If you are an investor or have clients that are investors, please be advised on the changes from Freddie Mac and Fanny Mae regarding financing for investment properties.
As of a month ago or so, you can no longer finance a residential non-owner occupied property through a regular 15-30 year fixed rate mortgage if you have 4 or more properties already financed, including your own residence and any equity lines of credit! It used to be you couldn't finance more than 4 properties per given year, but now that has changed to 4 properties - TOTAL!
I found that out the hard way! I sold one of my investment properties and was getting ready to do a 1031 Exchange, just to find out that I didn't qualify for a mortgage due to having more than 4 properties financed at this time! I cannot begin to tell you how angry that made me!
You would think that the 700 billion dollars that the banks got for the bail-out, would allow the banks to approve more rather than less mortgages, especially to people with good credit, good payment history, good income and a record of running a profitable business for many years! Or maybe not! After all they need the money to pay for their CEO's Christmas bonus!
Nevertheless, make sure to keep this change in mind and advise your clients as well so they don't initiate any purchases without securing the funds and end up not getting the property and paying taxes on an uncomplete exchange! (Undeveloped land, commercial properties and residential multi-units 5+ are not effected by this change!) Also, you might still be able to secure financing through other sources such as personal loans, hard money loans, commercial loans etc.
I have a client in short sale with a 1st mortgage, a home-equity line of credit, and a third lien. As we've been working through the process of getting his home sold, I've had to help him keep up with whatever he can. I had to do some research and learn a few things myself so I can be there for him and help him find his way again! As I searched different areas, I found this interesting article that I thought would be good to share with you all. Have a great weekend.
by Attorney Stephen R. Elias
You may be able to stop paying some of your home loans without risking foreclosure. Here's how.
If you're like many homeowners, your home may be encumbered with a second or third mortgage (or deed of trust), and perhaps a home equity loan. You may be able to avoid foreclosure if you are having trouble making all your mortgage payments, by paying the right loan and either stoping payments or making reduced payments on the rest. In almost every case, your first mortgage or deed of trust is the right loan to keep current.
Although stopping payment of loans secured by your home is usually a last resort, if you can do so safely (that is, without risk of foreclosure), thereby leaving you with more money to pay the one or two lenders that could foreclose on your house, this strategy could keep you in your home. (To learn about other strategies to deal with the threat of foreclosure, see How to Avoid Foreclosure and How Bankruptcy Can Help With Foreclosure.)
Here's how it works.
Mortgages and Foreclosure: The Basics
When you originally took out the loan to buy your home, you agreed to have the loan (or loans) secured by a mortgage or deed of trust. This gives the lender a lien (legal claim) on the property. If you fail to comply with the payment terms of the loan, the lender can enforce its rights by foreclosing on your home. In foreclosure, the lender sells your home in order to recoup the money you owe under the mortgage.
The last couple of months I've had to work with a new short sale property and it has been an educating process to me. I've had to do a lot of reading and fast learning in the process.
I found out that in many states, lenders can sue homeowners even after the house is foreclosed on or sold, to recover for any remaining deficiency (the difference between the selling and owed amount).
In a "short sale" the homeowner gets permission from the lender to sell the house for an amount that will not cover the entire loan (the sale price falls "short" of the amount owed to the lender).
***A short sale is beneficial if you live in a state that allows lenders to sue for a deficiency -- but only if you get your lender to agree (in writing) to let you off the hook.
How will a short sale help? The main benefit of a short sale is that you get out from under your mortgage without liability for the deficiency. You also avoid having a foreclosure or a bankruptcy on your credit record. The general thinking is that your credit won't suffer as much as it would were you to let the foreclosure proceed or file for bankruptcy.
What are the drawbacks? You've got to have an offer from a buyer before you can find out whether or not the lender will go along with it. In a market where sales are hard to come by, this can be frustrating because you won't know in advance what the lender is willing to settle for. (this is a very frustrating experience - it's like what came first: the chiken or the egg?)
What if you have more than one loan? If you have a second or third mortgage (or home equity loan or line of credit), those lenders must also agree to the short sale. Unfortunately, this is often impossible since those lenders won't stand to gain anything from the short sale. (I found that out with my client's line of credit... still have not received an answer on accepting or not of the offers we got!
Beware of tax consequences. A short sale may generate an unwelcome surprise: Taxable income based on the amount the sale proceeds are short of what you owe (again, called the "deficiency"). The IRS treats forgiven debt as taxable income, subject to regular income tax. You will receive a 1099-MISC showing the deficiency amount as regular income which you will pay taxes on. The good news iare that there are some exceptions for the years 2007 to 2009.
-The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.
-There is no longer a need for the neutron bomb. We already have something that destroys people and leaves buildings intact. It's called a mortgage.
- If you think no one cares you're alive, miss a couple of house payments.
- This country is great. It's the only place where you can borrow money for a downpayment, get a 1st and 2nd
mortgage and call yourself a homeowner.
- Home is where the mortgage is.
- The house was more covered with mortgages than with paint.
- Housebroke--What you are after buying a house.
Funny but also sad to think how dependent we've become on other people's (bank's) money and how little most people know about it! I really wish that basic financial education including purchasing a home, a car, personal loans & credit cards would become part of high school education.
Did you know that one little word on your lease can cost you a fortune? If you say maintenance vs. damages, you end up collecting nothing form your tenant that just destroyed your property? I found that out the hard way! The judge said if it didn't specifically say: Tenant to pay for any and all damages, any maintenance issues, neglect, damgage to the property will go unaccounted for.
If you have rental property, do yourself a favor and take all your paperwork to a specialized attorney to review it and make sure if you had to ever enforce any item on your lease, you will be able to do so in front of a court judge. And as a backup, check your insurance to make sure it too will be on your side if needed.
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Your connection to real estate service in Clarksville, TN and Ft. Campbell, KY You will start with a Realtor and end with a Friend! If you need to buy, sell, rent, or invest - call me! I do it ALL!
Real Estate is my passion! It's what I love to do! ... and everyone knows if you do what you love, you do it right, and you do it well! I work with customers of all levels: buyers, sellers, investors! I enjoy spending time with them and helping them accomplish their real estate goals! I am a long time resident! I have lived in the Clarksville, Ft Campbell area for over 14 years and have acquired valuable knowledge about the area and its residents, as well as, the growth and development of Clarksville Real Estate.
Customer Service is my #1 priority! If you are looking to buy, sell or invest in Montgomery County, TN, Clarksville, TN or Ft. Campbell, KY areas, I'm at your service! Feel free to give me a call, e-mail me at melig@topproducer.com or visit my website at www.ClarksvilleTopProducer.com for additional information or up to date listings of these areas.
Selling or buying your home is one of the most important decisions you will make in your life. As Your Realtor, it is my job to guide you through this complicated process, from beginning to end. My goal is to get you maximum value with the least amount of headaches possible, and within YOUR time frame! Your satisfaction is my main goal! I treat every one of my customers if they were my only customer! Integrity! I believe very strongly in Integrity - in doing the right thing! Real Estate is a customer oriented business and as such, it is very much dependent on referral and return business. When we treat a customer right, it comes back to us, and when we treat a customer wrong, it still comes back to us. I believe in giving all customers full attention and service, listening to their needs and wants, helping them resolve all situations within my expertise and always going the extra mile for that special touch in every case!
I specialize in Listing and Selling Residential, Multi-family, and Investment Properties. I work with all levels of buyers and sellers, be that a first time home buyer with no experience in the real estate market and needing every piece of information they can get to make sure they make the right decision, ... , or be it an experienced buyer that has purchased a home before and is looking to upgrade to a bigger or luxury home, or an investor purchasing several properties per year needing to get the best deals and the best tax shelters for their investments.
I am e-PRO certified, I am a member of CAR (Clarksville Association of Realtors), TAR (Tennessee Association of Realtors), NAR (National Association of Realtors), REALTOR.org, Real Town, and a member and subscriber of the local MLS. Membership in these organizations helps provide me with educational material to improve my skills and also up to date information to pass on to my customers. Professional Results with a Personal Touch! Whatever your reason for being in the Real Estate market, if you are looking to purchase in Clarksville, TN, or anywhere in Montgomery County, TN, please, give me a call, e-mail me or visit my website at www.ClarksvilleTopProducer.com for additional information or up to date listings of these areas. I worked for many years as a marketing director for a big company and that experience, combined with my passion for Real Estate gives me the perfect balance to provide great service to both buyers and sellers. I have many years of experience in using all-media advertising, be it print advertising: newspapers, magazines, direct mailing campaigns, door to door farming and everything in between; internet based advertising: websites, e-mail campaings, internet lead capturing and such; local TV and radio advertising; and any other unusual and out of the box ads that do not fit in any of the above categories. How does that benefit YOU, my future client? If you are a Seller, I'm sure you get it! Your house will be listed and shown in anything and everything that is available for use, making it possible for many potential buyers to have fast and accurate information in hand. That in return will sell your house fast, for the most amount of money and in the least amount of time. If you are a Buyer, you will be able to access these listings in any media you wish to use for your research in finding the house of your dreams. You will also be able to communicate with me and receive additional information however it is easiest and most convenient to you: e-mail, telephone, or fax, web links, video clips, and more. Isn't that a wonderful service to the clients?! In today's lifestyle, we all crave information and we want it here and we want it now. Well, I will be able to provide that for you in the way, form and shape that you need it! I am e-PRO Certified! What does that mean? When you're on the Internet looking for a home, you don't have time to waste on endless searches for useful real estate information. You want to get things done quickly and without hassle. So chances are you'd like a real estate agent who: This is what an e-PRO is! It is a REALTOR that has gone thru many hours of training to complete a special program, endorsed by the National Association of Realtors that provides them with the knowledge and the right tools to do real estate online. e-PROs are more likely to have access to the latest Internet utilities, making your life easier. These tools may include: The result: you get more information, more easily. With electronic files, you have less paperwork to deal with. And since I use mainly e-mail, you can even eleminate phone tag. As an e-Pro, I streamline your entire transaction, from showings to closing.
Clarksville-Montgomery County is a growing community located in Middle Tennessee, directly off of I-24, approximately 40 miles northwest of Nashville and approximately 250 miles from the population center of the United States. We are within a day's drive from 76% of major U.S. cities. The Nashville International Airport is approximately 45 minutes from Clarksville. Serving an average of 23,300 passengers daily with 424 arrivals and departures, the airport provides nonstop or direct service to 84 cities.
As the fifth-largest city and the third fastest growing county in Tennessee, 
Clarksville-Montgomery County, TN is experiencing tremendous growth. New schools, a new hospital, and new residential developments are exciting current events in this area. Montgomery County has profited from communication and mechanical technology with a growth in population and industrial expansion. No longer dependent upon an agriculture base, the county has become an important transport, industrial, retail, and professional center with numerous recreational facilities. Today, Clarksville, county seat of Montgomery County, is Tennessee's fifth largest, and third fastest growing city, behind only Nashville and Memphis.
And, even though new developments are taking place, 
Clarksville-Montgomery County still maintains that closely knitt community feel that is steeped in history and heritage. Visitors and residents alike can experience history and tradition through area attractions, unique architecture, and a variety of festivals and entertainment events that take place year round.
Clarksville has a mild climate with 4 distinct seasons. This great climate and the low cost of living are only a few of the reasons why over 100,000 residents call Clarksville-Montgomery County home. Whether you're planning a visit for an event, building a business, or relocating your home, Clarksville-Montgomery County is an excellent choice!
For more news in and around Clarksville visit any of the following websites: Tennessee Encyclopedia of History and Culture.
Clarksville offers 25 parks and five community centers for recreational opportunities. The city also provides seven community pools and several recreational sports leagues. Special Programs and events are coordinated during the year for all ages. The Summer Program is just one of the programs offered by the department. A six-week program that provides safe and entertaining recreational activities for all ages 6-16, the Summer Program is free and is hosted at 13 sites around the area. Water sports are abundant in Clarksville and Montgomery County. Whether you enjoy water skiing, jet skiing, fishing or just cruising the river, the area offers a beautiful setting for fun in the sun. The area's Cumberland River was named one of the top catfishing spots in the U.S. by Field & Stream.
One of the key factors in Clarksville's growth is the relationship it has with adjoining Fort Campbell, Kentucky, home of the 101st Airborne Division (Air Assault). The 101st Airborne Division is one of the most powerful and prestigious divisions, having made a name for itself during World War II as the Screaming Eagles in Bastogne, Market Garden, Holland. Today, the highly trained soldiers of the 101st are the world's only Air Assualt Division. The 101st participates in peacekeeping and humanitarian missions at home and abroad. Over 30,000 soldiers and 55,000 family members call Fort Campbell home. The installation manages the records of some 4,000 civilians, with approximately $2.5 billion per year, making it the largest employer in both Tennessee and Kentucky.
Clarksville has a wide base of recreational venues that satisfy many sports enthusiasts' needs. Heritage Park, one of the state's top soccer sites, has eight fields and is host to several statewide and regional soccer tournaments. The complex is the site for recreational league play, as well as a number of area tournaments.
Clarksville is home to Austin Peay State University, one of Tennessee's 
outstanding public universities. With its beautiful, park-like campus, APSU is adjacent to Clarksville's central business district. Founded in 1927 and named for native son Gov. Austin Peay, APSU is a progressive university, offering high-quality undergraduate, graduate, and pre-professional programs.
APSU offers:
Constructed in 2002, the 180,000-square-foot Sundquist Science Complex is one of the South's premier science education facilities. With more than 40 "smart" classrooms, state-of-the art labs and wireless Internet access. It also features a zoological museum, herbarium, interactive TV classroom and the Robert F. Sears Memorial Planetarium . With a price tag in excess of $38 million, it represents the largest capital appropriation ever in Tennessee for a single classroom building.
Dear Mrs. G,
Thank you so much for taking care of me and helping me with the house. I know it wasn't easy to make this happen with me being in Iraq, but you did it! It took some time and I almost gave up on it, but you gave me hope and kept my faith. You've done right by me Ma'am. If any of the soldiers here needs any help with buying a house, I will make sure they call you, cause I know you'll take good care of them. Thanks again for all you've done for me!
MSG Dion D.
Battalion Operations Seargeant
129th Combat Sustainment Support Battalion (CSSB)
Iraq
Start with a Realtor, and end with a Friend!
Hey Ms G,
I just wanted to say thank you so much for taking care of me while over here. I really do appreciate the hundreds of e-mails and many, many pictures you sent till we got the right house. I felt like I had another mother looking after me. You made sure I got all that I needed done and answered all my questions, even the not so smart ones. When I get back to the States, my first visit will be to come see you at the office and thank you in person for all your hard work! (and thanks for reminding me about my first payment. we lose truck of time here)
SGT D. Reiley
HHC 3rd BD
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