Rates Always Stable during last 2 Weeks of the Year

I don't know whether all of the economists and government employees go on vacation for the last 2 weeks of each year, but the interest rates always stay flat for the remainder of the year. Perhaps they are enjoying their families and getting ready for the holidays. Maybe they are taking in a few office parties and spending their year-end bonuses. Whatever the reason, it is safe to say that the Mortgage rates on 30 year Fixed Rate products will not change until after January 1st. For those buyers who aren't closing until the end of February, but are concerned that their interest rates will rise before they get a chance to lock them in, have nothing to fear by waiting until the beginning of January to lock. Rest easy and enjoy the holidays knowing that interest rates aren't going up.

Andy Williams PA. NMLS License no. 118317
President
Abacus Regional Mortgage License no. 113984
484 695 5972

Is this another positive trend for the housing market?

Lenders have been talking for a year that they offer 95% conventional financing. Lets face it, we all said we have it, but now we really can say that it is possible to get it approved. The previous guidelines stated that it is only available in geographical areas where the housing market isn't in decline. Where in the United States can you find an area where the prices aren't falling? Until recently, buyers applied for 95% financing only to be switched in mid-stream to 90% or converted over to FHA at 3.5% down payment. Since I have had multiple 95% financed properties approved and closed, I can guarantee you that this program is alive and well and offered to buyers with 680 credit scores. As many reports have come out pointing to our economy going into another recession, this is one of many positive signs that we've had showing a boost to the housing industry.

Andy Williams
President
Abacus Regional Mortgage NMLS # 113984
484 695 5972
Pa. license NMLS # 118317

HOW VALUABLE WOULD IT BE TO HAVE THE TOOLS TO HELP SOMEONE IMPROVE THEIR CREDIT?

These are exactly what I have now at my disposal. I have been doing mortgages for over 20 years, long before there were credit scores. I have been able to read and understand credit reports for 25 years, yet some of the mysteries of the credit score algorithm still confounds most people, including me. I have recently changed the credit reporting agency in which to order credit reports. I met a very dynamic individual who has a wealth of knowledge regarding specifics on credit scores. He has taught me how to find out exactly how much and how soon a person's credit score will go down or up based on what they pay, how they pay, and how much a borrower pays. The credit agency offers an upgraded software to the borrowers that allows us to evaluate the best course of action for them, instruct them on specific remedies for their credit in order to improve their scores quickly. Why should they payoff a collection account if it is going to bring their score down? Why open a new credit card if it isn't going to help them for 7 months? Why close their open zero balance credit cards if the scores are only going to go down? These questions will be answered at my Free Credit Score Seminar held at the Best Western Hotel at Routes 512 and 22 in Bethlehem, Pa on Thursday November 17th from 9:30AM to 10:30AM EST. Please RSVP to pat.wagner@abacusmort.com

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317
Co. ID # 113984

CLASSIC HOMES DOES IT AGAIN

Why is it that a builder can sell inflated new homes to unsuspecting buyers and get away with it? This has been going on with builders in the Poconos for many years, but after many law suits and criminal charges, it continues to go on today. Classic Homes of Pocono Summit purchases lots at tax sales in A Pocono Country Place for up to $ 500 and builds homes on them. Doesn't seem like anything is wrong, does it? Well, when a buyer goes to get financing for them the lenders require an appraisal on the new home. Even though a newly constructed home costs more to build, you still have to compare the price of the new home with comparable sales within the same community. These sales must be within 6 miles and 6 months of the current property, and the comparable properties used MUST be Resale Homes and NOT newly constructed ones! Since the average sales price of homes in A Pocono Country Place over the past 6 months hovers under $ 60,000, it seems hard to believe that the average New Home with Classic Homes costs $190,000. They have closed over a dozen homes this year! How?

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

FREE CREDIT RESTORATION

I have just signed up with a new credit reporting agency to run all of our credit reports. They offer a service where they will give any potential customer a list of helpful hints and advice on how to improve and restore someone's credit score. If a home buyer follows the advice step by step, they will be able to buy a home any where from 2 months to 24 months later. The time frame is contingent upon the severity and depth of the buyers credit and the amount of work needed to bring it to an acceptable level. I've seen scores improve by 15 points in 5 days and as much as 80 points in a matter of months. More and more customers need the extra help that I can give to help them to become buyers and realize their dream of homeownership. For more information, or to refer a potential buyer, please feel free to contact me on my cell phone at 484 695 5972.

Andy Williams
President
Abacus Regional Mortgage
NMLS # 118317
licensed by the Pennsylvania Department of Banking

Do You Think Being a Mortgage Broker Gives Me an Advantage Over Other Lenders?

How many times has one of your clients, or you personally, been told that they can't get approved? As a Mortgage Broker, I have access to many different lenders and an innumerable amount of lending programs. I do business with large to small Mortgage Companies, Banks, and even Credit Unions. Each type of lender offers something very unique. For example, one of my credit unions offers PMI insurance rates 41% lower than banks and mortgage companies because they are a non-profit organization serving their members. This savings is passed on to my customer. Working with small local banks gives me an advantage. I can offer lower interest rates on many types of loans than the big banks like Citibank, Chase, Bank of America and Wells Fargo can give to their customers. Many of these small local banks don't sell their mortgages on the Secondary Market, they portfolio their loans. This allows me the distinct advantage to offer creative underwriting. This means that I can do certain loans that others couldn't dream of making to my customers. I offer the unique opportunity of one-stop shopping. If I have a loan in which one lender doesn't like a buyer's credit, or configures their income a certain way, I can package the loan application, ship it to another lender without any additional monies spent. This makes things easier and less stressful on the buyer, seller and realtor. Do you think it could be worth trying us for your next mortgage application?

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

I HAVE REDUCED PMI INSURANCE RATES FOR YOUR BUYERS

I recently signed up to do business with a credit union in California who writes loans in Pennsylvania. One of their unique products offered to their customers is reduced PMI insurance. Because they are a credit union, as opposed to a bank or mortgage company, they get reduced rates on PMI insurance from two different PMI insurance companies. The average reduction in monthly payments is 41% less than what the large banks and mortgage companies charge for PMI insurance. The payment savings has made the difference in some people qualifying for a larger home than they otherwise would have been able to do. Plus the credit union offers fantastically low rates that match or beat my lowest banks and mortgage company's rates, too. For a PMI chart please contact me at 484 695 5972.

Andy Williams
President
Abacus Regional Mortgage

Ask the "Mortgage Man": USDA Announces changes to PMI insurance

Ask the "Mortgage Man": USDA Announces changes to PMI insurance: Effective today, October 1st, the USDA has announced the changes to their up front Funding Fee. The amount of up front insurance premium th...

USDA Announces changes to PMI insurance

Effective today, October 1st, the USDA has announced the changes to their up front Funding Fee. The amount of up front insurance premium they require to be financed in with the mortgages was reduced from 3.5% to 2% of the purchase price. In addition, they will impose a .3% annual fee which will be added to the borrowers monthly payment on a monthly basis. As an example, if someown is buying a home for $100,000, they will be financing
$ 2,000 and incurring a monthly expense of $ 25. These changes are more attractive for the borrower making this type of financing an effective way to sell real estate. They will still finance 100% of the sale price, allowing the borrowers to finance the closing costs to a maximum of 6% of the selling price. The seller can pay the closing costs if the house doesn't appraise high enough to allow the buyers to finance them. This is another positive sign of the economic recovery in the mortgage industry.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

Is This Real Estate Market Similar to 1991?

When I got into the Mortgage Business in January 1991 the real estate market in Eastern Pennsylvania had died. We had gone from a crazy frenzied high of 1988 to a low in only 3 years. The heightened craze was caused by in influx of people moving in from New Jersey and New York because we built a new major highway (I-78), which made commuting much easier. The less expensive housing prices were possible for these commuters. This time we had a much longer frenzied period of increasing prices topping out in 2007, this time hitting a low in 2010-2011. The main catalysts for this crazed market were the event of 911 and the completion of a connection between I-78 and Route 33. These are some similarities to our current situation.

There are some distinct differences between these two housing markets. I remember doing a mortgage for a couple in October 1991, who were moving into the Pocono Area from Seattle Washington. They had lived in Seattle for 9 months and made a 30% profit on their home before moving to our area. Another gentleman sold his house in Las Vegas in 2 days before moving into the Lehigh Valley. Three other buyers had sold their homes in Boston, Atlanta and Orlando, respectively with little or no trouble. They each had made significant money on their sales and experienced a prosperous housing market. There were pockets of areas throughout the country doing extremely well, while our area, and other parts of the United States were doing poorly.

Today, the entire United States is in a bad housing market. It seems that values are down significantly, with some areas (Detroit, Las Vegas, Florida, California) being hit harder than most. Most of these areas are dependent upon one major industry feeding their economy, such as the Auto Industry in Detroit. The one good thing for our region is that we don't seem to be hit as badly as some of these other areas, and this time our Corporate Diversity will keep our region from being as greatly affected as other parts of the U.S.

Why aren't more people buying homes?

Interest rates have officially reached an all time low of 3.75% for a fixed rate..Can you believe it? Why aren't more people buying homes? Home prices in most areas of the United States have dropped at least 25% from their all time high in 2007. Why aren't more people buying homes? Many economists have predicted that the housing market has bottomed or is near the bottom. This means that prices have fallen just about as far as they are going to fall, eventually beginning their rise, again. Why aren't more people buying homes?

DEPRESSION DOESN'T LAST LONG!

Every year the kids go back to school, and in recent years, leave for months at a time. I know the time is getting shorter when July heat and humidity gives in to August moderate temperatures. But after I enjoy the bittersweet Labor day holiday, the NFL starts. It doesn't take long to get over the end of summer and move on to the fall. I don't care if it rains, hails, thunders, or snows. Nothing can bother me on Sundays unless the cable goes out! So go ahead, I dare you to take my kids away from me, take the hot swim days away, I don't care! I have my football!

WHY ARE THE LINES SO LONG AT DORNEY PARK'S WILD WATER KINGDOM?

Have you ever been to Camelbeach in Tannersville, the Great Wolf Lodge in Scotrun, or Wet and Wild in Orlando? What do these three water parks have in common? They all move the lines much faster than Wild Water Kingdom. On one particular ride at WWK they have a roped off gate at the top of the stairs which keeps you from entering the main deck. This deck is where several slides begin. Only after the riders are completely out of the water and safely outside of the exit does the attendant come over to unchain the rope and allow the next set of riders to walk up to the slide. This takes several moments, between the unlatching of the hook, the riders walking over to the slides unsure of which one to choose, looking over to the attendant to make sure that they are allowed to go down the slide, all of which is another 60 seconds or so. Meanwhile, the lines build and get longer and longer. This creates a logjam on every ride causing wait times of over 60 minutes on most rides. This is completely unnecessary as witnessed by attending these other water parks. The others use a system of waiting until each rider has crossed a midway point on the three slides. At this point they allow the next set of riders to get set at the beginning of each slide. Upon the safety of the last of the current riders exiting the pool, but not yet outside of the exit, the attendant allows the next set of riders to start their ride. This simple yet still safe way of moving the line saves dramatic total times and cuts the wait times in half. Boy, its amazing how making a simple and subtle change can dramatically make it more enjoyable for everyone. My advice is to avoid WWK and go to one of the other water parks. You will get much more of your money's worth!

LOW RATES DUE TO SHAKY ECONOMY

It is amazing to me how much bad news continues to come out each day about everything from the economy to the housing market, and job market. Here's a bit of good news. The interest rates were supposed to be climbing along with gas prices by the beginning of summer, yet neither happened. In fact, the interest rates have dropped, and the Federal Reserve has promised to keep the Federal Funds rate at 0% for 2 more years. This means that most variable rate mortgages ( home equity lines of credit, commercial loans ) are going to stay low for at least 2 more years, too. Mortgage rates are not based on the Federal Reserve interest rates, but they are based on the sale of treasury bills, economic news, and other factors that effect the stock market, as well. With the mortgage rates at or near their historic lows, buyers and homeowners need to take advantage of them now. They will not stay this way for long. I have seen mortgage rates as high as 18%! Believe me, enjoy them while they last.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

MORE SIGNS OF MORTGAGE MARKET EASING THEIR RESTRICTIONS!

As I have kept you informed of changes within the mortgage industry, there have been some signs of easing with lending restrictions. This time I am glad to say that in the very near future there will no longer be a maximum debt ratio of 50% on all loans. More importantly, there will no longer be a minimum credit score requirement with FHA loans. Most of you don't know that there is no minimum FHA score required right now. FHA doesn't have nor ever had a minimum score. The problem we have all had in trying to get buyers approved is that the large institutional investors who buy an sell FHA loans are the ones who have imposed the minimum credit scores on FHAs. Most lenders are requiring minimum scores of 620 because they have to sell the loans to these institutional investors. If they can't sell them, the banks and mortgage companies are stuck holding the loans in their portfolio. With these investors removing the minimum credit scores, we will be able to grant more mortgages, sell more houses, grow the economy and the GDP. We have hit the bottom of the market and are ready to turn a corner slowly. It appears like we are almost in a normal market. For now, I'll take it!

INCREDIBLE ACT OF KINDNESS

We were at the beach when a commotion startled us to our left... We looked to see a man grabbing at his throat like he can't breath..his wife runs to the lifeguard chair asking for help...another woman tells him to lie back in his chair..within seconds he stops moving and his face turns dark grey..he is dead. The lifeguards come running and pull him off his chair on to the sand by his legs. They immediately start CPR and a lady comes over and immediately starts pounding on his chest..she is an ER nurse. Within minutes, police come running onto the sand followed by Paramedics, but they can't get an ambulance on the sand because you can't drive on the beach. The Paramedics place the man on a stretcher with a Defibrilator attached to it. You can see his body jump but no pulse. Every minute, as they continue to work on him, his body jumps in response to the electrical shocks he is receiving but still no pulse. Eventually they manage to get a beach vehicle on to the sand and get him loaded onto it in the back. As they drive away you can still see the paramedics working on him but the mood is very dim with the remaining swimmers and beach onlookers' faces in horror over what we've just witnessed. A woman faints as another tells us that he has had 7 heart bi-pass operations and can't get another. As his loved-ones leave the beach, everyone else appears to try and get back to some sort of normal activity, but the mood is not good as we all know the outcome of this event. About an hour later, the lifeguard who originally started the CPR is back at his chair. We asked him what became of the man. He told us that his heart has started beating but it is irregular. He was lifted by Helicopter to a hospital in Atlantic City where he remains in critical condition. Since yesterday, he has been moved from Critical Care to Stable and is on the road to recovery. What an incredible story with a happy ending. Everyone from the bystanding nurse,the lifeguards, paramedics, police to the helicopter pilot all deserve kudos for what they have done for this man.

DO YOU THINK THIS BILL WILL PASS?

Have you heard the government's thoughts of increasing down payment requirements for mortgages? I don't believe it will ever happen. They attempted to stimulate the economy last year with a 1st time homebuyer tax credit of $ 8,000. That worked for the first three months of 2010, only to see a sharp decrease in sales immediately following the end of this tax incentive. Some stimulation! Now, they're thinking of increasing the required down payment for qualifying for a mortgage? This bill will never pass! Since the housing market is a huge chunk of our GDP, and since it spurs increases in the auto industry and retail sales, we need to continue to sell more houses and not stop them from being sold. This would only prove to decrease the number of overall home sales. There's no way this will ever go through. It will kill our already fragile economy. Home sales will slow to a crawl, home values will plummet and foreclosures will double already historic highs. Rest easy....there's no way this will ever happen!

SCAM'S LIST

I was selling at item on Craig's List. I don't know if you've ever sold anything but it's pretty straight forward. You negotiate with a buyer by email and usually meet face to face to exchange the item for cash.

In this case, the buyers were from overseas... so they sent a check by federal express. By email they told me that their employer would be purchasing the item for them, but the check was going to be for more than the cost of the item. This was supposedly a mistake and the difference should be refunded to them by me immediately upon receipt of the money. This is the first time I thought something is suspicious.

When the check arrived it wasn't certified as was stated in their email. It was written on a normal business check in the name of an LLC. The fedex package came from yet another company (LLC) from a different address. Now I'm really starting to get suspicious. The following day I received instructions to wire the money to yet a different person in another state, because they said the money shouldn't take more than 24 hours to clear. This is no longer suspicious- this is downright sounding like fraud.

They continued to pressure me into wiring funds, but I continued to state clearly that I have to wait for the check to clear since it is from out of state. I brought the check to the same bank in which the check was written. This way the bank can see if the funds are available and if the check is legitimate at all. After going into the system, the bank manager felt that the account appears to be legitimate, but she scanned the check I had deposited. Upon further review, the manager found the account to be closed. Now imagine if I had wired money to a stranger and didn't realize my mistake until after it was too late. Please be careful anytime you come across a scenario similar to this. Watch Out for FRAUD!

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

COMMON MYTHS of CREDIT and FREE WAYS TO IMPROVE YOUR SCORE

I have been in the business for 25 years and learned to read credit reports way before there were credit scores. We were taught to carefully assess the credit risk of a buyer based on their pattern of payments, number of late accounts, how recent the delinquencies, type of debt, etc. This training went by the wayside when credit scores were derived.

Today, a loan officer looks at the score to determine the ability for a borrower to obtain a mortgage. With this simplistic approach it has made it much easier to determine a buyers ability to get a loan, but it doesn't help a loan officer to properly council someone with less than stellar credit on how to boost their credit score. I have the experience and am better adept at assessing a person's credit report and showing them ways to improve their credit scores.

There are a few myths about credit which are commonly known yet misunderstood. One of the most common myths which I know not to be true is that most people believe that you must open a charge card, charge it up,pay it off, and close it to establish credit. While it is true you must open an account to establish credit, you don't have to use it at all! When you look at a charge card on a credit report it will show the payment patterns for the past 24 months. If the account has never been used it will still show excellent payment patterns as if the card has been actively used. This is an excellent way to build your credit without ever having to use it. You can open a Mastercard or Visa and cut up the card. This will boost your credit score immensely.

Another common myth is when people tell me they paid their late credit card off in full and closed the account. Unfortunately, this doesn't help your payment history. It is true that by paying off the account will bring it current, but the last few months payment history on the account will display the last few late payments for a long time. It becomes an old account and will no longer rate. It is much more effective to pay the account current and continue to make timely payments for at least 24 months to clean up the recent history on the account.

"I've heard that a bank can turn you down if you have too many unused credit cards...they feel that you have the potential to charge them up?"
This is very untrue. I council people how to improve their credit scores by lowering their credit card balances. If you have revolving charge balances below 50% of the limits you will increase your credit score. If you don't have the money to pay down the balances, perhaps you can have the creditor increase your credit limit to obtain the same objective. For instance, if you have a $500 credit limit and a current balance of
$475, by raising the limit to $1,000 you will be able to artificially be able to reach the same goal. Don't close the unused accounts. They are helping you amass a higher credit score.

For a free assessment and credit counselling please contact me at

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
andrew.williams@abacusmort.com

HEALTHY SNACKS AREN'T SUPPOSED TO TASTE THIS GOOD!

This concoction is one that I came up with over the years that tastes fantastic yet is super healthy. Here are the ingredients:

1 cup of fresh strawberries
1 tablespoon of Lowfat Vanilla Yogurt
1 tablespoon of Lowfat Cottage Cheese
1 teaspoon of Wheat Germ
1 teaspoon of Vanilla Granola
1/4 cup of whole walnuts

Slice the strawberries and mix with all of the ingredients. It stores well in a container to pack for lunches and makes a fantastic snack. It is half the calories of ice cream yet contains Omega 3s and packs alot of protein to increase metabolism and fat burning.

PROVEN STRATEGIES TO IMPROVE YOUR CREDIT SCORE

There are three main strategies to improving your credit and boosting your score. The first and most obvious is to continue paying all debts on time. If you have the money, but are sloppy with paying your bills, try utilizing your bank's on line banking system. You can automatically set up your account so that each bill is paid on the same day each month electronically. This method will ensure the timeliness of your payments. The second strategy is to payoff any existing collection accounts, either by negotiating a partial settlement with the creditor, or paying them in full. Once all judgments and collections are paid your credit scores will improve quickly. Many of my customers' scores have improved 20-40 points within weeks of clearing their debts. The third and probably the most important strategy is to pay down any outstanding credit card balances to less than 50% of the credit limit. By having a balance near the maximum limit makes it appear that you may be living on credit to sustain yourself and could be a candidate for impending bankruptcy. If you don't have the money to pay down these balances, try contacting each credit card holder and increasing the credit limit. This strategy is especially effective to raise the scores because an artificial inflation of the credit limit will do the same thing as lowering your balance. These are all effective and rapid ways of improving your credit scores.

Who Says You Have To Starve Yourself To Lose Weight?

There are many foods you can eat which digest slowly in your system. By eating slow digesting foods, you can curb your appetite and minimize hunger between meals. Oatmeal is one of the best foods you can eat because of the length of time it takes to fully digest it. It is a complex carbohydrate that fills you up but lasts in your system for a long time and keeps your hunger satisfied. There are many other low calorie foods that you can eat which give you important nutrients and suppress your appetite. Eating apples and bananas will satisfy your hunger and yet aren't loaded with a lot of calories. Couple these with a good amount of water on a daily basis will curb your appetite, keep you full, and allow you to lose weight.

Is this Real Estate Market going to improve?

The current real estate market reminds me of the time I started in the business. 1990 was the beginning of a down turn in home prices. We were coming off of some recent highs in terms of average prices and number of sales. The Gulf War had caused widespread panic among many Americans, whose last memory of war as a nation was the Vietnam fiasco. Interest Rates were dropping into the single digits for the first time in 12 years. Still the housing market continuted to spiral downward.

Today we have prices dropping, home sales way down, foreclosures increasing and re-emergence of short sales. We are still in the Middle East fighting terrorism having just killed Osama bin Laden. Interest rates continue to fall, yet we don't have an upturn in the housing market. Fear not because history does repeat itself. We will again experience rising home prices and increased sales. Hang in there because the market will come back.

For a free credit report contact me at 484-695-5972

Andy Williams
President
Abacus Regional Mortgage

WHY AREN'T PEOPLE BUYING HOMES RIGHT NOW?

It’s an unbelievably good time to consider buying a home with prices down at least 20% from their 2007 highs and interest rates at almost historic lows. The average consumer has so much more buying power today as compared to years past.

The principal and interest payment on a 2007 house selling for $ 240,000 at 2006 interest rates would be $1,200. That same house selling at a 20% discount and at current interest rates is now $ 800. What is your opinion?

Andy Williams
President
Abacus Regional Mortgage

HOW HARD CAN IT BE TO GET SOCIAL SECURITY IF YOU ARE 62?

Shouldn't social security be easy to obtain when you are of retirement age? I have a friend who continues to bang their head against a brick wall from attempts to have the social security administration (SSA) grant them retirement benefits. How difficult can it be to start getting benefits which are rightfully theirs?

After applying last year, this file is in limbo in some sort of SSA purgatory. Months upon months of phone calls, repeated visits, letters from their Congressman and still nowhere? It shouldn't be this difficult. After doing some research, I found that the SSA doubts whether they have indeed retired. After furnishing the SSA with proof of retirement in the form of a tax return showing low earnings, and a letter from their last employer stating they are retired, the SSA still questions their validity.

The current schedule of retirement ages are as follows:
Age 62, Partial Retirement Benefits
Age 67, Full Retirement with Full Monthly Benefits
Age 70, Full Retirement with Unlimited Additional Earnings*

* After age 62, a person can earn additional income from another job but must earn below $ 14,160 for the year. Any earnings exceeding this amount will be paid back by deducting $1 of Social Security Benefits for every $2 earned from other employment.

What difference does it make if they continue to work? Let's pretend they aren't retired and are going to continue working. If they earn over $ 14,160 and receive SSA benefits, it will have to be paid back next year. They wouldn't be getting away with anything anyway! What do you think?

Andy Williams
President
Abacus Regional Mortgage

WHICH IS BETTER FHA OR CONVENTIONAL FINANCING?

Is FHA still the best way to go? I was recently asked this same question when the subject of PMI insurance came up. The monthly risk premium on FHA increased from .9% of the base loan amount to 1.15%. This marks a 27% increase from last year and 130% increase from three years ago. With many conventional programs offering no PMI insurance with a slightly higher interest rate, the total monthly payment is less than loans with PMI insurance. Is it better to go back to conventional financing?

Are knowledgeable experienced Realtors a Good source of Information?

Do you accept a recommendation by your realtor? Ever ask them for some names of good home inspectors, attorneys or mortgage companies? I just saved a home buyer a ton of money. She was going to Wells Fargo ( her bank ) for her mortgage until her realtor suggested contacting me to compare rates and fees. After shopping both Wells Fargo and my company, she saved 3/8% on the interest rate and $ 844 in total closing costs. With a monthly savings of $ 46, she saved $ 17,000 over the life of the loan by going with my company. Don't you think your realtor knows what is best for you?

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

POCONO COMMUTERS EFFECTED BY GAS PRICES

The last time gas prices spiked sharply in 2007 was the beginning of the end for the "Real Estate Boom". At that time, commuters rethought their idea of moving to the Poconos due to the high cost to commute from NYC and back. With the bus companies hauling the majority of commuters into the city each day, they are raising their prices in accordance with the rising gas prices. These additional commuter costs may be enough to deter the person looking to move to the area from doing so until the price of gas comes down to an affordable level. Hopefully this doesn't adversely effect the amount of home a buyer can be prequalified to purchase.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

Short Sales are really Long Sales

Many of the homes being sold today are from "Short Sales". This is when a seller owes more on their home than the home is actually worth. The new buyer bids on the property, the seller goes back to their bank and negotiates a sale whereby the bank has to forgive some of the current mortgage, and the current mortgage holder accepts less than what is owed. This process takes many weeks, in many cases, months to come to an end. The current lien holder has negotiators from different departments that have to get involved. Since this process has to go through many steps, the buyers can wait endlessly for an answer from the bank. Some buyers wait it out while others grow weary and move on to another potential house. The next time you consider bidding on a "Short Sale" property consider the time, energy and money spent in waiting for a "Long Sale" to come to fruition.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

Oil Price Scare is only temporary

There's been a lot of talk lately about the U.S. increased demand for oil and its effect on the price of crude oil. Some economists predicting gas prices could hit $ 6.00 per gallon by the summer. This is another example of the media blowing everything out of proportion. News like this is all we need to make home buyers shy away from purchasing homes. Believe me, the prices will come down soon. All we need to do is increase our oil drilling within our country and continue to drill in the arctic where they have found large oil deposits. In addition, since most of our oil imports come from Canada, Mexico, South America and Western Africa, we can become less dependent upon Saudi Arabia and other parts of the Middle East. We simply have to import more oil from these other countries. We are well diversified as it is as the middle east gives us less than 20% of our current oil supply. So don't panic. The gas prices will go down again.

Andy Williams
President
Abacus Regional Mortgage

COMPS BASED ON CURRENT FORECLOSURES

Real estate appraisals base their values on three comparable homes that have sold within 6 miles in the past 6 months. They are supposed to use only comps that are similar to the subject property, if available. Since many of today's recent sales have been foreclosures and short sales (distress sales), they are using listings which were foreclosures and short sales. When a buyer is purchasing a foreclosure it is reasonable to assume that an appraiser will use other distress sale properties for comps. However, what isn't right is when they are using distress sale comps on existing homes where there is no distress sale. Using distress sale comps on normal seller to buyer transactions only brings the prices of homes down further. The appraisers need to make sure that they use only appropriate comps even if they have to go farther distances and further in time of closings.

Multiple Financed Properties

Fannie Mae and Freddie Mac have limited the number of financed properties allowed by an individual to no more than four. Because of this restriction, many investors can't finance another one with most lenders until they either sell one of their existing properties, or they must pay off one of their existing mortgages. I have a few select lenders who don't sell their mortgages, so they don't imposed this limit. This is an example of how the constraints of the lending industry can limit our abilty to do business. This is why I am always searching for alternatives to help Pennsylvania realtors sell more real estate.

Any questions please call:


Andy Williams
President
Abacus Regional Mortgage
484 695 5972

IDENTITY THEFT

Recently my 82 year old mother became a victim of identity theft.  Someone from Kentucky stole her name and social security number and opened a credit card with Capital One.  The culprit not only received the card, but they charged it to the limit and never made a payment. 

 

All of this was discovered when she inquired into moving into a different apartment.  Upon inquiring into her credit, the landlord informed her of this account with Capital One which had been placed for collections.  This is where the fun begins.

 

Both my mother and I have spent countless hours on the phone  being transferred between departments at Capital One.  From one ignorant or unhelpful representative toe the next, each time resulting in an ultimate transfer direct to their collection agency.  Needless to say,  this has become a very stressful and frustrating situation.  These so-called "Customer Service Representatives" either hung up the phone, refused to transfer our call to a supervisor.  When asked to speak with the fraud department, they asked for the account number of the credit card, and transferred the call right back to the collections agency.

 

Now I know why Capital One has that commercial about vikings pillaging a suburban mall.  After several unsuccessful attempts to reach the appropriate individuals in the fraud department,  I felt like pillaging Capital One's corporate offices myself.  The truth is that Capital One is just as guilty as the person who stole her identity in that they granted this credit without asking for any identification.  This whole situation destroyed my mother's credit in the process.

 

The one thing I learned from all of this is that you can avoid identity fraud.  You need to write to all three credit companies(Equifax, Trans Union, Experian) and ask to add a "Consumer Statement" to your credit report.  This is a statement that tells any potential creditor, who is inquiring into your credit, that you must be notified by telephone before extending credit.  This is a safety net in the event that someone is using your identity.  Each time your credit is inquired this statement will appear on your credit report. 

At least this can avoid any potential future problems.  The next time someone asks you "What's in your wallet?", tell them it's none of their business.

 Don't let this happen to your get yourself, your family or your buisness protected today  Click here

 

 http://cp.blastoffnetwork.com/index.php/prepaid/122202799

Andrew Williams

President

Abacus Regional Mortgage

Buy a home with a 580 credit score

FHA mortgages are now available for buyers with credit scores as low as 580.  There are three acceptable reasons for financing buyers with such a low credit score: 

1.  Loss of employment due to plant shutdown, long term layoff or downsizing.
2.  Death of a working spouse which contributed to a financial hardship.
3.  Long term illness

The minimum required down payment is 5% which must be the borrowers own money.  In addition, the seller can still pay up to 6% of the selling price to pay for the buyers closing costs.  The buyer must show proof of 2 months mortgage payments left over in reserve.  This left over money can be in the form of a gift from a family member.  Borrowers must furnish 12 months most recent canceled rent checks to prove payments are on time.

Call me with any questions at

484 695 5972

Andy Williams
President
Abacus Regional Mortgage