Good morning, you’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, Mortgage professional with Evolve Bank and Trust. Join us around the coffee table this morning by calling 901 535 WREC. That number again to be on the air with us is 901 535-9732. Our general topic is “Avoid Litigation, Sleepless Nights & Pain—Know Your Real Estate And Mortgage Laws.”
Our co-hosts today are Attorney Ron Cohen and Jenett Rochester of Premium Title Group. Ron, tell our NEW listeners a little bit about you and what you do?
Jenett, you’ve been in the real estate closing business for over 30 years. Tell us a little about what you do and what you do for your customers.
The market has been crazy over the last couple of weeks—especially this past week. Someone is mixing up the medicine and we’ve seen large spikes upward on the mortgage rates and then, like earlier in the week, the price on rates tanked again to as low as they were the end of May. When customers called this week to ask, “What’s the rate,” I just laughed and said “Here’s the rate for this moment—but it will change in a minute.”
Comments from the Federal Reserve Chairman can send these rates into a tailspin on whether the Fed will continue buying multiple billions of dollars worth of mortgage-backed securities or if and when they will taper off the buying.
• 30YR FIXED – 4.0 – 4.125%
• FHA/VA – 3.75%
• 15 YEAR FIXED – 3.25 – 3.375%
5 YEAR ARMS – 2.625-3.25% depending on the lender
My word to the wise is still this: If the deal works for you today, do it today.
The hot button right now is to buy a house with a fixed, guaranteed low rate and enjoy maximum amenities with the lowest payments anyone has seen in YEARS. For the more sophisticated financial person or someone who knows they will keep the home for less than 5 years, try an adjustable rate that is fixed for 3, 5 or 7 years and get a rate still starting in the 2’s. Remember that the low fixed rate can still help you if you are moving out later because on the FHA and VA loans, you can sell and let someone qualify to assume your loan. Your buyer would have to be qualified by the mortgage company servicing your loan. The buyer pays you your equity in cash and then takes over your low interest rate mortgage. That’s giving you at least two exit strategies on leaving the home if you need them.
If you sell your home and let someone assume your note, they must qualify with your mortgage company, Don’t forget to get a release of liability so that if the person taking over your note decides not to make the payment, your credit will not be on the line.
If you already own a primary residence, second home or investment property, let’s check and see if you can use the special HARP program that does not require an appraisal value. We may be able to cut your interest costs , shorten your term or give you some cash out, saving you tens of thousands of dollars. If you have an FHA or Rural Housing USDA loan, you don’t need an appraisal at all. Call your mortgage officer and don’t wait. Susan Belew, my very experienced assistant, and I would like very much to work with you. Give us a call off the air at 901 482 0354. That direct number off the air again is 901 482-0354.
The two most common reasons people will procrastinate in moving forward with the mortgage process besides just being crazy busy, is that they think it will require more money than they have—don’t let that stop you from calling me. Susan and I are pretty good at finding money for you to use. The other reason is they are concerned about you credit. I can check your credit. If you only need about a 10 , 20, 30,40 or 50 point increase, Susan and I can use the Credit Simulator to help you increase your credit scores in the shortest amount of time with the least amount of money. Call me 901 482 0354
Today we can talk about whatever real estate topic you want to discuss. Our general topic is “Avoid Litigation, Sleepless Nights & Pain-Know Your Real Estate & Mortgage Laws”Ron and Jenett, what are the most common reasons people get in legal trouble on their real estate?
Questions for Ron Cohen to answer:
1. What about someone who, in the case of their death, wants their house to be inherited by a person who is not a legal family member? What do they need to do to make this happen>
2. What if I am trying to buy a house and after we finish signing the contract, the seller mentions to me that I can keep the lovely window treatments and the washer and dryer?
3. What if you want to enclose your backyard with fence. How do you make certain you are not going to be encroaching on your neighbor’s yard or giving up too much of your lawn?
4. What if the house I purchased has a major mechanical or structural break down that will now cost me thousands of dollars and it is apparent that the seller knew of the problem and didn’t disclose it to me? What are my remedies?
5. What if my neighbor has always let me walk across the back of his lawn to access the lake? He told me when I moved there that I could do it, but now he is getting ready to move. How do I make sure I can still get access to the lake without having to drive a long way to get public access?
6. My neighbor, Ms. O’Leary has a cow named Bessie. Both of them make noise early in the morning when Ms. O’Leary cranks up her big band sounds and that confounded cow bell on Bessie starts clanging. What can I do to be able to enjoy a little peace?
Questions answered by Jenett Rochester
1. Do you have any real live stories you can share about your past customers embroiled in any litigation before or after a closing? How did it finally work out?
Questions answered by Jo Garner
1. What are some things your customers can do to avoid sleepless nights and pain BEFORE they even go look at houses?
Here is some ancient wisdom –it is a wise person who considers the cost of the tower before he builds it. If you’re about to purchase a home, GET PREQUALIFIED. Determine what is the maximum house payment that fits in your budget and your comfort level. What is the max comfort level on a down payment amount.
If you don’t have enough money to close, check and see if the seller can pay your closing costs and prepaid property taxes and insurance—even if you have to go up a little on your offer price. With the seller paying your costs, then you only have to be concerned with the minimum down payment. There may be some down payment assistance available for this. You may be able to borrow against something else to get the money for the down payment.
IF THE SELLER IS PAYING COSTS FOR YOU, MAKE SURE IT IS CLEARLY WRITTEN IN THE CONTRACT.
2. What is the difference between being prequalified and preapproved for a loan?
3. What advice can you give your preapproved clients who are now about to go out and find their house?
Before you write a contract to purchase a home, drive through the neighborhood at different times day and meet the neighbors if possible. Is it a comfortable place for you?
Secondly find out if this property is a planned unit development or condominium. If it is there is probably an association fee due every year or every month. Consider the association fee in your budget.
Find out what the bylaws and restrictions are for the subdivision, planned unit development or condos. What if you can’t park your large
Recreational vehicle on your driveway? What if there is a restriction on large dogs —-or in Ms .O’leary’s case—cows?
REAL ESTATE TIP OF THE WEEK (Get everything in writing—even the details)
Jo has two announcements: Talk Shoppe offers free education and networking for anyone interested in real estate or business every Wednesday from 9A to 10A at DeVry University 6401 Poplar 6th floor across from International Paper. Devry offers classes online or in person right here in Memphis. Talk Shoppe meets in one of the classrooms. This Wednesday Jack Gibson of SCORE (Service corp of Retired Excecutives) will be sharing all of the free support and services SCORE offers to new businesses AND existing businesses. For more info about Talk Shoppe go to www.TalkShoppe.BIZ
If you have suggestions on topics or ideas on how you can help us improve This show—The Real Estate Mortgage Shoppe right here on News Radio 600, let us know your ideas and suggestions. For this podcast and past podcasts go to www.mortgageloansblog.com
Transition Music “I Fought The Law” Bobby Fuller Four; “Running Bare” by Jim Nesbitt;
Ron A. Cohen
Of Counsel: Kusper & Raucci, Chartered
33 N. Dearborn Street
Chicago, Illinois 60602
Premium Title in Memphis is at 293 Walnut Bend Dr 103 Memphis, TN 38018 (901 752 1587
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home purchase loan programs, answers and real estate, money-saving tips and more.