When Government Gives You a Free Subsidized Lunch . . . Take It! “America’s housing system was at the centre of the last crisis. It has still not been properly reformed.” —The Economist, “Nightmare on Main Street: the Horror Underlying America’s Housing Market“; August 20th -26th 2016. If you don’t want something (else) keeping you...Read More
FHA Rates — and Especially Fees(!) — Soar Higher Prospective borrowers obviously care about the face rate on their mortgage, but what they should really care about is what’s called the “A.P.R.,” or Annual Percentage Rate. It’s the latter number that captures the various fees that the lender is charging, and reflects the true cost...Read More
Not Getting What You Don’t Pay For It won’t show up in my 2012 sales statistics (or my bank account), but one of the more protracted deals I was involved with this past year was helping a good friend (and repeat client) buy a $63,000 St. Paul foreclosure. Why no record of the deal? Because I...Read More
Hurry Up & Wait In a traditional sale, Buyers can usually expect to hear a response to their offer within 24 hours — ideally much faster. So, how long do would-be Buyers of Fannie Mae properties have to wait? As long as 10 days. Stale MLS Status Which is why it’s only fair to such...Read More
Wanted: Twin Cities Realtor With Expertise Purchasing Fannie Mae Homes Normally, a Realtor who refers business to another agent collects a referral fee. Depending on the circumstances, such a referral fee can be as much as 33%(!) of the ultimate commission. So, what’s a “reverse referral fee?” When the referring agent has to pay Agent...Read More
More Hot Air From the White House Is the White House finally getting serious about helping underwater homeowners refinance their mortgages? Not judging by the bond market. Yesterday, mortgage-backed securities issued by Fannie Mae and Freddie Mac jumped in price. Given how refinancing affects these bonds — borrowers who re-finance pay off their expensive loans, reducing investors’ return —...Read More
