Private Lenders vs the 'BANK'

by Nan Woodward

There are many reasons:

1. It is a hassle to deal with the banking system today.

2. How long does it take from start to finish?

3. You can only finance 70% on a cash out.

4. Private investors funds are available when you need them.

Actually you should consider being a private lender yourself if you are in a position to do so. You can earn 9 - 15% interest, as well as, points.

If you are interested in doing so, contact me.

Nan Woodward
nanwoodward@gmail.com

The United States Economy

by Nan Woodward

First, I would like to let you know i've changed my blogging zone. I've been working on a new blog - http://nanwood.com/blog

I just read an excellent email. I so totally agree that fear in this economy is spinning out of control. It is making the economic situation worse than it should be at this time.

Fear, doubt, anxiety, worry, overwelm, panic are on the rise.

So, what can we do? First - check the US Mint website to buy gold. You should see a message that says "temporarily suspeneded because of unprecedented demand".

Stop listenting to every fear monger. Take a deep breath. Look for ways to decrease your expenses and/or increase your income.

I am a Real Estate Investor in Chicago and Memphis. I am looking for new properties to add to my portfolio. I believe in the United States and all of our people. We will overcome. Mortgage rates are falling along with sales prices. Look at the positive - this a good time to be buying.


When I talk to people who are experiencing problems paying their mortgage loan, I tell them the government has programs. I tell them to contact their bank or mortgage company to see what can be done. Be proactive. Take an attitude of service to others.

I am fortunate - I bought my real estate - my home - before the huge increase in prices, my mortgage loan is reasonable. Many Americans are in that position also.

Help others!

What do I do when I'm falling behind on Mortgage Payments and selling isn't feasible?

by nancy woodward

There are so many homeowners in this position today. They find themselves owing more to their lender(s) than the current market value of their home. As Real Estate values decline this occurence is becoming more common. Many families with multiple mortgages are realizing they can't sell their home and break even today.

I believe all lenders really don't want your home. They want you to continue making interest payments for the next thirty years. The lender makes money by receiving your continuing payments - the interest portion of your payment is the lenders income stream.

Lenders actually rework 90% of loans for their good customers who are experiencing problems meeting their obligation. They have more than one option which will help you stay in your home.

1. Partial Reinstatement - you agree to continue making your payment as usual and makeup the balance overdue in the next year.

2. Short-term Forebearance - You skip a number of payments or reduce your payment for a few months - then make up the difference in a set period of time.

3. Long-term Forebearance - Payments discontinue for a longer period of time (usually more than twelve months) then you begin to repay all.

4. Loan modification - Your payment is permantely changed. This could be a rate change, time extension or a combination so you can continue making your payments.

5. Other terms - the bank has the flexiblity to combine and or modify whatever it takes to reduce your payment to an acceptable level.

Call your lender when you realize you will be having a problem meeting your obligations. You need to ask for the correct department - don't speak with collections. Their job is to collect money, not modify loan terms.

Most lenders have experienced these problems over and over in the past year. They will be willing to talk to you.

The Government Intervenes in the Mortgage Loan Problem as Mortgage woes continue to plague us

by Nancy Woodward

The government, aka Bush, has created an agreement to freeze interest rates. But, this option is only available for those with certain sub-prime mortgages and will only continue for five years. The reason for this is hopefully reduce the number of foreclosures coming in the near future. The number of foreclosures continues to rise dramatically.

Credit is no longer easy for borrower’s to obtain. In Pennsylvania one third of the number of mortgage banks have closed this year. In New Jersey the decline has been less but still it’s an impressive 22% decline.

This decline is just the icing on the cake – there is also a decline in employment related to the closings. Of course, the snow ball effect begins - less jobs, less spending, therefore less jobs and so on.

So, the governments plan will help but it definitely won’t cure the Foreclosure problems we are experiencing and will continue on into the foreseeable future.

Foreclosures in Tucson

by Nancy Woodward

Thousands in Tucson face the possibility of losing their homes. The Tanner family fell behind in the mortgage on their home in the Northwest side of Tucson. Thousands of homeowners face this predicament.

Already more than 5,000 homes have gone into foreclosure during the first nine months of this year. that is double the number of foreclosures for this area last year according to RealtyTrac.

The problem prevails all over the area. It happens for various reasons such as job loss, increase in mortgage payments, divorce and more.

Many of these homes can't be put on the market since they are now worth less than the going rate for similar homes. This problem is increasing the inventory of unsold and vacant homes in the area.

Current Real Estate and Mortgage Financing Status

By Nancy Woodward

Financing is becoming more of an effort these days. Lenders are scrutinizing all loans closely. All loans includes investor loans, as well as, homeowner loans. As an investor, I suggest you talk to your mortgage lender and test the waters.

Did you know that you can move some of your investments into an LLC which will remove them from your credit report? Since lenders penalize you for having more than ten properties, consider moving them into an LLC. You will find it easier to obtain financing.

In a time of declining values you must know if your investment is in an area considered declining values. You certainly would not want to purchase any property in these areas today. You can find a report – The House Price Index – at http://www.ofheo.gov

As normal, do your due diligence prior to investing in anything.

Mortgage Rates are Falling

by Nancy Woodward

Long term mortgage rates are now falling. This is the first time since 2005 the've been at Monday's level.

Quicken Loans Chief Economist, says mortgage rates are benefitting form the volatility of the stocks when compared to the security of bonds. When the stock market is in a period of fluctation, investors tend to look for safer places to put their funds - like Treasury Bonds.

This could mean more sales of homes as consumers are more likely to find financing at lower rates.

Builders have been giving away a lot of goodies - like granite countertops, no cost closings, price cuts and more in an effort to improve their sales positions. Many large firms believe they need to cut costs to prevent more sales of foreclosed homes.

The market is in a constant fluctation stage - I prefer to wait a bit before jumping in.

Foreclosures are a Reality of Life Today

Foreclosure is now a sad reality of life for many homeowners
By Nancy Woodward

Foreclosures in general have been on the rise for over a year. At this time, sub prime borrowers are scrambling to refinance their loans. They payments have now skyrocketed and homeowners realize they must find a way to reduce the loan payment now. Tighter lending standards put into place by Federal Regulators in recent months are making it more difficult to refinance subprime loans.

According to Brett Warren, president of Buyer’s Home Mortgage Inc., as recently as six months ago, most requests to refinance were from homeowners wanting to reduce their interest rates or take equity from their property. Today, most requests are coming from subprime borrowers trying to reduce payments.

Many of these homeowners obtained loans with teaser rates and high fees. Some now find themselves in a position where the equity in their home is negative. As the number of resetting loans increase, so will the foreclosure rate.

Philadelphia and New Jersey have a majority of mortgages in the prime rate area. These seem to have a lower foreclosure rate according to Mortgage Bankers Association. The highest increases in foreclosures last month were in California and Florida, followed by Ohio and Michigan. The firing of employees in the automotive industry had a direct impact on this.

While this number will continue to increase, homeowners should seek help before they reach the foreclosure point. There are ways to solve the problem.

Have you seen the consumer incentives around today?

by Nancy Woodward

How about -

Zero Financing Deals
Cash Back
Free Checking Accounts
Refinance your home at low rates

There are so many offers around today. You must do your due dilligence and check them out carefully.

You don't want to find yourself owning even more money, paying higher interest rates, having large balloon payments to make because you didn't understand or read the bottom line.

You can find professionals to help you decipher the legalese or pay your attorney a visit.