Ok, so I recently received my CMPS designation and part of the course, the instructor suggested a great way to help all these buyers that currently have good credit, good jobs, but maybe had to go through a short sale and still want to buy. Current guidelines say if you had a short sale or foreclosure and want to purchase a home through FHA, you have to wait a full 3 years. Its 7 years if you want to go conventional. (depends on the amount down too, could be less if you put more down). If you had a BK 7 they require a full 2 years from the date it was discharged / dismissed. So in the meantime, what we want to do is create an investor pool for these kinds of borrowers to come in and purchase a home for these future homeowners.
So lets break it down how this would work. If the borrower who had a short sale (we'll call her Sue) comes to me and we discover, she's excellent except for the fact she has to wait a few years to buy, then I partner her up with an investor that will help! The investor (we'll call her Jane) will let Sue go out and find a home that is worth below market value (which is key) along with the help of a trusted realtor. Jane then buys the home for Sue using a traditional non-owner occupied loan. That means that Jane only has to put 20% down on traditional lending or 10% down on HomePath homes. Sue would be required to put 5% down and give to Jane as a non-refundable cost.
At the same time that Jane buys the home for Sue, we also work out with the help of an experienced real estate attorney the details of the lease back as well as the future purchase and future purchase price. This future purchase price will also be adjusted so that the new purchase price will be beneficial for both Jane and Sue. That is where the idea of buying below market value comes in because without that part, it may not be as beneficial to either party. We are also careful not to violate any due on sale clause and make sure that the lender is aware of all contracts that co-inside with the purchase.
Sue agrees that she will rent the home back from Jane until the time comes when she is approved to purchase the home herself. The 5% non refundable down payment that Sue put down originally will go towards her purchase of the home when the time comes to buy it back from Jane.
The benefit for Sue is that she is able to buy a below market home that will be worth more in the future even after she pays off Jane. Sue gets to pick the home and can find one she really likes rather than pick from the few that offer seller financing.
The benefit for Jane is that she only has 15% into the investment and holds it there for max 2 years. Her mortgage on the property is paid for by Sue for the entire length of time, she can take the write off of the rental property and she makes more money on the sale!
Of course there will be other issues that could arise and each deal will be different but the concept I think could work and we have already a few clients that are very interested! I'm working on taking this to my local Metrolina REIA group that is filled with hungry investors.
Have you gone through this or worked with a client to help make this happen? Please tell me your experiences! I would love to hear your feed back.
Thanks!
I am pleased to announce that I recently became a Certified Mortgage Planning Specialist (CMPS®). Less than 2% of mortgage bankers and brokers hold this designation.
You can be assured that as a mortgage professional with CMPS, I have has met rigorous peer-developed and reviewed standards endorsed by a national professional body. Recognized for its preeminence within the industry, the CMPS curriculum represents the core knowledge expected of residential mortgage advisors, regardless of the diversity of specializations within the industry.
The CMPS curriculum incorporates the five essential skill sets related to integrating a client’s mortgage, debt and home equity strategy into their overall financial plan:
The CMPS curriculum is approved nationwide for continuing education credit for Certified Financial Planners and Certified Public Accountants and is approved in several states for CE credit for loan originators.
You can learn more by visiting the CMPS Institute website at:
http://www.cmpsinstitute.org/public/financial_advisors
I look forward to discussing this exciting information with you and answer any questions you may have about my new designation.
Kelly Waugh, CMPS, CMC
Ok, so this week I was able to get quite a bit done. I still have some calls to make and a few more appointments but I'm going to buckle down this afternoon and wrap up the rest of my list before I leave for the weekend! Here is what I was able to get accomplished:
Hope I'm at keeping some of you motivated that it is possible to keep moving and pressing on even in a tough market. If you have more time than clients, then we need to just buckle down and find new business! Stay focused and positive and it will come :-)
Have a great weekend
KW
Happy Friday everyone! Although most agents work well into the weekend and often couldn't tell you what 
day it is since they are 24/7, I think its always positive to make sure you have balance in your life. I recently learned that the top reason for divorce with people in our industries are our work schedules.
So with that being said, I will be taking off next weekend from Thursday through Sunday for a short trip to Florida! Believe it or not, but I'm a Harley riding lady and my husband and I are taking our bikes down to Daytona Bike Week! We all need some time to release in whatever makes us happy! I have been riding for about 8 years now and absolutely love it! Riding in the Mountains of NC or to the beaches in Florida helps me unwind and spend quality time with my husband.
What is your passion? Is it being with your family, golfing, boating? whatever it is, make sure you take time and keep balance in your life. In your calendar, put your personal items in first and if they are important to you, don't let work push it around. Its much easier said than done and when that buyer comes to town at the last minute and you already had plans with your family to do something special, make sure you have your priorities in line with whats really important.
Make sure if you are doing short sales, you are aware of everything available to help get the process moving! One of my co-workers attended a short sale seminar at BofA in Charlotte, NC yesterday and here are the
cliff notes:
Short sales:
•· REOs and short sales are 6 times higher than they were a couple of years ago
•· BofA has 3000 employees in their short sale department now (although it's hard to tell that!)
•· Unless BofA owns AND services the loan, they have to go back to the investor(s) to negotiate terms on a short sale - due to CDOs, the investors could be pension funds, government entities, etc...not easy to do.
•· Wells Fargo actually holds more of its own loans than BofA does, so Wells is able to negotiate short sale terms easier and faster since they are the investor in most cases.
•· Low ball Offers to Purchase only clog the system
•· BofA tries to mitigate the losses to its investors (over 500 of them)
•· Suggestion to everyone doing a short sale - PULL TITLE UP FRONT because the seller may not be aware of all of the liens on the property
•· "Equator" is the task-driven "negotiator" system most everyone uses (it is based on the property address) - if required items aren't submitted to Equator in the allotted time frame (usually 14 days) it knocks the file out of the system and pushes it back to "start". The listing agent and the seller can access Equator for updates. The buyer's agent can only access if they have 3rd party authorization from the seller.
•· BofA requires 90 days MINIMUM on a short sale!!!! (Again, Wells is faster since most of their loans are portfolio).
•· H-UD-1 is required 72 hours prior to closing and NO CHANGES ARE ALLOWED!!!!
•· No relative or close friend can purchase a short sale!!
•· They are finally changing the order of things from needing an Offer to Purchase to start the ball rolling to having the distressed homeowner call upfront to start the ball rolling - 866-880-1232 for borrowers with Realtors to call:
•o BofA must first try HAMP (modification) - but most of these have/will fail due to unemployment
•o Then they must try HAFA (Home Affordable Foreclosure Alternatives) - but only a small percentage of loans are eligible for this (no jumbos, no FNMA or Freddie, etc)
•o Then they can put them in their BofA short sale program that takes all types of loans - BofA has delegated authority from their investors upfront to negotiate on these loans
•· The go-to man for any issues on BofA short sales is John Ciresi - e-mail ONLY at john.ciresi@bankofamerica.com
Hope this helps you and your clients get through some of the tougher short sales with BofA!
KW
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Specializing in FHA, Conventional, Jumbo, Super Jumbo lending. Kelly works diligently to make the process smooth, seamless and stress-free from start to finish.
At Fairway Independent Mortgage in Charlotte, we help Homeowners and Homebuyers succeed financially by teaching them how to:
Our branch exists to back up this purpose with the highest levels of service, shown by consistent, informative communication with clients and their advisors, along with accurate paperwork delivered with the best technology available. We make the mortgage process stress free for our clients. Our commitment is to close on time, under budget, with no surprises.
"Loan Officer" or Mortgage Planner? Why are so many people in trouble with their mortgages? Over the past several years, many people were looking for the wrong things when they were shopping for a mortgage. Consider the average American's checkbook register. Most likely the largest check written each month is the mortgage payment or rent check. For most homeowners, the largest asset they own is their home.
Other Loan Officers only get sales training to sell you a loan from their company. They don't get taught how to help a home buyer integrate their mortgage into the rest of financial world.
As Mortgage Planners, we recognize that if you manage your largest expense (Mortgage Payment), and strategically plan for how to use your large asset (Your House), you will most likely succeed financially.
Should you work with a Mortgage Planner? A Mortgage Planner is trained and understands how to integrate the loan program you select into your overall financial plans to help you increase your financial safety, enhance your net worth, and reach your financial goals. By working with a mortgage planning professional, you will gain confidence that the mortgage planning advice your are offered will help you reach your financial goals safer, faster and with greater clarity and understanding of the power of using your mortgage as a financial instrument.
Your mortgage, and your home equity are too important to trust to just anyone. Choose a specialist that is trained and understands how mortgages work and how using a mortgage properly can help you succeed.
Your Mortgage Strategy is the Key. When you decide to buy a home or refinance a mortgage, it's a big step. We are different from other lenders because, as Mortgage Planners, we focus on helping you discover a mortgage strategy that will enhance your net worth, increase your financial safety and give you the lowest overall cost of financing. This outlook on mortgage planning helps our clients achieve their financial goals. We will do the same for you. At Fairway Independent Mortgage, we have an exclusive framework that we construct with you to help you understand how to make your mortgage and your home equity work for you.
We don't stop at closing. In fact, we consider the loan application and approval process as our job interview. We want to be your mortgage planners, not just someone who got a loan for you. After closing, you will be updated regularly about how your mortgage is performing relative to the rates available in the marketplace, and, when rates drop, we'll call you before you even realize it. This way, you will always have the lowest cost of financing available to you. We also will want to have an in-depth discussion with you at least annually to ensure that your mortgage is always working for you. You work hard for your money - your money needs to work hard for you.
Kelly's clientele includes people with many different backgrounds. Her schedule is flexible to accommodate the demanding lives of people today. Kelly loves helping first-time buyers, easing their worries and fears, and helping them get a foot in the door to home ownership. She takes pride in her reputation as an honest, straightforward professional, and she knows that you need to hear the truth about your loan-not a lot of hype. With Kelly, your questions are listened to and you get straight answers.
Kelly's clients know that with her they get a Mortgage Advisor who generates more than business---Kelly generates results. That's why so many come back for her help again and again, and refer their friends and family to her. She not only strives to do the best for her clients, but also goes the extra mile to make sure they get the service they deserve.
Repeat business is solid evidence of doing things right. Many of Kelly's clients have been clients for a long time, and they return to her for all their loan needs. When all is said and done, you'll look back on your experience with Kelly knowing that she gave you the whole picture with none of the details left out.
Kelly (Byrnes) Waugh, has also passed the qualifying exams to earn the Certified Mortgage Coach (CMC) designation granted by the Mortgage Coach and the CMPS Institute. Mortgage Coach equips mortgage professionals with invaluable insights and patented reports to show borrowers how to create more wealth by integrating the mortgage decision into their financial plan.
Certified Mortgage Coach professionals are equipped with strategies, dialog structures, and presentation structures to make suitable mortgage recommendations that benefit homeowners and home buyers. "My focus is to help my mortgage clients better understand the mortgage and housing markets, and thereby choose the right mortgage for their specific needs," says (Name, Company).
All originators seem to be selling the same products with the same guidelines, and the industry is rife with confusion in light of new regulations and turbulent market conditions. Certified Mortgage Coach graduates are equipped to help their clients cut through the confusion and make informed financial decisions. "A mortgage professional who dedicates the time and effort to properly educate their clients is much more qualified, committed, and equipped to serve the complex needs of today's homeowners and buyers," says Gibran Nicholas, Chairman of the CMPS Institute.
Certified Mortgage Coach graduates are equipped with education, strategies and compelling presentations that are focused on better educating the consumer about their home loan options. The Certified Mortgage Coach curriculum helps mortgage bankers and brokers:
"The mortgage is most people's single largest debt, and their home is often their single largest asset," said Waugh. "As a Certified Mortgage Coach, I am committed to working for the best interest of my clients."
NMLS: 70328
Fairway Independent Mortgage Corp NMLS: 2289
Contact Kelly (Byrnes) Waugh TODAY to find out what makes a Certified Mortgage Coach different from the rest!
Check out Kelly B of Fairway NC Facebook page and become a fan today!
"I have worked with Kelly nearly two years in BNI and other business development settings. She is a trustworthy, dynamic, effective and a highly motivated business partner. She focuses on serving the needs of her clients. All this and her sense of humor makes partnering with Kelly both a pleasure and profitable. Go get 'em Kelly!" - Marlene Huneycutt
"I've had the pleasure of working with Kelly on many occasions and it's easy to say that she is on a different level when it comes to meeting her client's needs! She is the definition of a "go getter" and is on top of everything from start to finish throughout the loan process. Your mortgage is one of the biggest financial decisions you'll make and Kelly will make sure you understand exactly what you're getting into and what's best for your situation. Not only is Kelly extremely professional and knowledgeable, she's also fun to do business with which is hard to find these days! I strongly recommend speaking with Kelly when it comes time to buy/refi or make any decision regarding your mortgage." - Denny Fulk
"Kelly is a very outstanding business person, with strong communication skills and honesty. Kelly is a great asset to her company as well as a team player. Anyone who needs someone to be honest with them and help them with their mortgage situation, then Kelly would be the person to call." - Teresa Roberts
"I can't say enough about Kelly Byrnes. I have worked with Kelly on a personal loan and as a result have since recommended her to everyone of my clients. I most appreciate her ability to explain everything very clearly and to be able to identify the best program for each client. I trust her and know that she will treat my clients exactly as I would. Thanks, Kelly, for everything!!" - Connie Grader
"I have really liked Kelly every time she was involved with my office or one of my agents. a great valued resource and was always available, returned inquiry's promptly, and gave it her best efforts. Kelly is a great professional. Downtown Dan
"Kelly is a wonderful person to work with and has always been very attentive, professional and informative about the brokerage industry. I fully trust her and Platinum Funding to handle all of my future property buying needs. She has also been very helpful in referring other vendors in misc. areas associated with home buying needs. She seems to surround herself with top professionals in many different fields. It is easy to see why she has been so successful and will continue to be for many years to come." - Adrian Vermiere
"Having been in the mortgage profession for approximately 25 years, I have had the opportunity to observe others in the business. Kelly, without a doubt, is an exceptional mortgage professional, knowing how to best serve her clients. I certainly have no hesitancy in referring Kelly, and encourage others to do so as well." - Dick Granade
"It was my good fortune to have Kelly recommended to me when I purchased my home in North Carolina. She is extremely knowledgeable, experienced and professional. She made my original closing a very pleasant experience. When I refinanced in 2009, she went way above and beyond my expectations. I was laid off three days before our closing after Kelly had obtained a 4.375 rate. She brainstormed a solution to make it work. I would highly recommend Kelly to anyone looking for a mortgage broker!" - Barry General
"Kelly is a person who genuinely cares for her clients. She is an extremely hard worker who thinks out of the box. She would be an asset to anyone she is working for. I want to also share she is a generous person when it comes to supporting local events that raise money for worth-while non-profits." - Scott Donaghy
"Kelly is wonderful to work with. She is very creative and knows how to save her clients money. I have referred many clients buying real estate to Kelly and they are happy with the results she gets. She has more options available than your average loan officer. Use her for residential or commercial loans. John Stroup"
"Kelly walked me through the process of financing my first home purchase. She made sure that I understood each aspect and was comfortable with it. More importantly, she was able to provide me the lowest possible rate and mortgage that fit my needs. I would highly recommend Kelly to anyone for residential or commercial mortgage needs. She is an expert in her field." - Wendy Shanahan
"I absolutely endorse and recommend Kelly Byrnes as a thorough professional that is client oriented. Her emphasis and commitment to do what is right, while offering unique solutions makes me proud to refer business opportunities to her. It is a pleasure to hear, "Thank you!" when you recommend a trusted professional like Kelly." - Mike Waite
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