[HLS]

A statement was issued recently that even if current administration attempts of modifications are successful, there are still 3 to 6 million foreclosures expected in the next few years, and 300-500 banks could fail.

Logically, there is nothing they can do to stop it. The “Deed for Lease” program from FNMA to rent back to those who deed their property back is just another feeble hope of slowing the train wreck.

Rewarding people who made poor choices by allowing them to stay in house that they cannot afford is irresponsible.

Billions upon billions of dollars has disappeared in perceived wealth, never to be seen again, yet so many people continue to spend like they did 5 years ago…so many people are still in denial about what could happen in the next 5-10 years.

The govt will continue to spread false hope that it’s improving because just imagine what will happen if they don’t….

[HLS]

A statement was issued recently that even if current administration attempts of modifications are successful, there are still 3 to 6 million foreclosures expected in the next few years, and 300-500 banks could fail.

Logically, there is nothing they can do to stop it. The “Deed for Lease” program from FNMA to rent back to those who deed their property back is just another feeble hope of slowing the train wreck.

Rewarding people who made poor choices by allowing them to stay in house that they cannot afford is irresponsible.

Billions upon billions of dollars has disappeared in perceived wealth, never to be seen again, yet so many people continue to spend like they did 5 years ago…so many people are still in denial about what could happen in the next 5-10 years.

The govt will continue to spread false hope that it’s improving because just imagine what will happen if they don’t….

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

[HLS]

I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

[HLS]

I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

[HLS]

I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

[HLS]

I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

[HLS]

[quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS

[HLS]

[quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS

[HLS]

[quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS

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