The Indiana Real Estate / Mortgage Blog

Q & A on FHA $100 Down Program

Buy A HUD Home With Only $100 Down!

All HUD owned homes for sale in Indiana can be purchase with a FHA loan with the down payment of only $100. HUD will pay as much as 3 percent of the sale price to offset closing costs, plus it will finance the transaction. Lists of HUD properties available under the program for sale in the state of Indiana can be found on the HUD page . Below are several items from the HUD FAQ regarding the program. For specifics, speak with real estate brokers that are approved by HUD to write offers on these properties. Frequently Asked Questions on FHA $100 Program

Q: Which properties are eligible for the $100 down payment incentive?

A: Any property listed as available for FHA financing (203B, 203B with repair escrow and 203K) will be eligible. However, the purchaser must be an owner occupant to qualify.

Q: Are properties listed under special programs available for the $100 down payment incentive?

A: Properties sold under the Good Neighbor Next Door Program currently have this provision if FHA financing is used and are also eligible for the $500 Selling Broker Bonus if FHA 203K Financing is used. Offers accepted under HUD’s Nationwide Sale to Disaster Evacuees (FEMA) and Non-profit Purchasers are not eligible.

Q: How long will this incentive program last?

A: HUD has not published the length of time these incentives will be offered.

Q: How much earnest money do I need? A: You need to have the earnest money of $1,000 for properties listed above $50,000 and $500 for properties listed for less than $50,000. Earnest money will be returned to you at closing as a credit on the Closing Statement.

Q: Will HUD pay for any closing Cost? A: Yes. HUD will pay for closing cost up to 3% of purchase price. Q: Who can buy HUD homes?

A: Any individual who can qualify for a mortgage or who can pay cash may buy HUD Home. Purchasers MUST have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the HUD home purchase price. HUD divides buyers into two groups, owner-occupants and investors. Owner-occupants have the initial advantage over investors. Priority is given to purchasers who are owner-occupants for the first ten calendar days after a new listing is posted. Also, owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years. HUD does not provide financing for the purchase of HUD Homes. It is up to the buyer to locate the financing through a bank or mortgage company. Before you bid on a property, be sure you do have secured financing. If you place a winning bid and you cannot obtain financing within the specified time, you may lose the earnest money deposit that you submitted with your offer.

So, if you have the money or can qualify for a loan, you can buy a Indiana Home for sale.

Ken Blaudow

317-570-6300

8 comments • Ken Blaudow • March 29 2011 06:04AM

Q & A on FHA 203k Streamline Rehab Loan

Their has not been a time in history where the FHA 203k Streamline Rehab Loan has been as important is it is today in financing homes in America. Here are the most Frequently asked Questions and Answers on the FHA 203k Streamline Rehab Loan.


br />


You can find more info at www.indymortgage.com

Ken Blaudow

317-570-6300

9 comments • Ken Blaudow • March 04 2011 05:47AM

Online Tool to Help Prevent Identity Theft and Reduce Junk Mail

Brought to You By: OptOutPreScreen.com What is Optoutprescreen.com and is it Legit? Optoutprescreen.com lets you opt out of pre-approved credit card offers and the risk of credit card fraud that comes with them. That means less junk in your mail box! Identity theft and credit card fraud are two of the worst threats facing consumers. The news is full of identity theft stories in which the victim's credit rating is destroyed. Who doesn't worry about their credit cards being stolen from their mailbox? What's worse, it might be a credit card you didn't even apply for! Those credit card pre-approvals from banks and other lending institutions pose a hidden danger. What if you could opt out of these pre-screened credit card offers? Now you can at Optoutprescreen.com The Danger of Credit Card Pre-Approvals Those pre-approved credit card offers are more than annoying. If a criminal steals your mail, fills out a credit card application that's been pre-approved and sends it in they've just applied for a credit card ...in your name. Now they just have to watch for it to arrive in your mailbox. Once it does they'll be able to go shopping armed with your credit card. It's that easy. So what can be done to combat it? You may not have requested these pre-approvals, but it's your credit that's damaged in this scheme. This is why we recommend using OptOutPrescreen.com to block credit card pre-approvals unless you prefer adding to your growing collection of credit cards. I have four already but use only two. Using OptOutPrescreen was a no-brainer for me. Optoutprescreen.com Blocks Access to Your Credit History Several years ago the Consumer Credit Reporting Companies acted to alleviate consumer anxiety by providing a means to stop to credit card and insurance solicitation. You know these credit reporting companies as EquiFax, Experian, TransUnion and Innovis. Together they created Optoutprescreen.com so that consumers could send in requests for removal (opt out) from pre-approved credit card and insurance offers. These offers are also referredto as "firm offers" of either credit or insurance. You are also given the choice of opting out for five years or you can opt out of firm offers permanantly. If you have already decided to opt out of firm offers and would like to opt back in (hey, it could happen) OptoutPrescreen.com provides a means for that as well. Opting out will not remove you from mailing lists! Don't be alarmed if six months after opting out you still receive credit card offers. What you have opted out of are unauthorized credit checks. A bank can request your credit history without your authorization and then "pre-approve" you for a credit card. This is the "prescreen" part that is the cause of all the problems because this is where the danger lies. It doesn't do a criminal much good to your intercept mail only to find out you were declined. Many people have wondered if optoutprescreen.com is a legitimate website and not just a scam itself. While the website is very basic, it is secured by 1024 bit SSL to protect the information you send. Optoutprescreen.com is actually what it appears to be and that is a way to get off those mailing lists. Yes, they do ask you for your social security number, however, they need to be able to verify your identity. Type in "www.OptOutPreScreen.com" yourself! If a link to www.optoutprescreen.com should arrive in an email addressed to you, don't click it. Always type in the address (https://www.optoutprescreen.com) yourself. Don't forget the s in the URL because that ensures the encryption of your data when you submit the form. A good rule of thumb is to never, ever click links in email that request your personal information. Criminals create elaborate mockups of banking and other well known sites. No legitimate site would request information requiring you to click a link to "fix your account" or resubmit personal information you've already provided. This is called Phishing and you should learn to recognize it when you see it. Always type in the web address when your financial accounts are involved. In this case you will be submitting your Social Security number and if that gets into the wrong hands you could have all kinds of problems. While this site is completely legitimate make sure that you are actually on it when submitting your request to have the credit reporting companies discontinue their practice of allowing credit card companies to scan your credit history at will. The real www.Optoutprescreen.com is not a Phishing scam Optoutprescreen.com is not a bunch of identity thieves who have cooked up the best scam ever. It's another tool you can use to fight identity theft and credit card fraud. OptOutPrescreen.com is run by the four major credit rating companies - Experian, Equifax, Innovis and TransUnion. I have opted out using this site and encourage anyone that doesn't want to receive pre-approved credit card offers anymore to do the same. Some concerns about Optoutprescreen.com First of all we have to acknowledge that people don't trust the credit reporting companies very much if at all. We have all heard the news stories involving breaches of security that let criminals access the records of hundreds of thousands of people. You may also wonder why you have to opt out in the first place. Shouldn't credit card companies need your permission to run a credit check on you? In a perfect world the answer would most certainly be yes but sadly this is the way it is and if you want to stop those offers from appearing in your mailbox you will need to play by their rules. Some are worried about the Optoutprescreen Privacy Policy It's the privacy policy that really raises a few eyebrows. The information you submit will be available to the four credit reporting companies running Optoutprescreen as expected but the fine print reveals the following: "Optoutprescreen.com or the Consumer Credit Reporting Companies, may also disclose any of the information collected, as described above, to affiliates of the Consumer Credit Reporting Companies, which are companies that are related to one of them by common ownership or affiliated with one of them by common control, or to the associated consumer reporting companies who utilize a nationwide consumer reporting company system and that may have information about you." At first glance this might look a little fishy but think about it before you let paranoia take hold of you. You want to stop as many pre-approval offers as possible and this means that your opt-out request needs to be available to anyone that might send you an offer. We already know that by default they can run your credit report anyway so what you are adding to the mix is that you don't want them to and you don't want their offer. There is some more fine print which might make more than a few of you scratch your heads: Each third party receiving this information is either required to (i) abide by the restrictions in this privacy policy and is not permitted to use or disclose the information for any purpose other than as described in this policy, or (ii) receive and use the information in compliance with the Fair Credit Reporting Act, Gramm-Leach-Bliley Act and other regulatory and legal requirements. This gives the credit-reporting affiliates the option to use one of two sets of rules and regulations. It does not say that they can now use your information anyway they see fit. If you go ahead and opt-out via Optoutprescreen and you are still getting offers three months later you should probably ask questions but give it a chance to work. Your information is already out there so submitting this request only checks the "Opt Out" box in their system. Keep in mind that the credit card companies will try to get you agree to opt back in every time you sign up for credit so read the fine print on just about anything you sign up for involving credit or banking. If you see something such as "We reserve the right to run credit checks on you and send you credit card pre-approvals if you sign this form" and then you sign the form you have no one but yourself to blame. Once you opt out, pay attention any time you sign up for anything so you don't find yourself needing to opt out on a regular basis. Using Optoutprescreen.com can reduce you junk mail One great side-effect of using Optoutprescreen is that you end up with less junk mail to sort through. I figure that my junk mail decreased approximately 50% after I requested that my name be removed from credit card pre-approval lists. That's a LOT of mail! Thanks to Optoutprescreen there are some days where I receive no mail at all. Think about how many trees we could save if we all had our names removed. Tips to help you avoid credit card fraud •Don't carry credit cards you don't use and never leave them unattended in a purse, briefcase or wallet. •Always make sure you get your credit card receipt because it just may include your credit card number. Never toss it in a public trash bin. You'll need that receipt later anyway to tally things up when your statement arrives. •Shred all documents that might include your credit card number before disposing of them - old slips, credit card statements, bills, anything. •Never give your number over the phone to someone that you do not know. It's OK if you initiate the call but if you get a call at home from anyone that you do not know by name do not give them your credit card number. •Never respond to an e-mail asking for your number, no matter how official or legitimate it looks. These bogus e-mails are the #1 fraud right now on the Internet. •Review your monthly statement as soon as it comes and report any problems right away. To insure your rights, follow-up by filing a written complaint form. •Request a copy of your credit report from each of the credit reporting companies. Look them over for unauthorized credit applications.

Ken Blaudow

317-570-6300

0 comments • Ken Blaudow • January 18 2011 09:54AM

3 min. Phone number marketing Idea

Ken Blaudow

317-570-6300

5 comments • Ken Blaudow • January 05 2011 03:47PM

The Indiana Mortgage Guy Brings in 2011

Ken Blaudow

317-570-6300

5 comments • Ken Blaudow • December 29 2010 09:44AM

State of Indiana 18 Digit Parcel Numbers

Over the last few years, Indiana Counties have been converting their property record systems to use the State of Indiana's 18-digit parcel number. As of last week, the last of the counties (Hamilton, Hendricks, Marion, Morgan and Shelby Counties) have been converted to use the State Parcel Number. Listings and history records were updated automatically.

When entering new listings, it is always recommended that you auto-populate the parcel number from the Tax Autopop feature in the BLC® Listing Maintenance utility, to assure that the correct number is entered. If by chance you are entering the Parcel number manually, never include dashes (-) or periods (.) in the Parcel Number Field. Here is the breakdown of the meaning of each of the 18 characters:

The first two digits reference the county, for example Marion would be 49, Johnson 41.

The next two digits reference the congressional township and range.

The next two digits reference the section number assigned under the United States public lands survey.

The next three digits reference block numbers in urban areas (if no block number is necessary they remain all zeros).

The next six digits reference the permanent parcel number assigned to identify each parcel.

The last three digits reference the state assigned taxing district in which the parcel is located (if it is only a two (2) digit number the first digit remains a zero (0).

Ken Blaudow

317-570-6300

6 comments • Ken Blaudow • December 27 2010 10:31AM

FHA EXTENDS DEADLINES FOR LENDERS TO TRANSITION

David StevensFederal Housing Administration (FHA) Commissioner David H. Stevens, in his latest conference call, discussed the FHA's Final Rule, “Federal Housing Administration: Continuation of FHA Reform—Strengthening Risk Management through Responsible FHA-Approved Lenders,” among other things. The following is FHA Commissioner Stevens' comments: In April of this year, FHA issued a Final Rule, “Federal Housing Administration: Continuation of FHA Reform—Strengthening Risk Management through Responsible FHA-Approved Lenders,” which made many changes to the way FHA conducts business. As part of our ongoing commitment to better FHA’s ability to manage its risk, the rule strengthened our lender approval criteria and made FHA-approved lenders responsible for the oversight of mortgage brokers. The final rule, which followed a proposed rule for public comment in September 2009, aligned our risk management practices within the conventional marketplace and will help FHA mitigate losses and decrease risk to its insurance funds. In developing the rule, we welcomed your input, recognizing the need to balance our policies with the needs of our responsible industry partners. Since its publication, we have received additional feedback from program participants. After reviewing your comments regarding transitioning to compliance with the new changes, we are extending certain effective dates in order to give our lending partners more time to transition to their new business models. Temporary Extension of Deadline for Obtaining Unconditional Direct Endorsement Approval–Extended to July 1, 2011 We are extending the deadline for obtaining unconditional direct endorsement (DE) approval for those DE-eligible entities that wish to participate as a Principal in Principal-Authorized Agent originations. A Principal-Authorized Agent origination is a type of FHA origination by two FHA-approved mortgagees (neither of which is a loan correspondent). The Principal-Authorized Agent relationship is used when the two FHA-approved lenders originate a loan together and both need access to the loan file in FHA Connection. In a Principal-Authorized Agent origination, the Principal must originate the loan, and the Authorized Agent must underwrite the loan. The Final Rule changed Principal-Authorized Agent relationship originations to require that both lenders (Principal and Authorized Agent) possess unconditional direct endorsement approval. This requirement was to take effect Jan. 1, 2011. Subsequent analysis determined that many non-DE mortgagees need additional time to complete test cases for DE approval. We have decided to provide a six-month extension (to July 1, 2011) for this requirement. This extension will allow sufficient time for most non-DE mortgagees to obtain unconditional DE approval to become Principal mortgagees in Principal-Authorized Agent originations of Title II single family loans. Without this extension, these non-DE mortgagees will only be able to participate in the origination of single family loans on or after Jan. 1, 2011 as sponsored originators until they have obtained unconditional DE approval. All other changes to Principal-Authorized Agent requirements in the Final Rule will take effect Jan. 1, 2011, as previously announced in Mortgagee Letter 2010-20. FHA mortgagees that do not obtain unconditional direct endorsement approval by July 1, 2011, can no longer act as Principals. However, they may continue to pursue unconditional approval through the test case process and may participate in originations of FHA single family loans as sponsored Originators. Temporary and Narrow Extension of FHA-Approval for Loan Correspondents–Extended to March 31, 2011, with conditions: The final rule provides that FHA-approved Loan Correspondents may close FHA-insured mortgages in their names until Dec. 31, 2010. However, we have been advised that a significant number of Loan Correspondents have mortgage loans that have been assigned FHA case numbers but are unlikely to close by Dec. 31, 2010. A majority of these cases are due to uncertainty in the timing of the mortgage lending process which may be outside the control of the lender. Since FHA will no longer be approving Loan Correspondents after Dec. 31, 2010, they will be statutorily prohibited from closing FHA-insured mortgage loans in their own names. If we do not extend that deadline, the inability of currently approved Loan Correspondents to close mortgage loans in their names will likely disrupt the loan processes of a significant number of lenders. This could negatively impact many borrowers who have already qualified for loans and who may be compelled to work with a new mortgage lender and incur additional costs. Because of this, we are also granting a temporary extension of FHA-approval for currently approved Loan Correspondents with pipeline loans that meet certain criteria for the narrow purpose of allowing these loans to close in the Loan Correspondents’ names. This extension will extend FHA-approval of currently approved Loan Correspondents for the narrow purpose of permitting existing loans in their pipelines to close in their names. This extension will only apply to loans in which a case number has been assigned and the loan has been approved by a DE underwriter as of Dec. 31, 2010. The extension will expire March 31, 2011. The extension only applies to loans for which, as of December 31, 2010: ►(1) HUD has issued a firm commitment for insurance; or ►(2) A DE underwriter has approved the borrower for such loan (i.e. the lender has received and accepted approval via TOTAL Scorecard or has manually underwritten the loan). This approval includes the DE underwriter review and approval of the appraisal. Loans eligible for this waiver must close by March 31, 2011. The FHA approval of all Loan Correspondents for all other purposes will expire on Dec. 31, 2010. All other pipeline loans that do not meet these criteria and have not closed prior to Jan. 1, 2011, must close in the name of an approved FHA Lender/Sponsoring Lender. For more details on the waivers, click here. These extensions are another example of our efforts to improve FHA’s policies so that we can continue to provide access to credit in today’s marketplace while at the same time recognizing the business needs of the lending industry. Thank you for your continued support of FHA and the mission we serve. For more information, visit www.hud.gov.

Ken Blaudow

317-570-6300

5 comments • Ken Blaudow • December 27 2010 07:49AM

Whats happening with RATES

Ken Blaudow

317-570-6300

5 comments • Ken Blaudow • December 20 2010 03:11PM

New Year’s Resolution Ideas

I have now been in the mortgage business for 22 years yet it only seems like yesterday.  Each year I find myself in late December putting together my annual plans for the upcoming year.  As I am doing my planning for 2011 I thought I would share some of my business resolutions with you.

•1.       Implement ONE strategy to completion BEFORE I move on to another.  I find myself so often with a ton of ideas and trying to work on them all at the same time, thus taking for ever to get anything done.  This year I want to complete each business idea before moving into a new one.

•2.      Handwrite more Personal Thank You notes.  In this high tech environment we now leave in with Social Media, and all the emailing we do, it means a lot to people to actually get physical mail in their mail box.

•3.      Video B2B marketing.  Business partners can be a great source of networking and sharing.

 

Successfully,

Ken Blaudow

The Indiana Mortgage Guy

Ken Blaudow

317-570-6300

4 comments • Ken Blaudow • December 17 2010 11:00AM

Freddie Mac Suspends Evictions During Holiday Season

Brought to You By:
PRNewsWire.com


Freddie Mac (NYSE: FRE) today announced it has ordered all evictions involving foreclosed occupied single family and 2-4 unit properties that had Freddie Mac mortgages to be suspended from December 20, 2010 to January 3, 2011. 

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, Executive Vice President of Single Family Portfolio Management at Freddie Mac.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac

Ken Blaudow

317-570-6300

5 comments • Ken Blaudow • December 16 2010 03:37PM