Jose Santos

Rehab??? That's right. I am looking into a program offered by the department of Housing and Urban Development (HUD), also known as the 203k mortgage. Here is a quick description of the program as posted on the HUD website:

203(k)

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan. (http://www.hud.gov/)

We know the market is tough, no doubt about it, but what do we do when the going gets tough?... The tough get going. This program opens up new doors to clients that have traditionally not been able to purchase a certain home because it would cost too much money to repair. Money that would have been coming out of their pocket, money they did not have. With the 203(k) program all those worries go away because homebuyers have the opportunity to rehab the property and make it into their dream home and since the 203(k) mortgage is covered under FHA guidelines, the client will get a great deal.

We all know that the first step in rehab is realizing that there is a problem- The economy.

Casa Latino A.T. is adapting this opportunity to help future homeowners overcome yet another obstacle.

Once you realize what you are up against, you can help yourself by looking for solutions. Rehab may not be for everyone, but it sure helps.

www.CasaLatinoAT.com

The million dollar question right?

This market is truly a nasty storm that nobody saw or predicted was going to be of this magnitude. You hear a lot of seasoned agents saying they knew this was going to happen etc, etc, if that was the case then why did so many lenders close? Why did so many Realtors leave the industry? Did they want to go into forced retirement early? I doubt it.

On a positive note, we must act like a successful business. What does a business do if there not making a profit? They change the way they are doing business and that is what we should do. Here are some suggestions:

· Make sure you outline your outgoing debt or liabilities so that you know what you have to produce to stay in business.

· Design a business plan on how to generate new business.

· Ask yourself if your Boss is offering you any of the tools needed to generate business.

· Set yourself up with a "Power Team" you need a good Loan Officer or Realtor, FHA Expert and a CPA because this will allow you to reach out to a larger data base, this way you can implement presentations and direct mailing.

· Educate yourself as to what is happening in the industry and find a solution because finding a solution is the key to generating more new business.

· Know and understand your tools, for example; people are losing their homes, prices are dropping.. What can you do? The solution... find buyers and put them in an FHA products to buy homes at near rock bottom prices!

Take the time to really think this out and execute with consistency. I guarantee you, that you will begin to see results. The reality is that we now have to change the way we do business because the market has changed. There is always opportunity in every situation, you just have to think outside the box.

I leave you with a quote from Rocky Balboa.. "Life will bring you to your knees and keep you there. Permanently. If you let it. It's not about how hard you hit. It's about how hard you can get hit and keep moving FORWARD. If you know what you're worth, go out and get it. But you have to be willing to take the hit." Live by that and you will get the boost you need to make it.

Casa Latino is the First National Real Estate Franchise dedicated to serve the Latino Community. According to the 2009 Swanepoel Trends Report, Casa Latino is ranked as the #7 trendsetter as a minority owned company having great impact on the Real Estate Industry. For more information on how you can become a business owner please contact us or visit www.CasaLatinoAT.com. We are also always looking for Ethical Real Estate Agents who want to grow in a down market.

For Career Opportunities and Future Partnerships Contact Casa Latino A.T. Today!

www.CasaLatinoAT.com