Rob Robertson's Discussions

Ok... plenty of great advice here.If you are still just worried about screwing the seller, don't be. Buying a piece of real estate is a "business transaction." It's just business. Someone else will buy the property, eventually.Buyer's pull offers all the time. Some don't have a choice, other's find a loop-hole or contingency that they can exercise, and some just pull it for no apparent reason. If you feel you want to compensate your Agent for his/her time, feel free to do so. I'm sure he/she earned it. That would be a great thing to do, given that his/her time could have been used more constructively and how tough the market is right now, across the nation.Worse-case scenario is probably the loss of earnest money (again, by now you have consulted with a R/E attorney).Don't buy a piece of real estate just to put it back on the market. You stand to lose so much - and you might not be able to sell it for what you bought it for, let alone afford the second set of commissions you would have to pay. This is not a speculator's market.Just my two cents. I'm not licensed in your state so please, please, please consult a real estate attorney (the couple of bucks you will pay for sound legal advise is really worth it, I've done it before myself!) before you make your final decision.Best of luck to you!

Talk to your trusted tax advisor.

Tscozzari makes a very valid point. I personally had a client replace "Poor Condition" carpeting for $7,000 before putting the house on the market. Chose a very high quality carpet, neutral color, that was on sale. Found a company that offered "no payments, no interest for 12 months."The house eventually sold, and sold exactly for market value (which was great!), with the house empty, needing interior paint (I would have painted it) and landscaping, but with the fresh carpet throughout (it was a two-story, 2700 square foot home). After the closing, the carpet was paid for out of the proceeds.So it's really a judgment call, Proudmama. If the carpets are "trashed," replace them. It will help the home to show better and you will be one-up on a similar home with crap carpet and no allowance.If you can get by with just a good cleaning from a professional company, to make the home showable, then clean the carpets and offer the credit, if needed.Good luck!

1) Yes, for the most part.2) You have to shop around with different wholesale sub-prime lenders. A few are still offering Stated Income Programs, but your customer will pay through the nose for it, and be able to verify employment (most Stated W2 options are gone). For the majority, Full Doc and 90%CLTV is the new norm, with much more stringent underwriting guidelines.As far as this being temporary or not, you'll need to watch the market and do your research, just like the rest of us.It's not that there isn't money to lend, it's just re-gaining the investor's confidence that Sub-Prime loans are a viable investment.Good luck to you.

Mayno, you need to get educated. The news is just that, news. Mortgage Brokers did not create this developing credit crunch. The current credit crisis extends globally, for so many reasons it would not be prudent for me to elaborate any further.

"Matt Kelly," regarding Lending Tree, I have to disagree with you. Lending Tree, "when banks compete, you win," puts consumers at a disadvantage when it comes to "shopping for a mortgage."The disadvantage is that the consumer thinks that by shopping for a mortgage by rates and closing costs only, they will get the best mortgage possible. However, that's not usually what happens. They choose their lenders based on initial, low-ball quotes. Then, the well-scripted loan officers on the L.T. Network size up the consumer, find the hook, bad-mouth the competition (including brokers), work up the deal, blame any changes in closing costs or rate changes on someone else, roll the dice and hope to get the deal. Lenders on the LT Network have to pass on marketing costs to the consumer, which are (last time I checked) around $1100 for each 1st mortgage funded, plus actually paying a fee for each lead purchased (not sure how much they cost now, but were around $7 to $11 per lead when I was on the network; could take 30-50 leads to get a deal). Add desk and fixed costs, admin staff, secondary marketing, licensing, etc... and you'll find that the average consumer is probably paying about $3000 more for a loan from a "Direct Lender" or "Lending Tree Network" Lender than the exact same loan from a fair and honest Mortgage Broker.Fair & honest mortgage professionals end up losing business to Lending Tree, mainly because of low-ball quotes from a Lending Tree lender (or other Direct Lender) vs. an honest, "right between the eyes" quote from a broker. By the time the consumer commits to the LT Lender deal, it's hard to sway the consumer back because of lock fees and appraisal commitments.As a broker, my house costs are just $600. This translates to lower overall costs to my customers. I also operate under the "Upfront Mortgage Broker" philosophy. I offer true wholesale par rates, and charge a fee for services rendered, & pass on true 3rd party costs.

Hang on a minute, Stacey...It's not Lending Tree's deceiving advertising and the LT Lenders business practices that are the sole reason for the mortgage meltdown.How can you give them that much credit?I guess you think that Ditech's current slogan, "People are Smart!" is going to be the "final nail on the coffin?"Convincing the average consumer that they are smart and that when banks compete for their business, they win, is just a marketing ploy to get them to call.How smart is a consumer that pays 3+ points for a Conforming 30 year fixed rate loan? (Run the APR on the current Ditech advertising: 6.125% Note Rate with a 6.408% APR = a little over $12,000 for a $417,000 loan amount, probably is a low-ball anyway by the time the dust settles and 3rd party costs are factored in).OR, Actually believe a salesperson from the Lending Tree network that an underwriter determined that their "credit risk" warranted an additional 1.75% in upfront fees on a new 1st mortgage"...to securitize the loan on Wall Street against losses".I could go on and on, Stacey...Come on, this current credit crisis is global in scope; its reach is so much farther than a company that came up with a catchy slogan .Do we need to start a separate blog/topic?CONSUMERS NEED TO BE EDUCATED! There is so much more to a mortgage than closing costs & interest rate. Both short and long term financial goals need to be considered, as well as a realistic need for homeowners to reduce their own exposure to risky loans. Each borrower is different, with different needs and circumstances, PERIOD.The average consumer needs their hand held, when trying to work with a direct lender like a Lending Tree Network Lender. The avg. consumer probably doesn't stand a chance against a good salesperson, when it comes to setting up a mortgage.Unbiased mortgage advise, which must be paid for (TINFL: There is no free lunch), is one solution. "PEOPLE CAN GET SMART!"

Matt Kelly, Not only did I work for one, but I've also competed against several "Lending Tree Quotes" since I left that Lending Tree Lender.I'm sure there are some great Lenders (and even a few Brokers) out there that use Lending Tree as a marketing/business partner.I just get a little "tickled" the wrong way when mortgage broker's get slammed and blamed...Take care.

If you currently own a financed property, I highly recommend you do the following:1. Gather the following documentation: Review the terms and conditions of your current mortgage loan.To do this, look at a copy of your NOTE (the document that discloses the terms and conditions of your current mortgage. This document is also referred to as "Mortgage, Adjustable Rate Note, Promissory Note, or Mortgage Note," depending on what state you are in. You may also have other documents with your note, including the "Prepayment Penalty Addendum" and/or "Interest-Only Payment Addendum.") and compare it to your most recent mortgage statement.What you want to do is make sure that you understand the current terms and conditions of your existing mortgage. If you have a variable rate loan, make sure you understand how often your interest rate will change, what your margin is (and compare it to your mortgage statement), what your index is, and how high (and low) your interest rate can be.

OK...Somehow, this got posted while I was away from my desk on a call.I apologize for the incomplete post. This was a work in process.I'll rework it and repost it.--------------------------------------------------------------------------------------------------