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Steve Quintana's Blog

By Steve Quintana | Agent in Albuquerque, NM
  • Subprime Loans Do Exist, You Need to Know Where to Find Them

    Posted Under: Home Buying in Albuquerque, Financing in Albuquerque, Investment Properties in Albuquerque  |  August 19, 2014 4:34 PM  |  15 views  |  No comments

    Despite the notoriety that subprime loans gained as a prime cause of the financial crisis, they are re-emerging, under much more careful control, as one answer to the tight lending standards that have shut out millions of would-be homeowners.

    “We call it the sane subprime,” said Brian O’Shaughnessy, chief executive of the Athas Capital Group, which gave the Arroyos their loan.

    Subprime loans, which accounted for about 15 percent of all new home loans in 2005 and 2006, are now a tiny sliver of the mortgage market. Only a handful of lenders are offering them, at interest rates from 8 to 13 percent (compared with about 4 percent for conventional loans to highly rated borrowers).  For the full article, see the New York TImes:

  • New Mexico Homeowners Benefit from Ocwen Settlement: $8 Million

    Posted Under: Financing in Albuquerque, Foreclosure in Albuquerque, Home Ownership in Albuquerque  |  August 5, 2014 2:50 PM  |  36 views  |  No comments

    A settlement involving the mortgage-servicing company Ocwen could result in up to $8 million in homeowner relief for New Mexicans.

    New Mexico Assistant Attorney General Kenneth Owens said part of the settlement will come in the form of principal reductions for homeowners who are currently underwater on their mortgages. The other part will be direct payments to homeowners who were foreclosed on by Ocwen between 2009 and 2012. People who believe they were wrongly foreclosed on have until Sept. 15 to file a claim for direct payments.

    The settlement came in regards to complaints that Ocwen was engaged in a practice called “robo-signing,” Owens said. This occurs during the foreclosure process when banks must provide affidavits confirming the accuracy of information contained in foreclosure documents.

    Ocwen also acted improperly with some homeowners during the loan-modification process, Owens said. 

    “Ocwen would sometimes be contacted by the homeowner asking to do a loan modification, and Ocwen would provide incorrect information to them,” he said. “They never really gave the person a fair opportunity to get caught up on their mortgage.”

    Homeowners wishing to file a claim against Ocwen for mortgage relief or direct payments can do so by clicking here.

  • Median Home Price Increase of $1,000 Disqualifies 200,000 Buyers

    Posted Under: Market Conditions in Albuquerque, Home Selling in Albuquerque, Financing in Albuquerque  |  August 5, 2014 12:09 PM  |  27 views  |  No comments
    The National Home Builders just released a study concluding that when the national median home price increased $1,000, 200,000 buyers are priced out of the market.  This analysis suggests that sellers of homes of any price lose potential buyers when they over-price their properties.  In other words, a seller can estimate the number of qualified buyers that exist to buy a home at $165,000.  That number of buyers gets smaller when the price goes to $166,000.  The number of potential buyers continues to decrease every time the home price increases.

    The bottom line is sellers are better served pricing their home realistically from the beginning because that opens their home to the largest pool of buyers. 

  • Fair Housing: Know Your Rights

    Posted Under: Home Buying in Albuquerque, Home Selling in Albuquerque, Financing in Albuquerque  |  July 31, 2014 9:52 AM  |  38 views  |  No comments
    The Fair Housing Act, 42 U.S.C. 3601 et seq., prohibits discrimination by direct providers of housing, such as landlords and real estate companies as well as other entities, such as municipalities, banks or other lending institutions and homeowners insurance companies whose discriminatory practices make housing unavailable to persons because of:
  • Bad Debt in Credit File: A Common Problem You Can Fix

    Posted Under: Home Buying in Tanoan East, Financing in Tanoan East, Credit Score in Tanoan East  |  July 29, 2014 11:31 AM  |  44 views  |  No comments
    A clean credit report opens up a life of convenience and opportunity.  Yet, roughly 77 million Americans, or 35 percent of adults with a credit file, have a report of debt in collections. These adults owe an average of $5,178 (median $1,349). Debt in collections involves a nonmortgage bill—such as a credit card balance, medical or utility bill—that is more than 180 days past due and has been placed in collections. http://www.urban.org/publications/413191.html.

    Consumers can help themselves by consulting with an experienced loan officer or reviewing their credit report then addressing each negative credit item one by one.  Follow up on thirty day cycles until your credit report is clean enough that old information is not continuing to do you harm. 

    Take this one as a life changing project.  Encourage and help your friends and family to do it too. 
  • Hurdles to Clear When Buying a Home

    Posted Under: Home Buying in Albuquerque, Financing in Albuquerque, Credit Score in Albuquerque  |  July 9, 2014 8:39 AM  |  90 views  |  No comments

    There are some things you can do to help yourself, friends and family prepare to buy a home.  Here they are:

    1.  Student Loan Debt.  Restrict your student loan's to as few as possible and make your payments or deferment requests on time. 

    2.  Strict Lending Standards.  Keep your credit report clean by making payments as agreed, avoid debt, and disputing credit report entries you thinkg are wrong.

    3.  High Home Prices.  Ask your broker for a portal containing homes that fit your needs and get to know the market.  Be ready to act when a good deal can be had. 

    4.  Down Payments.  First time home buyers should ask their lender for assistance resources.  Veterans can borrow with no down payment.  Everyone else should have at least 3.5% in a traceable bank account for their down payment.

    5.  Credit Score.  Keep an eye on your credit report and clean up your report. 

    6.  Property Taxes.  Borrowers have a monthly payment consisting of principle, interest, taxes and insurance.  Include all four items in your mortgage payment estimates. 

    Call me with questions. 

  • Down Payments are Less Than Most People Think

    Posted Under: Home Buying in Albuquerque, Financing in Albuquerque  |  June 18, 2014 8:02 AM  |  167 views  |  1 comment

    You Need a Smaller Down Payment than You Think

    Home buyers often can qualify for a conforming, conventional mortgage with a down payment of as little as 5 percent — and sometimes even 3 percent. Between 2009 and 2013, Freddie Mac’s purchases of mortgages with down payments of less than 10 percent more than quadrupled. So far in 2014, more than one in five borrowers who took out conforming, conventional mortgages put down 10 percent or less.

    Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 percent or 10 percent. However borrowers who puts down less than 20 percent may pay a higher interest rate or be asked to buy mortgage insurance.

    There are abundant down-payment assistance programs that exist to help buyers break into home ownership. Every state in the U.S., as well as many cities and counties, offer down-payment assistance programs for qualified borrowers, such as the American Dream Downpayment Initiative and HOME Investment Partnerships Program.

    Many buyers prefer a larger down payment for a variety of reasons that make good investment sense.  But, if you want to buy and your down payment resources are in the 3-10% range you still have good buying power and should check with your real estate broker and mortgage lender to get your plan organized.

    Source: “Down Payments: Today’s Most Persistent Misconception About Mortgages,” Freddie Mac (June 16, 2014)

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