Ruthless

Thanks, good clarifications as well. But since things are slowing for the rehabbers and the market is slow for them being hired to do home improvement jobs, are they getting jobs at McDonalds (especially with the greater loss exposure) or changing their philosophy and buying and holding?

Personally, I grew up with a high risk land developer father. I married a conservative pension sort of guy. Unfortunately, when pensions died he found "religion" in real estate. I've changed my philosophy too because "their not making anymore land" isn't true anymore (Dubai) and there are too many amateurs getting into real estate. I've always been an entrepreneur but the real money is in getting ahead of the curve. I have that ability outside of real estate but it "takes money to make money".

Any thoughts?
Ruth - Earlier today

Please be aware that I wasn't saying that your mortgage interest rates would go up, I was making an analogy between mortgage fine print and credit card fine print. I was also attempting to make any future foreclosed person aware that all their other future credit rates would/could go up (credit card, auto, etc.).

Steve makes an extremely good point that you don't even read the mortgage contract until way into the process. Here in IL, I don't think I have actually read the real and complete mortgage contract until the closing. Prior to that you sign disclosures and good faith estimates and ask important questions such as "Is there a penalty for early payoff?" or "Is this fixed, adjustable or a balloon?" or "Is it assumable?" The day before the closing you get the HUD statement and look at the numbers. But how many people even read the entire mortgage document? In IL the title company or the attorney explains the finer points but don't go over every single detail. Here are some comments I remember hearing in my closings:
"Signing this means that you didn't lie or are not committing fraud."
"Signing this says you will pay this amount by this date and if you pay late your penalty will be x"
"Signing this means that everyone makes mistakes and if we made one you will let us correct it."
"Signing this means that if you sell your home, refinance or close your account in less than 3 years, you will pay a penalty."
"Signing this means that when you add in all the fees, you are actually paying interest on the fees as well which makes it look like you are paying an interest rate of 6.125% instead of 6%."

But do they explain what the ramifications are if you did lie on your application or don't make your monthly mortgage payments? No, I think not! And you are not about to ask because that would be embarrassing or incriminating. That is why this forum is so great!!! You can anonymously ask those questions (of course every responsible person will tell you to contact an attorney).

My main point is to find out (from an attorney) under what conditions can the mortgage company "CALL IN THE LOAN"? I know almost all of them say that they will call in the loan if you
1) sell the house
2) don't make your monthly payments
3) at the end of a set balloon period
4) if you don't insure the house
and/or
5) if you don't pay your real estate taxes.

Since there is a foreclosure crisis, isn't it possible that some mortgage company might slip into the fine print of their new mortgage documents a clause stating that if a foreclosure appears on your credit report that they have the right to call in the loan?

Steve also adds a question that I have not asked before, "Is this loan secured solely by the property or is it secured by my *good name* as well?"

I also think Ute's point of possible fraud is something that the hurting mortgage companies will be pursuing in greater numbers in the future. I believe previously they reserved this avenue for "criminals" and "con artists" but will now be attacking the everyday, "I didn't know?" consumer.

Ruth - Earlier today

Ute:
Very nicely said.

Jane & others:
I haven't read all my mortgage documents in a while but I wonder if they have any sort of similar clause that credit card companies have? I know mortgage companies have a "due on sale" clause. What other clauses and causes do they have to call in the loan? With a credit card, if they see that you defaulted on different credit card or mortgage, suddenly your 1.9% interest rate jumps to 22%. Can a mortgage company do the same thing?
Ruth - Yesterday, 19:48

YES!!! Excellent question!!!

You could also be talking about vacant homes not yet rented and mail going to resident or names you've never heard of. I had the mail being forwarded to me that was addressed to me. However, someone knew the house was vacant and may have requested a credit card in their name but the vacant home's address. I was concerned that somehow the same address could come back to me. My short term suggestion would be a vacation hold if you don't want to do the forwarding or P.O. Box. Then once a week or so, just go pick up your mail.

Good luck,
Ruth - Yesterday, 20:20

I'm answering as a consumer. I've seen the "Talking House" signs several times and never called one of them. I'd rather grab a listing sheet from a box or ask specific questions of a live person.

When I'm looking at homes, it is much easier to deal with one phone number or web site for the top producing agent than writing down a different phone number or extension or website for each home. It always seems that there are two agents that have multiple listings and then a few other single listing agents. Those top two might only last for a couple months and then it will be two completely different agents that have all of them in the neighborhood.

That sort of goes along with working with FSBOs. It seems as soon as someone puts a FSBO sign up, someone else in the neighborhood hires an agent to get a head start compared to the FSBO. Has anyone ever tried targeting a FSBO's neighbors? Once the FSBO fails, they end up listing with the same agent that the neighbor used.

Ruth
P.S. I have been called a marketing genius before and I was a Realtor/Broker for one year a decade ago. I never thought of targeting FSBO neighbors until just now. - Yesterday, 20:11

I've signed some and not signed some. My most recent one was for my immediate area and I was putting another offer outside my area. This newer agent made me have my original agent release me and state that she had no "interest" in the home I was putting an offer on. It's just good practice to have things good or bad in writing.

If you don't even know if you signed something or have a copy, simply write a letter to your buyer's agent saying that you will be going with someone else (keep a copy for yourself and your new agent). As long as you don't see the same houses with the new agent as you did with the old agent, so shouldn't have any problems.

Good luck. Interview buyer's agents asking them about their negotiating skills and references.
Ruth - Yesterday, 19:59