Here's a fact that you almost assuredly will not have known previously:  There have been exactly 108 new lending or mortgage bills introduced into the US House and/or US Senate since April 1, 2009.

Honestly, I'd be shocked if you haven't read, studied, or in fact memorized some of these all too important informational documents (feel the sarcasm rising...).  I mean, how could you not be entranced by "H.R. 1575: End Government Reimbursement of Excessive Executive Disbursements (End GREED) Act"?  Or stay up at night reciting "H.R. 906: Housing Disaster Area Foreclosure Prevention Act of 2009"?

Listen, the list goes on and on (108 documents to be exact) with stuff that the common person really has no use for.

There is, however, one bill that has directly affected many, many people you know and for a short time yet, still affect many people you know.  

H.R. 1:
111th Congress
2009-2010
American Recovery and Reinvestment Act of 2009

You see...it's this little 'nugget' that gives all first time home buyers an $8,000 tax credit just for buying a house.  I know several people personally that have been able to buy their first home as a result.  I know you do as well.

Just think about the time you last spoke with a friend or family member who reminisced about owning their first home...the first time the baby walked, the time the husband burnt the first meal since the oven cooked faster, or not knowing how to set the automatic sprinkler system timer...all good times!   

Here's the kicker though.  There are several other people that are sitting on the fence, are worried that they can't qualify for a loan, or haven't even heard about this tax credit.  

The deadline for the credit is December 1, 2009.  The new home must FUND on or before that date in order to qualify for the credit.  What most people don't realize is that it can take up to 45 days to get from application to funding these days, which doesn't leave much time between now and December 1.

So, here's my question...who do you know that could use that $8,000 to buy their first home?

Forward this to them, then call me and I'll fill them in on the rest.

Where did the summer go?  It seems like every year we all have big plans to spend more time with family, take a few more days of vacation, sleep out under the stars, etc. etc.   If you are llike me, you are left at the end of the summer with a list of things you wish you had done... Let's face it, life is busy and there always seems to be any number of distractions taking our time away from things that are more important.

In the interest of summer coming to a close, we wanted to let you know about an opportunity to spend some family time together this coming Saturday. 

Legacy Lending Group has been invited by Colman Homes, to be their on-site lender this coming weekend (Aug. 20-22nd) at West Highlands in Middleton.  West Highlands is a master planned development with a resort style community center and pool that is the largest in the treasure valley.  You can check out all of the amazing amenities that this community has to offer at: www.westhighlandsidaho.com

Check out the attached flyer.

Coleman Homes (www.mycolemanhome.com) would like to extend West Highland's community center and pool to families this Saturday for an end of summer activity.  Families who are looking to explore the possibility of having an affordable custom built home of their own can visit us this coming Thursday or Friday at West Highlands from 3:00-7:00 PM.  Here we can discuss different financing options, including the USDA Rural Development loan which is true $0 down financing only available in certain areas of the treasure valley. 

Then, you can come back on Saturday for a day of fun in the sun with family and close friends.  The community center will be open this day from 11:00 AM - 7:00 PM.   

Please contact me with any questions... Don't miss out on an opportunity to spend quality time as a family.

WestHighLands.pdf (1.79 mb)

 

 

I've been asked a lot over the last little while what is happening with refinancing since all of the government bailout money and programs have come out. So this week I'm going to touch a little on that. I know it can be frustrating for people trying to get loans as well as it is with us as lenders, trust me !!!

Like most things in Government, their programs take awhile to kick in and when they do finally go into affect there are very few people they actually help.

Here is a recent report that I've seen.

It says that: "Report finds only 9 pct of homeowners getting help; 10 mortgage companies haven't helped any."

It goes on to say: "BofA modified just 4 percent of eligible loans, and Wells Fargo 6 percent. Wachovia Corp., which was taken over by Wells Fargo in December, modified only 2 percent.

"We think they could have ramped up better, faster, more consistently and done a better job serving borrowers and bringing stabilization to the broader mortgage markets and economy," said Michael Barr, the Treasury Department's assistant secretary for financial institutions. "We expect them to do more."

I repeat: Michael Barr said, "We expect them to do more."

REALLY ? Yah, so do we :~)

Reports do show that they are pushing banks now to make bigger strides in helping people, which allows us as lenders more options when the banks offer that for us.

If you have tried talking to a bank directly and have hit a wall, or know someone else that has, we want to remind you to come talk to us and let's see what options there are. There is always new programs coming out. We're here to help you and your friends.

Let's hit on some house cleaning items first...

 

Interest rates have stayed very low for the last week which has surprised a lot of us 'industry smart-guys'.  I know I've told you this in past emails, but if you're thinking of refinancing or buying a home you really don't have much time to jump on these handsome rates.

 

I'm here to answer questions...so if you're curious about numbers or rates, please give me a ring here at the office and I'll be happy to answer your questions.  And as always, there will be no 'selling' you on anything.  That I promise!  Give me a ring...888-9394.

 

Or, better yet...you know a bunch of people that could use my services.  If you believe we could help them save a buck or two...or if they're wanting to buy a home and have question then "Refer a Friend" on our website.  It'll take you less than 60 seconds to fill out the form and I'll take over from there.  We won't call them without your permission.  Here's the link.

 

http://www.idaholegacylending.com/refer-a-friend.aspx

 

 

OK, now onto the important stuff.

 

Over the last month or so we've talked about some homeowner scams.  Today we're going to continue with this topic since it's near and dear to me personally this week.

 

Brandie and I returned from a family vacation recently.  The day of our return I received a call from the bank telling me that my personal business account was over-drawn.  Now, understand that we don't use that account for anything other than fuel, meals, and taxes...so needless to say we were little concerned.  We went in to the bank and reviewed the last weeks spending history.  We were shocked to see that over $4,100 had been spent in three days all over Southern California.  The only problem was that wewas in Idaho and not SoCal.

 

After an investigation by the bank the scam was found.  On our return trip we'd purchased a room at a hotel over the phone.  We used our debit card (like many of us do without thinking anything wrong with it).  The thief took that number and re-programmed another card.  With that new fraudulant card they went all over the area on a three-day spending spree.

 

Now, I'm not going to go into what I'd personally like to do to this thief (only because you probably think of me as a nice guy and I don't want to ruin that impression!!), but I've learned from this very personal experience and want to share some tips how to hep you avoid the same problem.  Also, it helps to have a very good bank to work with...Thank you Idaho Independent Bank in Nampa.  You guys rock!!

 

Here's a link to an article written for The Consumerist.  It does a great job explaining some simple things you can do to avoid any potential micro-identy theft problems like the guy in our office did.

 

http://tinyurl.com/kwuz6f

 

Have a great day!

 

Jason

 

Here's the deal, I've been very careful about not trying to push anyone into a rate specific loan product.  However, we've had great market movements today and rates are down significantly on conventional loans.  FHA loans have also seen noteworthy improvements.  We do not anticipate this to last long!

 

Typically when we see significant interest rate improvements we also experience a market "correction" shortly after, sometimes

within the same day.  

 

In fact, I dare say this may be the last time we see rates near 5% for a long, long time.  So, if you or anyone you know has been sitting on the fence waiting for rates to "improve"...NOW is the time to make a move. 

 

Keep in mind that if your loan is owned by Fannie Mae or Freddie Mac you may be eligible for a special government initiated loan product designed to help homeowners who have stayed current on their house payments, but haven't been able to refinance because values of homes have dropped.

 

Step number one is to check if Freddie or Fannie own your loan!

 

You can check to see if your loan is owned by Fannie Mae or Freddie Mac  by going to the appropriate website, and entering your address EXACTLY as it shows on your monthly mortgage statement.  Please call me if you have any questions or difficulties with these sites.

 

http://loanlookup.fanniemae.com/loanlookup/

 

https://ww3.freddiemac.com/corporate/

 

As always, I am here to answer any questions you might have an would love to hear from you.  'Windows of opportunity' like these usually don't stay open very long.

 

 

Best Wishes.

In this week's post we're going to touch on one major topic:

* How the Credit Card Crunch may DISQUALIFY you from being able to get a home loan!

Another Way Credit Cards Could DISQUALIFY You From a Home Loan!!

We've all heard over the news the last couple of months how the credit card companies are reducing the maximum limits on their customer's credit cards.  If you're someone that only uses 25% of the credit limit then you shouldn't be too worried about a reduction of credit limit, right?

WRONG!  I have a good friend that works as a finance manager at Edmark Superstore.  As I was talking with him over the weekend he told me he had three different returning customers come to the store just this weekend to buy a vehicle.  All three of these customers have always had PERFECT credit (800+ Beacon scores), but this time, less than 6 months later all three of them had a  credit score of UNDER 690.

I know what you're thinking...times are tough, money is tight so they must have run up a little more credit than usual and that's what's hurt their credit, right?

NO!  Each of these customers are like most Americans and carry a revolving balance on their credit card's and what happened to these three and a LOT of Americans has to do with a simple mathematical equation.

You see, in the credit industry there is a little known fact that revolving credit card balances with BUILD credit scores if they're 50% or less of the maximum limit and balances OVER 50% of the maximum limit with HURT your credit score.  Do you see where this is going?

So, let's just say that over the last 5 years you've had a maximum limit on your AMEX card of $10,000 and that you carry a typical monthly balance of $2,000...that's 20% of the maximum limit...thus, HELPING your credit scores.  Life is good.

Now however, AMEX decides that you're new maximum limit is going to be $3,000 (instead of $10,000).  You're initial thought is, "No problem since I hardly every have that much outstanding."  

Let's re-evaluate this thought.  If your new limit is $3,000 and you carry a revolving amount of $2,000 then you're running a new debt ratio of 67% which is HURTING your credit month after month.

So the fact that absolutely nothing has changed on your part or your ability to pay your monthly bills your credit score is being damaged because the credit card company lowered your maximum limit.  As a result, your credit score will drop and in some cases disqualify you from getting ANY loans...let alone a real estate loan.

What can you do to aviod this problem?

1.  Lower your credit card debt.
    This is nothing new and carrying monthly credit card debt isn't a great thing, but it's a really, really bad idea these days.  So, get rid of the credit card debt as quickly as possible.  There are several worksheets that can help you make a plan.  

SmartMoney.com has a great worksheet and article about digging out of debt.  Check it out to see if it can help you.  

http://www.smartmoney.com/personal-finance/debt/digging-out-of-debt-12905/?hpadref=1

2.  Watch the mail.
    The credit card companies are legally obligated to notify you if they're going to lower your credit card limits.  This will be done by mail unless you receive notification by email.

3.  Sign up for online alerts
    Ask your credit-card issuer if they offer online alerts that notify cardholders when they're nearing their credit limit. This will prevent over-the-limit fees.

4.  Check your credit report
    You can check them for free at annualcreditreport.com.  If it has any errors you can report it to the three bureaus (Experian, Equifax, and TransUnion).  Or, if you'd like you can call me directly and I can help you check this out.

5.  Shop Around
    If your credit limit gets lowered, don't cancel your card. That will hurt your credit score more than it does any good. Instead, shop around for more attractive credit card offers. Web sites like CreditCards.com and LowerMyBills.com help consumers compare offers.

Hope this helps you stay out of trouble!!  :-)

Here's what you'll see in this week's Post:
1.  What the heck is up with the rates?  Geesh!
2.  FHA giving the New Home Buyer Tax Credit at time of closing?
      Say it isn't so, Johnny!
3.  HOMEOWNER BEWARE:  Fake Check Scams Alert!!!


Ever been lost on a little, bitty boat in the ocean?

You can't see the land on the horizon and there really isn't any
rhythm to the waves...you're tossed to the left, right then
front and back, and then up and down.  Well, that's pretty much
what's going on with the rates right now.  They shot up most of
the week last week and then gave a little back on Friday of last
week...only to head back up yesterday.

What's causing all the volatility, you ask?  That list could be
too long to type here.  Suffice it to say that there are some
'Big Boys' on Wall Street that are big into risk avoidance right
now and they feel that Mortgage Backed Securities (MBS) and the
Bond market show too much risk for them.  That is, until the Fed
dumps gobs and gobs of money into buying those bonds or MBS,
like they did last Friday.  Blah, blah, blah, right?  I know...boring stuff.

Without boring you with the details, just know that we're going
to see extreme swings in mortgage rates over the next few weeks.
 There is some evidence that rates will continue to trend
upwards through the rest of the year.  Let's keep our fingers
crossed that isn't the case!  Otherwise, we'll be talking with
Wilson on our little self-built raft on the deep blue for longer
than I care to be.



You may not have to wait until next year to pocket the $8,000
from the Government.

CNNMoney.com was the first to report that First-time home buyers
may no have access to cash to help them with their down
payments.  Here's the link to read the CNNMoney.com article.
http://tinyurl.com/kjr4lp

Before, the HUD tax credit would have been sent when you
completed your 2009 taxes (early in 2010).

However, now it appears that HUD is working on providing a
couple of options for first-time home buyers to use that $8,000
tax credit to close on the house.

The details are not completely out yet, but I have verified that
they are close as shown by the attached Mortgagee Letter from
HUD to lenders.

I spoke with a couple of our bigger banks and they had heard
rumblings but said nothing was set up yet.

I'll give you the updates as I receive them...but in the
meantime, if you know ANYONE that is currently renting or
looking for a home please, please, please (no, I'm not
begging...just suggesting strongly *smile*) have them give me a
call.  It could cost them THOUSANDS if they don't!



FRAUD ALERT!!!

We've all received those 'real looking' checks in the mail from
time to time.  Well, apparently there is a new 'fake check scam'
hitting the streets out there.

Here's the scary part...if you deposit that phony check into
your bank account you'll be liable for the money...even if you
didn't know it was a fraud!

It's happening more than you'd think so don't play around with
this one.  Check out this link and find out how your can make
sure the check you're cashing isn't going to come back and bite
you in wallet!
http://tinyurl.com/mfy5je


As always, I'd love to help your friends, family, or even
enemies out with home financing.  If you know of anyone that
could use our friendly, transparent services...please give me
their name and I'll give them a call.  I'd love to meet more of
your friends!

Memorial Day weekend is officially over! Bummer, I know. I hope
you had as much fun this weekend as me and the family did. The
weather was amazing and made it that much more enjoyable.

I received a couple items in the mail last week I thought would
be good to share.

1. Tax Assessments - This week both Canyon and Ada County mailed
out the 2009 property tax assessments. It looks like the
assessor's office of both counties realize that values are down.
Make sure when you receive your assessment notice you review it
carefully. There is a short time period where you can dispute
the value with the assessor's office if you don't agree with the
value. Both Ada and Canyon only give three or four weeks to
dispute the value of your property with their office.

     What to do if you feel that the assessor's value of your
property is too high? Contact a local appraiser or Realtor to
verify your suspicions. Even though you're a super good person,
the county assessor's office probably won't just take your word
that the value of your property is less than what their
appraisers are suggesting. You'll need to get recent (within the
last 90 days) comparable sales in the immediate area of your
property. Make sure the comparables are actual sales or pending
sales. Active listings will help support your case but
ultimately they won't support your value suggestion since they
have not been 'proved' in the market yet. Make sure you take
three or more sold comparables with you to the assessor's office.
This will make sure you're armed in your defense.

     If my property value is down for 2009 does that mean my
monthly mortgage payment will be lower? The short answer is -
YES! However, Idaho homeowner's pay their taxes in arrears,
which means that you won't see the actual savings on your
monthly mortgage payment until January 2010. See, our property
taxes are paid in June and December each year for the preceding
6 month period. So for example, on June 20th we'll be receiving
our tax bills for July thru December 2008. The mortgage
companies will assume your taxes will continue the same for 2009
and will continue to collect the same monthly amount. Then in
December 2009 when they pay for January thru June 2009 the lower
tax amount will be paid and at that time they'll adjust the
escrow amounts down.

2. New Idaho Boating Sticker Requirement - The Idaho Legislature
passed a new law this year that requires all boat owners to
participate in Idaho's Invasive Species prevention. The boater's
participation requires the purchase of a sticker to be attached
on to each boat. The cost is $10 for motorized vessels and $5
for non-motorized boats. I spoke with the Sheriff's Deputies out
at Lake Lowell last week and they said they will begin enforcing
the new stickers June 1st.

For more information check out this site.
http://parksandrecreation.idaho.gov/idahoinvasivespeciesfund.aspx.

 

Have a great week!

Normally I wouldn't post these type of pictures here...but you see, I have a brother who is really lame.  He doesn't have a Facebook account and his email has a little, tiny limit so he can't receive my pictures.  So, in order to show him how much fun he's going to be missing out this weekend I'm going to post the photos from my birthday fishing trip with Brandie here.

I've had a lot of people ask me questions about the federal economic stimulus package and how it could affect their current home loan.  Everyone wants to take advantage of the 30 year lows on interest rates right now, but not everyone knows if there's a program out there to get them the rate...I'm sure you've had some of those same thoughts, am I right?
The stimulus package has spurred three main ways that could affect you.

1.  If you've been thinking about buying a house.  If you're a first time home buyer or have not owned a home for the last three years then you could qualify for the $8,000 tax credit.

    Here are some of the highlights:
        -  Available only to first-time home buyers
        -  The tax credit is not a loan and does not require repayment*
            *If the home is sold within 3-years, the $8,000 tax credit must be re-paid
        -  The tax credit reduces the home buyer's tax liability; if the buyer's liability is less than $8,000, the remaining credit will be issued as  a check
        -  Home purchase must be for a primary residence
        -  The credit is available on home purchases between January 1, 2009 and December 1, 2009
        -  If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
        -  The credit is not eligible if the seller is a relative of the buyer

Click HERE to see additional information on the New Homebuyer's Federal Tax Credit.

2.  If you've been current on your mortgage and wanted to refinance but couldn't because of lower house values.  There are two programs that could help you almost regardless of your current home value.  The first is the DU Refinance Plus offered by Fannie Mae for some loans owned by Fannie Mae.  The other program is similar but is offered by Freddie Mac for loans owned by them.  To see if your loan is owned by either Fannie or Freddie go to my blog and follow the links.

This is a huge deal right now.  Especially since there is a big group of people suggesting that the rates will raise significantly by the end of the year.  You don't want to miss the boat on this one.

To see if you're loan is owned by FANNIE MAE CLICK HERE.

To see if you're loan is owned by FREDDIE MAC CLICK HERE.

3.  Lender specific incentives.  Many of the bigger lenders have taken their bail-out money and actually did something with it (other than buy new corporate planes or sent people to Vegas).
There are a handful of banks that have offered their own form of streamline refinance.  If you currently make your payment to Wells Fargo, MetLife (formally First Horizon), US Bank, or Flagstar Bank you need to call me immediately.  There is a huge opportunity for you to save money today!!!