Note yield fell 12 basis points to close under 2.00% at 1.96%. That was yesterday; like it has been the last few weeks, one day its doom and gloom, the next not as bad. No one actually knows what will happen tomorrow; therein lies the difficulty in attempting to assess the situation on a day to day basis.

Yesterday there were comments from supposed knowledgeable people that the ECB was precluded from buying bonds from individual EU countries; obviously that isn’t the case. We reported it as fact and one reason that the debt problems in the region were unlikely to be resolved for years and that there would be defaults in a number of countries. Overnight reports from the wires saying the ECB was in buying Italian bonds, so far no confirmation from the central bank. Italy did sell bills today, the demand was strong and for the moment markets are less concerned that Italy can not fund itself. The country sold 5 billion euros ($6.8B) of one-year bills at an average yield of 6.087% after yields yesterday on 10-Year Notes surged past the 7 percent level.

In Greece there is apparently a new leader that will form an interim government; former vice- president of the European Central Bank Lucas Papademos will head a national unity government for Greece, according to the country’s presidency.

At 8:30 this morning weekly jobless claims along with the every other day optimism about Europe driving stock indexes higher and interest rate prices lower. Weekly claims fell 10K to 390K the lowest claims in 7 months, expectations were for unchanged at 400K; continuing claims also fell, from 3.707 million to 3.615 million.

September U.S. trade balance declined to -$43.11B, if here is any consensus in the markets these days the forecast was for the balance to -$46.3B. October import prices fell 0.6% against estimates of -0.2%; export prices fell 2.1%.

At 1:00 this afternoon Treasury will complete borrowing $72B this week with $16B of 30-Year Bonds. The 10-Year Note auction yesterday was weaker than traders were expecting, sending rates higher on the reaction before regaining strength into the close with the 10-Year Note at 1.96%. This morning the 10-Year Note is hovering at 2.05%.

At 9:30 the DJIA opened +126, NASDAQ +30, and the S&P +13; the 10-Year Note 2.05% +9 bp and mortgage prices down 8/32 (.25 bp).

Attempting to trade on fundamentals these days is almost impossible with the constant changes happening in Europe. Looking solely at the technicals, the 10-Year Note presently is sitting right on its 40 day average at 2.05% with its 20 day average at 2.09%. 30-Year FNMA MBS today is trading below its 40 day and at the moment holding at its 20 day, similar to the 10-Year Note. The relative strength in both markets is hanging at neutral. The overall technical picture slightly positive but not by much. That the 10-Year Note this morning is back over 2.00% somewhat negates its close yesterday below 2.00%. With U.S. markets being completely dominated by what happens in Europe the outlook for U.S. interest rates in the end is impossible to anticipate. Bottom line; markets are adrift in a sea of uncertainty over Europe and the impact on the U.S. economy.

The problems in Europe escalated overnight

by CRESTICO | Nov 9, 2011 | CRESTICO

Yesterday in Italy, Prime Minister Berlusconi’s offer to resign boosted optimism Italy would appoint a new leader who can tame the debt crisis. Europe and U.S. stock markets rallied and interest rates increased on the idea that progress was being made. That all lasted about 20 hours; this morning Europe’s equity markets are lower and in the U.S. the DJIA (Dow Jones Industrial Average) opened down 200 points, the 10-Year Note at 9.30, +32/32 at 1.97%, -11 bps and mortgage prices +11/32 (.34 bps).

French banks taking huge hits this morning on deposit factor for Italian bonds due in 7-to-10 years will be raised to 11.65%, the French unit of LCH Clearnet said. That compares with a charge of 6.65% announced last month. Clearing houses guarantee that investors’ trades are completed by standing in the middle of two counterparties and raise margin requirements to protect themselves against losses should one side of the trade fail. French banks face collateral damage from the political turmoil that sent Italy’s bond yields to euro-ear records. Austerity measures to balance Italy’s budget are also threatening growth in an economy that has lagged behind the European average for more that a decade and may hurt the French banks’ consumer businesses.

Italy’s $2.6 trillion of debt is the world’s forth largest, behind the U.S., Japan and Germany and more that that of Greece, Spain, Portugal and Ireland combined. Relative to gross domestic product, it is the highest in Europe after Greece, standing at about 120%.

Events in Europe continue to drive U.S. markets, everyday analysts try to assess each event that occurs. Yesterday markets were motivated by Berlusconi’s offer to resign after he failed to get necessary votes of confidence; U.S. stocks rallied, U.S. interest rates increased. This morning the U.S. 10-Year Note yield is trading once again just below 2.00% and U.S. stock indexes are being hit hard in early trading. Yesterday markets believed the Italian crisis was on the path of being dealt with, today with margins increasing and Italy’s 10-Year Note at the highest ever since the EU was formed in 1999 another round of panic. Focus now will likely be on the ECB, whether it will step up and buy Italy’s debt and take the pressure off…for the moment.

Investors moving out of equities ths morning and into treasuries on worsening outlook in Italy and the inability of all of Europe’s various entities cannot agree on what to do. Over 2 years and the problems continue to worsen. G-20 leaders last week balked on having the IMF taking a larger roll; politicians running for cover and everyone looking out for number one. Europe is going to fall back into recession, as it does U.S. equities will be drawn down; safely into treasuries is the likely outcome with possibly much lower rates. Talk is cheap as it is said, the 10-Year Note, pacesetter for mortgage rates, while under 2.00% this morning has yet to sustain a close below 2.00% since late September when Operation Twist was announced and then it didn’t hold long. Since then though the debt crisis in Europe has increased; improving the view that U.S. rates could decline.

In the “it doesn’t matter” column this morning September wholesale inventories expected up 0.6%, were down 0.1% with inventory/sales ratio unchanged from August at 1. 15 months

At 0100pm this afternoon the Treasury will auction $24 billion of 10-Year Notes; yesterday the 3-Year Note auction went well. Today with rates lower the demand for the 10-Year Note will be interesting’ a solid auction would add to the increasing bullishness.

The day is just getting underway; all focus will be on what if anything comes from the ECB and what the central bank will do to curb the explosion in Italian interest rates. Greece is still not making any quick headway in forming a new government but the attention is all on Italy at the moment.

Distressed Homeowners : You Must Read This!!!

by CRESTICO | Aug 18, 2011 | CRESTICO

Distressed Homeowners : You Must Read This!!!

This information is being brought to you directly from the California Attorney General’s Website:

SAN FRANCISCO — Attorney General Kamala D. Harris today announced that the California Department of Justice, in conjunction with the State Bar of California, has sued multiple entities accused of fraudulently taking millions of dollars from thousands of homeowners who were led to believe they would receive relief on their mortgages.

Attorney General Harris sued Philip Kramer, the Law Offices of Kramer & Kaslow, two other law firms, three other lawyers, and 14 other defendants who are accused of working together to defraud homeowners across the country through the deceptive marketing of "mass joinder" lawsuits. "Mass joinder" lawsuits are lawsuits with hundreds, or more, individually named plaintiffs. This is the first consumer action by the Attorney General's Mortgage Fraud Strike Force.

Kramer's firm and other defendants were placed into receivership on Monday, Aug. 15. The legal actions were designed to shut down a scheme operated by attorneys and their marketing partners, in which defendants used false and misleading representations to induce thousands of homeowners into joining the mass joinder lawsuits against their mortgage lenders. Defendants also had their assets seized and were enjoined from continuing their operations. Nineteen DOJ special agents participated as the firms were taken over Wednesday, Aug. 17, along with 42 agents and other personnel from HUD's Office of Inspector General, the California State Bar, and the Office of Receiver Thomas McNamara at 14 locations in Los Angeles and Orange Counties. Sixteen bank accounts were seized.

"The defendants in this case fraudulently promised to win prompt mortgage relief for millions of vulnerable homeowners across the country," said Attorney General Harris. "Innocent people, already battered by the housing crisis, were targeted for fraud in their moment of distress."

"The number of lawyers who have tried to take advantage of distressed homeowners in these tough economic times is nothing short of shocking," said State Bar President William Hebert. "By taking over the practices of four attorneys accused of fraudulent marketing practices, the State Bar can put a stop to their deplorable conduct as part of our ongoing effort to protect the public."

It is believed that at least two million pieces of mail were sent out by defendants to victims in at least 17 states. Defendants' revenue from this scam is estimated to be in the millions of dollars.

As alleged in the lawsuit, defendants preyed on desperate homeowners facing foreclosure by selling them participation as plaintiffs in mass joinder lawsuits against mortgage lenders. Defendants deceptively led homeowners to believe that by joining these lawsuits, they would stop pending foreclosures, reduce their loan balances or Interest Rates, obtain money damages, and even receive title to their homes free and clear of their existing mortgage. Defendants charged homeowners retainer fees of up to $10,000 to join as plaintiffs to a mass joinder lawsuit against their lender or loan servicer.

Consumers who paid to join the mass joinder lawsuits were frequently unable to receive answers to simple questions, such as whether they had been added to the lawsuit, or even to establish contact with defendants. Some consumers lost their homes shortly after paying the retainer fees demanded by defendants.

This mass joinder scam began with deceptive mass mailers, the lawsuit alleges. Some mailers, designed to appear as official settlement notices or government documents, informed homeowners that they were potential plaintiffs in a "national litigation settlement" against their lender. No settlements existed and in many cases no lawsuit had even been filed. Defendants also advertised through their web sites.

When consumers contacted the defendants, they were given legal advice by sales agents, not attorneys, who made additional deceptive statements and provided (often inaccurate) legal advice about the supposedly "likely" results of joining the lawsuits. Defendants unlawfully paid commissions to their sales representatives on a per client sign-up basis, a practice known as "running and capping."

Defendants' alleged misconduct violates the following laws:

-False advertising, in violation of section 17500 of the Business and Professions Code

-Unfair, fraudulent and unlawful business practices, in violation of section 17200 of the Business and Professions Code

-Unlawful running and capping, in violation of section 6152, subdivision (a) of the Business and Professions Code (i.e., a lawyer unlawfully paying a non-lawyer to solicit or procure business)

-Improper fee splitting (defendants unlawfully splitting legal fees with non-attorneys)

-Failing to register with the Department of Justice as a telephonic seller.

Homeowners who have paid to be added to one of the lawsuits should contact the State Bar if they feel they may be victims of this scam. They can also contact a HUD-certified housing counselor for general mortgage related assistance.

The Department of Justice has seized the practices of the following non-attorney defendants:

Attorneys Processing Center, LLC; Data Management, LLC; Gary DiGirolamo; Bill Stephenson; Mitigation Professionals, LLC; Glen Reneau; Pate Marier & Associates, Inc.; James Pate; Ryan Marier; Home Retention Division; Michael Tapia; Lewis Marketing Corp.; Clarence Butt; and Thomas Phanco.

The State Bar has seized the practices and attorney accounts of the attorney defendants:

The Law Offices of Kramer & Kaslow; Philip Kramer, Esq; Mitchell J. Stein & Associates; Mitchell Stein, Esq.; Christopher Van Son, Esq.; Mesa Law Group Corp.; and Paul Petersen, Esq.

Attorney General Harris is challenging the defendants' alleged misconduct in marketing their mass joinder lawsuits; her office takes no position as to the legal merits of any claims asserted in the mass joinder lawsuits filed by defendants.

Victims in the following states are known to have received these mailers, or signed on to join the case. This is a preliminary list that may be updated:

Alaska, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Texas, Washington

The complaint, temporary restraining order, examples of marketing documents and photos of the enforcement action are available with the electronic version of this release at http://oag.ca.gov/news.

For more information, please visit:

http://oag.ca.gov/news/press_release?id=2552