About Short Sale Coding and the Correction

Current Mortgage Rates & Market Data

Think the Government Might Owe You Money?
Scroll down to the green “HUD/FHA Refunds Info” section of this page to learn more!

Among the most important requirements a prospective home buyer has to meet in order to qualify for a mortgage loan is a satisfactory credit profile; and when a credit report reveals a less than satisfactory profile, it usually means that the prospective home buyer must take steps to find out why. The latest guest post, brought to you by our friends at North Shore advisory, discusses one aspect of how an individual’s credit can be affected negatively and the proposed solution to correct it.

SHORT SALE CODING CORRECTION ON CREDIT WILL TAKE AFFECT NOVEMBER 2013

For some time now, many short sellers were treated the same as homeowners that foreclosed when applying for a mortgage. Due to a credit coding issue that lumped short sellers into the same category as a foreclosure, the waiting period for loan approval was extended substantially. This forced millions to put their dream of participating in homeownership again off to the distant future. With interest rates climbing, and the real estate market improving, the increased future cost for purchasing would seem more of an obstacle down the road.

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But new policy changes could bring more options starting in November. After Sen. Bill Nelson focused on bringing this coding error to the FTC and the Consumer Financial Protection Board, things started to change.

This is the nature of the evolution of this business, says Fannie Mae spokeswoman Keosha Burns. The agency will input the new software into its computer system on Nov. 16. After that, if a short sale is marked as a foreclosure, the new code will allow the loan servicers to bypass it, correct it and move forward with the loan. Short sellers should speak with their bankers about the new options for homeownership, what the qualifications will be, and whether the state of their credit needs improvement.

Great credit brings great opportunity!!” Copyright 2013 • NorthShoreAdvisory.com

North Shore Advisory, Inc. offers credit repair, restoration, monitoring, and education services. We’ve been providing credit education and credit improvement for almost 25 years. For bankers and realtors we can review your clients credit reports and scores to see if we can improve them.

We can help you with your business credit needs as well as any personal credit scores.
Contact Us:
914-524-8300
Email:
info@NorthShoreAdvisory.com

HUD/FHA Refunds Info

You know, not everyone knows this, but if you owned a home and had a FHA mortgage, you might be entitled to money back from the government paid directly to you. It’s not free money (we both know that is a rarity), despite all the claims made by others that you can get free money from the government. No, this is money you would have paid into the FHA mortgage insurance fund via your MIP (Mortgage Insurance Premium) payments if your home was financed with a FHA mortgage.

There is no charge imposed by us for this service, and HUD/FHA certainly does not charge a fee for sending you your own money. We provide the service as an added benefit for your visit to this website, and of course we hope you come back often; but more importantly, we hope your name pops up on the HUD/FHA list of folks who are eligible for a refund. So Click here to check! …Good Luck!

Cheap Real Estate Property Is Hard to Find


When it comes to real estate in the post-subprime era, it’s really hard to find a cheap property, or even to identify one. Cheap property, including one-to-four family residential homes were very prevalent during the early part of the 1980s. They were ideal for people on a budget; and to give real estate agents a chance to do more business.

Agents could make a better impression on their buying customers by showing them how to buy a home at a low price, do some rehab work on it using the 203k rehab mortgage loan, and resell it at a higher price. Making money with real estate was much easier then – no matter how you approached it. Finding cheap property today is a totally different story.

Between 1987 and 2007 the price of real estate property increased by over 300 percent according to a Property Price Index chart I found on the Steadfast Finance website. While this post is not intended to be scientific in nature, it is necessary to use facts and figures to back up the main idea that, due to the balooning of home prices over the 20 year period mentioned, and the subequent crash, it is tough to find a cheap property which doesn’t have a mortgage that dwarfs its value.

There is not much room left to build equity for the foreseeable future without a dramatic rebound of real estate market prices, and I don’t see that happening anytime soon. However, there may be some instances where you may find cheap property throughout the United States, but the market areas – some being better than others – in which they are located will most likely be depressed, thus removing the motivation that would otherwise exist for you to purchase it.

Let’s face it, most towns/neighborhoods that offer the cheapest properties would normally be economically depressed in most categories. Even those areas that are considered middle class by the traditional definition suffered a great loss of property wealth and has none to offer you as an investor looking to turn a quick profit, or home buyer who is looking to build equity.

There is some indication that property values show signs of increasing but that increase in value, providing it is real and consistent will go towards leveling off the property owners’ existing underwater situations. It does not help prospective buyers simply because the property owners are unable to sell until they are able to satisfy their lenders from sale proceeds. It is unreasonable to assume that a property owner is willing to dig into his/her own pocket simply to make a sale to anyone and walk away that much poorer.

You may be thinking; well if all this is true, how will investors be able to stay in business? The answer to this question is rental income! Some investors buy to resell while others buy to rent. Short term versus long term investments; And you can safely assume that when the buy/sell market is tough, most of them will put their money into rental properties.

Keep in mind that when the market is tough for investors, it is similarly tough for home buyers to get reasonably priced homes to buy and mortgage money to finance them, so many of them become new tenants for the long term investors.

If you are in search of cheap real estate property in today’s (July 2012) market, you might get lucky and find that proverbial need-in-a-haystack property that is either free-and-clear or has a very low mortgage balance, where the owner has passed away and the estate is forced to sell…

Or a free-and-clear/low-mortgage-balance property that is in disrepair and perhaps uninhabitable without major rehabilitation and you have the means with which to purchase, repair and resell. However, you might have to look long and hard, so be prepared for the long haul.


If you have been in the market to buy a home for your own personal use, or you are an investor looking to buy cheap, repair and resell; I would be interested in learning about your recent experiences. If you have had some good luck and found the ideal property for your purposes, or you’ve had the worse time trying to find a property you can work with; tell me about your experience in the comment box. Good luck!

Market Prices: Important Factors In Choosing Your First Home


Among the most important fundamentals of home shopping are market prices. In fact, some home buyers welcome the opportunity to negotiate for the best possible price they can get, and sometimes they are successful in getting a real bargain due to the home seller’s circumstances. Homeowners decide to sell for various reasons, and it is some of those reasons – illness, divorce, foreclosure, etc. – that create opportunities for bargain-seeker home buyers.

There are times however, that the market chooses sides; sometimes with the seller (so-called seller’s market), other times with the buyer (so-called buyer’s market), and in a period of depressed home prices due to a recession or other extended periods of depressed home prices, buyers get to pick and choose from the best homes in the best areas and at the best prices.

Today, at the time this article is being writtent, we are in such an extended period of depressed home prices. So much so that some homes are in an “underwater” (underwater is a term usd to describe a home with a value that is less than the mortgage balance) state of existence.

That having been said, if you are ready to move out of your apartment, there is no time better than now. Beginning to search for your first home is an important step of having the ability to build better finances and to live in a place that is comfortable. If you are considering a new home, there are specific things that you will want to know before jumping in with both feet, but one thing that is advantageous to you at this time is the market, or market conditions.

However, before you even begin to look at homes, make sure that you conduct your own investigation. This will mean that you should find the going rates, how much your new payment will be every month, and what you can or can’t afford, in terms of out-of-pocket cash. You will also want to see what types of houses are going and what they are going for.

If you know the basics of what is available, it will be easier for you to get exactly what you want. You should also consider things such as your credit rating and your pay check. You don’t want to walk into something that is over your head or start to look for something, only to find out that you won’t be able to move in.

From here, it is all a matter of getting involved with the right people. One of the most important decisions that you can make is to find the right real estate agent. This will make a huge difference in the type of deal that you get as well as what type of home and mortgage you end up with. Real estate agents have the ability to do investigations for you and find something that is best for you. You will also want to make sure that there are connections with home inspectors and the right lenders.

Without the right people set in place, there will be problems with getting the best deal with your new home. The option to do your own research always available to you, especially if you own a compuer with an Internet connection; But keep in mind that real estate agents make a living by being experts in the field of real estate and therefore are much better equipped to get you a great deal than perhaps you are at securing your own deal.

If you do work with a real estate agent and begin to look at homes, make sure to put yourself in a position to understand the terms that are being given to you. Loan terms, terms about the market, and other real estate jargon will often times be discussed. If you don’t know what something is or what it means, look it up right away or ask. Getting into a first home is a big step up from an apartment, so it is important that you understand what you are getting into.


The process of finding a new home can be challenging and fun. Making sure that you are as prepared as you can be can help you to get exactly what you want. By learning the ropes from the very beginning, you can be certain to get what you want and move on from there. One area in which you are very fortunate is that of home prices due to present market conditions. Although we are 5 years post-recession 2007 there still seems to be a long road ahead before home prices rebound to pre-recession levels, and returning to those levels are iffy at best.

So you can take your time and look for the best home that will suit your family as well as your pocketbook; But don’t make this home-buying process 12 to 24 month project, because so many things can happen to change your financial situation, your motivation for buying and/or other market-related aspects such as suitable financing programs still being available with their same rules and guidelines when you’re ready. If you are ready to move out of your apartment and market conditions are on your side, then you should do it sooner than later.