Can I Buy a Home While I’m Getting Divorced in Minnesota?

It has been widely and wrongly asserted that someone who is getting divorced in Minnesota cannot purchase a home prior to finalizing a divorce decree and at the same time prevent their soon to be ex-spouse from being entitled to marital property rights in the newly purchased home.  This used to be a serious problem that made the already long and painful process of getting divorced in Minnesota even longer and more painful yet.  In 2004, the Minnesota legislature put this recurring issue to rest. In 2004, the MN legislature enacted MS 507.03 PURHCASE-MONEY MORTGAGE; NONJOINDER OF SPOUSE.  Amongst other …

Before You Shop for a Condo, Pre-Qualify Your Lender First

If you’re a FHA buyer shopping for a condo, you’d better pre-qualify your lender first. If you’re listing a condo and a buyer gives you a FHA pre-approval letter, you’d better pre-approve that lender first. Because Spot Approvals are a thing of the past, it’s important to know which of the two remaining FHA condo approval processes your lender will be using: Direct Endorsement Lender Review and Approval Process (DELRAP) or HUD Review and Approval Process (HRAP) as outlined in MORTGAGEE LETTER 2009-46 B. DELRAP is only available to lenders who have unconditional Direct Endorsement authority and staff with knowledge and …

The New Real Estate Boom(ers): Purchasing with Reverse Mortgages

In October of 2008, HUD rolled out their reverse mortgage product and in March of 2009, they perfected it. With rates expected to rise and the tax credit setto expire, many real estate professionals are looking for new and under-served markets to reach out to. Since HUD has perfected their reverse mortgage, the Home Equity Conversion Mortgage (HECM) and the market for US residents 62 or older is expected to nearly double between now and 2050, perhaps now is their time. A reverse mortgage is a loan where home equity is converted into a lump sum payment or series of payments to …

What’s the difference between pursuing bank-owned properties vs. short sale properties?

Understanding the differences between these two forms of distressed sales is critical to writing winning offers and paving the road to a successful closing. Perhaps more importantly, understanding their differences will mean that you’ll get the best deal possible on your purchase. A bank-owned property (often referred to as a “foreclosure” or “REO”) is a home which has been taken by the bank. In this case, the foreclosure process has concluded and the property is now owned “free and clear” by the lender. Making an offer on a on a bank-owned property is relatively simple in that response times are …

What are extenuating circumstances?

Many people trying to buy a home after a short sale find it difficult to navigate through loan programs that they may be eligible for and various waiting periods that may be applicable.  If late payments occur, most people are told that the waiting period for buying a home after a short sale is 3 years because that’s what FHA requires if late payments occur.  Then they learn that Fannie Mae will back a loan for someone after a short sale after 2 years with a 10 percent down payment if there are “extenuating circumstances.”  But what are extenuating circumstances? Fannie …

Contract for Deed (CD) – Preparing for a Real Mortgage

I’m going to explore with you some ideas on how to structure a contract for deed when buying a home so that when it comes times to ditch the CFD and refinance into a regular mortgage you can choose your path.  First thing you should consider is an attorney to assist in writing up the CFD.  For those of you that don’t believe “if there is a will — there is an attorney”, then try this for some tips on protecting yourself when writing up the CFD. Most people that are buying using a CFD have either have damaged credit …

10 Home Renovations That Don’t Necessarily Add Value

Some people assume that all renovations done to the home will add value.   As a matter of fact most people spend thousands of dollars on expensive upgrades and renovations over a period of time. What these people forget is that the next owner may not like the renovations.  Everybody needs to remember that your home is only worth that of homes of comparable size are appraised at, not necessarily by the characteristics of your home.  Yes, some qualities are highly sought after like garages, finished basements, enclosed yards or large kitchens but you need that certain buyer to appreciate them. …

Wanna Be a Good Mortgage Applicant? . . Then it’s Time to Get Naked!

Qualifying for a Mortgage, we went from one extreme to the next!  3 years ago, if you had a social security number, stated your income and ordered an appraisal (with practically a stated value), you were good to go. Today, when The Mortgage Lady meets with a potential client, one of the opening statements is “we are going to be required to document your documents” and, ask them to not be insulted when the investor has conditions that are beyond what they would expect. We live in a country where our justice says, we are innocent until proven guilty, everyone …

Who Is Going To Write These Loans?

The mortgage industry has seen much blood shed in the last 2 years, particularly in the last year.  After reading a very interesting magazine article, I began to think about the future…the eminent future and a big question arose, “Who the heck is going to write these loans”?  What is the MN Mortgage Mom rambling about now?  Well, let me take a step back a few years first. In the early to mid-2000’s, loan officers were a dime a dozen.  We were in offices, working out of our garages and in the comforts of our living rooms.  We were dressed in …

Upside Down on Your Home? – Here’s Your Playbook

In my home state of Minnesota, Minneapolis and Saint Paul have nearly 39 percent of homeowners under water. I’ve had the question, “I’m upside down on my home, what are my options?” so many times that I wanted to prepare a menu of options for people to reference. This article briefly outlines 9 potential solutions that may serve you well. The target audience here is not necessarily someone who’s in default on their loan but simply one who owes more than the home is worth. All too often, when one is upside down on their home and/or struggling with their …

Are Realtors Ready for the New Self-Employed Borrower Guidelines?

For all loans this year where the borrower has ANY kind of self employed income feature, they will have extra steps to go through after 2010. This means that even if they have a very passive (anything more than 5% or total income; positive or negative) business or a rental property or anything like that, they’ll be put through the Spanish Inquisition of income documentation. What’s more important as a Realtor, is that you’re working with a loan officer that is very proficient in tax transcript analysis and knows how to prepare an accurate Self Employed Income Analysis quickly (an …

So Banks Think There’s No Such Thing as “Too Big to Fail” – The Audacity of Dopes

On Friday the 13th, the Chairman and CEO of J.P. Morgan Chase decided to weigh in on whether a bank could be too big to fail. I’m sure you’re on the edge of your seat wondering which side of this argument he’d be on. I know I’ve been breathlessly waiting for one of the titans of Wall Street to tell me what the best way to regulate their businesses would be. Thank heavens I finally know what to think! Before we evaluate the points, let’s consider the timing and the source. This op ed wasn’t benevolently shared with us in …