Vendee Financed Loans @4% for Investors and Buyers of certain VA Properties

 Great news for individuals looking to buy investment properties with as little as 5% down.  Vendee financing is the financing arm of VA acquired properties that typically may require some work. The new 4% interest rate goes in effect today (August26,2010). The loan is for 30 years at this fixed rate. Owner occupied properties is no money down ( you don’t have to be current or prior military), and 5% for investors or non owner occupied.

This interest rate is not subject to market changes. Of course there are restrictions in addition to the limited VA owned properties. First of all, the property must be financed with Bank of America Home Loans,N.A.  Mortgage insurance is not required, no prepayment penalty, or title insurance( but recommended). These properties also qualify for the VA to pay up to 6% of the purchaser’s closing costs and if the purchaser needs additional closing costs, 2% of the sales price can be financed. As most lending institutions  are reducing or restricting the number of mortages an individual may have, this program does not.  Investors can have as many properties that they can financially carry.

Great opportunity to acquire  investment properties while the market is adjusting. For a list of VA properties in your area, go to  http:va.equator.com

FBI investigating Real Estate and Mortgage Fraud

The Federal Bureau of Investigation (FBI) is preparing a nationwide crackdown on mortgage fraud, with arrests expected to count in the hundreds, beginning as early as this week.

The FBI will target fraudsters involved in all aspects of the industry including encouraging borrowers to falsify income on mortgage applications to misleading homeowners about foreclosure rescue programs, as well as inflating home appraisals, the report said, citing two anonymous sources with knowledge of the initiative. The FBI declined to comment on the record in the report.

It’s the latest of more than 20 task forces around the country that target mortgage fraud since the housing crisis began in 2008. The FBI will release its annual report on mortgage fraud, covering activity in 2009, on Thursday.

Typical FBI mortgage fraud task forces include the collaboration of other government entities, including the Internal Revenue Service (IRS), Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency (FHFA), the Federal Housing Administration (FHA), among others.

This is just the beginning as fraud has been long associated with the current housing crisis.

Memorial Day across America

Patriotism is easy to understand in America. It means looking out for yourself by looking out for your country….. Calvin Coolidge
The folowing is courtesy of those that sacrificed for our freedom
VA Honors Military Sacrifice on Memorial Day  From parades to somber ceremonies and a moment of silence, Americans will recall the sacrifices of military personnel who paid the ultimate price for freedom on Memorial Day, Monday, May 31. “Those fallen heroes we honor this Memorial Day answered their call to duty, and in so doing, they honored us,” said Secretary of Veterans Affairs Eric K. Shinseki.  “We owe them our deep and profound gratitude. We must pass that sense of obligation to the next generation.” The Department of Veterans Affairs (VA) will continue its annual tradition of hosting services at most of its national cemeteries and many other facilities nationwide.  The programs, which are the focus of Memorial Day events in many communities, honor the service of deceased Veterans and military members who die on active duty. President Obama will speak at VA’s Abraham Lincoln National Cemetery in Elwood, Ill., near Chicago, on Monday.  Vice President Biden will lead the observance at Arlington National Cemetery, with VA Deputy Secretary W. Scott Gould in attendance. For the dates and times of Memorial Day weekend programs at VA national cemeteries, visit www.cem.va.gov <http://www.cem.va.gov/> . More than 100,000 people are expected to attend activities at VA’s national cemeteries, with color guards, readings, bands and choir performances.  Events will honor about one million men and women who died in the military during wartime, including about 655,000 battle deaths. Some national cemetery observances are unique.  At VA’s Great Lakes National Cemetery, near Dearborn, Mich., Memorial Day will begin when a horse-drawn caisson brings a flag-draped coffin holding the cremated remains of 17 Veterans long unclaimed by families or friends for burial with full military honors.  Those Michigan Veterans fought in wars from World War II to Vietnam. Thanks to the Dearborn Allied War Veterans’ Council, whose members worked for months to match identities with military records, the 17 Veterans’ remains are moving from shelves in local funeral homes to their final rest in honored grounds.  On May 30, at Riverside, Calif., National Cemetery –VA’s busiest – volunteers will read aloud the names of more than 5,500 people who were buried there since last year’s Memorial Day. VA maintains approximately three million gravesites at its 131 national cemeteries and has the potential to provide six million graves on more than 19,000 acres.  In 2009, VA conducted more than 106,000 burials in its national cemeteries.  The number of annual interments is expected to increase for the next three years.  This year’s budget for VA national cemetery operation and construction is $417 million. Information about Memorial Day, including its history, can be found at www.va.gov/opa/speceven/memday/. VA is a cosponsor with the White House Commission on Remembrance of an annual Moment of Remembrance at 3 p.m., local time, nationwide on Memorial Day, a time to pause and reflect on the sacrifice of America’s fallen warriors and the freedoms that unite Americans.  Many institutions will announce a pause in their activities — from sporting events to public facilities — to call the nation together in a bond of silence. Memorial Day was originally called Decoration Day when the tradition of decorating Civil War graves began in 1866.  It still brings loved ones to the graves of the deceased, often with flowers as grave decorations. To honor Veterans buried in national cemeteries, VA staff and volunteers, typically place American flags — either individual small ones on each grave, usually placed by volunteers, or “avenues of flags” flanking both sides of the cemetery main entrance road.  Often these flags are the burial flags donated by next of kin of Veterans buried in the cemetery. (See attached list of prominent speakers at Memorial Day programs.) Memorial Day Speakers State / City    Cemetery        Speaker Illinois                             Elwood     Abraham Lincoln Nat’l Cemetery  President Barack Obama                          Belgium, Netherlands, Luxembourg      Multiple cemeteries     VA Secretary Eric K. Shinseki                           Virginia                             Arlington  Arlington National Cemetery     VA Deputy Secretary Scott Gould                             California                           Bakersfield        Bakersfield National Cemetery   VA Under Secretary Steve Muro         Dixon      Sacramento Valley National Cemetery     Irene Trowell-Harris, Director, VA Center for Women Veterans         Riverside  Riverside National Cemetery     VA Under Secretary Steve Muro    Florida                      Bay Pines  Bay Pines National Cemetery     Rep. Bill Young      Jacksonville       Jacksonville National Cemetery  Rep. Ander Crenshaw             Sarasota   Sarasota National Cemetery      Sen. George LeMiuex     Minnesota                            Minneapolis        Ft. Snelling National Cemetery  VA Under Secretary Dr. Robert Petzel     Missouri                             St. Louis  Jefferson Barracks Natl Cemetery        Gov. Jay Nixon                  Sen. Claire McCaskill                   Rep. Russ Carnahan      New Mexico                           Santa Fe   Santa Fe National Cemetery      Sen. Jeff Bingaman                              Oklahoma                             Fort Gibson        Ft. Gibson National Cemetery    Rep. Dan Boren  Oregon                       Eagle Point        Eagle Point National Cemetery   Sen. Ron Wyden       Roseburg   Roseburg National Cemetery      Lucretia McClenney, Director, VA Center for Minority Veterans       Tennessee                            Chattanooga        Chattanooga National Cemetery   Rep. Zach Wamp  Texas                        Houston    Houston National Cemetery       Gov. Rick Perry

VA Beach Pulls Rank Nationally

 The Metropolitan area of Va Beach-Norfolk-Newport News,VA also known as Hampton Roads,  ranks fourth nationally as the best city for borrowers  by Forbes. This ranking is based on local home mortgage rates,the year-over-year change in the percentage of homes that are 90 days or more delinquent from Jan 2009(2.5%) compared to  Jan 2010(3.9%).  The number of foreclosures during the same time period ,  Jan. 2009 (0.8%) and  Jan. 2010 (1.4%) was also a factor.   This translates to attractive interest rates and home values that will not be impacted as much because of the lowest percentages of foreclosures and delinquencies.  Banks are willing to offer better terms and rates for borrowers.  In most of the cities on this list, home prices are actually rising.

  Here are the 10 cities that Forbes ranks as the best for borrowers:
1. Kansas City, Mo.
2. Houston
3. Dallas
4. Virginia Beach, Va.
5. San Antonio, Texas
6. Boston
7. Pittsburgh
8. Denver
9. Seattle
10. Portland, Ore.

Forgive and Forget……

…..is the sign of the times as 51 percent of all borrowers whose mortgage loans were modified in the first quarter of 2009 defaulted again by the end of the year, reported the Office of the Comptroller of the Currency.  The issue is no longer why , but when.  Banks have not forgotten these borrowers who currently face foreclosure or short sales and  who walk away from their underwater properties by accepting a deed in lieu of foreclosure.

Here’s where the forgiveness starts. Under the new plan , a homeowner can have his current mortgage principal balance written down by at least ten percent. If he has a second lien, the government is going to offer an incentive to the second lien holder by paying 10-21 cents on the dollar for the amount they write down. 

To encourage short sales, the homeowner will be offered up to $3,000 dollars as incentive to  “move on”.

Now forget about banks holding the seller responsible for any losses. This is part of the new plan, protect borrowers from future lender lawsuits for the unpaid mortgage balance. Also, banks realize the tremendous upside when the market stabilizes and home prices rise. The same 4.5 million sellers that are no longer homeowners, will be solicited by the same banks to apply for mortgages again. If the seller has eliminated most of his debt and has a consistent payment history sans a previous mortgage, the lender will consider issuing another loan. The lender who has in place a program to absorb the new borrower will probably get a strong piece of the market.  

It may take some time, but as we all know, what goes around , comes around.

However, knowledgeable observers of the situation say that while it may take some time, most people will get mortgage loans again. With 4.5 million foreclosure filings anticipated by the end of the year, banks will consider offer mortgages down the road once the market stabilizes and will be motivated to lend to people who previously had financial troubles if they look like they can pay the next time around.

Saving a Home

Today, as with every new government program, adjustments are being made to the Housing Affordable Modification Program. HAMP as they call it, will benefit responsible homeowners that are experiencing a financial hardship through no fault of their own. How can this be? For starters, wage earners that have been laid off, going through a divorce, death of a spouse,etc. Millions of responsible families who had made their monthly payments and fulfilled their obligations ,saw  property values fall and unable to refinance at lower mortgage rates.

This program has been in effect for over a year ,but the number of eligible participants  and success rate for  restructuring  mortgages for homeowners has been slow . As with any program, lack of experienced individuals to process the paperwork, lack of clarity of the objective , and let’s not forget, taking a wait and see approach before implementing procedures by various lenders.

Now that mortgage lenders have a clearer understanding, as well as a financial incentive to move forward, let’s see how this stems the rising wave of foreclosures . For the record ,HAMP has provided more than 1 million struggling homeowners a second chance to stay in their homes – with each homeowner in a modification program saving more than $500 per month on average.

Making Cents of the Census

Every 10 years the government seeks  ways to sell us on filling out a census form.  Actually, financial ways to sell us is more like it.  Since 1790, the census form has been what my high school government teacher referred to as every American’s” civic duty to complete”. Somewhere between 1790 and now, it ‘s become a tool for advertising and marketing. I wonder how much they spent back then?

This year the federal government is paying 300 million dollars to “get the word out”. 300 million dollars to tell us to com;plete the shortest form ever and of course the most expensive  as well.  Unless you didn’t notice, census ads were aired during the Super Bowl and the winter Olympics.  Now, they are paying 1.2 million dollars to be plastered on Greg Biffle’s Census-sponsored No. 16 Ford Fusion at Bristol Motor Speedway in Tennessee and  the Martinsville (Va.) Speedway March 28.

Do you think Greg was the first NASCAR driver to correctly fill out and return his ten question census form to earn the honor? Unless he wins the race , the census logo will be a blur to the spectators at the track.  In this day of excess spending, I personally believe this money could be better spent on something that would benefit more Americans.

Interesting facts about the census

1.All the information collected can’t be shared with any other government agency. This includes The IRS, FBI, Bureau of Immigration, etc.

2. You can’t complete your form online. You can file taxes,renew your license, but not the census.

3. If you don’t fill out the form, you will be visited by a census taker. This individual has to take an oath NEVER to divulge any information collected to any other agency. This person is being paid , adding to the expense of your civic duty.

 4. Most importantly, the census is used to reapportioned members of the House of Representatives. It also determines how to allocate $400 billion in federal funds annually. So remember, the next time you’re stuck in traffic, drive over a pot hole, or drive by a neighborhood school or hospital, remember to be counted among the 9 out of 10 people who will complete and send the form back  to help receive  community funding.

This is  one civic duty we shouldn’t have to pay for.

Home at Last…

Typically I usually talk about housing issues. Today is different. Today , this post is about honor, duty, and home. Growing up during the Vietnam era, watching the protests and the war itself on the evening non-cable news, made for a small understanding of what sacrifice really meant for those serving our country. Things are different now, you can “google any place in the world and see pictures,  and have  access to world events and the war itself. This post is about a  US serviceman  finally coming home after thirty-eight years and bringing closure to his family. His life should not be a by-line in view of todays social media, but an honor to his sacrifice. Today , is a day that exemplifies the ultimate. God bless  Air Force Maj. Curtis Daniel Miller  and his family of Palacios, Texas.

  The Department of Defense announced today that the remains of a U.S. serviceman, missing in action from the Vietnam War, have been identified and will be returned to his family for burial with full military honors.

            Air Force Maj. Curtis Daniel Miller of Palacios, Texas, will be buried on March 29 in the Dallas-Ft. Worth National Cemetery. Miller was part of a 14-man aircrew, all of which are now accounted-for. Remains that could not be individually identified are included in a group that will be buried together in Arlington National Cemetery in Arlington, Va.  

 

            On March 29, 1972, 14 men were aboard an AC-130A Spectre gunship that took off from Ubon Royal Thai Air Force Base, Thailand, on an armed reconnaissance mission over southern Laos. The aircraft was struck by an enemy surface-to-air missile and crashed. Search and rescue efforts were stopped after a few days due to heavy enemy activity in the area.

 

            In 1986, joint U.S.- Lao People’s Democratic Republic teams, lead by the Joint POW/MIA Accounting Command (JPAC), surveyed and excavated the crash site in Savannakhet Province, Laos. The team recovered human remains and other evidence including two identification tags, life support items and aircraft wreckage. From 1986 to 1988, the remains were identified as those of nine men from this crew.

 

            Between 2005 and 2006, joint teams resurveyed the crash site and excavated it twice. The teams found more human remains, personal effects and crew-related equipment. As a result, JPAC identified the other crewmen using forensic identification tools, circumstantial evidence, mitochondrial DNA and dental comparisons. 

 

Mortgage Rescue Fraud Video

Having trouble paying your mortgage? This consumer alert video is designed to alert homeowners in financial distress from falling victim to mortgage fraud.  There is hope for assistance and guidance. If you , or someone you know, may be in this situation, please pass this on.

www.ftc.gov/bcp/edu/multimedia/video/credit/mortgage/hope-now.swf

Do You have Time ……

…..to avoid foreclosure? Chances are you do. Most lenders are agreeing to participate in the Home Affordable Modification Program (HAMP). As of April 2010,additional venues are being implemented to stem the wave of foreclosures. Consult your lender to see if you may qualify. Below is a typical anatomy of a foreclosure. Though these actions vary from state to state, most lenders use this as a guideline. REMEMBER – talk to your lender ! If you need additional assistance, consult a certified housing counselor. A list can be found at www.hud.gov for any state.

 

 

 

First month missed payment – your lender will contact you by letter or phone.  

 

Second month missed payment – your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind.

 

Third month missed payment after the third payment is missed, you will receive a letter from your lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a “Demand Letter” or “Notice to Accelerate.” If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender.

 

Fourth month missed payment – now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked our arrangements you will be referred to your lender’s attorneys. You will incur all attorney fees as part of your delinquency.

 

Sheriff’s or Public Trustee’s Sale – the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.

 

Redemption Period – after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff’s or Public Trustee’s Sale. A redemption period gives you the opportunity to reclaim or buy back your home within a certain time period. This varies from state to state. Some states like Virginia, do not offer redemption periods.

 

Important: Stay in contact with your lender, and get assistance as early as possible. All dates are estimated and vary according to your state and your mortgage company.