BUYER BEWARE!!

Do NOT get sucked into their sales pitch!!!!

Reply! Real Estate sounds GREAT, but they do NOT produce. Over the last 3 months I have been charged $339.80 for NO ACTIVE LEAD. Please read below if you want details...

Reply! Real Estate found my contact info on Active Rain, called, promised me the world with no monthly fees, blah, blah, blah... I joined (of course), but quickly found out their "leads" are pathetic. Since joining in August '09, I have received 10 leads. 5 of those leads were bogus. 5 of those leads were "working" e-mail accounts, but I never actually had ANY correspondence with the potential buyer/seller.

(Drumroll Please...)

And The Best Lead Award Goes To...

A seller lead for a home that is currently on the market AND listed with an Agent!! Since I can't contact the "seller" about listing their home, I sent Reply! the address, contact info. and MLS number. All that I asked for was my $54.95 per lead back. What did I get??

"We are certainly able to guarantee a prospect's contact information as well as their initial request for the aid of a realtor. Unfortunately, we do not issue credit/replacements based on circumstances outside our
credit policy."

$54.95 down the drain...

Another thing that irks me... I printed out a copy of my credit card statement and didn't understand a few of the charges. I e-mailed Reply! and asked them to explain each charge, and I haven't heard from them yet. That was 3 weeks ago...

In Reply!'s defense, they do tell me that it generally takes 6 months to produce one viable prospect/closing. In my defense, I don't have the money to waste each month for a "potential" prospect.

I hope this helps a few of you that are on the fence!!

Over the past two years the face of the mortgage industry has changed much like the Picture of Dorian Gray. A swarm of regulation proposals that is still buzzing today has affected lenders, appraisers, real estate agents and customers. With more regulations to come it will only be harder for customers to get a mortgage. More verification, more paperwork, more compliance can only equal one thing to the consumer: Higher Cost. I heard a good summation of what the government and regulatory agencies are telling the banks-

One one hand you have Washington saying, "Lend More Money!" then on the other hand you have the regulatory agencies saying, "Don't make that loan!" Now, in mid sentence, the guys from Washington sign legislation to create another regulatory agency that will only further hamper bank lending. This is a perfect example of how actions are louder than words.

Let's take the residential lending market into consideration. During the Clinton administration Barney Frank and Andrew Cuomo were at the forefront of LOOSENING the lending standards which enabled lesser qualified individuals obtain home loans. Many of those same individuals have contributed to the rising foreclosure crisis. Now both Frank and Cuomo are on the forefront of TIGHTENING regulation to restrict lending but take none of the blame for contributing to the mortgage meltdown.

To me it seems like a tug of war where each entity has one hand on each side of the rope. The rope is made up of all the real estate professionals and the consumer and we are being stretched thin. Which side will win or will it just be pulled apart?

Avoiding HUD Home Headaches:

Tips On Buying HUD Foreclosures!

Bidding & Buying HUD homes-it seems to be the hot ticket in town.

However - Remember these key points to avoid problems and advise buyers:

• Only primary residence buyers allowed in the first round of bidding.
• Advise buyer that if home is being offered as eligible for FHA financing it:
• Has an existing FHA appraisal that must be used (unless expired) AND
• The sales price has usually been based on the existing appraised value. Bidding above the sales price may result in them paying the difference out-of-pocket between their bid and appraised value.
• HUD does not automatically provide title insurance. Explain this to your buyer and make sure that the lender has disclosed this additional expense to them if they want to purchase it to avoid surprises at closing. Only if HUD has agreed to pay closing costs, could the insurance be provided at HUD's expense.
• If HUD is offering a repair escrow, explain to buyers that this amount can be ADDED to their FHA loan, but HUD doesn't pay for it.
• Lender documents must be to the title company up to 10 days prior to closing date in some states. Make sure the buyer's lender understands and can accommodate the requirement.
• HUD signs closing packages first. Then once the loan proceeds and the title company receives buyer down payment and closing costs, the buyer is allowed to sign. Make sure that the lender is aware and has the ability to fund the loan BEFORE they have a completed loan package.
• Closing delays are common due to "title clearing" issues. Foreclosed homes can have several liens due to utilities, taxes; etc that must be dealt with before closing can take place. Prepare the buyer in the beginning and discuss potential challenges, such as rescheduling of moving trucks, and possible rate lock extension fees.

Buyers will appreciate your proactive approach to making their dream come true!

Advertising Rules (Reg Z) for Real Estate Agents & Builders

The updated Truth-In-Lending Rules apply if you quote down payments, payments, interest rates or points. But wait, there's more! These rules apply to all forms of advertising, including email blasts, flyers that you pass out at apartment buildings, TV & radio, and direct mail! They apply to all dwelling-secured loans: single-family, condos, town homes, mobile homes, etc.

Existing Advertising Disclosure Rules

If your ad contains any financing info...

•§ Dollar amount or % of down payment

•§ Number of payments or number of years to repay the loan

•§ Dollar amount of any payment

•§ An interest rate or a finance charge

...then you must disclose the following:

•§ The terms of repayment over the entire life of the loan, including ARMs, Balloon payments or temporary buy downs

•§ Dollar amount or % of down payment

•§ The Annual Percentage Rate

Updated Rate & Payment Rules In Addition to Existing Rules

Effective 10-1-09, more disclosure must be included in addition to the existing rules above:

•§ If fixed interest rate over the life of the loan, the rate and APR must be printed in the same size letters

•§ If advertising a payment, you must include

•o Fact that the payment does not include taxes, mortgage or homeowners insurance

•§ If rate or payment is NOT fixed, (Buydown, ARM or Balloon)

•o Each rate or payment & time period changes for entire term of the loan

•o If ARM, future rate must be disclosed by adding index plus margin

Size of Lettering & Placement of Disclosure - Printed Ads

•§ APR Rate and loan term details must be printed in the same size letters (or larger) than the rate or payment being advertised

•§ Must be printed in "close proximity to info being advertised (not buried way down at the bottom or the ad)

•§ Cannot be obscured in any way (i.e., shading, coloration, etc)

TV, Radio, Video & All Oral Disclosures

Must include all the information above PLUS:

•§ Must be clearly stated (no talking fast or low tone of voice); or

•§ Must provide a toll free number that may be used to call for additional info

For information only - it's not comprehensive or intended as legal advice. Final Rule published in Federal Register Vol. 73, No. 147 and 12 CFR, Part 226

Sell An REO by December 31, 2009-Get Home Steps ^TM Promo For Your Buyers!

November 2009

So what is it?

• Freddie Mac HomeSteps will pay up to 3.5% of home sales price toward Buyer's Closing Cost
• 2 year HomeProtect Home Warranty
• Up to 30% discount on new Appliances

RULES

•· Owner-occupied, primary residence homes, sales price greater than $25,000

•· Valid with offers on or before December 31, 2009

•· Must close on or before February 26, 2010

•· Closing cost offer good for financed homes, cash sales are offered a 1% Buyer's Closing Cost credit

What does it all mean to you?

•· Register as a Selling Agent Select member and be listed on the website in the agent directory and receive the latest promotional material from Freddie as well as weekly e-mail lists of HomeSteps homes for sale. Register here -- http://www.homesteps.com/rl01_sell_agentselect.htm

•· Great opportunity for your clients - Save $$$ and Peace-of-Mind

•· Remember! The coupon must be presented with the initial offer. Home Buyer can fill out coupon here -- http://www.homesteps.com/smart_buy.htm#form