Delaware Realtor Seminar – Mortgage Market Meltdown – August 22, 2007

John Thomas August 10, 2007

Free Seminar for Realtors & Financial Professionals

The Mortgage Market Meltdown What it Means to You

The credit markets are in crisis, and the mortgage landscape is changing fast. But, ask yourself this.

Do you understand the key factors that led to the crisis?
Can you clearly and confidently advise your buyers and sellers on how to succeed in today’s market?
Do you have the right systems in place to adjust your business model for the changes yet to come?
If you answered No to any of these questions, you must attend this exclusive Mortgage Market Meltdown session and get the tools you need to stay ahead in this volatile market. This is your chance to protect your clients and your commissions! Keep Reading...

Protecting Your Credit During Divorce in Delaware

John Thomas August 7, 2007 Tags: Credit Repair, Delaware Divorce

When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn’t have to change is the credit status you’ve worked so hard to achieve.

Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards and a total breakdown in communication frequently lead to the annihilation of at least one spouse’s credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties.

The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain one’s credit status, anyone can ensure that starting over doesn’t have to mean rebuilding credit.

The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian, and TransUnion. It’s impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.) Keep Reading...

Liquidity Crisis Wreaks Havoc With Delaware Mortgage Market

John Thomas August 7, 2007

Following the well-publicized subprime crisis earlier in the year, a major disruption in the credit markets broke out on an unprecedented and historic scale this week on Wall Street. This caused major write-downs of loan and security portfolios and brought down one of the top 10 Prime and Alt-A lenders in the country, American Home Mortgage, which stopped funding $800 million in loans beginning Monday and left thousands of home buyers stranded at the closing table with their home purchases. American Home Mortgage was the in house lender for Keller Williams Realty in Delaware and this whole situation has left many Keller Williams clients without loans. This illustrates the value of using a broker who would have been able to flip a loan that was with American Home Mortgage to another lender that is taking American Home Mortgage loans that didn’t fund or close but were approved. Keep Reading...

Negative Amortization – What is it?

John Thomas August 3, 2007

Negative Amortization
Amortization is the repayment of a loan by making systematic payments over a set time period which are applied to the combined balance of the principal and interest for that loan amount. Therefore, negative amortization occurs when the payment is less than the required interest that has accrued on the loan for that month.

Summary:
Few lenders offer negative amortization loans today. Those that do have annual payment caps and lifetime interest rate caps for steady control on required payments over time. Keep Reading...

Delaware Mortgage Loans with American Brokers Conduit won’t fund!

John Thomas August 3, 2007

American Brokers Conduit sent out the word on Thursday that they were officially closed for good. ABC sent out e-mails to its brokers and posted a message on its website which shut down. American Brokers Conduit lost its credit lines so therefore lost its ability to fund loans. The company wasn’t in trouble but when it lost its ability to fund loans and couldn’t find an alternative source of money it had to close its doors. Several lenders have tried to take the loans that could not fund with ABC. Keep Reading...

Financial News for July 30th, 2007

John Thomas August 1, 2007

The economy grew at a 3.4% pace in the second quarter, a big improvement over the 0.6% showing in the first three months of 2007 and better than the 3.2% growth rate economists were expecting, the Commerce Department reported July 27. Also in the second quarter, core prices — excluding food and energy — rose at a rate of just 1.4%, sharply down from a 2.4% pace in the first quarter and the smallest increase in four years.

Meanwhile, consumer sentiment registered 90.4 in July, a shade below the median forecast of 91.2, but well ahead of June’s reading of 85.3, a 10-month low. The gain was tied to consumers’ favorable outlook about the economy, particularly regarding future employment and income prospects, the Reuters/University of Michigan Survey of Consumers said July 27. Keep Reading...

More Mortgagage Lenders Close Doors

John Thomas August 1, 2007

More Lenders stop funding new loans and look to be closing their doors. Fieldstone Mortgage stopped funding new loans on July 25th, 2007. Any loans that haven’t already funded by July 25th were dead and would not fund.

American Brokers Conduit stopped funding new loans on July 31st because they could no longer obtain credit to fund loans. ABC hasn’t announced they are going under but the outlook is not good.

ResMae also stopped funding new loans. Entrust Mortgage is no longer funding new loans. Keep Reading...

Delaware Home Improvements Turn Average Delaware Homes into Dreams Come True

John Thomas July 26, 2007

Delaware Home Improvements Turn Average Delaware Homes into Dream Come True

If you’re thinking about taking out a home improvement loan in Delaware, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Here are some factors to take into consideration.

How long have you been in the home?
Will the improvements increase the property value?
Are you making improvements to increase energy efficiency?
Will improvements be made in one fell swoop, or in stages?
What is the current outstanding balance on your mortgage?
What is the appraised value of the home?
How much will the improvements cost?
What improvements will be tax deductible?
Do you have other revolving debt that you would like to pay off at the same time?
Are you making improvements because you plan to sell the property?

The New Tract Home Blues

Buyers of newly-built homes in Delaware are often tapped out after making the initial down payment and closing costs, including upgrades to amenities and the inevitable need for new furniture. Shortly thereafter, they realize theyâ€™d like to make additional improvements to really have the home of their dreams. Keep Reading...