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Momentum For Life - The Changing Face of Delinquency

May 6, 10

In This Issue

A Note From Dan

The Changing Face of Delinquency

Satori Recommends: Ray Avanzino

A Note From Dan

Good news - I’m seeing a lot of firsthand evidence that the housing market is improving. I’m seeing it when I take my two-mile walk around my neighborhood as part of my morning workout. I’ve noticed a significant number of construction projects underway, everything from new roofs, painting, remodeling, new landscaping, even a room addition.

And this past weekend Eileen and I drove through one of our favorite neighborhoods just to look at the homes and drool. The same thing was happening: trades people working on multiple houses - on a Sunday!

Just to confirm what I was seeing, I consulted the S&P Case/Shiller report on housing price and related consumer information for June 2010 (get a copy of the report here). It reports upticks in multiple areas. It’s not enough to call it a trend, but people are spending money on their homes, which comes from income, savings, or financing - and optimism.

The Changing Face of Delinquency

In a really good mystery, the author can spin a set of circumstances to look like one thing has happened, and then unravel them to reveal a completely different - but equally plausible - sequence of events. I find myself asking if that’s what’s going on in the current mortgage-delinquency market.

Simply put, there are two disturbing trends - the number of mortgages that are entering the phase known as delinquency is rising, and the amount of those mortgages is rising. That is, a greater number of owners in more-expensive homes are falling behind on their payments.

Just for context, let me walk you through the process. . .

Click here to read the full article:

Satori Recommends: Ray Avanzino

It is no secret that it’s tougher to qualify for mortgage financing these days. The verification and documentation process has become so rigorous that as many as 45% of applicants don’t even see it through to completion. That figure could reflect intolerance for an increasingly difficult process, or it could reflect the inability of applicants to provide the extensive documentation necessary.

You can increase your odds of success by working with an experienced professional who is up-to-date on his lending knowledge, committed to his work, and devoted to serving his customers. I have referred many clients to Ray Avanzino, and the reports are always positive and the results satisfying.

Here’s just one option Ray has to offer:

Financing a Fixer Upper - Renovation Loan

You just love the house. Except for the leaky pipes. Or the kitchen is too small. For the house that’s almost perfect, there is a perfect solution. The Renovation Loan, a mortgage and home improvement loan all in one. It is available for a purchase or a refinance. Say you find a home listed at $500,000, but it needs a new roof, or flooring, painting. carpeting, wiring, etc. Improvements cost $100,000. The home is appraised at the future value and the buyer receives the funds at closing for the improvements. This program offers the unique features of an FHA loan: 1-4 units, down payment as low as 3.5%, and flexible credit qualifying. Purchase and Rehab all in one new FHA loan.