2020 Real Estate

How County Closures Could Kill Your Deals

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Septic Tank Inspections

Key takeaways

  • Agents should be aware if their local health department is still operating and if they are still able to conduct necessary inspections of septic and well systems prior to sales closing.
  • For sales in Ohio where there is a septic system involved, a deal could be held up or killed outright if the inspection does not occur.
  • If a property that you represent cannot obtain a normal inspection prior to closing, you could be putting your client in a dangerous position in the future.

For a few weeks now, different departments inside different county governments have had to close or alter their day-to-day operations.  Most of us realize that departments like the recorder’s office, auditors, or courts have been affected by COVID-19.  How they have done so has not always been consistent with the same type of departments in the surrounding counties.  One county department that many of us in real estate probably haven’t thought much about are the health departments.  Like other offices, we are finding that many health departments are displaying inconsistencies between geographic areas.  How some are now conducting, or not conducting, their day-to-day operations is affecting our industry and real estate agents need to know about this. Continue reading →

Government-Backed Loan Requirements Have Not Changed; Some Lenders Have Though

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Government Backed Loans - FHA, VA, USDA

Key takeaways

  • Government-backed loan requirements (FICO credit score, % down, debt to income ratio, cash reserves buyers need on hand, etc.) have not changed
  • Some lenders have changed their requirements on their own due to the current state of the market
  • Amerifirst has not changed its requirements on government-backed loans (FHA, VA, USDA)

Lenders are telling the REALTORS® whom they often work with that the government minimums have changed.  They say something like, “new FHA guidelines require a minimum score of 670 for all FHA loans.”  This is NOT true.  Before we go any further we need to establish one very important fact… to date, the government has not changed any of their minimums, (like FICO credit score, % down, debt to income ratio, cash reserves buyers need on hand, etc.) at any point during recent times.  They remain, today, what they were three weeks ago or even three months ago.   Continue reading →

Mortgage Forbearance Explanation and Warning

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mortgage forbearance

The COVID-19 Coronavirus has led to some challenging times for all of us. 

The Government has created the CARE Act, to assist homeowners whose income may have been adversely impacted by the coronavirus. One of the components of the CARE Act is the possibility of mortgage forbearance. 

Forbearance is often misinterpreted. And while it is intended to help, it can have some dangerous repercussions. Many people are mistakenly thinking that forbearance equals forgiveness. It does not. Forgiveness implies that money won’t need paid back.

Forbearance is the lessening of mortgage principal and interest payments over a short period of time. That money is then due in one lump sum after the forbearance period. For example, if you cut your $1,000/mo. mortgage principal and interest payment to $500, you need to pay back $1,500 in a lump sum after a 3-month forbearance.

Think about when you buy something at a furniture store that offers “no payments” for 3 months. You still must pay for the furniture…the payments are just deferred. 

But mortgage forbearance is even worse if the borrower has dug themselves in a deep hole and can’t catch up. Should this happen, the lender will enforce their right to be paid, which may cause the borrower to be foreclosed upon. They could lose all the equity in their home in the process. 

Forbearance is designed to help those as a measure of last resort. It is not a free pass and may have serious consequences.

Here are some other things to consider regarding mortgage forbearance:

Be resourceful. Ask questions. Learn. 

As always, I’m here to help: 

Brandon Davis

NMLS #69028

MLO.003759.000

Down payment and terms shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Please contact us for an exact quote and for more information on fees and terms. Not all borrowers will qualify.

Navigating the Current Real Estate Environment

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navigating mortgage lending environment
With rates changing by the week, day, and most recently by the hour (!), Realtors, home buyers, and homeowners alike are likely scrambling to get the best deal and situation in place. These are certainly unprecedented times, and it’s very important for everyone involved in the process to be prepared and educated on the best course of action to navigate these waters most effectively. 

Here are a few tips that Realtors need to keep in mind: Continue reading →