Maryland Mortgage Loans and Solutions – Gordon Haraway

August 10th, 2010 specialed Posted in Consumer News, FHA, Facebook users, Finances, Financing Options, First-time Homebuyer, First-time homebuyers, Homes for sale, Local Real Estate News, Maryland, Maryland Homes for Sale, buyers, first time home buyers, housing market, real estate, real estate information, real estate news No Comments »

Gordon’s Mortgage News

Recent and Pending Changes for FHA loans
August 10th, 2010 4:27 PM

There are a number of changes that have taken place recently and more on the way in the FHA loan arena. Some of these changes are specific to certain lending situations so will not effect all loans, while others are global in nature so everyone will be affected. While there have been many changes of late and more possibly to come, this column attempts to highlight the changes affecting the most borrowers .

  • Mortgage Insurance: Currently the UP Front Mortgage insurance or (MIP) as it is known is 2.25% of the base loan amount. HUD Secretary Stevens announced this will be reduced to 1.0% while at the same time increasing the annual mortgage insurance from its current 0.55% to 0.90% This change will be in effect as of any new FHA case number issued starting September 7, 2010
  • Condo Rules: No more spot approvals, For FHA approval at least 50% of the units must be owner occupied.
  • Property Flipping: If a home is resold within by an investor less than one year after the investor purchase. The price appreciation may be limited to 20% of the investors purchase price. A second appraisal may be ordered to justify the new price and documentation may be required of the seller showing substantial improvements have been made to the home. This documentation may include, material receipts, contractor invoices ect. Tell your investors to take a lot of pics, before and after.
  • Credit Scores: FHA plans to impose a minimum credit score of 500 later this year, and scores 580 will need a down payment of 10%. Credit scores over 580 will still only need the FHA minimum 3.5% down payment. This rule is really a waste of in on paper since virtually all lenders now requires a minimum credit score of 620 and some are even require a score of 640.
  • Seller Concessions: FHA at present allows seller concessions up to 6% of the sales price. The new rule will be 3%. The new rule is expected to have a hugh impact on first Time Home buyers. This new rule is now in a comment period and is expected to be put into effect in the very near future.
  • Underwriting Guidelines: Changes have been made to the underwriting guidelines over the last few months. These changes will be incorporated into the revised 4155 lenders manual that should be updated in the near future. Until then all the recent changes are available on Hudclips, (under mortgagee letters) The 4155 lender manual and hudclips are both available on line at the HUD website.

Maryland Mortgage Loans and Solutions – Gordon Haraway Southern Trust Mortgage, specializing in helping home buyers realize the dream of home ownership. Purchase and Refinance home loans. Gordon Haraway is a Senior Loan Officer with Southern Trust Mortgage in Crofton MD (301) 938-1655

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Baltimore Real Estate Internet Strategy Training for EXIT Mid-Atlantic

July 23rd, 2010 specialed Posted in Maryland, Real Estate Report, Real Estate Training, Realtor, real estate, real estate information, real estate news No Comments »

Baltimore Real Estate Internet Strategy Training for EXIT Mid-Atlantic

Friday July 23rd in the Baltimore MD Area
Extreme Niche Marketing takes into account that you understand you need a website – Now let’s get the knowledge and habits that produce results…

The Regional Owners of EXIT Realty in the Mid Atlantic including Washington DC, Maryland, Delaware, and West Virginia in partnership with The EXIT Mid-Atlantic Broker Council are holding a special training inviting their Real Estate Professionals to attend a fundamental training on Internet Strategy Thursday July 23rd; Going beyond understanding Google Marketing and into an actual plan of action that drives results!!! (PDF Link) – REGISTER

Baltimore Real Estate Web Strategy TrainingThe training is designed to help Realtors and Brokers devise an Internet Presence that produces results and transcends the arduous jargon that floats around the Real Estate Industry – in fact it ignores National Visibility and focuses on Focused Local Niche Marketing.

Internet Real Estate Agents Earn 3 times the Income of Traditional Agents ($100K+ versus $36K) – Read this important article by RISMedia.

Real Estate Professionals understand that having a successful Internet Strategy is important but getting the right ideas and habits are few and far between… this course intends to answer the fundamental questions and offers a Plan of Action that Realtors can trust to design an organic Real Estate Internet Strategy driven by the needs of their Buyers and Sellers. This is a true Real Estate Training – nothing will be sold nor does the trainer affiliate with any vendors – your Realtor Colleagues who have taken this training are producing results; shouldn’t you?

Location: Comfort Inn BWI Airport
6921 Baltimore-Annap. Blvd. , Baltimore, MD, US, 21225 – Phone: (410) 789-9100 – Map it

Date: Friday, July 23rd, 2010 – 9:30am (please start arriving at 9am)

Duration: 6 hours – ample breaks will be offered.

Cost: $59 (please make checks payable to: Key Yessaad) – REGISTER

My Commitment: To un-shackle you from the fear of the internet and show you what your Buyers, Sellers and Google want… (Don’t we all want to make Google happy!!!) I will also give you a methodical plan of action to get you going or tweak what you are currently doing…

Course Description: (please read what follows to understand the intention of the course.)

The Training goes beyond Internet and SEO Jargon and into a Successful Real Estate Internet Strategy

Do you plan to get a website? Do you have a website that’s stagnant? Do you feel overwhelmed with the whole endeavor? This is the Seminar for you… many of you have sluggish websites that are not producing any results… so what to do?

I designed this course to go beyond the mere discussion of need; to the design of a Real Estate Web Strategy that drives traffic and results. You will leave empowered and with a plan of action and a full-understanding of what is currently happening in the realm of Real Estate Websites.

I am Vendor-Agnostic and will share with you what works; I have designed hundreds of websites and they are all on Page 1 of Google; I will show you what to demand from your vendor and will help you make the right decision. It is not the Vendor that matters; it is your habits and discipline I am going to focus on…

This course was designed to enhance the ability of Real Estate Professionals to compete in an ever increasing spirited Internet Landscape…

This course used to be called: “I don’t have a Web Strategy – How do I get started?” It has now evolved to include all the major topics of Real Estate Internet Strategies. Bring your assistant, your web guru, your cousin Vinnie who dabbles in websites – they will learn how to help you focus on the most important part about having a Real Estate website. Realtor Websites are of a different nature than regular ones – I will explain all this in the class…

Course Description: (please read what follows to understand the intention of the course.)
Real Estate Web Strategy Training

I will cover the following topics in this in-depth Workshop:

1. What is Internet Marketing? and how does “Extreme Niche Marketing” help me grow my business?

2. Should you get a Real Estate website? And why? worst where?

3. What is a Real Estate Website? (Seems like and easy question – I will challenge you on what you think you know!!!)

4. How do you select the best Web Services? What are the important tools of a Real Estate Website?

5. Domain Names: How do I get one? Where and How much?
Should I get more than one? And why? How do I hook them up together?

6. How do I get started?
Will I be able to understand the Web jargon? (Let me give you the answer: Yes)

7. How expensive is it going to be? (I will show you how to get started for FREE!)

8. How much work will I have to put in? Is it worth the effort? And how often?

9. What is IDX? And do I need it? Shouldn’t I just use my MLS IDX? And what is Sticky IDX? How about Boomtown?

10. How about Blogging? Is it important? Where should I go?

11. How can my Assistant help me grow my website?

12. Bring all the Questions you ever wanted to ask about the Real Estate Websites, Search Engines, Google, SEO, Internet Marketing, etc… YOU MUST UNDERSTAND THESE IDEAS!

I will have plenty of time for all your questions… – REGISTER

“If you go to work on your goals, your goals will go to work on you. If you go to work on your plan, your plan will go to work on you. Whatever good things we build end up building us.” – Jim Rohn

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3909 WAKEFIELD LANE, Whitehall Neighborhood BOWIE MD 20715

June 1st, 2010 specialed Posted in Maryland, Maryland Homes for Sale 1 Comment »


Beautifully renovated Bowie 4-bedroom 2bath Cape Cod. In the Whitehall neighborhood of Bowie Maryland. Featuring a contemporary remodeled kitchen,2-car garage, family Room, Three season sunroom,large fenced back yard. Living room, dining area. Many more upgrades. List Price $289,900

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Treasury hopes new rules send short sales to the rescue of underwater mortgages

March 14th, 2010 admin Posted in $8000 Tax Credit, Consumer News, Economic Stimulus, FHA, Finances, Financing Options, First Time Home Buyers Tax Credit, First-time Homebuyer, First-time homebuyers, Foreclosure, Foreclosure task force, Local Real Estate News, Maryland, Real Estate Report, Realtor, Short Sale, Social Media, The American Recovery and Reinvestment Act of 2009, bank foreclosures, buyers, first time home buyers, government bailout, home values, housing market, real estate, real estate information, real estate news, sellers, the Future of Real Estate 4 Comments »

This Article appeared in the Washington Post on March 13th, 2010

Treasury hopes new rules send short sales to the rescue of underwater mortgages

By Tracey L. Longo
Special to The Washington Post
Saturday, March 13, 2010; E01
With new Treasury Department rules designed to expedite short sales set to take effect April 5, relief can’t come soon enough for some area buyers, sellers and real estate agents who have waded through a long and arduous process to get short sales approved by the bank.
In a short sale, a homeowner sells the property for its current market value, which is less than what’s owed on the mortgage, and the lender agrees to accept the lower amount. The new rules that offer participating lenders cash incentives to get them to approve more short-sale deals also allow them only 10 days to approve or reject short-sale purchase offers, said Treasury spokeswoman Meg Reilly.
Incentive payments written into the Home Affordable Foreclosure Alternatives Program are designed to help offset some of the financial pain that banks experience when they agree to settle for less than they are owed on a home loan. Mortgage servicers (the companies that accept and process homeowners’ mortgage payments) may receive up to $1,000 for the successful completion of a short sale. Treasury will also pay up to $1,000 to those holding second liens and home equity loans, if they agree to the deal. While junior lien holders have begun to ask for more compensation, the rules now limit incentives to $3,000.
To help speed up short sales, the program calls for lenders to use standardized paperwork and to establish an acceptable sale price before the home is put on the market. Sellers will be allowed at least 120 days to market the home and possibly as long as one year. During that time, the lender cannot foreclose. At closing, the government will give sellers up to $1,500 to cover relocation expenses.
Banks participating in the program have also agreed not to negotiate reductions in real estate agents’ sales commissions after they receive a short-sale contract. Such commission reductions have discouraged some agents from listing and showing short sales, according to the National Association of Realtors.
According to the Treasury rules, a participating loan servicer must offer the short-sale program to a borrower who does not qualify for, or did not succeed at, a loan-modification under the administration’s home affordable mortgage program.
Nationally, 38 percent of all sales in January were distressed sales, which include short sales and foreclosures. In the Washington area, short sales accounted for 6 percent of all sales in Maryland and 8 percent in Virginia during the last four months of 2009. That number is expected to rise significantly in the next several months, according to NAR. Agents have not yet reported short-sale activity in the District.
Some who have worked with short sales, however, are skeptical that the new rules can compress the approval process into 10 days.
“I’ve done five short sales in the past year and, frankly, I don’t want to do another one,” says Cyndy Davis, president of Flaherty Group Realty in Kensington. Her most recent short sale, which required a sign-off from Bank of America, took 10 months.
“I contacted the bank at least every other day, and it still took them 90 days to respond to our first offer on a Silver Spring townhouse,” Davis said. “They took from June until August. Then when we ordered the appraisal, it came in $33,000 below my buyer’s offer. When we resubmitted the new offer, it took the bank another 45 days to respond.”
Mortgage servicers take 90 to 120 days on average to approve short sales, according to NAR.
Juwana Bauwens, a spokeswoman for Bank of America, acknowledged that the process did take that long.
“When the buyer lowered the offer, we had to almost start the process all over again,” Bauwens said. “Short sales are a very complicated process, and at times we have to get approval from the bank and the investor on the loan and the second lien holder. We are working on ways to improve technology and resources so we can get an approval in the hands of Realtors as quickly as possible.”
Sometimes buyers are willing to wait on what they believe is a good deal. Sometimes they walk away. Davis’s client, two aid workers currently stationed in Kenya, didn’t mind the 10 months it took to purchase the property. They bought the Silver Spring townhouse for $214,000. It originally sold for $380,000 in 2005 and had been on the market for 285 days.
Writing down loans is a tough business. Short sales involving home-equity lines and second liens often require the junior lien holders to write off the loans altogether. But when lenders hold on to offers, hoping that a better one will be presented, they risk not only losing the buyers, but that real estate prices will fall.
“We see this all the time,” Davis said. “Banks stop communicating as they wait for better offers. Then months go by.”
When an offer is finally accepted, if a home doesn’t appraise at the buyer’s first offer price, they lower their offer. That’s what Davis’s buyers did — lowering the offer on the townhouse by $33,000 after it didn’t appraise.
To avoid such long delays, the new Treasury rules requires banks to establish fair market-value prices on homes at the front end of the short-sale approval process, instead of waiting until after offers start rolling in. They can modify that price if a real estate agent is willing to sign an affidavit stating that the new price reflects its market value.
“I think if lenders can make it work, it could be amazing. But the issue we see time and again is a hold up getting banks’ approvals,” said Guled Kassim, who works on more than 40 closings a month as a settlement officer with Atlantic Title & Escrow in Bethesda.
“Banks have to be convinced that the sales price is market value and that a reduced payoff amount is better than foreclosure,” added Kassim, who bought a distressed property using Flaherty Group last year. “Essentially, you’re asking lenders to take a bath. It’s not a business model most companies have set up. They are very doubtful about pricing, which is why I think the 10-day timeline may be wishful.”
Pilot program launches
To quicken the pace of its own short sales, Bank of America has launched a pilot program for customers and real estate agents to help them through the process.
“If an offer is received, we will be in a position to approve the sale within two weeks,” Bauwens said. “This program is currently in a limited pilot stage, and we hope to expand it soon.”
The bank has also deployed a password-protected Internet portal that agents, sellers and bank employees can use to track short sales in real time, communicate and exchange documents, Bauwens said.
“We hope the new rules revolutionize the short-sale situation,” said Jeff Lischer, managing director of regulatory policy at NAR. “It has the potential — by setting deadlines, identifying property values upfront and providing standardized forms.”

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Teachers, Firemen, EMT or Police Officers can Save 50% on new home!

February 18th, 2010 specialed Posted in FHA, Finances, Financing Options, First-time Homebuyer, Future of Real Estate, Maryland, bank foreclosures, buyers, first time home buyers, home values 3 Comments »

Keys to your Home

Are you a teacher, fireman, EMT or police officer looking to purchase a new home?

If so, you can qualify for HUD’s Good Neighbor Next Door program and save 50% on the purchase of your home!.
WHAT IS THE GOOD NEIGHBOR NEXT DOOR PROGRAM?
• The Good Neighbor program is specially designed to help full-time firemen,
EMTs, police officers and teachers (pre-K- 12th grade) purchase affordable
homes in their community
• HUD will offer a 50% discount off of the purchase price of the home
• Home financing is available through FHA
HOW DOES THE PROGRAM WORK?
• The subject property must be located in a HUD revitalization area and be
listed for sale through the Good Neighbor Next Door program.
• The homebuyer can not have owned a home for a period of not less than
one year prior to submitting an offer
• The homebuyer must commit to living in the home as their primary residence
for three years
• HUD will subsidize the sales price of the home by 50% through a “silent”
second mortgage, which requires no payments or interest (provided the
homeowners fulfills the three year occupancy requirement)
• At the end of the three year period, the second mortgage is forgiven and the
homeowner keeps all equity in the home

Call Ed @240-375-2871 if you would like more information

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