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Financing in 91915 : Real Estate Advice

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  • Home Buying15
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Activity 5
Tue Jul 17, 2012
this fee is normally 0.25% of the loan amount. For every $100,000 you borrow, that equates to $250, if you pay it up front as a closing cost, as opposed to letting it be absorbed by the interest rate to pay this fee. ... more
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Tue Jul 17, 2012
Ron Thomas answered:
It is actually a double whammy:
If you are putting the 20% down to avoid PMI,
you will probably be getting a better rate than if you were doing FHA with 3.5% down.
So the RATE will be lower and the Monthly Vig will be a lot lower.

Good luck and may God bless
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Mon Jan 16, 2012

I agree with everyone else that it is completely up to you. I use finance specific programs to develop side by side comparisons so my clients can make educated decisions with actual numbers at their disposal. I have always found that people can make their own decisions about what is best for them once they have all of the pertinent data. I would be happy to provide you a sample of the program if you would like to contact me via my profile. No obligation, of course. Best to you! ... more
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Wed Apr 2, 2008
Justin answered:
Benefits of Short Sales

Here is a quick definition of a short sale. The lender allows a property to be sold for less than balanced owed and takes a loss. The benefit is you actually sell your house as opposed to going through foreclosure proceedings. Usually while all of this is going on you are already in a situation where you are behind on your mortgage payments. If and when you get a short sale going, make sure you use a reputable realtor that knows the short sale process.
Quick benefits of this process:
1. Better on your credit than foreclosure
2. Depending on how many late payments you had, you can recover fairly quickly
3. Typically can buy a home within 2 to 3 years
4. No foreclosure on your credit report

Short Sale Pitfalls

Once you have started the short sale process with a realtor and the lender has agreed to a sale price you probably now have 30 to 60 day mortgage late payments. As discussed in previous articles one late payment will drop you credit score 100 or more points. I am sure at this point you are not too concerned about mortgage late payments, but if you can try to make payments until sold. Most lenders don’t want to see 120 day late payments on a mortgage. Lenders consider120 day late payments t a foreclosure, even though technically its not. Housing and Urban and Development (HUD) actually count short sales with120 day late payments a foreclosure. Once you have this type of activity on your credit report, your only option for a mortgage in the near future will be FHA. I would make sure you don’t have 120 late payments so you can recover quickly once you are back on your feet. The credit reports I see with short sale activity always have 120 day late payments, but I have got individuals a FHA loan within couple of years after the fact.
Negative results:
1. Most lenders will consider a short sale with 120 day late payments a foreclosure, typically if foreclosure proceeding were started
2. May take you 3 years to recover and be able to Buy a again
3. HUD considers a 120 late payments a foreclosure on a short sale
4. Has a negative affect on your credit score because of late payments
5. Bank could come after you for the difference. Example would be if you owed 120,000 and you sold the house for $115,000. Then technically you owe the difference of $5,000.

This is a brief explanation of how a short sale can affect your credit report
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Tue Mar 18, 2008
Melinda J. Robison answered:
Mary Ann, I am not sure what the foreclosure rate is in your area, but here in Western Michigan it is very high! Therefore, we are finding these banks are becoming more and more willing to do things for us like turn utilities back on, make minor repairs etc.

However, I would always have your buyers agent ask the listing agents if the property will go VA. Not all bank are willing to work with such financing. Banks seem to prefer cash & conventional loans. The only way to know is to get more information from the listing agent who should have an idea of what type of financing that particular bank may consider.

I hope this information helps! Best Wishes!
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