Shortsales, Foreclosures, Deed-in-Lieu, Loan Modifications, HAMP, HARP, and a host of others industry terms have only recently become common vocabulary. Many of these terms have been around a long time, however they have become much more common because of current market conditions. The Real Estate Market of the last couple of years has been particularly volatile. Because of this, it is increasingly more difficult for home sellers and buyers to know all of their options and to choose the right one for their particular situation.
Because of the number of variables and volatile market conditions (which can vary drastically from state to state, city to city, and even neighborhood to neighborhood) it is imperative that consumers seek the advice of Real Estate Professionals who have current, recent, and relevant experience!
Ask your real estate professional how many transactions they have been involved in in the past 12, 6, 3 months! Most likely, conditions in your market have changed alot during that period and if your agent has not been active, you may want to seek another opinion from a more qualified professional. Also, consider the importance of dealing with an agent experienced in the type of property you are interested in. Just because an agent has sold some condos doesn't necessarily mean that they know what the single family market is doing.
It is more important now than ever to seek the advice of experienced and qualified professionals when making such an important decision as required in a real estate transaction.
Experience REALLY Counts in This Market!
You can go to any bank or mortgage p and apply for a loan but did you know that in many cases they are not lending you their own money? Most of the money for home loans comes from three major institutions:
There are mortgage Originating Companies and Mortgage Servicing Companies.
Here's how it works:
Originators collect the required documentation, perform the processing and underwriting and eventually you own the house. You might be making payments to the company who originated your loan, or your loan might have been transferred to another institution.
The company you make your payments to very rarely owns your loan. They are the "servicer" of your mortgage. They are called the servicer because they are simply "servicing" your loan for the institution that does own it.
The mortgage lenders frequently package loans into a "pool" with a lot of other loans and will sell these pools to one of the three institutions listed above. The servicer of your loan gets a monthly fee from the investor for processing payments and taking care of your loan. This fee is usually only about 3/8ths of a percent but these companies service hundreds of thousands of loans and make their profit in volume.
Mortgage servicing is frequently where lenders make the real money. The entire system of originating mortgages, including wholesale lenders and mortgage brokers is designed so that servicers get loans into their portfolio -- hopefully at a "break even" level -- but often at a loss. Mortgage servicing is where they make their profit.
Once your loan has been packaged into a pool and sold to Fannie Mae, Freddie Mac, or Ginnie Mae, the lender gets additional funds so they can make more loans (to service in their portfolio) and sell to those institutions, so they can get more money, and so on...
This is the cycle that allows institutions to lend you money.
www.BuyandSellinIdaho.com www.MyBoiseHomeLoans.com
This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the Boise home loan and Boise real estate markets. These are my opinions and should not be regarded as factual data.
I take pride in my profession and am a full-time real estate professional. Unlike many agents, you can ALWAYS reach me! For a full service expert on Boise Property and Eagle Idaho Homes call me!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
