Will Good Rental History Help Your Credit?
September 7, 2010 by Josh Deknoblough · Leave a Comment
If you would have asked me this question a week ago, I would have said no. Most landlords and property managers do not report your rental history to the credit bureaus unless you do not pay and they have to evict you.
Last week I was working with a first time home buyer that had very little credit history. He worked hard, paid off his car loan quickly and never carried a credit card balance. He was in the process of purchasing a home in Redding with a 20% down payment. One would assume that this situation would be a slam dunk, right? Actually, it was not.
The loan underwriter was concerned about the buyers lack of credit history. So, the loan officer, scrambling to figure away to make this deal work, contacted one of the three major credit bureaus and provided them with the lease agreement and a statement from the landlord explaining that the rent was on time and the tenant was great.
After this change was applied to the buyers credit, the loan officer was able to re-submit the loan to the underwriter and they approved the loan! The last two years of good rental history was enough to put him over the edge.
After hearing about what this loan officer was able to do, I did a little research and concluded that this is something that every renter should do. The first step would be contacting the three major credit bureaus and ordering a copy of your credit report.
Experian-1-888-397-3742
www.experian.com
TransUnion-1-800-916-8800
www.transunion.com
Equifax-1-800-685-1111
www.equifax.com
Once you receive the report, verify that the rental history is not already listed. If it is not, you can contact the credit agencies and ask them to add the history to your report. They will most likely ask you for documentation to backup your claim, such as a copy of your rental agreement and copies of canceled rent checks.
I would love to hear your experiences with this. Please feel free to comment below.
Fannie Mae Is Tightning Foreclosure Timelines
September 4, 2010 by Josh Deknoblough · Leave a Comment
Fannie Mae issued a news release that warns servicing companies that Fannie will be monitoring all delinquent loans to ensure that foreclosures are being processed within a timely manor. The main purpose of the Fannie Mae announcement was to make the servicing companies aware of Fannie’s intention to get all non-performing loans off there books as quickly as possible.
They also stated that there will be penalties for poor servicing performance as it applies to foreclosures. “A compensatory fee not only compensates Fannie Mae for damages but also emphasizes the importance placed on a particular aspect of the servicer’s performance,” the GSE stated in its servicing guide.
Fannie also updated the allowable time frame for foreclosure in each state. The California foreclosure time line stayed the same at 120 days.
This could mean the days of homeowners staying in their homes for a year or two without making a payment are over. There are several options to foreclosure including loan modifications, short sale, deed in lieu of foreclosure etc… It is best to contact your lender immediately and be proactive in solving the delinquency.
You can read the full news release here.
Interst Rates, Lowest Level In Half a Century
September 3, 2010 by Josh Deknoblough · Leave a Comment
For the 10th time in the last 11 weeks Freddie Mac reported a decline in fixed rate mortgages. The average interest on a 30 year fixed was 4.32% down from last weeks 4.36%. Economists credit the week economy and high unemployment rates.
As separate report from Bankrate, which is based on data provided by the top 10 banks in the U.S. also found mortgage rates falling. They reported the average conforming 30 yr fixed rate mortgage dropped from 4.59% to 4.53%. Bankrate said in their report “Nervousness about the economy brought mortgage rates lower, as has consistently been the case since May. An upcoming jobs report promises to add further volatility to mortgage rates.”
The company added, “While low mortgage rates have produced a surge in refinancing activity, they aren’t packing the same punch on home purchases because would-be buyers are saddled with existing real estate they can’t sell, are nervous about their jobs, or remain convinced that home prices have further to fall.”
Home Sales Unexpectedly Jump From Last Month
September 3, 2010 by admin · Leave a Comment
The National Association of Realtors reported yesterday that the Pending Home Sales Index showed a 5.2% increase in Pending home sales from last month. This was an unexpected jump, some analysts were expecting another monthly drop in home sales.
Despite the good news, National Association of Realtors chief economist Lawrence Yun cautioned that the recovery ahead will be a long process.
“Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” Yun said. “But the recovery looks to be a long process. Homebuyers over the past year got a great deal [but] for those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”
Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”
Home Prices In Redding… Should You Make a Lowball Offer?
September 3, 2010 by Bill Parsons · Leave a Comment
Home prices in Redding have finally reached levels where more people can qualify for a loan. In fact, there are many homes available that can be purchased for less than the cost of building new. You can verify this by searching “properties for sale in Redding” and all other cities in Shasta County. I think you might be surprised; there are some real bargains in real estate right now.
As a result of the market turn-down, buyers are feeling pretty proud. So much so, that when some of my clients decide to make an offer on a property, they typically offer much lower than the asking price. In other words, they make a lowball offer. And, sometimes this strategy works with actual homeowners. However, when it comes to REO properties, low-balling rarely works. The reason; banks and their agents know the market well, they are unemotional and usually have the property priced to sell fast.
You may be surprised to know, even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers. Therefore, become an expert in your local housing market and learn to make offers sellers and banks hate, but are afraid to reject. Low-balling often results in the seller making a counteroffer at a higher price than they may have otherwise accepted. If your offer is closer to the sellers “acceptable” threshold, you might get a great deal on your first try.
Determining a sellers acceptable price threshold is somewhat of an art. Sharp Realtors® can provide the data you need when determining a purchase offer price. There are many factors to consider when making an offer; such as, how long the seller has owned the property, the amount of outstanding loan(s), if any, days on market, condition of the property and the biggest one of all, the location of the property.
There’s an old saying among professional negotiators, “pigs get fat, but hogs get slaughtered.” The point is that you should be aggressive when making an offer to purchase, but if you go too low, you could blow the deal altogether.
