Insurance NOT Paid By Homebanc
May 1, 2008 1 Comment
Today I received this email from a gentleman seeking help because his homeowners insurance had not been paid by his mortgage company.
Your topic: "Homebanc Mortgage Escrow Accounts" came up when I searched it on google.
I have a Homebanc mortgage. I just got a call from my ins. co. stating that they haven’t received my homeowner ins. payment from my mortgage co. after 45 days. I contacted Homebanc and all their numbers and websites are disconnected.
Any news on this, or know what I should do? I’ve been sending my payments in to the same address, and never got a letter stating it was sold to another co., and the payments have been processed like normal. I’m thinking of not paying and seeing who contacts me.
Obviously he has an escrow account and has been making his payments. Unfortunately the insurance did not get paid as it should have. My advice to you would be to write a letter to the address that you are sending your payments to and ask that you be contacted to discuss your escrow account. If this is not successful then you will probably want to contact Countrywide Mortgage. My understanding is that Countrywide was assuming the servicing of Homebanc accounts. To add another twist, Bank of America is buying Countrywide so you may also contact Bank of America if Countrywide has no record of servicing your account. If none of these can provide you with the correct answer you may also contact your state department of banking and finance and ask for their guidance. You should have been notified that the servicing of your mortgage was being handled by a different provider. Unfortunately you were not.
The one thing I would recommend that you not do is avoid paying the payment to see who contacts you. Damaging your credit with a late payment is just not worth it. Sure it will take some time and phone calls to clear this up, but you need to know who is servicing your mortgage in case there is any other problem in the future.
How to Find a Good Builder
April 30, 2008 No Comments
So you have decided to build your new dream home. How do you find the right builder? Are you just going to leave it to chance? I hope not. You are preparing to make what is possibly the largest purchase you will ever make. As a buyer you owe it to yourself to practice your due diligence and find a builder who is qualified to build your dream home as well as being someone that you can communicate with about your wishes and desires in your home.
In the Atlanta Real Estate market, the most common ways for a buyer to find prospective builders are via the internet, their REALTOR, word of mouth from their family and friends or from the local Home Builders Association. Once the candidates have been identified the buyer and their buyer’s agent should begin the due diligence period by asking questions to determine the best fit. Here is a list of possible questions to ask:
- How long have you been building homes? (You are looking for 3+ years)
- Is your primary source of income derived by homebuilding?
- What insurance coverage’s do you carry? (You are looking for general liability, workman’s comp, and builder’s risk.)
- What is your primary source of information regarding changes in building codes? (You are looking for trade associations such as the home builder’s association or various continuing education classes)
- What is your written warranty on the homes you build and can I have a copy of it to review?
- What is your policy on home inspections? (You must be allowed to use a code certified inspector)
- Will you provide me with references from your homeowners?
- Due to today’s economic time and the state of the real estate market, would you be willing to share your financial information with us?
- Why should we select you to build our home?
While these may not include every question that you may need to ask, it should provide a good start. Even if the home you are looking to purchase is already started and at some stage of completion you should still ask questions of the builder. After all you are interviewing as an employer. You are hiring someone to build your home.
How does a Short Sale Effect Value
April 20, 2008 No Comments
One of the requirements of being a licensed agent is to successfully complete various continuing education classes during each year. Last fall I attended a class on “Understanding Appraisals”. The instructor for this class is an Atlanta Appraiser by the name of Scott Murphy. I found Scott to be extremely knowledgeable and he was more than helpful for the agents taking the class. Taking into account Scott’s experience and expertise, I requested his insight on the effects of a short sale on appraised values from an appraiser’s viewpoint. The following is Scott’s reply:
The effect on the market due to short sales is yet to be seen. Short sales are relatively new to the market. Many short sales will go to investors who know how to manage the complex and time consuming process. They will work the system to obtain the property significantly below market. They in turn will relist and sell the house at market value, much the same as the foreclosure process. These sales will hopefully self correct themselves. The sales that will be most damaging to the market are those which sell to owner occupants slightly below market value with full market exposure.
The true test to the validity of the sale and to determine if the sale is a true arms length sale would be its exposure to the market. Foreclosure sales are generally discarded because a lack of exposure to the market or they are significantly inferior in condition to other homes in the neighborhood. Short sales, on the other hand, are typically in similar condition to other homes in the neighborhood. If the home is multiple listed for a reasonable amount of time (IE: 30 days or more) it is then thought to have been adequately exposed to the market and may very well be an arm’s length sale. The effect these sales will have on the market will be determined by the exposure and the number of them in a given neighborhood. Most neighborhoods can support 1-2 short or distressed sales without altering values. When the number of short of distressed sales exceeds the number of arm’s length sales values will significantly decrease.
I want to thank Scott for taking the time to share his insight. His answer has brought up an even more thought provoking question, Are short sales in any way responsible for the declining markets as viewed by the various mortgage lenders? If so would they not be like a double edged sword, they cut the losses of the lender by foregoing a foreclosure but create a more difficult lending environment for purchasers because entire market areas are becoming classified as declining markets.
Short Sale in Atlanta
April 18, 2008 1 Comment
If you are having difficulty paying your monthly mortgage payment, you are not alone. Lenders got very creative, even greedy, while inventing mortgage programs that helped families buy their first home or refinance existing mortgages. Many of these programs were for buyers with no money for a down payment or for families with less than perfect credit. These loans were known as subprime loans. One of the most popular of these loan programs were the hybrid adjustable rate mortgage. A hybrid ARM has a low interest rate initially (a teaser rate) which is followed by significant upward adjustments during the remaining years of the loan. Other than lenders, declining or flat markets and tougher economic conditions have contributed to everyone having a more difficult time meeting our monthly obligations.
Recently a new phrase has come into the real estate market, not only in Atlanta, but throughout the nation. That phrase is a short sale.
What is a Short Sale
A short sale is when you have the ability to sell you home, but the proceeds from the sale are less than the actual payoff and expenses involved in selling the home. In a short sale, the mortgage company agrees to accept less than the payoff they are owed. A short sale is an alternative to foreclosure which may benefit both the lender and borrower. Typically a short sale is a better solution for the lender than foreclosure. If the lender had to foreclose on the property, they would be responsible for attorney fees, possible eviction costs, utilities and other various costs associated with a foreclosure. In allowing a short sale the lender may be able to reduce their losses compared to a foreclosure. One important point is that the lenders typically require documentation as to the hardship that has caused the need for a short sale.
What Hardships are Acceptable
Most mortgage companies require a hardship letter prior to discussing a short sale. The hardship letter should present the facts clearly and honestly and must provide the proof regarding the situation that caused the borrower to fall behind on their payments. The following hardships are frequently accepted by mortgage lenders:
- Job Loss or significant loss of income
- Divorce or Separation
- Excessive Medical Bills
- Death of a Spouse
- Military Service
- Adjustment in Mortgage Payment
How Does a Short Sale Affect My Credit
The late payments that lead up to the short sale will, as expected, have a negative impact on your credit. The main advantage to a short sale is avoiding foreclosure. A short sale should be less detrimental on a credit report than either a foreclosure or a deed-in-lieu of foreclosure.
The Mortgage Debt Relief Act of 2007
By signing H.R. 3648, The Mortgage Debt Relief Act of 2007, President Bush changed the tax ramification for anyone selling their home via short sale or owners who are renegotiating their mortgage. Prior to this legislation signed into law any shortage on a full payoff to a lender was considered taxable income.
Work With a Professional
If you are thinking about a short sale on you home, it is recommended that you meet with a professional and discuss you exact circumstances so that you can be given the best guidance for your situation. Working with a REALTOR® who knows how to talk with the Loss Mitigation Departments at the lender as well as being able to guide you on all the proper documentation required for a short sale will make this process easier for you. The actual documentation required by each lender can vary dramatically. To successfully complete a short sale transaction it is necessary for you to have all the elements documented and in place along with having an effective short sale strategy.
I will be happy to meet with you to evaluate your situation and discuss the options that are available to you. Feel free to contact me via email or phone.
Top Middle School In Gwinnett County
March 28, 2008 No Comments
The Results Are In
The Iowa Test of Basic Skills results are in and Crews Middle School is the highest achieving middle school in Gwinnett County in every major area; math, language arts, reading, science, and social studies! The Iowa Test of Basic Skills is the standard used by Gwinnett County Public Schools to measure student achievement in elementary and middle schools. Crews went up in every category compared to last year.
Crews Staff Deserves an Ataboy
Crews Middle School achieves at a high level every year. A part of the Gwinnett County Public School Results Based Evaluation System has been to award the highest achieving schools. The school has received this award for the past two years and hopes it will again this year. The money, in large part, has been used to finance professional learning and new technology in the school.
Congratulation Crews Middle School
The teachers couldn’t’t do it without the students and vice versa. So congratulations to your combined effort towards excellence go out to the teachers, students and the parents who support the school. I guess there is nothing left to say except “Ya’ll Done Good”.
Hail Damage in Atlanta
March 17, 2008 9 Comments
Tornado Hits Atlanta
This past weekend was one of the most interesting weekends the Metro Atlanta area has ever experienced weather wise. Friday evening about 10:00 a tornado touched down in downtown Atlanta. Extensive damage was done to the Georgia Dome, the Georgia World Congress Center and various additional buildings throughout the area. Airborne debris and high winds broke windows and lifted the roofs off of several structures. The SEC Basketball Tournament was suspended Friday Night and then relocated to Alexander Memorial Coliseum on the Georgia Tech Campus when it resumed on Saturday.
Saturday Was Even Worse
While Friday evening was exciting, Saturday was even more eventful. Starting about noon storm after storm seemed to be like freight trains running through North Central Georgia. Even though it could have been much worse, there were two fatalities. My thoughts and prayers go out to the families effected
Have Your Roof Checked
The news broadcasts have shown much of the visible destruction. What cannot be seen is the damage that hail can cause to a roof. If your home was in one of the area that received hail, do yourself a favor and have a qualified roofer examine your roof for any hail damage. It is much better to catch it now before you have water damage to your roof and attic.
Woodbridge Crossing
March 14, 2008 2 Comments
The Providence Group is growing again. Mark your calendar for the 25th of March for the Grand Opening and ribbon cutting ceremony at the covered bridge which is located in the Historic Concord Covered Bridge Area of Smyrna. Special guests Mayor Max Bacon, City Council Representative Pete Wood and Harold Smith of the Smyrna Historical Society will be joining Pete and Warren Jolly of Jolly Development in commemorating the opening of the covered bridge.
Woodbridge Crossing is a gated community of upscale single family courtyard and garden homes priced from the high $300’s to the mid $500’s. The community offers swim facilities, an outdoor seating area with fireplace and a clubhouse with a full kitchen. The HOA provides landscape maintenance for all homeowners leaving more time to enjoy the rich history and entertainment available in the area.
Individual homes feature carriage-style garage doors along with brick, siding and stone on the exteriors. However the interiors design features are what sets these homes apart. Gourmet kitchens with granite counter tops, tile back splashes, custom cabinets and stainless appliances are just the start. The main level of each home includes 8 foot doors, hardwood flooring and detailed trim packages. The large Master Suites feature luxurious bathes with separate garden tubs and walk-in showers.
To view available homes in Woodbridge Crossing click here
Atlanta FHA Loan Limits Raised
March 6, 2008 2 Comments
So what exactly does the FHA do? The FHA provides mortgage insurance on loans made by FHA approved lenders throughout the United States. Since it inception in 1934 FHA has insured more that 34 million loans. Generally FHA loans are easier for buyers to qualify for as they do not have the more strict underwriting guidelines of conventional loans.
We have known that it was coming, we just didn’t know how high the limits would be raised. Well we got the answer today. The Federal Housing Administration, FHA, has increased the loan limits on a FHA insured home loan in Metro Atlanta to $346,250 up from $252,890, an increase of 27%.
This action by FHA should help spur the housing industry in the Atlanta market. Any home priced below $346,250 just became easier for more buyers to qualify for.
Atlanta Real Estate Conditions
February 27, 2008 No Comments
The Atlanta Real Estate Market has escaped from many of the problems that have affected other major markets. It has been pointed out that the resiliency of the Atlanta market is due to our sector being fueled by jobs and relocation rather than speculative buying as has happened in some of the condominium resort areas. Just how lucky are we? Below you can see one of the policies lenders have adopted that affect buyers in other areas of the county.
In certain areas of the country lenders have implemented what is called a “Declining Markets Policy”. In essence what this policy calls for is for buyers, purchasing property in what the lender has identified as a declining market, to increase their stake in the property. Most lenders are requiring the loan-to-value (LTV) ratio if one loan is being utilized or the combined-loan-to value (CLTV) ratio if multiple loans are being utilized to be reduced by five (5) percent. An example would be rather than being able to obtain 100% financing in a declining market, a buyer could only obtain 95% financing. The exception to this policy would apply for FHA and VA loans. For these government backed loans a second level underwriter review is called for, thus making qualifying more difficult.
Lenders are identifying the declining markets by both city and county in the various effected states. Several sources are being used to determine which areas are included. Standard and Poors Case-Schiller Home Price Indices, The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, The Office of Federal Housing Enterprise Oversight Index along with statistics from The National Association of REALTORS are the most common sources used in identifying these areas.
Not only are there declining markets, but several of the lenders are also looking more closely at what have been identified as “Soft Markets”. While these areas are not as drastically affected, the lenders are requiring a second level underwriting review for soft market identified locations.
In the latest report I have been able to obtain, the Atlanta Market has not been identified as either a declining or soft market as defined by these lender guidelines. This doesn’t mean that the buyers market is gone. It just suggests that the Atlanta Market has not been as decimated as some of the other major metropolitan markets. Conditions remain favorable toward buyers with sellers making considerable concessions and interest rates remaining low. To find more information about Homes for Sale, just let me know what your requirements are. I am here to help.
Atlanta Real Estate Market Update
February 24, 2008 2 Comments
It’s A Buyers Market
If you didn’t know it before, you certainly will know it now by way of the most current stats for real estate in the Atlanta Market. Unfortunately for sellers 2008 has started much in the same fashion that 2007 ended, with a market that continues to decline. Inventory continues to increase and the average days on the market for single family homes is at it’s highest level in 10 years at over 101 days on the market.
Available Inventory Increasing
Here are some of the facts comparing months supply of available homes 1-2006 vs 1-2008:
New Single Family Homes up over 81%
Resale Single Family Homes up over 91%
New Condos and Townhomes up over 125%
Resale Condos and Townhomes up over 26%
Additional Good News for Buyers
The other factor that generally goes hand in hand with increasing days on the market and additional inventory is an overall average price decline of sold properties. The situation at this time confirms this factor. The average sale price for both single family residences and condo/townhomes declined in January.
Even More Good News
If you take the abundance of inventory to choose from and the lower average prices then add to it the notoriously low interest rates, you now have all the components of a full fledged buyers market in Atlanta. Sellers are saying bring all offers. Why don’t we get together and help them sell their home at a deep discount?
