Randall Schrader

Everywhere is going to be better for some. Unfortunately, if unemployment continues to rise, it will force more foreclosures. No job, no mortgage payment, right? If foreclosures continue, the pressure on home values has to continue downward.

I am optimistic, but logical too. I think there are patches of good sprinkled everywhere and I'm focusing on those patches. Will things bounce back in 2009? I sure hope so, but I also believe it will be the tail end of 2009 not any time soon.

Obama is correct to look to create jobs, but his first two ideas don't seem like they will yield many jobs. His first idea is to help kids go to college. How does that create jobs? Secondly, put medical records on-line. Not many jobs here either. Public works jobs make sense, but we have plenty of public workers already.

Should we stimulate the entrepreneurs to create jobs?

FHA has no problem insuring single wide manufactured homes. The problem is that the FHA lenders, as of the writing of this blog, will not touch them. Even with the FHA insurance, the lenders won't touch them. Very few non-FHA lenders will touch them either. My list of single wide lenders is down to about 4 now!

My best guess is that historically, people that purchase single wides are less well off and more suseptible to financial peril the the rest of the home buyers. Secondly, the single wide manufactured homes probably depreciate more than block homes and double wides. This makes it easier for the borrower to get "up-side-down" and more apt to walk away from a bad investment. Finally, if a lender is taking back, through foreclosure, a vastly higher percentage of single wides, it is simple math.

If a buyer can put a good chunk down, to protect the lender from depreciation and to give the borrower "something to lose," there are some ways out. Right now, in Florida, we need at least 20% down. And I cannot help people in other states, sorry.

Double wides? All day long! They are easy to go FHA with a 3.5% down payment and some closing costs.

I just heard a touching story of a recently widowed lady who was left with next to nothing. A home paid in full and a pile of bills and funeral expenses. Since she intended to live in the home from here on, the answer was simple. She applied for a home equity - reverse mortgage.

She caught everything up and had access to more of the equity in her home if she ever needed it. Talk about piece of mind!

The great thing is that, unlike the typical mortgage, the qualification process is a walk in the park. The credit score and income are irrelevant because the senior doesn't repay the loan. The loan is repaid after the senior leaves the home. No payments are ever made until then!

If you need a reverse mortgage in Florida or Georgia, call Randall at 863-604-0169

With rates down and lenders borrowing cheaper than ever, NOW is a great time to look into refinancing your mortgage. I am working with a lot of clients that have unbelievable potential savings.

You owe it to yourself to see what your new payment would be and what it will cost to get there. You need to factor in how long you intend to live in your home too. If you save $200/month, but think you will be moving in two years, you will save $4,800. If the cost to refinance is higher, it may make more sense to stay put. Don't forget to factor in any tax consequences.

While you are at it, re-evaluate your home owner's insurance. Do you have enough coverage? Too much? Consult an agent and go through your policy and pricing. We were paying for some type of replacement coverage in Florida, and after speaking to my insurer, we discovered that we were paying to get our home repaired UP to the current code.

If my home was built with 1/2" plywood and had to be repaired, but the current code required 3/4" plywood, the entire roof would be re-done with 3/4" plywood to catch up to the current code. Makes sense! Well, my house was brand new! I was obviously already at every current code and wasting money.

If you need a great mortgage broker in Florida or Georgia, call Randall at 863-604-0169

The husband passes away suddenly. The funeral expenses are mounting. There is not enough money to keep up with the mortgage.

Why not apply for a reverse mortgage? A senior can receive a lump sum to pay off the existing mortgage, pay the back bills and NO monthly mortgage payment is ever paid!

The loan gets paid off after the senior leaves the home and the rest of the equity goes to the senior or the heirs. What could be better in a situation like this?

Randall - 863-604-0169