Credible Real Estate Writing Source

        It's been said, "They can't put anything on the internet that it's true."  This is the most incredible news I've ever heard.  No longer do I have to waste countless hours scouring the internet in search of valid real estate information to complete my research paper.  Everything is true.  I can just stop at the very first site listed on my search engine results and start typing.  Just like, I'm sure somewhere on the internet there is a rule that states, "Educators have to give good grades to any student who signs-up for their class and shows little effort."  I, personally, haven't found it yet but I'm confident a team of scientists at Wiki will post this rule to the internet very soon.  It will be a total game changer; learning will be obsolete.  As soon as this information is affirmed, it will be the second most incredible news I've ever heard.  Until that time comes I recommend, for all things real estate, individuals use the United States Department of Housing and Urban Development website (http://portal.hud.gov/hudportal/HUD).

        The HUD website contains useful press releases; updated housing laws; and helpful consumer tips.  The website also includes links to other government sponsored organizations associated with the housing market regulated by government.  I'm not saying an individual won't find this information on a similar website but in the months of searching,  I've found that most real estate websites are profit driven and flooded with advertisements.  Even websites traditional marketed as an .org have been misleading and tailored to realtors or mortgage brokers.  Limited information is provided to consumers. 

        To be an effective real estate writer, it's important to present all the information on a particular topic in a way everyone can understand and make his or her decisions based on the fact.  If information is omitted or unclear, it could lead to multiple problems for everyone in the housing market in the long run.  To avoid this, it's best to get the correct and complete information straight from the source (HUD.gov).   

The Logical Renter

        The United States Census Bureau reports home-ownership is down from 62% to 53% since 2009. It also reports that the average age for first-time homeowners increased from 31 to 38 years old. Some may argue that these changes are as a result of the 2008 housing market crisis but nothing could be further from the truth. These changes are solely the result of higher interest rates. As interest rates continue to rise more and more Americans choose to fore-go home-ownership. For these individuals, renting is the best alternative and proves to be more financially sound than purchasing.


  Renting vs. Buying a home: The math of renting vs. buying a home. Challenging the notion that it is always better to buy.
Renters are at a greater financial advantage than homeowners. For example, when an individual rents a place to live, he or she may only be required to pay some type of security deposit. This security deposit, in most cases, is equal to the first month's rent. It is refunded when an individual vacant the property provided that he or she has meets all contractual obligations. This is not the case for buyers. Buyers using a conventional mortgage are required to have 20% of the purchase price as a down payment plus additional money to cover closing cost. The down payment and closing cost could easily be 50 times more than any security deposit renters are required to pay.

        Another advantage to renting is renter are not required to pay maintenance or repairs cost unless the damage is directly caused by the renter. Maintenance and repairs are the responsibility of the homeowner. Maintenance and repair cost are the most expensive cost to homeowners followed by taxes. According to a report by the University of Illinois Extension, homeowners need to budget 1% to 2% of the purchase price of their home, each year, to cover the costs of home maintenance and repairs. Repairs on a 30-year mortgage at 1% to 2% of the purchase price could equal half the home's value by the end of the mortgage. Renter also have more flexibility and mobility than owners. Renters are generally under a yearly contract. At the end of the period, he or she has the option to renew the contract or relocate with no penalty. Owners are at the mercy of the housing market and could take a substantial loss if he or she attempts to vacant the premises. Also, in most cases, mortgage lenders require buyers live in the property for the first three years of the mortgage.

        These facts are irrefutable. From a financial standpoint, it is far better to rent than to own. Anyone that believes otherwise clearly does not understand the value of a dollars or how fragile the global economy is.

Are Biweekly Mortgage Payment Programs Necessary?

        After purchasing my first home I received numerous offers from mortgage lenders wanting me to participate in a biweekly mortgage payment program.  They promised to save me thousands of dollars; improve my credit; and reduce the years of my mortgage simply by converting my 30-year fixed mortgage to their mortgage program.  These promises captured my attention but promises are only as good as the character of the individual making them.  I needed to learn more about this program and what I found out allowed me to make a sound decision.

        I contacted one of the lenders and was informed that a biweekly mortgage is a mortgage paid every two weeks instead of once a month.  Since there are 52 weeks in a year,  26 payments or 13 months of payments are made.  This reduces the interest paid on the loan and reduces the term since additional payments are made each year.  This also improves credit by default.  Anyone who pays bills on time is improving his or her credit.  Now, knowing this information, I was ready to move forward.

        I made an appointment and was met by a sales agent.  The sales agent confirmed everything before mentioned and presented me with a contract.   All was well until it was explained to me that there is an enrollment fee of $695 plus a $9 processing fee for each payment.  I felt uncomfortable about this newly presented information and informed the agent that I needed additional time to think about it. 

        The following day, I contacted the bank where my current loan was originated.  I asked a loan officer to explain the biweekly mortgage payment program.  The loan officer informed me that enrollment with an outside agency is not necessary since most banks, including themselves, accept biweekly payments without any special enrollments or fees.   I then called my actual bank with the same concerns and was informed of the same information.  Now I'm comfortable.  I was able to set up a biweekly payment through the bank with no additional fees.

 

Scams Mortgage Reverse

        Home Equity Conversion Mortgage (HECM), also known as, a reverse mortgage is a financial tool for senior homeowners who want to access the equity in their homes without having to take-out an actual home equity loan or a second mortgage. This can be an excellent opportunity for seniors, who meet the qualifications and needs, to gain control of their financial lives. This is also an excellent opportunity for individuals of low character to take advantage of those seniors through reverse mortgage scams. A reverse mortgage scam is often committed by groups of individuals working together to steal the equity of unsuspecting homeowners. This scam usually ends with homeowners losing their homes or a large debt being passed to their heirs. Of all the reverse mortgage scams the most popular and common are the Foreclosure Rescue Scam, the Free Home Scam, and the Investment Scam.

        With the Foreclosure Rescue Scam, con-artist target seniors who are struggling to pay their mortgage and maybe at risk of losing their homes to foreclosure. The con-artist has an inflated home appraisal performed by an accomplice. The con-artist then works with the homeowner to obtain a reverse mortgage. During this period, the homeowner is convinced to transfer the title to the con-artist. Once the title is transferred, the homeowners is evicted from the home without gaining access to the reverse mortgage funds.

        In the Free Home Scam con-artist recruits seniors to live in a home; only requiring them to pay taxes and maintain regular up-keeping. The senior is then required to take out a reverse mortgage again using an inflated appraisal. The funds are then given to the con-artist. When the senior passes away, the reverse mortgage lender is stuck with a loss due to the lack of true value in the home.

        The Investment Scam is a simple scam that involves the con-artist presenting his or her target with an excellent investment opportunity with promise of huge returns. The con-artist convince the homeowner that a reverse mortgage is an great way to obtain the funds to pay for the investment. Once the con-artist receive the money, he or she informs the homeowner that the investment didn't workout; never to be heard from again.

        These are just a few of the scams associated with reverse mortgages. To prevent being a victim, seniors need to avoid solicitation from any organizations that their are not familiar with and research the background of any unknown organization through the Better Business Bureau before completing any financial transactions. For a list or more information about the above mentioned scams and other frauds, readers can search the Federal Bureau of Investigation or the United States Department of Housing and Urban Development websites.

All In Reverse

               A reverse mortgage is a financial tool for senior homeowners who want to access the equity in their homes without having to take-out a home equity loan. The significance of the reverse mortgage as opposed to a normal home equity loan is that it is paid back only when the home is sold, the last burrower dies, the owners fails to keep the taxes and insurance current, or moves out of the house for more than 12 consecutive months.  For some senior homeowners whom may have never heard of a reverse mortgages, also called Home Equity Conversion Mortgage (HECM), the process may seem like a scam.  The very idea of receiving a monthly annuity, a line of credit, or a lump sum from the equity already accumulated in their homes without adding an additional monthly expenses seems too good to be true. In most cases, when something is too good to be true, it usually is.  However that's not the case with reverse mortgages.  Reverse mortgages are a great option for seniors at least 62 years old to take control of their financial lives; who intend to stay in their homes and may not have income or savings to cover their monthly expenses.  For homeowners considering a reverse mortgage, for most, the pros far outweigh the cons.

               

                 The equity payment received from a reverse mortgage can be used to pay off an existing mortgage and whatever remains is available for the homeowner.  The homeowner would not be required to repay the funds received until the home is sold.  This is not the case with a normal home equity loan, the funds received during a normal home equity loans starts to be pay back almost immediately.  This creates an additional monthly payment which could also create a financial hardship to homeowners living on a fixed budget.  This hardship could also lead to foreclosure. With a reverse mortgage foreclosure does not come in the picture, however, the home could be loss when the last burrowers dies and the estate doesn't have the money available to repay the mortgage. This procedure is explained during counseling that the homeowners must receive prior to entering into a contract with a lender.

                Reverse mortgage counseling is a mandatory part of the reverse mortgage application process. The United States Department of Housing and Urban Development certifies housing counselors to provide homeowners with practical information about reverse mortgages.  This informs them of all the benefits, as well as, the downside to reverse mortgages.

                The main benefits to a reverse mortgage is that an individual can eliminate an existing mortgage putting that money back in his or her pockets in addition to the monthly annuity they will now receive. Individuals can also establish a line of credit to eliminate medical bills and complete home improvement projects that will add value to their homes.  Individuals can also receive a large lump sum that can be safely invested in a low risk mutual fund for growth.

                The downside of a reverse mortgage is it has high upfront fees and interest rates. This sounds scary to some but careful management of funds received make the impact of these downsides minimum.

               
                 Reverse mortgages are not for everyone but does provide stability for those who meet the requirements and need the additional assistance. Contrary to what some may believe reverse mortgages are not a scam. It's an actual mortgage program regulated by the government.  The uses of reverse mortgages have the potential to provide financial support to many senior homeowners.  The key is finding a reputable lender that is look to earn honest business without taking advantage of anyone.

Guide to Reverse Mortgages
US Department of Housing and Urban Development(HUD) Reverse Mortgage

Analysis Paper: House Hustles and Helpful Hints

    The mortgage industry is a business.  Like all businesses the goal is to survive and make a profit.  Sometimes these profits can cause individuals within the business to lose focus and take short cuts at the expense of the consumer.  Sometimes these short cuts are accidental and can be corrected easily at little discomfort to the consumer.  Other short cuts are intentional and go unseen for months.  Additional, when discovered, to correct any mistakes may take months.  During that time, the consumer could lose out on thousands of dollar.  In today's house market, consumer need to know what these short cuts and swindles are to enable him or her to avoid them or be able to resolve the issue at the soonest opportunity.  In addition, it would be extremely important for consumers to knowing when he or she is being hustled, it may also be helpful to provided helpful hints to assist with home purchasing.  More to follow.

    

From Home Economics to Home

        In 1986, I was in a high school home economics class surrounded by a room full of young ladies.  I was the only guy in the class so my testosterone levels were off the charts.  I was a wolf in a room full of sheep.  Since it was the first day of school, summer flings were over and it was time to layout new blueprints.  I surveyed the class briefly and started to calculate a plan of approach for each young lady, ensuring not to give-off a desperate no-good cheating dog vibe.  I sat at my desk greedily rubbing my palms together as if I was about to receive a bar of gold from King Midas.  My thoughts were slightly perverted and fill with ideas I got from the magazines in my stepfather's toolbox this past summer.  I had the biggest devilish grin on my face that could be seen from the moon.  A grin that Satan himself would have been proud of especially since he was probably guiding all my thoughts at the moment.  Unfortunately that same diabolical grin also warranted the attention of the teacher, Ms. Pendergrass.  Since I have the awful habit of sitting in the first chair to the right of the class, it was rather easy for Ms. Pendergrass to spot me.  She stepped near and started the class by asking for everyone to give his or her name; why he or she was taking this class; and when do he or she plan to start a family.   She started with me.  This was my moment to shine.  I stood to my feet with my chest out and head held high.  I had all confidence in the world.  Just as I began to say my name and my voice cracked.  Some individuals would have been embarrassed by this but not me.  I was the Alpha.  I was wearing my Brut cologne and spent hours pressing my clothes; nothing could side track me.   I took a short pause and began to clear my throat.  As I was clearing my throat, something didn't clear right and I began coughing uncontrollably.  Now I'm embarrassed.  I ran out the class and headed straight for the water fountain.  I felt like the biggest nerd on the planet.  After composing myself, I returned to the class not as confident as before.  When everyone was finished giving their answers, the teacher returned to me.  I stood and said, "My name is Latroy.  I'm here to learn how to cook.  I'm not getting married until I old and established.  Maybe 23 or 24."  Looking back now, I hope I didn't offend her with my answer.    

        I got married when I was 23 years old and my wife was 19.  Our first task as a couple was to find a place to live.  I wasn't a huge fan of renting.  Rent always felt like throwing money away or paying someone else's mortgage.  We desired a mortgage of our own.  When the weekend came we told ourselves, "The first real estate office we see, we will get an agent and buy a house."  It was that simple, so we thought.  We walked into Century 21 and said, "We want to buy a house."  The agent asked a couple of questions we never considered due in our inexperience.  The agent asked, "How is your credit?  How much do you have for a down payment?  What kind of payments per month can you afford?"  All legitimate and simple questions but we just didn't put any thought into it.  We were still in the honeymoon phrase of marriage where we were just happy to stare at each other and rub noses.  We weren't prepared for questions so serious.

        Combined, our credit was terrible.  It wasn't terrible because of past due notices, garnishments, or closed by creditor accounts.  It was terrible because we weren't established.  We didn't have enough credit references or any credit history.   We were considered a high credit risk.  To make matters worst, we didn't have any money saved for a reasonable down payment.  We haven't even talked about a monthly budget yet.  Needless to say, we left Century 21 and lived in one of those cheap pay-by-the-month trailer parks for the next four months getting our act together.

        During those four months, we save money for a down payment, established credit around town, and created a budget.  We read books and had a basic understand now of how to buy a house.  We weren't real estate agents but we picked up enough terminology not to be lost in the presence of a realtor.  We were ready.

        When the weekend came, we set-out to find another realtor.  Out of shame from our previous attempt, we went to a different real estate office, Prudential.  This time we were prepared for nearly any question and did well when asked.  However, there was still a small issue.  Before the realtor would take us out to search for a house, she referred us to a mortgage lending company to first pre-qualify for a loan.  This was when we were informed we qualified for a $90K house at a variable interest rate of 12%.  I thought that was a good deal considering when we established our around the town credit, everything was 29%.   Finally we could began house hunting.  The realtor never once showed us a house under $100K.  She also told us we could save more money for a larger down payment to make up the different in the loan amount because most of the houses under $100K were in ghetto crime rampant neighborhoods.  I took offends to this.  The fact that I grew up in a ghetto crime rampant neighborhood myself wasn't what offended me but the fact that she was using it as a scare tactic to coerce us to buy outside of our price range to fatten her purse.  We parted ways that day and went to Coldwell Bankers.

        The agent at Coldwell was very professional and did exactly as we requested.  She worked within our budget and even advised us to stay well below our price range in case we decide to have a family soon. Within a week, we found wonderful three bedroom house for $67K at a fixed interest rate of 10% in a great subdivision near work.  We closed on the house and within 30 days we were moving in.  It was perfect.

        My first home buying experience blessed me with a couple of lessons.  First, if an individual is looking to purchase a home, he or she should concentrate on ensuring his or her credit is a perfect as possible.  This may require contacting financial offices to dispute mistakes reported on his or her credit report.  Also, it may require an individual to pay-off particular accounts or open accounts with low balances that can easily be paid-off to establish credit.

        The next lesson I took from this experience, individuals have to stick to a budget and exercise a regular regiment of saving money.  This is a life changing routine and seen by some as extremely difficult.  This is  difficult because individuals are constantly bombarded with advertisements to buy items that aren't needed but wanted.  Advertisement agencies primary job is to make individuals unhappy and their secondary job is to provide the remedy for their unhappiness.  Individuals just have to decide what's more important.

        My final lesson in house buying is to trust no one.  Realtors earn a commission from your purchase.  Rightfully they should considering that they spend hours showing you homes, giving advice, and assisting you at closing to ensuring you do get completely hosed-over.  But it's important not to forget realtors work for the client not just for themselves to get the biggest commission as possible.  The same goes for lenders.  Before an individual settles on financing, he or she should shop a few different lenders to see who offers the best rates.  Buying a home should be satisfying and not a ripoff.  Every part of it should feel good and if it doesn't, there should be a reasonable explanation for an individuals dissatisfaction.