Hard Money Loans

The conforming 30-year fixed-rate mortgage declined 5 basis points in the Mortech-Mortgage Daily Mortgage Market Index report for the week ended Wednesday from the previous week. The Mortgage Market Index , itself, jumped to 311 from 288 seven days earlier. The average U.S. loan amount moved higher to $214,267.

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1. DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing a Loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

2.DON’T APPLY FOR NEW CREDIT OF ANY KIND. Including those “You have been pre-approved” credit card invitations that you receive in the mail or online. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your credit report, you could lose anywhere from 1 – 20 points for one hard inquiry.

3. DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Unless you can negotiate a delete letter, paying collections will decrease the score immediately due to the date of last activity becoming recent.

4. DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring your scores down 50 – 100 points. Try to keep your credit card balances below 30% of their available limit at ALL times during the loan process.

5. DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do. However, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on the credit card interest rates, wait until after closing.

6. DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, you will lose available credit and it will appear to the FICO system that your debt ratio has gone up. Also, closing a credit card will affect other factors in the score such as length history. If you HAVE to close a credit card account, do it after closing.

7. DON’T PAY LATE. Stay current on existing accounts. Under the new FICO scoring model, one 30-day late can cost you anywhere from 50 – 100 points, and points lost for late pays take several months if not years to recover.

8. DON’T ALLOW ANY ACCOUNTS TO RUN PAST DUE- EVEN 1 DAY! Most cards offer a grace period, what they don’t tell is the once the due date passes, that account will show a past due amount on your credit report. Past due balances can also drop scores by 50+ points.

9. DON’T DISPUTE ANYTHING ON YOUR CREDIT REPORT! When you send a letter of dispute to the credit reporting agencies, a note is added to your credit report. When the underwriter notices items in dispute, they will not process the loan until the note is removed and new credit scores are pulled. The word “dispute” CANNOT appear anywhere in the report. Credit scoring software will not consider items in dispute in the credit score- giving false data to the lender.

10. DON’T LOSE CONTACT WITH YOUR MORTGAGE & REAL ESTATE PROFESSIONALS. If you have a question about whether or not you should take a specific action that your believe may affect your credit report or scores during the loan process, your Mortgage or real estate professional may be able to supply you with the resources you need to avoid making mistakes that could drop your scores or possibly, cause you to lose the loan.

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Vancouver, British Columbia, Canada (AHN) – The head of a commission to probe into the decline of sockeye salmon in the Fraser River said Friday British Columbia’s problem with the fish may still return even if the province is enjoying a boom harvest this year.

BC Supreme Court Chief Justice Bruce Cohen, who was tapped to head the commission, issued a preliminary report Friday.

Cohen pointed out that in the past 20 years several investigations had been made on halting the decline of salmon stock in Fraser River.

The investigations have resulted in 30 reports and 700 recommendations, but none were successful in stopping the fish population decline.

The reports, made from 1982 to 2005, were provided to Cohen by the Department of Fisheries and Oceans. Cohen also studied other reports that dealt with more general aspects of West Coast fisheries.

However, Cohen refused to draw a conclusion despite the extensive reports he had reviewed. He said he would only release his official findings and recommendations after the commission has held evidentiary hearings through next spring.

Fisheries Minister Gail Shea estimates this year’s salmon run at over 25 million fish, which is one of the highest on record in a century. Because of the record run, the department allowed the commercial, recreational and First Nations to harvest salmon from Fraser River.

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Abu Dhabi, United Arab Emirates David Rosenberg – Economic growth is returning to the Middle East, but not quite at the pace of the go-go years of soaring oil prices and massive real estate development.

An International Monetary Fund report released Sunday estimated the combined economies of the region stretching from Morocco to Pakistan would expand by 4.2 percent this year, almost double the pace of 2009. They will grow even faster in 2011, with the region clocking an expansion of 4.8 percent.

“We expect most countries in the region to grow faster in 2010 and 2011 than in 2009,” Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, said in a press release.

Although the global financial crisis took down the region’s highest flying economies, most of the Middle East weathered the worst economic contraction well. The world economies shrank 0.6 percent in 2009 as the impact of bad home loans in the U.S. reverberated through the world’s financial markets. In the Middle East, economies continued to expand, albeit at a pokier 2.3 percent pace.

The Middle East’s oil exporters will likely see economic growth pick up to 3.8 percent from 1.1 percent in 2009 as oil prices climb to an average of $76 a barrel, according to the Washington, DC-based IMF. In 2011, the rate of growth will probably accelerate to 5 percent as oil prices average $79 a barrel. Still, that leaves the oil economies growing at a slower pace than in the pre-recession years.

Oil exporters remain too vulnerable to fluctuations in the global price of petroleum, which traded at $82.10 on Friday. While not all Middle East’s big oil exporters are that heavily dependent on oil for economic output, they all rely on oil revenue for half or more of their government budgets.

For the Middle East’s oil importers, the pick-up in growth will be less dramatic. GDP growth will reach 5 percent this year, a 0.4 percentage point improvement over 2009, before slowing to 4.4 percent in 2010, the IMF report said. Egyptian GDP growth will show steady improvement this year and next, although well below the pre-recession rates when growth exceeded 6.5 percent annually. Pakistan, reeling from the impact of floods last summer, will see economic growth slow considerably from previous forecasts.

The IMF report warned that as strong as the recovery has been for the region, it is still not enough to provide jobs for the Middle East’s large and growing population of young people. It estimated that half the population is under age 25 while the average jobless rate in 2008 was 11 percent. For the region to create enough jobs, its combined economy would have to grow 6.5 percent annually over a sustained period, something it has never managed to do.

“There is now a recovery happening in the emerging markets in the region,” Ahmed said at a forum in Dubai. “But they are not growing fast enough to create the jobs they need.”

The Middle East needs 18.5 million jobs over the next decade, about 7 million more than it will create if it keeps to its previous rate of growth, the IMF said, admitting this was a “tall order.”

For all its oil wealth, the Middle East lags behind the world’s emerging economies. Since 1990, GDP has increased 55 percent for the Middle East, North Africa and Pakistan, but the emerging Asian economic powers have boosted their output by 200 percent in the same period, the IMF said. The region’s governments can accelerate economic growth by paring back on government regulation and privatizing state-owned enterprises and liberalizing labor markets. The Middle East also needs to redirect more of its trade from the slower-growth economies of Europe to burgeoning Asia, it said.

Inflation is also rearing up in some Middle East countries, the IMF warned. In Saudi Arabia it accelerated from 3.5 percent in October 2009 to 6.1 percent last August. In Iran, consumer prices were moderating until recently – showing from a 30 percent rise at the end of 2008 to 7 percent a year ago. But they have since begun rising to a 10 percent annual rate in the first quarter of 2010, the IMF report said.

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Report suggests little change in economic outlook.

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Reykjavik, Iceland (AHN) – A recently released parliament report from Iceland has recommended that its former Prime Minister and three other ministers be tried for gross negligence for the 2008 collapse of Iceland’s 3 major banks leading to the country’s present economic collapse. Parliament is now set to decide on an indictment.

With a narrow majority of five votes, the nine member Special Investigation Commission (SIC) have released their report recommending to Iceland ‘s Parliament that its former conservative Prime Minister, Geir H. Haarde and three other Ministers be tried for gross neglect.

The report’s recommended charge is for violations committed from February 2008 through the beginning of October of the same year, by intent or gross neglect, mostly violations against the laws of ministerial responsibility. In addition to breaches of the Icelandic penal code.

It was allegedly due to these former officials’ gross negligence that brought about the collapse of Iceland’s 3 major banks bringing down the economy of Iceland which is now dependent on loans from the International Monetary Fund.

Iceland ‘s present Social Democrat Prime Minister, Johanna Sigurdardottir, commented that had the commission reached a unanimous decision, Parliament would not have to debate on Monday whether to indict.

If an indictment is decided, it would, then decide on whether to appoint a prosecutor and judges for the Landsdomur special court, originally created in 1905 for the purpose of trying government officials.

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Active mortgage-related lawsuits totaled 75 in the second-quarter Mortgage Litigation Index . The report, prepared in conjunction with Patton Boggs LLP, reflects legal actions covered by Mortgage Daily between April 1 and June 30. Litigation activity tumbled 52 percent from the first quarter and was 40 percent lower than a year ago.

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In its 4th quarter report of 2006, the real estate information site estimates the home value trends for the U.S. and 75 metropolitan areas. According to the data from http://Zillow.com, home values are now declining slightly on a year-over-year basis for the first time in a decade after years of appreciation.

Zillow’s home value data goes back to 1997 and reveals the depreciation of home value rates at 0.48 % year-over-year at the national level. The depreciation in home value every quarter is at 4.77 %. Zillow’s appreciation rate is based on the value of all homes in an area, including those that were sold.

Although there is a fall in the over-all home price growth, areas such as Seattle and Portland are experiencing a surge in home values at good appreciation rates. Besides national home values, the report also presents comprehensive data on local market price growth and decline in 75 metropolitan areas. The Zillow report gives detailed data on home value changes for counties, cities, neighborhoods and ZIP codes in U.S.A.

The top 5 metro areas with the highest price growth, year-over-year, are:

1. Lakeland-Winter Haven, Florida, with an appreciation rate of 25.88 %
2. Yuma, Arizona, with an appreciation rate of 25.66 %
3. Myrtle Beach, South Carolina, with an appreciation rate of 21.24 %
4. Flagstaff, Arizona, with an appreciation rate of 19.02 %
5. Ocala, Florida with an appreciation rate of 17.56 %

The 5 metropolitan areas that have the most declining home values, year-over-year, are:

1. Panama City, Florida, with a depreciation rate of 11.84 %
2. San Luis Obispo-Atascadero-Paso Robles, California, with a depreciation rate of 11.35 %
3. Punta Gorda, Florida, with a depreciation rate of 9.23 %
4. Sarasota-Bradenton, Florida, with a depreciation rate of 8.99 %
5. Greenville-Spartanburg-Anderson, South Carolina, with a depreciation rate of 8.73 %

The Zillow national report also includes the top five most expensive and least expensive metro areas measured by the Zindex home value indicator.

The top 5 metro areas that are most expensive are:

1. San Francisco-Oakland-San Jose, California at $684,459
2. Salinas, California at $654,503
3. Santa Barbara-Santa Maria-Lompoc, California at $627,323
4. Honolulu, Hawaii at $626,452
5. Los Angeles-Riverside-Orange County, California at $545,409

The top 5 metro areas that are the least expensive are:

1. Davenport-Moline-Rock Island, IA-IL at $86,201
2. Peoria-Pekin, Illinois at $91,984
3. Greenville-Spartanburg-Anderson, South Carolina at $96,508
4. Tulsa, Oklahoma at $97,186
5. Dayton-Springfield, Ohio at $103,729

Even within these markets, there are hot and cold housing segments of the community. Be sure to seek out the services of a local real estate agent, who can advise you about local market conditions that impact the price of homes, condos and other types of real estate.

Eager to know the top cites in America where one can safely invest? Here are the best real estate markets in the entire country according to a recent report from Business 2.0 Magazine. The November 2006 edition of the magazine lists the top ten cities that are ideal to buy a home. These are – Panama City and Vero Beach in Florida, Bridgeport in Connecticut, Lakeland in Florida, McAllen in Texas, San Luis Obispo in California, Wilmington in North Carolina, Manchester in New Hampshire, Fort Collins in Colorado and Atlanta in Georgia. The report cites the appreciation rates of home prices projected over a period of five years.

Florida enjoys the status of having three of the top four cities to invest in. Panama City, which tops the list of best places to buy real estate is expected to have a real estate appreciation of 72% over the next five years. Major real estate development projects such as the building of a new airport and low property prices are expected to boost the economy and the housing market.

Vero Beach, projected to have an appreciation of 64%, comes second for its excellent weather, low property taxes and a lower cost of living. Lakeland, with a 59% projected gain in home prices is a tempting option with homes selling for a fifth less than the national median price.

Buying a home in Bridgeport, CT is a bargain now with median home prices at a very low $280,000 compared to the rest of the Fairfield County. Home prices in McAllen, TX which holds the fifth place, are expected to soar by 57%.

It is estimated that homes in the McAllen, TX area may appreciate 57 percent with an increase in the median home price from $70,000 to $109,000.

Homeowners making an investment in San Luis Obispo, California, today, are expected to get a good appreciation (40%) on their homes over the next five years.

The median home price in Wilmington, NC is expected to increase to $297,000 by 2011, up from the current price of $217,000, an increase by 37%.

Manchester, NH, which has twice been rated as the ‘best place to live’ in America by Money Magazine, sits at eighth place with an expected appreciation of 35%.

Fort Collins and Atlanta follow in the ninth and tenth places of top cities for real estate investment in the USA. Fort Collins, one of the most popular cities in America, has been ranked as the ‘No.1 small city’ this year by Money Magazine. Recent price reductions in the housing market makes ‘now’ the best time to buy a home or condo in this city with an estimated property appreciation of 28%. Atlanta is poised for a significant appreciation too with an expected rise of up to 24% in home prices over the next five years.

So, if you are a prospective homebuyer set to take a plunge into any of the top ten real estate markets, it is the right time to enlist the services of a good real estate agent who can guide you through the complicated home buying process.

Baby boomers, baby boomers, baby boomers; we all hear this term over and over again. So who are the baby boomers? Baby boomers are people in the United States who were born between 1946 and 1964. Approximately 78.2 million people fall into this category.

As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.

AGE DISTRBUTION

According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.

HOUSEHOLD INCOME

As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.

HOME OWNERSHIP

About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.

FUTURE REAL ESTATE PURCHASES

About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.

WHAT FEATURES ATTRACT BOOMERS

When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.

PREFERRED COMMUNITY AMENITIES

When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.

WHERE DO BOOMERS WANT TO RETIRE

When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.

BOOMERS AND THEIR REAL ESTATE AGENTS

Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.

SUMMARY

The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow