How To Be A Winner On Mortgage Terms & Contract Agreements 2-22-14
HIGHLIGHTS FROM PODCAST:
QUESTIONS FOR ATTORNEY RON COHEN TO ANSWER
- 1. When reading your contract, what are some of the major points you want to review before signing?
- 2. What are some of the most common mistakes people make when they are involved with a contract?
- 3. What happens after the contract is signed?
- 4. What is the rule on the survey?
- 5. Where’s the deed?
- 6. Where’s my money?
You show me the deed and I’ll show you my money. Okay. How bout I come back in and we start over? (Al Pacino, Scarface, 1983).
QUESTIONS FOR PAT GOLDSTEIN TO ANSWER:
1. I bet you have some stories you can share about the importance of reading and following contracts. (Pat shares a story or two)
2. What is YOUR advice, Pat, when it comes to drafting a real estate contract?
QUESTIONS ANSWERED BY JO GARNER :
- 1. What are some important points that need to be included in a contract that makes the mortgage process smoother?
- 2. How would YOU suggest the buyer write the real estate purchase contract that would help them if they are short on funds to close?
REAL ESTATE TIP OF THE WEEK: (Ron and Pat gave a tip of the week. (making sure that all counter offers are numbered and that the entire contract is sent WITH ALL Counters so that when the title work and the appraisal are ordered there is no confusion on the final price or other factors in the deal)
LOOK BACK MEMPHIS TRIVIA CONTEST
Good morning Memphis! Good morning to you, IHEART listeners across the country. You’re on the Real Estate Mortgage Shoppe program and I’m your host, Jo Garner, mortgage professional with Evolve Bank and Trust. Joining us for coffee today we have Attorney Ron Cohen of Premium Title Group.
Ron, its always great having you –or may I say– its always an adventure having you around the coffee table with us. We learn something new and have a little fun too
And Pat Goldstein, 29 year veteran real estate professional with Crye-Leike stopped in to visit with us. Glad to have you around the table with us Pat.
If you have a legal question or other real estate related conundrum, call us on the air at 901 535-WREC. Ron and Pat and I have been in the real estate business for so many decades, we might have an instant answer for you sparked from some dusty old file from long ago or funny story we have NEVER forgotten from our past. And if WE can’t come up with the perfect solution, someone in our listening audience who hears your question with hopefully ride to your rescue and help you out. Our hotline number is 901 535 WREC. That number again is 901 535 9732. Our general topic is “How To Be A Winner On Your Mortgage Terms and Real Estate Contract Agreements”
<Ron or Pat asked, “whose winning in the mortgage market this week?”>
(Jo) Mortgage rates went up a little this week but are still really good, ending the day yesterday at about 4.5% on the 30YR FIXED with no points. FHA/VA 30 yr – 4.25%; conventional 15 yr fixed 3.5% no points and if you aren’t going to be in the house for more than 5 years or you have other flexible assets, the loan program with a fixed rate in the 3’s for the first 5 years converting to an adjustable rate after 5 yrs can free up quite a bit of money for you each month with a lower than market house note. Just about anybody can be a winner in this market.
The big news is that Fannie Mae has become quite a money maker or US tax payers. The fourth quarter of 2013 was its eighth consecutive profitable quarter Fannie Mae. Since the company was placed under federal conservatorship in 2008, it has paid back $121.1 billion dollars in dividends against a $114.1 billion dollar draw. Sounds like tax payers and the US Treasury are the winners here.
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(Jo) Clear winners that my very experienced assistant, Susan Belew and I see in our office or people who have been paying high rent payments and when they buy their first house with these low mortgage rates, theirhouse payment on a bigger, better house is LESS then what they were paying for rent on a much smaller place. If you or someone you know is renting and plans to live in the general area for 4 to 5 years or more, buying a house may be a win for them because their new house payment will probably be less than what they were paying out in rent. Susan and I would like very much to talk with you. Our direct number is 901 482 0354. Our direct number off the air is 901 482 0354.
(Jo) Ron, we have been sending over title requests to your offices lately for customers wanting to get cash out of their home so they can pay off higher interest debt or fund college for a child or a wedding coming up in the spring. One customer took a few hundred thousand to reinvest with a plan to make exponentially more than the 3% Something rate he has on the mortgage.
Last week Shelby County Mark Luttrell came in to talk with Tom King and me on the air about his outlook for real estate in Shelby County in 2014 and Beyond. For that podcast go to the audio podcast page on my blog www.mortgageloansblog.com Corelogic reports show Memphis to be one of the hottest real estate markets in 2014. Tom King, long standing appraiser and regular cohost on this show, said that he sees values in some areas around Memphis sliding back down just a little. My personal feeling is that overall Memphis real state will do well in 2014 with some of the biggest bargains on real estate coming from people buying fixer-uppers. A lot of banks do not have adequate loan programs who will help you get the funds to buy the house AND do the repairs.
I have, not one but TWO, renovation and repairs loans available with very little down payment. One is the FHA 203K renovation loan and the other one is a conventional renovation and repair loan. If you want to refinance or purchase a home that needs fixing up, call me at 901 483 0354. My direct number again is 901 482 0354.
We are talking about “How To Be A Winner On Your Mortgage Terms and Real Estate Contract Agreements” Let’s get Attorney Ron Cohen of Premium Title Group and realtor Pat Goldstein of Crye-Leike in the conversation. How can I be a winner on my real estate contract?
(2nd Quarter) IT’S TIME TO PLAY THE “LOOK BACK MEMPHIS TRIVIA CONTEST”
Our Trivia contest is provided by Jimmy Ogle. Mr. Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn.
Go to jimmyogle.com for the 2014 Spring season schedule and locations:
Shelby County Courthouse: Third Thursday each month at 12:00 noon
Memphis & Arkansas Bridge Walk: Sundays (March 30, April 13, May 18) at 2:00 p.m. at Crump Park
TUESDAY TOURS: Tuesdays from April 1 to June 10 at 11:45 a.m. for about four blocks from a different
street corner each week
David Grigsby with MidSouth Orthopaedic Rehab is our Look Back Memphis Trivia Sponsor and David is offering a $25 gift certificate to Philip Ashley’s Designer Chocolates for the first person to call with the correct answer.. I have worked with David personally and can say he is a great physical therapist! If you have pain and/or limitations in your movement and want a lasting solution without the need for medication, injections or surgery, call David at 901-522-6671 or contact him through his website www.morehab.com
Our Trivia Question is: In modern Memphis, we take residential “subdivisions” for granted, as if they have always been around. Well, they haven’t! They had to start somewhere and some time as cities all across America moved from a rural to urban society. What was the name of the first “subdivision” in Memphis (and in the South)?
Hint: It is the subject of a Tennessee Historical Commission historical marker at the corner of Bellevue and Vinton, and a subsequent marker at Lamar & Central.
Hint: The name of the subdivision comes from the name of the home built in 1855 at Lamar & Bellevue.
Last Hint: The name of the home in the above hint is derived from the name of daughter of one of the developers.
Answer: “Annesdale Park” – The daughter of developer Brinkley Snowden, Anne Overton Brinkley. This is the beginning of a long standing tradition in Memphis of allowing developers to recommend the names of streets within the subdivisions (neighborhoods) that they were developing, often being for family members, relatives or friends (as we will see in future Trivia questions on this show).
Back Story: Developed as an exclusive neighborhood in 1903 by Brinkley Snowden and T.O. Vinton, Annesdale Park was the first subdivision in the South planned upon metropolitan lines. It was considered an important display of confidence in the city’s future. As Memphis approved annexation 1899 that extended the eastern city limits all the way to “now” Overton Park (quadrupling the area of the City), and with the automobile being introduced to Memphis in the first few years of the 20th century, developers saw the future being in residential development in the “suburbs”. The vision of early developers of Memphis is seen in this classic example of turn-of-the-century neighborhood of American four-squares and bungalows. A combination of two subdivisions, South Annesdale (1906) & Snowden Homestead (1910), the area was the first neighborhood in Memphis placed on the National Register of Historic Places in 1979. Today it is known as the Annesdale-Snowden Historic District. Memphis has 27 neighborhoods listed as “historic districts” on the National Register of Historic Places!
Last Week: “The First One” was the answer for the name of the restaurant at the first Holiday Inn. Yep, Memphis changed the way the world traveled by opening the first overnight roadside lodging chain and franchise in 1952 – all from a home developer in Memphis, and actually the developer that built the first subdivision in DeSoto County, now known as Southaven!
Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn.
Go to jimmyogle.com for the 2014 Spring season schedule and locations:
Shelby County Courthouse: Third Thursday each month at 12:00 noon
Memphis & Arkansas Bridge Walk: Sundays (March 30, April 13, May 18) at 2:00 p.m. at Crump Park
TUESDAY TOURS: Tuesdays from April 1 to June 10 at 11:45 a.m. for about four blocks from a different
street corner each week
Garner # 3 02/12/14
Annesdale Park Subdivision
Question: In modern Memphis, we take residential “subdivisions” for granted, as if they have always been around. Well, they haven’t! They had to start somewhere and some time as cities all across America moved from a rural to urban society. What was the name of the first “subdivision” in Memphis (and in the South)?
Hint: It is the subject of a Tennessee Historical Commission historical marker at the corner of Bellevue and Vinton, and a subsequent marker at Lamar & Central.
Hint: The name of the subdivision comes from the name of the home built in 1855 at Lamar & Bellevue.
Last Hint: The name of the home in the above hint is derived from the name of daughter of one of the developers.
Answer: “Annesdale Park” – The daughter of developer Brinkley Snowden, Anne Overton Brinkley. This is the beginning of a long standing tradition in Memphis of allowing developers to recommend the names of streets within the subdivisions (neighborhoods) that they were developing, often being for family members, relatives or friends (as we will see in future Trivia questions on this show).
Back Story: Developed as an exclusive neighborhood in 1903 by Brinkley Snowden and T.O. Vinton, Annesdale Park was the first subdivision in the South planned upon metropolitan lines. It was considered an important display of confidence in the city’s future. As Memphis approved annexation 1899 that extended the eastern city limits all the way to “now” Overton Park (quadrupling the area of the City), and with the automobile being introduced to Memphis in the first few years of the 20th century, developers saw the future being in residential development in the “suburbs”. The vision of early developers of Memphis is seen in this classic example of turn-of-the-century neighborhood of American four-squares and bungalows. A combination of two subdivisions, South Annesdale (1906) & Snowden Homestead (1910), the area was the first neighborhood in Memphis placed on the National Register of Historic Places in 1979. Today it is known as the Annesdale-Snowden Historic District. Memphis has 27 neighborhoods listed as “historic districts” on the National Register of Historic Places!
QUESTIONS FOR ATTORNEY RON COHEN TO ANSWER
- 7. When reading your contract, what are some of the major points you want to review before signing?
- 8. What are some of the most common mistakes people make when they are involved with a contract?
- 9. What happens after the contract is signed?
10. What is the rule on the survey?
11. Where’s the deed?
12. Where’s my money?
You show me the deed and I’ll show you my money. Okay. How bout I come back in and we start over? (Al Pacino, Scarface, 1983).
QUESTIONS FOR PAT GOLDSTEIN TO ANSWER:
1. I bet you have some stories you can share about the importance of reading and following contracts. (Pat shares a story or two)
2. What is YOUR advice, Pat, when it comes to drafting a real estate contract?
QUESTIONS ANSWERED BY JO GARNER :
- 3. What are some important points that need to be included in a contract that makes the mortgage process smoother?
- Make sure if the seller is paying the buyer’s costs, that the contract clearly spells out up to what dollar amount the seller is willing to pay and specifically if they are paying the closing costs, prepaid taxes and insurance or both. As Ron said early, no one wants a food fight at the closing table.
- If the buyer is getting a government FHA or VA loan, make sure the addendum is included in the contract that says if the appraisal value on the subject home comes in less than the sales price then the borrower has a right to get out of the contract if he chooses.
- One item you do NOT want in the contract is any clause stating that the buyer will be given a financial “allowance” from the seller at closing or after closing. Most mortgage programs prohibit the seller paying cash back to the buyer. Sometimes the buyer asks for a carpet allowance or a fence allowance or any kind of allowance so they can replace the carpet or install a fence or other modification after closing. If the buyer wants to replace the carpet or build a fence or make a modification to the house, one way to accomplish it is to offer a higher price for the home and have the sellers replace the carper or fence or other improvement right BEFORE closing so no financial allowances cross under the table.
- Make sure the names of the parties on the contract are complete and correctly spelled. If not, it can cause title problems and a host of other problems delaying your closing. Make sure the property address is completed correctly including the zip code too
- 4. How would YOU suggest the buyer write the real estate purchase contract that would help them if they are short on funds to close?
So many people, especially first-time homebuyers, are trying to find a way to get into their new home with the least amount of money out-of-pocket. The easiest way for buyers to reduce funds needed at closing is to convince the seller to pay the buyers’ costs. So many times the seller will not pay as much toward the buyer’s cost unless the buyer offers a higher price to buy the house. As long as the house will appraise for the higher price, for instance, the buyer could offer $3,000 dollars more for the house in exchange for the seller paying $3,000 dollars toward the buyer’s closing cost. Most of the time there is down payment assistance available to help cover the buyers down payment and if the seller pays the buyers’ other costs. This can get the buyer in for zero down or close to it in some cases.
REAL ESTATE TIP OF THE WEEK: (Ron and Pat gave a tip of the week. (Jo might be able to share a quick one on making sure that all counter offers are numbered and that the entire contract is sent WITH ALL Counters so that when the title work and the appraisal are ordered there is no confusion on the final price or other factors in the deal)
Jo has three announcements:
- Talk Shoppe offers free education and networking to anyone interested in real estate or business. This Wednesday at DeVry University from 9A to 10A Talk Shoppe presents: The Mastermind Principle based on the book Think And Grow Rich by Napoleon Hill. Come prepared to share and receive ideas, referrals and support from other business people in your small group. For more information about Talk Shoppe, go to www.TalkShoppe.BIZ
- Next Saturday right here on the Real Estate Mortgage Shoppe, Beth Glosson with Fast Track Realty and Frances Anderson with Crye-Leike Realtors will be sharing about some great stuff our Memphis Women’s Council of Realtors is doing in the community. For today’s podcast and other podcasts from our show, go to www.mortgageloansblog.com
- If you are driving anywhere around Collierville this morning, you can stop in at the YMCA at Schilling Farms at 10:30 AM and enjoy watching the POLAR PLUNGE outside around the pool. It’s a free event to kick off the Y’s Annual Campaign to raise money for after-school programs, summer day camp and to help provide memberships for families with financial needs. That’s at 10:30 AM this morning at the YMCA at Schilling Farms in Collierville.
Transitional Songs: “The Winner Takes It All” Abba ; “I’m Winning” Santana; “Signed, Sealed Delivered, I’m Yours” Stevie Wonder; Look Back Memphis Trivia Contest music from “Memphis” by Johnny Rivers
Co-host: Attorney Ron Cohen with Premium Title Group
Ron A. Cohen Of Counsel: Kusper & Raucci, Chartered
33 N. Dearborn Street Suite 1530
Chicago, Illinois 60602
312-332-5000; 312-346-1145 (direct); 312-332-4663 (facsimile)
Special Guest: Pat Goldstein, Crye- Leike Inc Realtors (901) 606-2000
Special Mention: YMCA Schilling Farms Polar Plunge Event Karen Clark (901) 850-9622
Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.BIZ She is currently the host of the Real Estate Mortgage Shoppe program 9A-10A CDT Saturdays on News Radio AM 600 WREC and IHEART Radio http://www.iheart.com/#/live/2145/?autoplay=true and currently publishes on her blog www.MortgageLoansBlog.com
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.