Welcome News!
August 30 , 2010

While the mortgage market news may appear depressing around the country, our communities are continuing to see signs of improvement. The oil spill certainly affected our market, but the reality is that people in our area are on the move and will continue to buy, sell and refinance real estate.

At Beach Community Mortgage, our volume of loan activity has increased in this quarter, and we continue to see the potential to end 2010 much better than the national averages suggest. As part of this effort to excel, we have added some new talent to our staff, and we are excited to share our news with you.

Julie Kuhn and Lee Ann Arrigo have joined our Mortgage Loan Originator team and have already brought new opportunities to us. They have both been in the local market for many years helping first time homebuyers, repeat clients and seasoned investors obtain the best financing options available.

Edie Sheppard and Kim McLaurin-Eaddy have joined us in our Operations center. Edie will work with our originators and their clients through the processing steps of a loan request, while Kim will work in our post closing department. Both Edie and Kim come to us with many years of local experience, and we are happy they have chosen to become part of our Beach family.

Our entire staff is ready to assist you in the purchase or refinance of your home. Find out today what you need to qualify by calling one of our Mortgage Loan Originators. With rates the lowest they have been in over 30 years, why wait?

Posted by Pam Woodall

According to Freddie Mac, the average interest rates nationwide are half of what they were 15 years ago! Can you imagine paying over 9% on your mortgage? If you closed on a mortgage back in January 1995, that’s about what you paid.

It’s amazing how rates have changed in our lifetime, and today they are the best they have been in over 30 years. I can remember closing on my first house and feeling lucky to receive a rate somewhere around 11% and happy to get it. While we are a society of negotiators, there just isn’t a better deal than real estate right now. We are all cognizant of the issues in our economy and have fears about what the oil spill means to our area. Unless you believe you have to leave here because of this, our history of being resilient in the face of tragedy speaks for itself. I heard a speaker the other night talk about the word FEAR and its meaning. For some, it means forget everything and run! Most of us are probably experiencing the forgetting everything’s all right definition. Not great, but ok. And when you start with ok, you can build on that.

If by any chance you are considering a refinance of your current home loan – call us today at 850.315.4100. We could save you some real money. If you are buying, let us help you get the best rate possible. Money is on sale!

Posted by Pam Woodall

National Homeownership Month
June 11, 2010

June is National Homeownership Month, and the Independent Community Bankers of America (ICBA) and the nation’s nearly 8,000 community banks continue to help Americans in communities throughout the country become, and remain, homeowners each year through the personal attention that only a local community bank can provide. Community banks are, and always have been, common sense lenders focused on doing what is best for their customers and their communities.

Beach Community Mortgage is no exception! We want to work with you on the local level to make sure you are given every advantage that only a local lender can offer. While rates and costs are similar, the ability to work with a lender who has relationships with local real estate agents, appraisers and title companies can make a big difference in your home buying experience. No out-of-town lender has the ability to offer the hometown advantage we can! It’s not what you know but who you know that can make a difference, and this old adage applies to every local real estate transaction.

Get the personal attention you deserve. It’s up to you to find the home that’s right for you. It’s up to us to find you the right loan. Let us help you become our neighbor!

Posted by Pam Woodall

You can find articles and websites that provide lists of tips to make the home shopping experience a good one. The reality is that you must do some homework and soul searching before you begin looking for that dream home.

Understanding that the “right time to buy” is really defined by you and not the market is essential to your success. You will be living in the home and paying the mortgage (that’s where we come in!), so it really doesn’t matter what the media is saying about home prices or rates. If you need to buy a home, who better to judge the timing than you?

When you are ready, get prequalified with us! You need to know your buying power and what it takes to obtain a mortgage before you shop. Do not skip this step! Without it, you will only be window shopping for a home, not shopping with a purpose.

Find a Realtor who you connect with especially if this is your first time. Trusting your agent to understand your needs and allowing them to do the search is by far one of the best time savers you can give yourself. Communicating your needs is critical, so make sure you and the other family members who will live in the home are in agreement about the most important things you want. While it isn’t likely that an existing home will meet everyone’s wish list, you should always choose your home because you love it first, then worry about appreciation and resale.

You have to find the home that’s right for you – let us find you the right mortgage.
Call us today!

Posted by Pam Woodall

Military Perk in the Homebuyer Tax Credit*
March 5 , 2010

Did you know that the current Homebuyer Tax credit has a caveat for military and some federal employees that allows an extra year of eligibility?

Under the Worker, Homeownership and Business Assistance Act, which was signed into law in November 2009, individuals or their spouses who serve on qualified official extended-duty service outside the country for at least 90 days between Jan 1, 2009 and April 30th, 2010 have an additional year of eligibility. Given the amount of LOCAL miliatary heros, this could extend the credit for many in our community.

Let’s all work together to educate those that serve our country outside the safety of our borders and help more families become homeowners this year! For more information visit IRS.gov.

*Clients should consult a tax advisor for more information on how the tax credit will impact them. Tax laws are complex, and we want clients to be well informed before making the decision to purchase a home.

Posted by Pam Woodall

I recently read an article that referred to the years of 2000 – 2009 as not just the “Ohs” but the “Uh-Ohs.”  I found this humorous in a tongue and cheek sort of way.  While we learned a lot about how things can go wrong, we now have the opportunity to start a new decade by learning from our mistakes.  It’s always refreshing to start anew, to go forth with optimism that things will improve, isn’t it?

One thing you don’t want to miss is the opportunity to buy a home, and this year the reasons to make that decision NOW are crystal clear.  Home prices have hit the proverbial bottom and will begin rising. Rates are already beginning to show signs of increasing, so waiting for a lower rate is no longer an option. The IRS tax credit* mentioned in the last blog will only be available until April 30th for home purchase contracts.  If you want your personal piece of the stimulus, you should already be shopping for your new home!

You sure don’t want to look back this summer and say, “uh oh, I should have bought a home before______.”  You can fill in the blank, but you get my drift.

Today is the best day to begin the homebuying process.  Call one of our Mortgage Consultants to find out what you can do to optimize your homeownership benefits before it’s too late to avoid an “uh oh” moment.

*Clients should consult a tax advisor for more information on how the tax credit will impact them. Tax laws are complex, and we want clients to be well informed before making the decision to purchase a home.

Posted by Pam Woodall

Homebuyer Tax Credit Extended and Expanded!
November 10, 2009

Last week, a new Homebuyers Tax Credit bill was signed into law. The bill extends the tax credit for first-time homebuyers (FTHBs), as well as opens it up to current homeowners who are looking to buy. Here is a brief overview of the Homebuyers Tax Credit - and its benefits - based on the new bill.

Tax Credit for First-Time Homebuyers

FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners

The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What's So Great About a "Tax Credit*"?

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction," or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

* Clients should consult a tax advisor for more information on how the tax credit will impact them. Tax laws are complex, and we want clients to be well informed before making the decision to purchase a home.

Posted by Pam Woodall

All indications are that we are past the worst of the economic crisis in housing.  While that says a lot, it doesn’t say we are cured!  Nationally, prognosticators say it will take all of next year and then some for the housing market to heal.  Our country is still facing staggering numbers of unemployment and foreclosures.  In areas where employment numbers are better, recovery will be quicker. 

Living in NW Florida has always been great, but given the housing crisis predictions for the coming months, we are truly living in paradise!  Due to our military installations scattered across the Panhandle, we are insulated from some of the worst employment numbers ever experienced, and we will recover more quickly than other parts of Florida.  Our area is a prime target for VA home loans. Most of these borrowers have job security, and consequently that helps offset the local foreclosure rate. The drop in our housing costs has also generated a larger buying population as more families can afford to buy here.  Good credit history is the absolute key in seeking a loan, so finding out where you stand is the first step in the process.

According to numbers released by the Okaloosa County Property Appraiser, we are enjoying an increase in homes sales of as much as 28% over last year!  The average number of transactions has gone from 151 a month to over 200 in 2009.  The $8,000 tax credit has been a boon to our area as well as to over 45% of transactions nationwide since its inception. (While the tax credit may be extended, the current offering ends Nov 30th.) Add the potential growth in the next 2 years due to the influx of new military missions to our area, and we have the potential to rise from the ashes of the housing crisis much sooner than other areas of the country. 

Rates are great, and prices are great.  So what are you waiting for?  Call one of our mortgage loan consultants today! 

Posted by Pam Woodall

Timing is Everything!
August 28, 2009

Were you wondering if the timing is right to buy your first home?  Stop guessing, and start looking!  With tax incentives of up to $8,000** and rates still holding at historic lows, the time is now, the place is here, and the clock is ticking.

Unless extended or reenacted by Congress, the current first-time* homebuyer tax incentive of up to $8,000 in tax credit** will end November 30, 2009.  While there is currently movement to do one or both, you never know what could happen, and it’s always better to plan on a sure thing.   Although you still have plenty of time to take advantage of the current opportunity, the reality is the timeline for closing on a mortgage loan may be lengthening.

New guidelines are forcing mortgage lenders to provide additional wait periods for consumers prior to consummating a home loan purchase.  The rules are there to avoid placing undue pressure on borrowers to close before they understand their loan program.  Specifically, a lender must give a borrower at least 7 days to review the original Annual Percentage Rate (APR) disclosures from the initial application and must redisclose at minimum 3 days prior to closing if there is a significant change in the APR once the file is in process.  This does not sound like a bad idea as there has been proof that thousands of homebuyers got into loans they weren’t qualified for based on the truth about their income and assets. Suffice to say, those situations are no longer available and qualifying is now more of a science than an art.  You can’t paint a colorful picture when the subject matter is black and white. 

The result of the changes in APR disclosure requirements could be extended closing times for home purchases.  Unless you get into process early and commit to a lender that you trust, you could be facing a delay in your home loan closing date and miss that November 30th deadline.  Why wait to make your move?  You have about 8,000 reasons to go shopping for your first home today! 

Please call one of our Mortgage Loan Consultants today – we want to help you take advantage of every opportunity to own a home!

* First-time home buyer means any individual if such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence to which the first-time home buyer credit applies.

Chart Your Course
July 16 , 2009

The typical home sale has three integral parts.

1. The Seller – who sets the price they WANT to get
2. The Buyer – who offers what they WANT to pay
3. The Realtors – who try to negotiate the sale between the buyer and seller

Once you get past this, you now have the fourth component which is the LENDER.

The lender is called upon when the buyer is not paying cash to provide long-term financing options that are pleasing not only to the buyer, but to a seller that might be participating in the closing costs and to the Realtor who wants assurance that the buyer is qualified and the deal is going to close. In this mix, you have to throw in the credit standing of the buyer, the assets available for down payment and closing costs and that small little item, THE APPRAISAL!  (Imagine the theme from Jaws here!)

Today, appraisals have become the biggest obstacle to overcome in a transaction. Why? The seller sees the property value as more than what they paid for the home.  In previous years, this was normal. However, if the property was purchased in the last 3-4 years, the likelihood is that the property has actually decreased in value. The new buzz word for this phenomenon, “underwater” (Jaws theme starting to make sense?). This is why so many sellers have had to resort to short sales or even foreclosures if they can no longer maintain the home and need to sell to survive financially. This has created a property value rip tide – values that were already low, become lower as those short sales and foreclosures that are now on the market create comparables for other homes in their neighborhoods. The good news in all this is that we may have hit the bottom and are now inching our way back to the surface. The markets in Okaloosa and Santa Rosa counties are already beginning to see some stabilization in prices as the inventory of distressed sales is being absorbed. Escambia and Walton counties are still bouncing around with a large inventory of underwater sales (think of the condos), so we will still read and hear about distressed market sales for a while longer in those areas. 

If you are considering a home purchase or a refinance, contact one of our Mortgage Loan Consultants. We can offer you a “life boat” of information, guidance and facts that will help you navigate to safe waters in the road to successful homeownership! We partner with local Realtors to make sure you find the right home, at the right price.

Call us today – find out why it’s always better at the Beach!

Posted by Pam Woodall

Prepare for Home Ownership: Steps You Can Take to Get There!
june 10 , 2009

Today, there are a growing number of obstacles for homebuyers, including a higher credit score standard and more restrictions on credit. You should have a thorough understanding of the changing market when shopping for a mortgage.

• Be aware of first-time homebuyer programs. Ask about them when you contact a lender.  The IRS is currently offering up to $8,000 in tax credits!
• Get pre-approved. Know the difference between “pre-qualified” and “pre-approved.” Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.
• Be honest with the lender and yourself. You don’t want to borrow more than you can afford and lending guidelines are there to protect you as well as the lender.
• Look at the basics of the loan. Don’t get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you.
• Know your credit situation. Obtain a copy of your credit report and FICO score at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that’s hurting your credit score.
• Consider all the costs. A lender will review costs like fees, closing costs, points, homeowner insurance, and taxes. But consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs – there won’t be a landlord to call.
• Organize your finances before you go to the lender. While each lender may require different documentation, at a minimum you will need:
  • Pay stubs.
  • Tax returns.
  • Financial statements (one that is less than 60 days old).
  • Copies of additional monthly payments such as car loans, credit cards, student loans, etc.
  • Any additional information (such as proof of additional income) that you think will help your banker to positively evaluate your credit request.

CALL BEACH COMMUNITY MORTGAGE!!  We can help with all the steps it takes to be a successful homeowner.  Our goal is your goal – a mortgage that meets your family budget.  Contact one of our Mortgage Loan Consultants today!

Posted by Pam Woodall

Good Neighbors?
November 10, 2008

If you are like many residents in our area, your neighborhood probably has seen some level of foreclosures in the past few months.  It may be due to your former neighbor relocating to another state due to a job transfer. Despite months of effort they were not able to sell or rent their home to meet the mortgage obligation.  It could be that an investor on that rental property down the street just “let it go back to the bank.” It could also be that your neighborhood was a victim of fraud.

Mortgage fraud is one of the highest types of white collar crime in the U.S. today and takes down its victims with brute force. There are two motivations for mortgage fraud, and both can have a severe impact to those involved and to the homes surrounding a fraudulently purchased property. The first form is “Fraud for Property” where a buyer’s primary motivation is to own their own home. While they may lie to obtain the property, they usually intend to pay back the loan. The problem is that they have misrepresented their ability to repay the debt by possibly “creating” the financial documents used to qualify for the loan. The reality is they don’t always have the financial strength to meet the obligations of home ownership, and foreclosure could be the consequence.

The second form is Fraud for Profit and this form can take down the property values in your neighborhood like a bad day on the stock market – swift and mercilessly. In this situation, your “good neighbor” never really even moved in and resold the home after a short period of time in a scam that could include identity theft, criminal appraisal practices and unscrupulous real estate “professionals” that had only profit in mind. This fraud can take your neighborhood from Wisteria Lane to Nightmare on Elm Street when the criminal next door begins working from home and you see sights you only thought happened on TV!

Our job as a lender is more than offering you a variety of home loan programs. It includes policing our own backyard when we know mortgage fraud is happening. We are trained to notice the Red Flags in a real estate transaction, so we don’t allow your neighborhood to fall victim to fraud. We may look casual, but our approach to business is not. If we can help you or your neighbor with a real estate transaction, call us. We can prequalify your buyers and make sure your transaction is reviewed for signs of fraud. You can trust we want to make things right because we live here too.

Call 850.315.4100, and speak to one of our professional Loan Consultants.  Relax – you’re at the Beach!
Posted by :PAM WOODALL

What Used to be Neapolitan is Now Plain Vanilla.
October 12, 2008

While the credit markets have certainly tightened, the word “frozen” has been used a bit more loosely than is applicable.  The average consumer is still able to use a credit card, access their home equity line of credit and seek a mortgage for a home loan purchase or refinance.   The lending pool has not become an ice skating rink!

The idea that you can no longer obtain a mortgage is just plain wrong.  You might not be able to get all the flavors that used to be prevalent, but a customer that has established a good credit history, has a verifiable income and meets some realistic debt-to-income guidelines will be treated to a variety of loan products.  We are still in the business of helping people buy or refinance homes and you will still have choices that make a loan meet your particular financial needs. 

The mortgage lending industry is facing challenges today.  We are a part of the whole dichotomy that is the financial backbone of our country.  The story of “It’s a Wonderful Life” explains in very simplistic terms how the money we lend comes from the deposits of others.  Mr. Smith’s $1000 deposit helped build Mrs. Jones’ new front porch.  Money has to move in order for our economy to remain stable. The money we lend in the mortgage industry keeps the flow in proper balance and must be delivered to qualified borrowers who can and will continue to repay the loan.  Foreclosures put a dead stop to that flow and will have to be worked out of the system in order for things to settle down.  This also means that the guidelines to lend must be reviewed and revised. History tells us what we did right and what we did wrong.  When there is failure, it’s more obvious what mistakes are to be avoided in the future.  With change, there is opportunity to improve.

So enjoy the vanilla flavor of loans for a while.  It is still the classic that is almost always the base for every other variety.  Call one of our experienced Mortgage Loan Consultants to see what we can do for you today.  It’s always better at the BEACH!

Posted by Pam Woodall

The Beach Just Got Better
July 1, 2008

In October 2007, we combined the financial strength and geographic presence of Beach Community Bank with the lending expertise of ABWIN Mortgage to form Beach Community Mortgage.  This set the stage to build one of the strongest mortgage companies on the Emerald Coast for today and the future!   

With that quest in mind, it is with great pride that we announce the appointment of Pam Woodall as President of Beach Community Mortgage.  Pam will also serve as a Senior Vice President of Beach Community Bank. For those of you who already know Pam, you know the depth of her talent and experience in the mortgage industry.  She was an integral part of Access Mortgage Corporation, working under the leadership of Bob Brown, Jr.  That team of talented mortgage professionals quickly became the #1 Mortgage Lender in Northwest Florida and celebrated that success for almost ten years until its sale in 2003.  

If you have not had the pleasure of meeting or working with Pam, you are in for a treat!  She is a welcome addition to our existing team of knowledgeable lenders which include Michael Tano who will continue to handle daily operations, Balenda Hetzel who oversees sales, and Bob Brown, Jr. who serves in a consultatory role and conducts speaking engagements on behalf of Beach Community Mortgage.  Getting Pam in place with the other great members of our mortgage company gives us an unbeatable team, dedicated to delivering the best mortgage products out there with the best customer service possible!  

If you are already our customer, then you have experienced our unique approach to banking, and we are most appreciative of your business.  If you are not yet our customer, we invite you to check out our relaxed, friendly way of doing business.  Come see what “Banking (and Lending) at the Beach” is all about! 

Fed Cuts Rates Again
February 14, 2008

Have you ever wondered how the interest rate set by the Federal Reserve affects mortgage rates? When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets.

It is kind of like asking where babies come from. So, let’s examine where interest rates come from so we may be able to get a better understanding of how rates are impacted on a day-to-day basis.

Mortgage interest rates are based on Mortgage Backed Securities (MBS) or Mortgage Bonds. One of the biggest misconceptions I hear is that mortgage rates are based on the 10 year Treasury note. If you are speaking with a lender who tells you that rates are tied to the 10 year Treasury note, run away fast because they have their eyes on the wrong indicators and it could cost you money when there is a shift in the market. While the 10-year Treasury note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions.

So how does the process work? How is it that Mortgage Backed Securities impact mortgage rates?

In order to not get into a full blown economics lesson, I am going to oversimplify the process. When the stock market is producing higher yields than Mortgage Backed Securities (MBS’), money flows into the stock market and MBS lose value and mortgage interest rates increase. Conversely, when stocks lose their luster - funds flow back into Mortgage Backed Securities, their value increases and mortgage rates get better.

There are a variety of economic indicators that you can watch (or hopefully your lender is watching) that cause the ebb and tide of rates every day. If you are so inclined, you can check them at this calendar - Economic Calendar. 

Rates DO change every day in some fashion (sometimes multiple times throughout the day). Some days the increase or decrease is larger than other days, but they are not static by any means. Rates are fluid. In periods of high volatility (like recently), it is more important than ever that your lender understand the dynamics of the mortgage market and how it impacts your home loan.

When you are shopping for a lender (whether it is Beach Community Mortgage or not), please keep that in mind.

Florida's Market, Better Than Reported
JANUARY 18, 2008

Ah, a new year. It seems that many people fall into the same routine from previous years. Set a New Year’s Resolution and then give up on it a couple of months later. Just as individuals fall into these routines, it seems the media falls into the same rut with their reporting of gloom and doom in our real estate market. We all know that foreclosures are on the rise according to everything we see in the news. It is the epitome of sensationalism and it has a negative effect on all property owners in the area. However, what every media outlet seems to do is to ignore half of the facts and only give you the bad. Is it intentional? Who knows? Maybe it is, maybe they just do not know enough about the topic they are reporting on…

So, here we are sitting here in a real estate market where people should be purchasing like crazy, yet everybody is so paranoid. I’d like to point out a couple of things for this wonderful State we call Florida:

Serious foreclosure starts (90 days late or more) are as follows:
1. Florida had an overall increase of 76 basis points (A basis point is a unit that is equal to 1/100th of 1)
 2. Florida ARM loans had an increase of 40 basis points +  
3. Florida sub-prime loans had an increase of 1 – 40 basis points

So overall, foreclosure rates are rising in Florida at a fairly high rate. However, I looked at the top 5 states in foreclosure starts in 4 categories (Prime Fixed Loans, Prime ARM Loans, Sub-prime ARM loans, and FHA loans) and this is what I found:

Prime Fixed Loans (Top 5)
Ohio
Indiana
Mississippi
Louisiana
Michigan

Prime ARM Loans (Top 5):
Ohio
Mississippi
Indiana
Michigan
Louisiana

Subprime ARM Loans (Top 5):
Ohio
Michigan
Indiana
Iowa
Mississippi

FHA Loans (Top 5):
Michigan
Ohio Indiana
Louisiana
South Carolina

Even though we are going through some rough times in Florida, we do not even crack the top 5 in these categories. These categories are statistics for OWNER OCCUPIED homes. In our case, we are not seeing little old ladies being thrown out of their homes at an alarming rate like the TV or the newspaper may lead us to believe. Now, we would be naive to think that it is not happening to some degree, but in the owner occupied (primary residence) category, we are definitely not getting hit as hard as some would like us to believe. However, when we look at the Non Owner Occupied Homes (investment properties) in serious foreclosure we get a different story:

Percent of Default Investment (Prime Loans):
Nevada
Arizona
Florida
California

Percent of Default Investment (Subprime Loans):
Nevada
Arizona
Florida
California

What does that tell us? We, as a State, are looking bad because a whole lot of investors got caught with their hands in the cookie jar and are not making payments. 

The moral of my “captain obvious” story is that it is a great time to buy real estate and I am tired of hearing people think that it is doomsday in our lovely state. For individuals who are purchasing a primary residence or a LONG TERM investment, we are in great shape (remember, real estate was never meant to be a short-term investment vehicle).

 My source of reference is Doug Duncan, the Chief Economist from the Mortgage Banker’s Association – I really did not just make it up.

 Please let us know if there is anything we can do for you on your next deal or if you just need some advice from a very knowledgeable group of Mortgage Bankers.
POSTED BY: MICHAEL TANO