Martin Wareing's Q&A

Basic legal overview with the minimal info provided and most here are not attorneys... but I drove by a Holiday Inn Express yesterday :). If the sale to you was not correct from the proper seller to dleiver title or liens cleared, etc., your potential remedy is a CLAIM on the owner's title policy (ie. insurance).. The title insurance company "clears" or cures the title.. sometimes it is a payment to "X" to remove the lien from way back when.  It does not really affect your LOAN with your lender most likely.  Be careful about "Lemonlawing" your roof over your head.  If you decide no to pay... you will pay and overpay for your future credit for years to come.  Try to find/gather your TITLE POLICY (for the purchase of the home) and that would help.  If you simply used this an excuse to "walk away" that is your choice, but be prepared to bowl a higher 3-game score than your credit score and say hello to double-digit car loans, buy here pay here, etc. Nobody advises people of the long-term affects of any decisions.  You may need or want to make this choice, but simply weigh your options, be prepared and then you will be fine.  Do not trust your attorney to tell you about your future creditworthiness and rates UNLESS he wants to be your future lender as well.  He has no idea. Good luck to you.

Mornin' NTETS,I used to get the honor of doing all that math for my clients (3 scenarios) and then would come up with the same conclusion..  Nice way to sew it up. The slight art of confusion and multiple choices keeps borrowers focused on tasks when it all really is pretty much the same.  Keep rockin'.

ak,Lenders are afraid of the "flipping" alarm.  Buying homes that move around from owner to owner more often than my shirts at the Dry Cleaner??  very 2006.  It really is the Seller's issue.. not the Buyers.. The Seller knows they have no real financing for new Buyers until the 90 days; however, in standard foreclosures...  where a Countrywide takes back a home dated 05/15/2009 (a known lender as pathetic as they are), I have not had issues for Buyers purchasing Owner-Occupied within 90 days.  2 things though. Known Lender repoing and fully documented the life of the home...  and an Onwer-Occupant.  The "FLIPFLIP.com" seminar needs to be amended with our new monetary and mortgage restrictions.  From the "A" world.. We love and hate investors.  We love the "Old School" Investors.. Ones with 20-30% down payment.. rent house.. Sched E, the whole 9 years... There are 7 of them nationally.  We hate and will not lend to: Beck/Dean/Sheets Magan Cum Laude Grads with no money and debt ratios built with "rents" and not Schedule E's that were IV'ed REDBULL at the Seminar and started dialing away at every break prior to getting the "QUICK START" book signed for $195 by the author while scarfing down the box lunch consting of the Apple, the club sandwich with mayo/mustard in packets along the the Kettle Chips and napkin..  Am I getting warmer?  Just picking a little fun.  remember this:  Speakers make their RE riches????? "Speaking"  If they wanted to make all the money to themselves, like an old fisherman.. they would guard it with their lives about their favorite fishing holes.  I wonder how much money my deceased grandfather could have made with GPS spots on his honeyholes on Ebay today.??  Good luck to you with investing.

tony,That is the best calculation and understanding of what pioints do in the equation... They simply (for the money basically) confuse most of the borrowers.  Take that overall savings and stretch it out over 10 years....nothing really...  If one does not keep the discount point loan for a specific period of time to "break even" for the costs... that is another issue.  Finally, those with their Mortgage Calculators never give the same rate of return on the money not spent in points earning interest in the bank.  A major rule of thumb, the shorter the term, the more difficult the costs are to absorb and overcome.  There usually is a not a FREE LUNCH or a specific loan on sale.  Sometimes there is, but day-in-day out, loans are priced so that you either pay now (your risk) for points or pay later (slightly hgher overall payoff), but they are like a Derby race with a photo finish and if everyone stayed in the loan for the length  of the loan, we would be working on the 1979 batch...  Most people 5-7 years... points are hard to overcome in that math equation. Funniest part.... we as Loan Officers or Lenders or whatever... make exactly the same no matter which option is chosen.  That is good and bad.  Good as we are simply working to help you into the proper loan so the point choice is like tailoring your loan... The bad... many people brag around the water cooler that they got "X" rate with their fly open...  The market was "X" that day and we got paid the same even if the zipperguy's rate was "Y".  We want all rates to be 4.5% for all, but even-keeled LO's and lenders make the same wages for 4.5% rates as the do for 7.5% rates with 4 points.  Good luck to you.

gil,Only you have the answer.  1) What is your credit scire worth to you in the future financially?2) What is it worth to you emotionally?3) Can you afford home (regardless of value)?4) Do you have any idea as to the long term pitfalls (insurance, credit, employment, etc) for a foreclosure or BK that might present to you?Put those all in your personal 8Ball and come up with your answer.  The peanut gallery can't answer that question.  Good luck to you with it.

Claire,Many Brokers will pull it for free initially, but most "charge" for it at the closing table.   You are going to be borrowing 100's of thousands of dollars.  $20 is a real charge.  I personally do not collect or charge for it at the closing table; however, I only pull them for my clients.  Look, you know if you have good or great credit/scores.  Talk to an LO or several... advise them of your background and get their costs/policies and rates for what you are seeking.  Choose the best one for your needs and if you pick the one with a $20 CR fee, then it was your choice.  Stay away from the BOILER ROOM MEGALENDERS... They all have upfront apptype fees that will make the $20 CR fee pale in comparison.  Good LO's do not need your score to offer a Good Faith; however, your score determines all (if any) the surcharges assoicated with it no matter where you go (that part is all the same).. Good Luck to you.

pc,It seems you are really wanting to buy a new primary home and that the down payment will attempt to come from yoru exisiting home.  In 2009... very difficult to do.  May not be what you want to hear, but sell your home and even if you do it on same day.. buy the new primary.  Attempting that highwire act in today's market is easier said than done.  Previous (very old) BK.  Laid off a year ago.. just graduated and now ready to contribute and going from a $46,000 mortgage to a newer home close to $300,000. That is a pretty big change and shock.  Finally, $30,000 in debt with a $46,000 mortgage is partly the reason you can't control  both.  Finally, unless the home was at least 50 miles from your present home, the underwriter would never accept a notion that it is a 2nd home.  Not scolding you in the least.  The housing market is going to be pretty much the same for a long long time.  Sell now.. buy right after.  Good luck.

MI companies are not actively participating in the program across the board.  The banks got the TARP money.  The MI companies (besides AIG) did not. I am married to an MI gal.  Are there some very specific cases that the MI is part of the REFI... yes.... however, very specific and the masses are turned away. I wish you good luck but clarity of information is pertinent in these times.

Like Nick says... find a way to make it happen (tap your 104K) for it OR rob a bank. Your payment is dropping, but this mortgage sale is fading currently and we have not heard of any expanding REFI plus progams for further equity sinking.  You are at the fork... you need to go right or left.  Weigh your options and although this is the first REFI boom with Borrower skin in the game... it is really just your own equity.  Ripping it from 1 asset to pay down another... it is still your asset.  Wish you well in your decision.  I know what I would do if I was presented with that problem.  Good luck.

If you simply can't make payments, a mod (even if 0%) would not work as payments are still required.  The simple answer is:  if you can't won't or don't pay.... in the long run, you will not stay.  The lender will move more quickly to "cut losses" if there is no hope (income to potentially surrport a modified agreement).  If you can make the MOD payments, they will not mess with you.  If you fold and they are made aware that there is no income in sight... they will push the magic red "silent alarm" button and will reluctantly do what they have tried to avoid doing.  repo and resell the home.  They do not wish to realize the loss, but will not necessarily let it stand without payment and a chance.  They would take their lumps and move forward.  TARP has nothing to do with a borrower without means to make a modified mortgage payment.  Good luck to you.