Turning Complaints into Progress

I had every intention of writing a blog full of complaints today. The challenges of working with agents who list bank owned properties only was fueled by conversations with fellow colleagues who experience similar challenges. One conversation became a full rant about how these agents don't return phone calls, and potentially don't even submit our offers. That was my rant, but it's over, and I have a more middle tune now - and its far more positive.

I am finding as I work with agents that some are extremely verbal, while others prefer to work only be email. While email is great, it does not allow any type of relationship to grow - by which I can then more concretely advise my clients of what is an appropriate offer. We give our clients a corridor by which to make their bids. Of course, we want to leave as much margin as possible, mainly because the amount of 'branding' is variable. This means that with every house, you never quite know what you will find when you tear it down. If we have an agent that works with us, we can put in a low ball offer and then work the offer through our corridor to reach a solution that is beneficial to all parties. And, recently I have found several agents that are willing to do this, that are helpful in the work they do with the bank, and are allowing our group to get good fair deals for your investors, while providing a strong product for the buyer tenant that is being placed in the home. It becomes a win win for all parties, which is ultimately what our goal is. And we have had success!!

I will be filming our next branding, to give people an idea of what goes into the process, and how quickly a nasty home really transforms into a beautiful new home, with added value fo rthe parties involved. In the meantime, suffice it to say I am pleased with the purchases we are currently in contract with, and will spend my time talking about the really great agents that are a part of making this happen, and not dissing those who are potential blockers.

Fannie and Freddie Mac finally wake up!!

Great news for investors - and evidence that the government is waking up. With 100's of millions of dollars parked and lending more and more difficult, Freddie and Fannie have realized that investors are good for the economy and will help revitalize the property market. They couldn't be more right. This is an open doorway or investors to reap huge benefits in the next couple of years. For my business, this is HUGE! And, the added benefit is that investors can finance first time home buyers and credit challenged buyers. Its a win win for all. See below the details!

Multiple Mortgages to the Same Borrower and Reserve Requirements Changes

Fannie Mae has issued Announcement 09-02, Updates to Multiple Mortgages to the Same Borrower Policy, Reserve Requirements, Reserves Definition, and Form 3170.

Multiple Mortgages to the Same Borrower

To help support housing recovery, we are introducing an expanded policy regarding multiple mortgages to the same borrower. Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with our mission to provide stability, liquidity, and affordability to the nation’s housing system.

To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower when the mortgage being delivered to Fannie Mae is secured by an investment property or second home. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70–75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any investment property or second home loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery into MBS with purchase dates on or after March 1, 2009

Investors come forth!