Sometimes mortgage lingo can sound more like alphabet soup than finance talk, unless you work in the bad credit mortgages industry, but it’s easy to become confused by all of the different types of mortgages available.
The real estate industry in this economy is suffering perhaps more than any other due to the fact that so many homeowners are no longer able to pay their mortgages and stay in their homes.
If a loan modification company or consultant only accepts cash or a money order, then be aware that this is one of the most obvious signs that it is a loan modification scam, because cash payment and money orders leave no paper trail, no proof of payment.
A conforming loan is one that conforms or adheres to strict Fannie Mae/Freddie Mac loan underwriting guidelines, and generally uses the same forms.
To the real estate investor, all of this means opportunity, with the low interest rates and low housing prices, this is the perfect time to buy and invest in real estate, but this is not the perfect time to sell, however.
When interest rates are low, an adjustable rate mortgage may seem like an attractive option, however when interest rates go up so will your monthly mortgage payment.
You should always do a quick and dirty Ownership & Encumbrance Report (O&E) using my own proven system to see if there are any junior liens before I even leave my driveway or pick up the phone.
Every investor should get a good home inspection on any property they are looking to buy and should always have an exit strategy in mind available.
If you have been thinking about jumping on the foreclosed homes bandwagon and making some pretty good money off of these homes, you need to know all the facts on any property prior to buying it.
In the real estate investment business, you will be ahead of the pack if you can get people calling or coming to you with their specific problem before they go somewhere else.
