Cheryl Hale

Hi Julia,

With 10% down, you are not going to get away from the mortgage insurance factor. Right now, FHA would be your best bet for 90% financing. They do not do risk based pricing for higher loans to value as most othere lenders do, and the MI rates are very reasonalble.
As far as the best deal, rates change daily. So if you get a quote from someone today, and another quote on Monday, the rates could have changed, so the quotes will be moot as far as comparing apples to apples.
Rates also depend on your credit score, income ratios, reserves and other factors. So if a lender does not have 100% of your financial information, they may not be able to quote you properly. Also, just because someone quotes you a rate that involves "no points" doesn't mean you are getting the best deal. Brokers make commission on YSP or yield spread premium, so in effect, you pay a higher rate to pay their commission. This is not necessarily a bad thing, After all, they do deserve to get paid for their work. And getting a loan approved and closed takes many hours of hard work behind the scenes. And they don't get paid unless your loan closes.

In my opinion, your best bet is to talk to no more than 3 brokers or lenders. Pay attention to the fees on the Good Faith Estimates and point blank ask them how much commission they intend to make. Please do not expect a broker or lender to make $500 or so....there is an incredible amount of work involved. An ethical broker or lender won't be afraid to tell you their "fee". No hard and fast rules, but a reasonable commission is in the area of 2% or so of the loan amount. However, it takes just as much work to close a 100K loan as it does to close a 300K loan, so you can see how a broker working a smaller loan may charge a higher percentage. In addition, the broker, like a realtor, does not pocket all of the commission. Usually at least half of it goes to the "house" to cover overhead.

Hope this helps - Fri Aug 8 2008, 15:38

I agree with all of the previous answers, with maybe the exception of being a receptionist :). However, this is not a market for novices. If you are looking to buy foreclosures or REO properties for rehab,etc, do a google search for some real estate clubs in your area. They usually have monthly meetings and you can learn from the pros, as well as develop some great contacts. In my opinion, Ted has given you some great advice if this is the direction you are looking to go in. - Wed Aug 6 2008, 18:13

contact your lender immediately...you want to work with the loss mitigation department, not the collections department. They may be able to modify you loan for you. However, they will only do so if you can demonstrate that you have the ability to pay a regular monthly payment. You need to analyze your budget and see what you can realistically afford to pay. If this payment is too small for the lender, then Chris' answer below is really the only solution. If you have any credit card bills, I suggest you stop paying them. it won't be pretty, but it gives you more $$ toward the house payment. You can always renegotiate with the creditors later. - Sun Jul 13 2008, 09:42

Once the home is sold at auction, or reverted back to the bank, you do not have much time. If the home is reverted back to the bank, it will go to their REO dept. They will have an agent come to the property to see if it is occupied. If so, they will begin the eviction process. Most lenders offer a cash for keys program where they will give to $1000 or so to vacate the property so they do not have to go through the time and expense of the eviction process. You may have a few weeks or so. I do know of a couple of instances where the REO department gave someone a couple of extra weeks to move out, but you can never be sure..each lender is different.

I'm not sure why you are having a hard time finding a place to rent...there are plenty of rentals out there at reasonable prices ..even for people who's credit is damaged from foreclosure, etc. Contact a realtor who can help you find a rental. The service is free for the renter. If you are single, you might want to check out
www.craigslist.org and find someone who is looking for a roomate. There are quite a few of those type listings there. Just click on the state, the county you are interested in, and go to the "rooms/shared" section.

If this doesn't help, you might want to be more specific about what is making it difficult for you to find a rental, and maybe myself or someone else can come up with another suggestion.

I am sorry to hear of your situation...good luck. - Sun Jul 13 2008, 07:16

Yes, it is best to work with an experienced realtor who understands the shortsale process. I work in loss mitigation, and the process goes much more smoothly with a realtor who knows what they are doing. te process can get lengthy and complicated, and it's important to have a pro working for you.
In Boca Raton, I recommend Sagine Morgan. I have known her for several years. She's an experienced full time realtor, and has completed many short sales. You can find more information about her athttp:// www.saginemorgan.com

You may also want to contact Katerina and Nestor Gasset . They specialize in the short sale market and have completed transactions throughout the state. I highly recommend them as well. http://www.short-sales-florida.com/ - Tue Jul 1 2008, 14:12