Have a great weekend!

“You must have a reasonable prospect of resuming full payments within 36 months and of paying the mortgage in full,” [Brian] Hudson [program director] said.

Loan payments are made directly to the servicers and a lien is placed on the property. The aid is repaid at a 5.25% interest rate over 10 years on average, though the borrower’s financial circumstances are taken into account.

Bravo to Pennsylvania for offering this amazing program to its citizens who are trying to survive the hardships of this economy!

Photo by mknobil via flickr creative commons.

Want to learn what the Federal Reserve does in plain English?  Click here to watch a tour online, order a video, or order a free booklet.  Brought to you by the St. Louis Federal Reserve.

I have to stand with the critics on this one when they argue for giving it a stand-alone status.  According to MSNBC,

Critics of the idea of turning over consumer protection to the Fed argue that the central bank badly stumbled in applying its existing consumer protection laws to clamp down on bad mortgage lending during the housing bubble. Simultaneously protecting bankers and consumers, they argue, is an inherent conflict of interest.

If bankers and lenders LOVE the idea of the agency being housed with the Fed and are doing everything in their power to lobby for this, then it really should go somewhere else.  I have long argued that as a real estate agent, all of my work is HEAVILY monitored.  We answer first to our clients, then our brokers. After that, the state regulates us along with our local association, state association AND national association.

Why shouldn’t lenders be afforded the same set of rules as agents?  They are - after all - the ones who actually have their hands on the sensitive financial information belonging to customers.

But that’s just my opinion.  What do you think?

What’s at risk?  What if the buyer falls in love with a house, but finds out it’s $30,000 more than the lender says they can afford?  What if their credit score is worse than they thought - maybe there’s a hidden judgment from a forgotten car your buyer once co-signed on a loan for their nephew.  If these happen, they will be unable to buy a house right away.  If these happen, you want to find a lender who can tell you how to FIX IT.

Mickey Koch of Shorewest Realtors in Milwaukee offers some tips on finding a good lender,

1. Tell the lender what you want to spend every month on your mortgage, taxes, and insurance. Don’t forget about private mortgage insurance if you don’t have 20% down. A great lender will coach you on what price range to be looking in so you don’t leave your “comfort zone” for how much you want to pay each month.
2. Ask them up front what their costs are and have them put them in writing. READ THAT DOCUMENT! And understand it.
3. Set up a face to face meeting with your lender and bring all of the required documentation ASAP. Don’t put this off.

Great advice, all of it!

Hey Facebookers….rates are starting to move north, don’t miss your chance to lock in a low rate on a refinance or purchase. Contact me with details!

But he also talks about other things like his car breaking down or family picture day.  It’s the real him who happens to work with lending.  On my own Facebook site, I don’t talk about real estate a lot.  Yes, I do discuss it like anyone else would talk about their own jobs, but I don’t hammer people over the head with it.  I want to be sincere.  I want my Facebook friends to be my real friends, not just viewed as clients or customers.  I fear that I’m too casual, though. I need to listen more to the real social networking experts. Whether you’re a lender, a real estate agent, or just someone who offers a product or service, Sarah Dopp’s advice is good.

1) make sure that EVERY SINGLE THING you put out to the world supports that lovable, human image that you have of yourself.

2) make sure whatever you say is put into words that you would actually say out loud to another human being in person.

If it doesn’t pass those tests, don’t write it.

I’ll cheer to that!  Be careful with how you market yourself on social networks.  People are watching, listening.  And then they may not.

This has nothing to do with mortgages, but I posted because it’s just a little creepy to me with the hanging items. And closer examination means it’s not really the items hanging but the birds everywhere.  What do you think?

Photo from apartment therapy.

I signed up for a free credit report a few years ago and after jumping through several hoops, finally had the massive document ready to print.  I was deeply disappointed then to see that while all my credit pluses (and one or two minuses) were there, no score was to be found anywhere.  That’s where they get you… you get your report FREE but have to PAY for the score.  Ay yi yi…

The Federal Trade Commission offers some great advice on how you can obtain your credit report and credit score here, but here are the details that get to the heart of it:

To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You are entitled to get a free report each year.  Beware of sites that try to charge you for them if you don’t cancel after a certain amount of time.  And remember, no one else can get it unless you give them permission (which many employers do, as well as anyone you want a loan from, e.g., credit card companies, car loans, etc.).

Some analysts fear that once the central bank stops, mortgage rates could spike due to a lack of willing buyers, hurting the recovery in housing and the overall economy. But government officials have been optimistic about that the Fed will be able to end its program without a major disruption.

In my own opinion, I believe the real estate market will be shaken when the April 30th “under contract” date arrives for the $8000 first-time home buyer tax credit.

Growing up, I always heard you should have one credit card in case of emergency.  My parents were talking about having them if you were on a trip and your radiator went out, for example.  Unfortunately with the economy today, paying the power bill to keep the house full of kids warm during the winter has become the new emergency.

As a result, more and more people are suffocating under credit card debt and the relentless collection companies calling sometimes a dozen times a day to collect.  It’s no wonder that people keep it a secret and many people do, according to CNN Money.com,

Hidden debt is a common and insidious problem. “It’s a form of cheating so subtle you don’t even know you’re doing it,” said Bonnie Eaker Weil, a relationship expert and author of the book Financial Infidelity. “It’s a power struggle that can be more harmful to a relationship than adultery.”

I’ve reached the point in my own life that when I get an envelope in the mail promising me a silver, platinum or gold card with no interest payment for a year, I just put it in the shredder.  Sometimes enough is enough.

Photo by squeaky marmot via flickr creative commons.