Distressed Properties focused on Buyers! 4.22.10

Buyer Pre-Appointment Packages

Buyer Needs Analysis and Workshop

Buyer Pre-Appointment Packages

Buyer Scripts

Ugly Changes to FHA Condominium Loans

Once again from our friends at M Point Mortgage:

HUD Condominium Approvals Effective with Cases Assigned 10/1/09

Loans with case numbers ordered on or after October 1, 2009, are subject to the new condominium procedures outlined by HUD in Mortgagee Letter 2009-19.


1. Spot Loan Condo Approvals are no longer allowed.

2. Any condominium that has not been approved by HUD 10/1/09 or later will require full condominium review and approval by HUD. Only exceptions: FHA to FHA streamline refinances or sale of a HUD REO by HUD’s Real Estate Owned Division. Even on approved projects lender will be required to certify that we have no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent.

3. Maximum FHA Concentration – HUD is limiting the number of FHA insured loans to 30% for any project. This is a very big change. Per HUD recent HUD conference call, the plan is for FHA Connection to be capable of monitoring. It is imperative that case numbers be ordered correctly with the correct project approval code. If the project is not at maximum concentration a case number will be assigned; if the project is at maximum concentration and not eligible for another FHA loan the case number will not be assigned and a message issued stating that. As loans are paid off within the project Connection will be updated by HUD “freeing up” units for new case assignments.

Keller Williams Realty Tops JD Power Survey Again!

According to a recent article from Inman News, J.D. Power and Associates has found Keller Williams Realty to be the consumer's favorite when purchasing a new home.

For the second year in a row, Buyers have rated Keller Williams Realty higher than any other real estate company for meeting their needs and providing access to the extra services they are looking for.

To learn how the surveys are conducted and more details on the results, go HERE.

Changes to settlement procedures you need to know!

Beginning 8/1/2009 the Federal Mortgage Disclosure Improvement Act (MDIA) goes into effect and applies to all mortgage loan applications dated 8/1/2009 and beyond.

Basically, purchase borrowers will now have the same protection as refinance borrowers creating a 3 day period to understand exactly what is expected at settlement regarding closing costs.

Changes from the initial Good Faith Estimate of Settlement Costs to the final HUD 1 regarding the following items must be redisclosed no less than 3 days prior to settlement:

* Origination and discount points

* Appraisal and reinspection fees

* Credit report fees

* Flood Certification fees

* Tax service fees

* Commitment fees

* Processing fees

* Underwriting fees

* Transfer and Recordation fees

* Realtor Admin. Fees


The Federal Government is making sure borrowers cannot get "jammed at settlement" with new fees and forced to close. Borrowers now have 3 days to understand any fee changes before settlement. This is a good move since it levels the playing field and gets rid of unethical practices by unscrupulous lenders.


It is very important you work with your lenders and supply them with all the information regarding any and all Admin fees that will be charged at settlement so no one gets left short at the table.

This information was provided by my friends at MPOINT Mortgage:

Adrian Cox

Erika Zabell

Thank you!

Critical Path for Buyers

Today in GO F.A.R. we discussed the critical path that we follow when working with Buyers. There are two paths to internalize: our own processes for our business and the processes we use to guide our customers.

Our business processes include:
1) Converting Leads to Appointments
2) Preparingthe Buyer for the consultation
3) The Buyer Consultation
4) Finding the Home
5) Offer and Negotiations
6) Contract to Close
7) Post-close Systems

(from Buyer Mastery, Keller Williams Realty, Inc. 2008)

Client Process include:
1) Pre-Approval
2) Needs Analysis
3) Begin Search
- Buyer Instant Notification System
- Preview Homes (phone/in person)
- Provide Property Tour Notes/Checkist papers
4) Write The Offer
- Create CMA and get GFE from Lender/Title
- Call the Listing Agent
- Get Disclosures
- Create Customer Account in Contract Software
- Have Customer Google address, neighborhood, seller
- Write It
- Send It
- Call Listing Agent to confirm receipt

(from class attendees - GO F.A.R. @ KW Select Realtors in EC: 6/4/2009)