Making Your Money Work for YOU!

Would you stash money away in your linen closet for a rainy day or would you put it in the bank to collect some interest? Obviously, you would want to keep that money where you can make money. Many of you out there are doing the opposite; how much equity are you sitting on? Why not make that money work for YOU! Times are tough, the market if down, but the price is RIGHT! Do what all the savvy investors are doing now, BUY BUY BUY! Your equity is doing nothing for you if it just sits there. I know it's scary, however as I've mentioned before TIME IS RUNNING OUT! There are fantastic deals out there that are manageable as well as gold mines in five years time. Real estate has NEVER let us down in the long term, no crystal ball needed. Yes, we have had a BIG downturn, but we can see the light at the end of the tunnel. Foreclosure properties are moving FAST, our Obama administration is giving you tax breaks and many of us are getting great loan modifications that make us able to keep our homes. We are even seeing price wars! Bids are coming into those great deals out there and when those start to escalate more and more prices, ALL PRICES, will start to ascend and we can all again sing HALLELUJAH!

Not convinced? Need some proof? Want to know where you stand? Contact me for the facts on how YOU too can be a savvy investor!

RealEstatewithRuben@gmail.com

SEE YOU AROUND THE NEIGHBORHOOD!

Beware!!! Foreclosure Fraud is on the rise!

WOW! It's amazing to me how scammers con people, especially when they are down on their luck. First we had those greedy mortgage brokers and lenders granting RIDICULOUS unaffordable loans to people with the promise of "The American Dream." Well millions of those dreams turned to nightmares when that balloon payment came due or that interest rate flew threw the roof. Now I am sad to report scams are on the rise disguised as a negotiator between homeowners and lenders. Heres how it works..

They place ads telling you they can get you a loan modification that will reduce your monthly payment and save you from foreclosure. They lay out a plan and assure you that everything is going to work out. They will do all the negotiating with the lender and you only have to pay 2/3 of your mortgage payment. Of course, the payment is made out to the program or the organization not the lender - RED FLAG! You see where this is going right? No negotiation was ever done, no payment ever went to the lender and BAM you're home is being foreclosed on.

DON"T BE A CASUALTY!

Contact me for a list of programs that are on the up & up!

Some won't cost you a dime!

RealEstatewithRuben@gmail.com

SEE YOU AROUND THE NEIGHBORHOOD!

Have to sell? Want top dollar? CURB APPEAL is your answer.

Remember the old cliche, "Never judge a book by it's cover?" well in today's market forget it!!! There is so much inventory out there, selling your home for top dollar is nearly impossible, or is it? THINK about what attracts, beauty, money and sex, so why not make money by making your home beautiful and sexy. Curb appeal is that answer... Here are ways to spruce up and attract those buyers to your sexy home, it's basic simple grooming:

• Stow away those unnecessary tools that are scattered around the house and yard.


• Clean windows and gutters


• Pressure wash dirty siding and decks


• Edge sidewalks and remove those wild unattractive growths (like moles with whiskers) between concrete blocks


• Mow the lawn and get rid of the weeds (think how you feel and look when you get a fab cut and color)


• Trim tree limbs that are near or touching the roof


• Replace old hardware


• Fresh paint

Need help? Contact me and let's together get those buyers knocking down the door to see what's inside.

RealEstatewithRuben@gmail.com

SEE YOU AROUND THE NEIGHBORHOOD!

WHAT ARE YOU WAITING FOR?

Since my last posting more good news has transpired, yes we are on the

ROAD TO RECOVERY!

Moody's Economy.com cheif economist guru, Mark Zandi, says these increasing home sales and gains in the stock market are promising signs that the worst is over! However he also warns that, "Confidence is a very fickle thing. It can go from abject pessimism that prevades now to a more balanced view now of the world rather quickly." (wow that's like quoting from a speedsheet)Some of the hardest hit markets, Florida's Gulf Coast, Cali's Inland Empire and Las Vegas, just to name a few, experienced an 80% jump in home sales. Experts say foreclosures, low interest rates and that $8000 Obama tax credit are helping first time buyers and investors.

So to all you first time buyers, LET'S GET GOING!!!

To all you homeowners sitting on that equity, MAKE YOUR MONEY WORK FOR YOU, become that investor that makes a mil

And to all you investors that are doing the do KUDOS!!!

See you around the neighborhood!
RealEstatewithRuben@gmail.com

6 Reason why YOU should buy NOW

Yes there is light at the end of the tunnel.

Properties are moving, the foreclosure inventory is decreasing and our new

Obama administration is lending a hand.

Here are six reasons why YOU should buy NOW!

1. Hail to our new Prez - First time buyers are entitled to a maximum $8000 tax credit, interest rates are at a record lows and our Federal Reserve is doing what it can to make those seemingly impossible loans possible.



2. Either by pro-creating or adopting like Madonna and Branjolina and by our VERY generous immigration/naturalization policies increasing our household count by 800,000 a year. WOW!
   



3. It's simple math, borrowers leverage their investment - If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.



4. Instant equity - With all the foreclosure movement driving prices down, when the market zooms back up as it always does, you will rapidly gain more and more equity.



5. Your mortgage costs WILL stay the same - As I suggest to ALL my clients FIXED RATE ONLY, your monthly payment stays the same while everything around us goes up, including rent.



6. It's my house and I live here - Diva Diana said it all it that phrase (oops I dated myself again) Oh well there is nothing more comforting than owning your own home. You can paint what you want, let you pooches run free in the yard and have that piece of mind that security brings.

...yet another reason to BUY NOW!

According to the National Association of Home Builders, buyers could be gearing up for a return to the market.

In a survey for Century 21 Real Estate last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to the online poll, 68 percent said that now is a better time to buy than six months ago.

And its not just good news there. The new home market is seeing promising numbers as well. Single-family permits were up 11 percent in February.

"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said NAHB Chairman Joe Robson.

So why wait, even if you think you don't qualify now, get a plan going so that you can qualify. Without the facts and a plan you may miss the opportunities that are waiting for you.

Contact me and let's get started today!

realestatewithruben@gmail.com

See you around the neighborhood!

Obama's Housing Plan - Q & A for Borrowers

compliments of :

David Pemberton

Stratis Financial Corp.

562-472-1120

www.loannotebook.com

Feb. 18 (Bloomberg) -- The following is a reformatted version of questions and answers on the Obama administration's housing plan released by the U.S. Treasury in Washington.

Q and A for Borrowers about the Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

1. What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

3. How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

4. I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

5. Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

6. What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

7. Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

8. How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

9. When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

10. What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:
· information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
· Your most recent income tax return
· Information about any second mortgage on the house
· payments on each of your credit cards if you are carrying balances monthly
· payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

1. What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

2. Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

3. How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if

(a) You occupy your house as your primary residence;

(b) Your monthly mortgage payment is greater than 31% of your monthly gross income;

(c) your loan is not large enough to exceed current FNMA and FHLMC loan limits.

Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

4. I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

5. I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

6. I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

7. I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion - modifications may include upfront reductions of loan principal.

8. I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

9. How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

10. Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives andit is expected that most major lenders will participate.

11. I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

12. How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program. 13. What should I do in the meantime? You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:
· information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
· Your most recent income tax return
· Information about any second mortgage on the house
· payments on each of your credit cards if you are carrying balances monthly
· payments on other loans such as student loans and car loans

14. My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We all support this effort.

Thanks David! Great information everyone, PLEASE take it to heart it just may save you money and/or your home.

Please contact me with any questions 562-331-7396 or ruben@rubengonzalezjr.com

See you around the neighborhood!

A PEEK at our new hometown, GULFPORT, FL

I can’t pay my mortgage, what do I do?

If you are stuck, like many of our financially stressed homeowners here in the country of the land and the free ? (thank you Bush administration), a big question to ask is what do I do when I can’t make my mortgage. The best advice I can give is TALK TO YOUR LENDER! Many of them are willing to renegotiate your loan; it’s called a MOD (modification loan agreement). There are several ways they do this:

RATE REDUCTION MODIFICATION – permanently reduce your interest rate, lowering the monthly payment

CAPITALIZATION – adding the delinquent payments into your remaining balance and updating the payment due date and perhaps recasting your payment amount.

TERM EXTENSION – extending the amount of time you have to repay their loan to achieve a reduced monthly payment. Term extensions are often used together with an interest rate reduction or a capitalization modification.

ONE TIME ASSUMPTION – “arms length” transaction, providing there is no pre-existing relationship between you and the individual assuming your loan.

LOAN TYPE CONVERSION – converting arm loan to a fixed in order to lower your payments.

Now if you are not in a position to qualify for any of these MODS, you may have to face the fact and relocate. This is where many homeowners freeze and give up; this is where you need to start thinking about your credit.

Short Sale or Foreclosure?

Well short sale is the way to go without a doubt. Yes, it will still affect your credit, however not as much as an all out foreclosure.

Here are the facts:

Of all available options, foreclosure is the worst
The inevitable result of a foreclosure is the lender taking your house. Not only will you lose your house, but the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. If that isn’t enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.
Consider a short sale when foreclosure seems inevitable
A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. In many situations, they will not. Experts advise pursuing this option the minute you realize that you are falling behind in your payments and most likely won’t be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to discuss a short sale.
Short sale has disadvantages too
While a short sale will save you from foreclosure, it will also have a negative effect on your credit score, frequently lowering it by as much as 200 points. This can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current. Perhaps equally distressing, the Internal Revenue Service frequently deemed the difference between the mortgage balance and the amount realized from the short sale to be taxable as income despite the fact that the debtor never saw a dime of it. There is new federal legislation called the Mortgage Forgiveness Debt Relief Act 0f 2007 that went into effect on January 1st, 2008. The new act essentially eliminates this problem.
Almost any option is better than foreclosure
Simply stated, do everything you can before foreclosure occurs and do it as quickly as humanly possible. Don’t sit back and keep thinking, “What can I do?” Instead, consider that short sale and check with your lender before your options become more limited.
The One Best Tip I Can Give You: Don’t Do This Alone
You need an experienced real estate agent to help you and that is yours truly. Fortunately, at Prudential, I have a very experienced short sale team that can negotiate with your lender and help get your home sold! So don't hesitate to call ASAP! Time is of the essence when preparing a short sale so please act NOW!

Cal me at 562-331-7396 or e-mail me at ruben@rubengonzalezjr.com

See you around the neighborhood!

What an Obama Administration Means to Your Mortgage

The debates are done, the election is over, and on January 20, 2009, Barack Obama will be inaugurated as President of the United States. No matter where you fall in the political spectrum, no one knows for sure exactly what this will mean to the future of our country. With this in mind, let's put all politics aside, and take a closer look at Obama's plan for our future. And since a home is still the biggest, most important investment you'll ever make, we'll focus on Obama's basic housing measures.

More Economic Stimulus – Since trouble in the economy won't wait until January 20th, plans for another economic stimulus package are already in the works, so we might even see this happen, in one form or another, before Obama takes office.

Obama has also discussed a housing stimulus as well, to stem the tide of foreclosures, including a temporary 90–day freeze on foreclosures, as well as measures to address the demand side of the housing issue. This package includes $25 billion in state fiscal relief, which Mortgage Law Central says will help avoid "painful property tax increases."

Obama also wants to "aggressively and comprehensively" implement the recently–passed rescue plan and the Hope for Homeowners Act. This means the Treasury, HUD, Fannie Mae and Freddie Mac, and all of the banks and loan servicers who benefit from the rescue bill will continue to coordinate broad mortgage restructurings and loan modifications for struggling homeowners. No one knows for sure exactly how this will be implemented or what it even looks like yet, but we'll keep you updated as the details are released.

Reformed Bankruptcy Laws – Obama has promised to repeal the 2005 bankruptcy bill. A controversial measure, this will allow judges to alter mortgage terms during a bankruptcy, providing more protection for struggling homeowners.

New Mortgage Interest Tax Credit – Obama is expected to create a 10% universal mortgage interest credit for those who don't currently itemize. This means about $500 in savings for 10 million American homeowners.

Protection Against Mortgage Fraud and Predatory Lending – During the campaign, Obama blamed the financial crisis on lax government regulations, so look for tougher regulations, new criminal penalties for mortgage fraud violators, more funding for enforcement programs, more detailed loan disclosure laws, new counseling programs and other consumer protections, including a new Home Obligation Made Explicit (HOME) score (kind of like a new APR calculation) to help borrowers better understand and compare mortgage costs during the mortgage process.

This will go a long way in protecting new home buyers from the opportunists that have given my industry a bad name in the last few years. The good news is a lot of these people are now out of business. We all hope that any new measures introduced by the Obama administration will help keep a new breed of copycats from invading our industry as the real estate market begins to change for the better in 2009 and beyond.

See you around the neighborhood!

Top 3 Benefits of HR 3221

The Housing and Economic Recovery Act of 2008 is a $300 Billion rescue plan aimed at helping struggling homeowners avoid foreclosure. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are the top three changes that may benefit you:

1. Tax credits. First-time home buyers who purchase their primary residence between April 8, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest-free loan that is paid back over 15 years at $500 per year when taxes are filed.

2. Larger loans at lower rates. This is a great benefit for homeowners with "jumbo" mortgages, which range between $417,000 and $625,000. If you are considering purchasing a home in that price range, this provision may be ideal for you. Please call or email to schedule a meeting to discuss your options.

3. FHA Hope for Homeowners. This provision is designed to help homeowners who are "upside down" on their mortgage - that is, people who owe more on their house than they can sell it for in today's market. Essentially, this plan allows borrowers who meet specific requirements to refinance their mortgages to new 30-year fixed FHA mortgages. If you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring

Michael Fawver

Manager / Sr. Loan Consultant

International City Mortgage

Phone: (562) 754-4744

Fax: (562) 683-0427

michael@michaelfawver.com

More great info from my number one mortgage guy Mike. Please contact me for more info!!!

See you around the neighborhood!