Brent Mendelson's Blog

Do buying a home and credit counseling mix?

Posted Under: Home Buying in District of Columbia, Financing in District of Columbia, Agent2Agent in District of Columbia | May 23, 2012 8:15 AM | 44 views | No comments

With the economy the way it was the last few years I am surprised I haven't seen more of these types of programs. Remember this is different from debt settlement.

The short answer is yes or probably yes. Here's what anyone on a debt relief plan needs to know.

1. You must be in the plan for at least a year.
2. You must have made all scheduled payments on time.
3.You must have written permission from the counseling agency to buy a home.

That's about it. I called the company that manages my clients debts and had a letter giving me the information I needed to give her a yes answer. It took less than 20 minutes to do what I needed to do for her piece of mind. Hope this was helpful and remember this is the FHA rules, conventional is likely to be different and probably a little more restrictive.

Thanks

Brent Mendelson

Senior Loan Officer

1ST Mariner Mortgage

O-240-235-5314

C-301-412-0259

F-240-235-8236

Bmendelson@1stMarinerbank.com

Lending in all 50 states

nmls#111407

Can you buy a home while in credit counseling?

Posted Under: Home Buying in Virginia, Financing in Virginia, Agent2Agent in Virginia | May 22, 2012 10:32 PM | 168 views | 2 comments

With the economy the way it was the last few years I am surprised I haven't seen more of these types of programs. Remember this is different from debt settlement.

The short answer is yes or probably yes. Here's what anyone on a debt relief plan needs to know.

1. You must be in the plan for at least a year.
2. You must have made all scheduled payments on time.
3.You must have written permission from the counseling agency to buy a home.

That's about it. I called the company that manages my clients debts and had a letter giving me the information I needed to give her a yes answer. It took less than 20 minutes to do what I needed to do for her piece of mind. Hope this was helpful and remember this is the FHA rules, conventional is likely to be different and probably a little more restrictive.

Thanks

Brent Mendelson

Senior Loan Officer

1ST Mariner Mortgage

O-240-235-5314

C-301-412-0259

F-240-235-8236

Bmendelson@1stMarinerbank.com

Lending in all 50 states

nmls#111407

Can you buy a home and be in credit card counseling?

Posted Under: Home Buying in Delaware, Financing in Delaware, Agent2Agent in Delaware | May 22, 2012 10:29 PM | 22 views | 2 comments

The short answer is yes or probably yes. Here's what anyone on a debt relief plan needs to know.

1. You must be in the plan for at least a year.
2. You must have made all scheduled payments on time.
3.You must have written permission from the counseling agency to buy a home.

That's about it. I called the company that manages my clients debts and had a letter giving me the information I needed to give her a yes answer. It took less than 20 minutes to do what I needed to do for her piece of mind. Hope this was helpful and remember this is the FHA rules, conventional is likely to be different and probably a little more restrictive.

Thanks

Brent Mendelson

Senior Loan Officer

1ST Mariner Mortgage

O-240-235-5314

C-301-412-0259

F-240-235-8236

Bmendelson@1stMarinerbank.com

Lending in all 50 states

nmls#111407

Can you buy a home and be in credit card Counseling?

Posted Under: Home Buying in Florida, Financing in Florida, Agent2Agent in Florida | May 22, 2012 10:26 PM | 42 views | No comments

The short answer is yes or probably yes. Here's what anyone on a debt relief plan needs to know.

1. You must be in the plan for at least a year.
2. You must have made all scheduled payments on time.
3.You must have written permission from the counseling agency to buy a home.

That's about it. I called the company that manages my clients debts and had a letter giving me the information I needed to give her a yes answer. It took less than 20 minutes to do what I needed to do for her piece of mind. Hope this was helpful and remember this is the FHA rules, conventional is likely to be different and probably a little more restrictive.

Thanks

Brent Mendelson

Senior Loan Officer

1ST Mariner Mortgage

O-240-235-5314

C-301-412-0259

F-240-235-8236

Bmendelson@1stMarinerbank.com

Lending in all 50 states

nmls#111407

Do Credit Counseling and Buying a Home Mix?

Posted Under: Home Buying in Maryland, Financing in Maryland, in Maryland | May 22, 2012 10:25 PM | 14 views | No comments

I pulled credit on a buyer recently and noticed credit card counseling payment plans on several credit card accounts. ANYTHING out of the ordinary needs to be addressed right away.

I went to the FHA handbook and looked it up to make sure they could buy a home.

The short answer is yes or probably yes. Here's what anyone on a debt relief plan needs to know.

1. You must be in the plan for at least a year.
2. You must have made all scheduled payments on time.
3.You must have written permission from the counseling agency to buy a home.

That's about it. I called the company that manages my clients debts and had a letter giving me the information I needed to give her a yes answer. It took less than 20 minutes to do what I needed to do for her piece of mind. Hope this was helpful and remember this is the FHA rules, conventional is likely to be different and probably a little more restrictive.

Thanks

Brent Mendelson

Senior Loan Officer

1ST Mariner Mortgage

O-240-235-5314

C-301-412-0259

F-240-235-8236

Bmendelson@1stMarinerbank.com

Lending in all 50 states

nmls#111407

N. Virginia short sale success rates compared to regular contracts

Posted Under: Market Conditions in Virginia, Home Buying in Virginia, Home Selling in Virginia | May 20, 2012 10:49 AM | 29 views | No comments

I read some information recently I wanted to share with you.

Basically it looked at contracts from Nov 2011 and in May 2012 reviewed what happened with these contracts.

The good news is the lowest percentage of contracts that went thru was in PG but was still 85%
Every other jurisdiction was in the 90% plus range and Fairfax county was 100%
The reason PG was only 85%? Too many short sales.
PG for clean contracts i.e. not a short sale or foreclosure was 97% Foreclosures in PG closed at a 99% rate. Short sales only closed at 60%

Most areas closed 100% of clean contracts and again were well over 90% in DC, MD and VA.

DC had 98% of clean contracts and 93% of foreclosures sold but only 49% of short sales go thru.
49% was the lowest and the highest was 76% in Anne Arundel county. Most counties were in the 60-70% range. The success rate in Virginia was 100% Fairfax, Arlington, Alexandria and Prince William for clean contracts. It was 100% on foreclosures. It was only 74% on short sales in the last 6 months.

So while short sales sell for 20-30% less on average of a regular home you must understand the percentage of success especially in relation to a regular home sale or even a foreclosure. I have seen short sales last over a year and the buyers just got frustrated and bought something else. It's not a good deal if you don't get the home.

Rates are not an issue today also since they are very very low but what happens in a rising market where the process drags on months. Locks and promised rates are in jeopardy.

If there are two loans on the home that will make it more difficult and in my opinion if the 3rd party approval has to come from Bank of America that institution can cause problems and delays even when the property is approved. They seem to do things in a different fashion than other lenders. If the seller is not late on their mortgage and has an FHA loan they will not be allowed to sell the home until going 30 days late per the federal government. Please feel free to add your own short sale horror stories whether lenders or Realtors.

I'm not saying to avoid the short sales but go into it with your eyes wide open.
Hope this was helpful and please let me know if you have any questions.

If you do have to consider the short sale option as an owner and can help in any way with the process please let me know.

Thanks,

Brent Mendelson

1st Mariner Mortgage
email-bmendelson@1stmarinerbank.com

nmls#111407

DC area short sales versus regular sales from Nov11-May12

Posted Under: Financing in District of Columbia, Agent2Agent in District of Columbia, Foreclosure in District of Columbia | May 20, 2012 10:45 AM | 26 views | No comments

I read some information recently I wanted to share with you.

Basically it looked at contracts from Nov 2011 and in May 2012 reviewed what happened with these contracts.

The good news is the lowest percentage of contracts that went thru was in PG but was still 85%
Every other jurisdiction was in the 90% plus range and Fairfax county was 100%
The reason PG was only 85%? Too many short sales.
PG for clean contracts i.e. not a short sale or foreclosure was 97% Foreclosures in PG closed at a 99% rate. Short sales only closed at 60%

Most areas closed 100% of clean contracts and again were well over 90% in DC, MD and VA.

DC had 98% of clean contracts and 93% of foreclosures sold but only 49% of short sales go thru.
49% was the lowest and the highest was 76% in Anne Arundel county. Most counties were in the 60-70% range.

So while short sales sell for 20-30% less on average of a regular home you must understand the percentage of success especially in relation to a regular home sale or even a foreclosure. I have seen short sales last over a year and the buyers just got frustrated and bought something else. It's not a good deal if you don't get the home.

Rates are not an issue today also since they are very very low but what happens in a rising market where the process drags on months. Locks and promised rates are in jeopardy.

If there are two loans on the home that will make it more difficult and in my opinion if the 3rd party approval has to come from Bank of America that institution can cause problems and delays even when the property is approved. They seem to do things in a different fashion than other lenders. If the seller is not late on their mortgage and has an FHA loan they will not be allowed to sell the home until going 30 days late per the federal government. Please feel free to add your own short sale horror stories whether lenders or Realtors.

I'm not saying to avoid the short sales but go into it with your eyes wide open.
Hope this was helpful and please let me know if you have any questions.

If you do have to consider the short sale option as an owner and can help in any way with the process please let me know.

Thanks,

Brent Mendelson

1st Mariner Mortgage
email-bmendelson@1stmarinerbank.com

nmls#111407

Brent Mendelson's Blog

Do buying a home and credit counseling mix?

Can you buy a home while in credit counseling?

Can you buy a home and be in credit card counseling?

Can you buy a home and be in credit card Counseling?

Do Credit Counseling and Buying a Home Mix?

N. Virginia short sale success rates compared to regular contracts

DC area short sales versus regular sales from Nov11-May12

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