I get the same junkmail and spam most of you folks do. They don’t know who I am when they send it out. It’s just that I know what’s going on behind the scenes with this stuff. So I thought I’d get out my calculator and deconstruct what’s going on with the advertisements I’ve gotten …
Continue reading “Games Lenders Play, Part I: Misleading Advertising to Get You to Call”
The answer is a modified no. The same answer applies to property that is only structurally damaged, but not condemned. That condemnation is a matter of public record. I’ve seen any number of them while perusing title records. It shows up kind of prominently on the title commitment, which every regulated lender is going to …
Continue reading “Can You Get A Mortgage On a Condemned House?”
I recently closed a mortgage loan. The loan officer told me there would be no prepayment penalty. When the documents came there was none and the loan funded and closed. Two weeks later I got an e-mail stating some documents had been missed and we need to sign and return them. They contained a new …
This sentence is a textbook illustration of the most effective way to lie. Tell the truth, but not all of it. Not that I’m trying to coach habitual liars, but I am going to deconstruct this astoundingly dishonest claim that I keep encountering. It’s mostly used by less ethical loan officers trying to persuade someone …
Continue reading ““All Mortgage Money Comes From The Same Place””
In an attempt to debunk some of the slanders that are floating around out there, this article is an itemization of how lenders and brokers make money on loans. The first method is obvious: Origination or discount points charged to the consumer. This is money that the person getting the loan is paying, or someone …
This is a nationwide program for first time home buyers that helps them qualify for the loan by saving them even more money on their tax bill. With that said, however, the state of California accounts for more than 50 percent of all MCC Certificates. Each individual area has its own administrator. Within the County …
Continue reading “First Time Buyer Programs: The Mortgage Credit Certificate (MCC)”
People sometimes ask how they can improve their credit if they have old collections on their credit record. Well, the answer is NOT to simply pay them. Paying off a five year old collection can cause your credit score to drop by 100 points. You say that makes no sense? Well, here’s the logic of …
Continue reading “Paying Off Old Past Due Bills Without Hurting Your Credit”
When and Why does a Mortgage Company Sell your Current Loan to another Mortgage Company? Lenders sell their loans because the lender can make an immediate premium of anywhere from 2.5 percent to four percent by selling your loan to Wall Street. Yes, this is less than the six to eight percent per year interest …
It may not come as a shock to you, but loan officers, along with many other salesfolk, speak a different language than the rest of the population. What will probably annoy you, however, is the number of times they’ll say something that sounds like a phrase out of English, but really is from Salesgoodspeakian, a …
Continue reading “Translation: Salesgoodspeakian to English”
A reader named Terri at Educating the Wheelers sent me an email giving me a heads up on the antics of the state of Illinois. here is the link. Here is the original article at blackprof. The link to the original source is broken, but here is the Illinois Department of Financial and Professional Regulation, …
Continue reading “Is This Supposed to be Helpful Legislation? (A bad example from Illinois)”
