1. What is Real Estate? Real estate From Wikipedia, the free encyclopedia Jump to: navigation, search Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate (immovable property) is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property. In recent years, many economists have not recognized that the lack of effective real estate laws can be a significant barrier to investment in many developing countries. In most societies, rich or poor, a significant fraction of the total wealth is in the form of land and buildings. In most advanced economies, the main source of capital used by individuals and small companies to purchase and improve land and buildings is mortgages -- bank loans for which the real property itself constitutes collateral. Banks are willing to make such loans at favorable rates in large part because if the borrower does not make payments the lender can foreclose, that is, file a court action that lets them take the property and sell it to get their money back. But in many developing countries there is no effective means by which a lender could foreclose, so the mortgage loan industry as such either does not exist at all or is only available to members of privileged social classes. In spite of the name, real estate has no connection with the concept of reality (in other words, the law does not consider real property more "real" than personal property). It derives instead from the feudal principle that in a monarchy, all land was considered the property of the king. Thus originally the term real estate was equivalent to "royal estate", real originating from the French royale, as it was the French-speaking Normans who introduced feudalism to England and thus to the English language; cognate to Spanish real. With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Cities such as Vancouver, British Columbia have experienced remarkable growth in real estate prices in the new millenium. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include: Appraisal - Professional valuation services Brokerages - Assisting buyers and sellers in transactions Development - Improving land for use by adding or replacing buildings Property management - Managing a property for its owner(s) Real Estate Marketing - Managing the sales side of the property business Relocation services - Relocating people or business to different country Within each field, a business may specialize in a particular type of real estate, such as residential, commercial, or industrial property. In addition, almost all construction business effectively has a connection to real estate. "Internet Real Estate" is a term coined by the internet investment community relating to the parallel that exists between high quality internet domain names and real-world, prime real estate. Federal Home Loan Mortgage Corporation From Wikipedia, the free encyclopedia Jump to: navigation, search Freddie Mac Type Public Slogan We Open Doors Founded 1970 Location McLean, VA Key people Richard Syron, CEO & Chairman Industry Mortgage Investment Products Financial Services Revenue $36.8 billion (2003) Operating Income {{{operating_income}}} Net Income {{{net_income}}} Employees 3,216 Parent {{{parent}}} Subsidiaries {{{subsid}}} Website www.freddiemac.com {{{footnotes}}} The Federal Home Loan Mortgage Corporation ("Freddie Mac") NYSE: FRE is a stockholder-owned, publicly-traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae is regulated by the Office of Federal Housing Enterprise Oversight (OFHEO) in the United States Department of Housing and Urban Development. Freddie Mac makes money by charging a guarantee fee which is usually a small part of the interest payment of the loans they have securitized into bonds. (For example, Freddie Mac may purchase a loan with a rate of 5.19 percent and put it into a mortgage backed security (MBS) bond which has a 5.0 percent coupon, keeping 0.19 percent as the guarantee fee.) Investors, or purchasers of Freddie Mac MBS, are willing to let Freddie Mac keep this fee in exchange for assuming the credit risk, that is, Freddie's guarantee that the principal of the underlying loan will be paid back regardless of whether the borrower actually repays. This is how Freddie Mac began making money at its inception and continues to do so today. But today, the majority of Freddie Mac's income is derived from the interest rate difference in the corporate debt Freddie Mac issues and the MBS that Freddie Mac's retained portfolio purchases. The company is based in McLean, Virginia. Federal National Mortgage Association From Wikipedia, the free encyclopedia Jump to: navigation, search Fannie Mae Type Public Slogan Our Business Is The American Dream Founded 1938 Location Washington, DC Key people Daniel Mudd, Chief Exec. Officer, Exec. VP Industry Credit Services Products Financial Services Revenue $53.8 billion (2003) Operating Income {{{operating_income}}} Net Income {{{net_income}}} Employees 5,055 Parent {{{parent}}} Subsidiaries {{{subsid}}} Website www.fanniemae.com {{{footnotes}}} The federal government of the United States created the Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, in 1938 to establish a secondary market for mortgages insured by the Federal Housing Administration (FHA). Fannie Mae buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market helps to replenish the supply of lendable money for mortgages and ensures that money continues to be available for new home purchases. National Association of Realtors From Wikipedia, the free encyclopedia Jump to: navigation, search The National Association of Realtors (NAR), whose members are known as "Realtors," is America's largest trade association, representing 1 million members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries. NAR's membership is composed of residential and commercial brokers, salespeople, immovable property managers, appraisers, counselors, and others engaged in all aspects of the real estate (immovable property) industry. Members belong to one or more of some 1,600 local associations and boards and 54 state and territory associations of Realtors. They are pledged to a strict Realtor "Code of Ethics and Standards of Practice," which includes duties to clients, the public, and other Realtors. The NAR wields substantial power as a lobbying organization for real estate buyers and sellers. Contents [hide] 1 Use of "Realtor" 2 Realtor - Colloquialism 3 See also 4 External links [edit] Use of "Realtor" "Realtor" is a U.S. registered collective membership mark identifying a real estate broker or immovable property agent (immovent) who is a member of the National Association of Realtors and subscribes to its code of ethics. Although the term Realtor is sometimes used interchangeably with real estate broker or immovable property agent or immovable property broker (immover), its use is reserved for active members of NAR. All Realtors (Immovers) possess some kind of real estate (immovable property) license, but not all licensees are Realtors. As a trademark name (like Kleenex facial tissues and Pampers diapers), "Realtor" should always be capitalized. The NAR requires its members to typeset the term in all capitals with an accompanying ?symbol. Many newspapers and other publications use mixed case in deference to their own style guide. Sumbit you blg today! mortgage information library: Your Total Mortgage Payment Your monthly mortgage payment typically is made up of four components: principal, interest, taxes and insurance, together known as PITI. The principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. The interest is the fee charged for borrowing money. You can determine the amount of principal and interest by using our Mortgage Payment Calculator. Taxes refer to property taxes your community levies which are generally based on a percentage of the value of your home. The lender usually collects 1/12th of the yearly property tax bill each month. The lender collects taxes in advance and places the money in an escrow fund. Lenders won't let you close on your home loan if you don't have hazard insurance to cover your home and your personal property against losses from fire, theft, bad weather and other causes. The insurance amount is collected and paid much like the taxes. Each month 1/12th of the insurance bill is collected and stored in an escrow account until the bill is due. Even if you pay cash for your home, it is a good idea to buy hazard insurance in the event your home is damaged or destroyed. Principal and interest comprise the bulk of your monthly payments in a process called amortization, which reduces your debt over a fixed period of time. With amortization, your initial monthly payments are largely interest, and as the loan matures, a greater portion of your payment is allocated toward the principal. Choosing a Mortgage Company When you are ready to shop for a loan, you can work directly with a lender or with a mortgage broker representing many individual lenders. Direct lenders are lending their own money, have in house programs and make the final decision on your application. Mortgage brokers are intermediaries who represent many lenders and loan programs from which to choose. If you have special financing needs or want to shop the market for the best deal, an experienced broker may be able to find the best loan for you. Along with shopping the source, you'll also have to shop the total cost of the loan, including the interest rate, fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, and a host of other items. Your Initial Meeting with a Mortgage Professional at INVESLOAN The loan approval process generally begins with an initial interview where you and a mortgage professional discuss the potential loan. You will need to send information to us to verify your income and long term debts. You may prefer to talk with INVESLOAN before house hunting to determine in advance how much you can afford and the mortgage amount for which you can qualify. This step is called pre-qualification and can save you time and trouble by making certain you are looking in the correct price range. * To complete the 1003 Mortgage Application, you will need to gather: A purchase contract for the house (if you have one) * Your bank account numbers and the address of your bank branch, along with checking and savings account statements for the previous 2-3 months * Pay stubs, W2 withholding forms, tax returns for two years, or other proof of employment and income verification * Credit card bills for the past few billing periods, or canceled checks for rent or utility bill payments, to show payment history and amount of revolving debt * Information on other consumer debt such as car loans, furniture loans, student loans and retail credit cards * Balance sheets and tax returns, if you are self-employed * Any gift letters, if you are using a gift from a parent or relative or other organization to help pay the down payment and/or closing costs. This letter simply states that the money is in fact a gift and will not have to be repaid. Having these items on hand when you visit the mortgage company will help speed up the application process. Usually an appraisal fee will have to be paid when you submit the mortgage application. After you speak with us, you should have a general idea if you qualify for the size and type of loan you want. After the mortgage application, we will let you know if you qualify for the loan within a couple of days. After the Mortgage Application INVESLOAN will begin the work of verifying all the information you've provided. This process can take anywhere from one to four weeks, depending on the type of mortgage you choose, whether you're buying a home outside your local community, or a host of other factors. Within three business days after your signed application, we will give you a good faith estimate of your closing costs. You'll also get a statement that shows your estimated monthly payment, the cost of your finance charges and other facts about your mortgage. Stay in touch with us to speed up the application process. Some home buyers find the closing process to be one of the most intimidating aspects of buying a home because it's so unfamiliar. If so, ask us what to expect at your closing. Once you receive your approval, and you're waiting to close on the sale of the home, don't go on a shopping spree. The mortgage lender may do a final check of your credit report or bank accounts to make sure you're not assuming more debt or spending your cash reserves. There are steps you can take if your loan is denied. Two Key Factors in Qualifying for a Home Loan When a lender makes a decision about a mortgage application, they consider two basic factors: 1) your ability and 2) your willingness to repay the loan. Ability to repay the mortgage is determined by verifying your current employment and analyzing your total income. Lenders prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years. Your proposed monthly payment will be compared to your monthly income and debt. Willingness to repay is influenced by how you have paid previous loans and by examining how the property will be used. Willingness can be gauged by your credit report and previous commitments to pay rent and/or utility bills. There is also a greater tendency to stick with your payments if you live in a house as opposed to a rental property or vacation home. It is important to remember that there are no set rules and each applicant is handled on a case-by-case basis. Many applicants come up a little short in one area, but make up for it with other strong points. These compensating factors may include a large down payment, solid employment, extensive educational background or overall financial health. For applicants who need to make a lower down payment, mortgage insurance is protection for the lender in case you stop making payments. This allows low and moderate income families to become homeowners with low down payment programs. Speed Up the Mortgage Process Once complete, your application will be given to a processor in the mortgage company who will organize your paperwork and may verify your employment, bank balances, and other information. Be sure to respond promptly to requests for information while processing is taking place. Commonly requested items during processing that may not have been collected during the application include: * The final purchase contract for the house (if applicable). * If you're self-employed, the mortgage company may require your personal and business tax returns for the previous two years and your company's year-to-date Profit and Loss statement. * Divorce settlement papers, if applicable * Updated account statements for listed assets in the application that may have changed in value. * Information about debts or credit report items that may have been delinquent or not accurate. * Evidence of your mortgage or rental payments, such as canceled checks. * An irrevocable gift letter if you are receiving a monetary gift from a relative. The processor is collecting this information before presenting it to an underwriter. An underwriter reviews all the information in your loan file to determine if the application meets the lender guidelines. With approval, a lender should give you a letter of commitment, which is a promise from the lender to make a loan based on specific terms and conditions. Escrow Account Basics Mortgage escrow accounts are special accounts set up in which money is held to pay property taxes, fire and hazard insurance premiums, mortgage insurance premiums, and other escrow items. Escrow accounts ensure that these items are paid in a timely fashion. They guarantee that there is always enough money to pay these bills when they are due so that the homeowner avoids the risk of lapsed insurance coverage or delinquent taxes. With escrow accounts, homeowners do not have to worry about coming up with several large, lump sum payments, each with different due dates, throughout the year. With escrow accounts, unexpected increases are taken care of. It is the responsibility of the mortgage company to allow for possible increases in tax or insurance premiums. Mortgage companies typically cover shortages when tax or insurance payments increase. It is very common for mortgage companies to pay taxes and insurance premiums when they are due even though all the money for these bills has not yet been collected from the homeowner. Mortgages have lower rates and downpayments because of escrows. Escrows protect the interest of investors of home mortgage loans by making them more attractive and secure as investments. Escrow accounts also benefit local governments by providing a more efficient, less expensive means of tax collection. Mortgage Terminology A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 7/23 and 5/25 Mortgages Mortgages with a one time rate adjustment after seven years and five years respectively. TOP 3/1, 5/1, 7/1 and 10/1 ARMs Adjustable rate mortgages in which rate is fixed for three year, five year, seven year and 10-year periods, respectively, but may adjust annually after that. TOP Acceleration The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due on Sale Clause. TOP Adjustable Rate Mortgage (ARM) A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as a renegotiable rate mortgage, variable rate mortgage or Canadian rollover mortgage. TOP Adjusted Basis The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. TOP Adjustment Date The date that the interest rate changes on an adjustable rate mortgage (ARM). TOP Adjustment Interval On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index. TOP Adjustment Period The period elapsing between adjustment dates for an adjustable rate mortgage (ARM). TOP Affordability Analysis An analysis of a buyer ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely. TOP Amortization Loan payment divided into equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. TOP Amortization Term The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed rate mortgage. TOP Annual Percentage Rate (APR) The measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of different loans. TOP Appraisal An estimate of the value of property made by a qualified professional called an "appraiser." TOP Appraised Value An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. TOP Assessment A local tax levied against a property for a specific purpose, such as a sewer or street lights. TOP Assignment The transfer of a mortgage from one person to another. TOP Assumability An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due on sale clause, it may not be assumed by a new buyer. TOP Assumption The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market rate interest charges will apply. TOP Assumption Fee The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place. TOP Balloon Mortgage A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty year amortization and a five or seven year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment. TOP Balloon Payment The final lump sum paid at the maturity date of a balloon mortgage. TOP Biweekly Payment Mortgage A plan to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one half of the monthly payment required if the loan were a standard 30-year fixed rate mortgage. The result for the borrower is a substantial savings in interest. TOP Blanket Mortgage A mortgage covering at least two pieces of real estate as security for the same mortgage. TOP Borrower (Mortgagor) One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full. TOP Bridge Loan A second trust that is collateralized by the borrower's present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as "swing loan." TOP Broker An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services. TOP Buy Down When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires. TOP Cash Flow The amount of cash derived over a certain period of time from an income producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc...). TOP Caps (interest) Consumer safeguards which limit the amount of change to the interest rate for an adjustable rate mortgage. TOP Caps (payment) Consumer safeguards which limit the amount of change to the monthly payments for an adjustable rate mortgage. TOP Certificate of Eligibility The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business and mobile homes. Certificates of eligibility may be obtained by sending form DADA (Separation Paper) to the local VA office with VA form 1880 (Request for Certificate of Eligibility). TOP Certificate of Reasonable Value (CRV) An appraisal issued by the Veterans Administration showing the property's current market value. TOP Certificate of Veteran Status The document given to veterans or reservists who have served 90 days of continuous active duty (including training time). It may be obtained by sending DD 214 to the local VA office with form 26-8261a (Request for Certificate of Veteran Status). This document enables veterans to obtain lower down payments on certain FHA insured loans. TOP Change Frequency The frequency (in months) of payment and/or interest rate changes in an adjustable rate mortgage (ARM). TOP Closing The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands, also called settlement. Closing costs usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The cost of closing usually are about 3 percent to 6 percent of the mortgage amount. TOP Closing Costs Expenses over and above the price of the property that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used. TOP COFI An adjustable-rate mortgage with a rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds. TOP Construction Loan A short term interim loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses. TOP Consumer Reporting Agency (or Bureau) An organization that handles the preparation of reports used by lenders to determine a potential borrower's credit history. The agency gets data for these reports from a credit repository and other sources. TOP Contract Sale or Deed: A contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of installment sale. TOP Conventional Loan A mortgage not insured by FHA or guaranteed by VA. TOP Conversion Clause A provision in an ARM allowing the loan to be converted to a fixed-rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra. TOP Credit Report A report documenting the credit history and current status of a borrower's credit standing. TOP Credit Risk Score A credit risk score is a statistical summary of the information contained in a consumer's credit report. The most well known type of credit risk score is the Fair Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is highly relative in the credit underwriting process for a mortgage loan. TOP Debt-to-Income Ratio The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio. TOP Deed of Trust In many states, this document is used in place of a mortgage to secure the payment of a note. TOP Default Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage. TOP Deferred Interest When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See negative amortization. TOP Delinquency Failure to make payments on time. This can lead to foreclosure. TOP Department of Veterans Affairs (VA) An independent agency of the federal government which guarantees long term, low-or-no-down payment mortgages to eligible veterans. TOP Discount Point See point TOP Down Payment Money paid to make up the difference between the purchase price and the mortgage amount. TOP Due-on-Sale-Clause A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. TOP Earnest Money Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment. TOP Entitlement The VA home loan benefit is called an entitlement (i.e. entitlement for a VA guaranteed home loan). This is also known as eligibility. TOP Equal Credit Opportunity Act (ECOA) A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs. TOP Equity The difference between the fair market value and current indebtedness, also referred to as the owner's interest. The value an owner has in real estate over and above the obligation against the property. TOP Escrow An account held by the lender into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending loan closing. TOP Escrow Disbursements The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due. TOP Escrow Payment The part of a mortgagor monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Fannie Mae See Federal National Mortgage Association. TOP Farmers Home Administration (FmHA) Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere. TOP Federal Home Loan Bank Board (FHLBB) The former name for the regulatory and supervisory agency for federally chartered savings institutions. The agency is now called the Office of Thrift Supervision TOP Federal Home Loan Mortgage Corporation(FHLMC) also called "Freddie Mac" A government sponsored entity that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers. TOP Federal Housing Administration (FHA) A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages. TOP Federal National Mortgage Association (FNMA) also know as "Fannie Mae" A government sponsored entity that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA. TOP FHA Loan A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes almost anywhere in the country. TOP FHA Mortgage Insurance Requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid. TOP FHLMC The Federal Home Loan Mortgage Corporation provides a secondary market for savings and loans by purchasing their conventional loans. Also known as "Freddie Mac." TOP Firm Commitment A promise by FHA to insure a mortgage loan for a specified property and borrower. A promise from a lender to make a mortgage loan. TOP First Mortgage The primary lien against a property."> TOP Fixed Installment The monthly payment due on a mortgage loan including payment of both principal and interest. TOP Fixed Rate Mortgage The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower. TOP Fully Amortized ARM An adjustable rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term. TOP FNMA The Federal National Mortgage Association is a secondary mortgage institution. FNMA buys VA, FHA, and conventional mortgages from primary lenders. Also known as "Fannie Mae." TOP Foreclosure A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property. TOP Freddie Mac See Federal Home Loan Mortgage Corporation TOP Ginnie Mae See Government National Mortgage Association. TOP Government National Mortgage Association (GNMA) Also known as "Ginnie Mae." Provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA. TOP Graduated Payment Mortgage (GPM) A type of flexible payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it. TOP Growing Equity Mortgage (GEM) A fixed rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage. TOP Guaranty A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract. TOP Guarantee Mortgage A mortgage that is guaranteed by a third party. TOP Hazard Insurance A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like. TOP Housing Expenses-to-Income Ratio The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio. TOP HUD-1 Statement A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. TOP Impound The portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves. TOP Index A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one, three, and five year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down. TOP Indexed Rate The sum of the published index plus the margin. For example if the index is 4% and the margin is 2.75%, the indexed rate would be 6.75%. Often, lenders charge less than the indexed rate the first year of an adjustable rate mortgage. TOP Initial Interest Rate This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable rate mortgage (ARM). It's also known as "start rate" or "teaser." TOP Installment The regular periodic payment that a borrower agrees to make to a lender. TOP Insured Mortgage A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI). TOP Interest The fee charged for borrowing money. TOP Interest Accrual Rate The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments. TOP Interest Rate Buydown Plan An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a mortgage. TOP Interest Rate Ceiling For an adjustable rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note. TOP Interest Rate Floor For an adjustable rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note. TOP Interim Financing A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion. TOP Investor A money source for a lender. TOP Jumbo Loan A loan which is larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate. TOP Late Charge The penalty a borrower must pay when a payment is made a stated number of days after the due date. TOP Lease-Purchase Mortgage Loan An alternative financing option that allows low and moderate income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a down payment. TOP Liabilities A person's financial obligations. Liabilities include long term and short term debt. TOP Lien A claim upon a piece of property for the payment or satisfaction of a debt or obligation. TOP Lifetime Payment Cap For an adjustable rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage. TOP Lifetime Rate Cap For an adjustable rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap. TOP Loan A sum of borrowed money (principal) that is generally repaid with interest. TOP Loan to Value Ratio The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. TOP Lock A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application. TOP Margin The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate. TOP Market Value The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time. TOP Maturity The date on which the principal balance of a loan becomes due and payable. TOP MIP (Mortgage Insurance Premium) Insurance from FHA to the lender against incurring a loss on account of the borrower's default. TOP Monthly Fixed Installment The portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The loan balance therefore increases instead of decreasing. TOP Mortgage A legal document that pledges a property to the lender as security for payment of a debt. TOP Mortgage Banker A company that originates mortgages for resale in the secondary mortgage market. TOP Mortgage Broker An individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination. TOP Mortgagee The lender. TOP Mortgage Insurance Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance. TOP Mortgage Life Insurance A type of term life insurance. In the event that the borrower dies while the policy is in force, the mortgage debt is automatically paid by insurance proceeds. TOP Mortgagor The borrower or homeowner. TOP Negative Amortization When your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The home buyer ends up owing more than the original amount of the loan. TOP Net Effective Income The borrower's gross income minus federal income tax. TOP Non Assumption Clause A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. TOP Note A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time. TOP Office of Thrift Supervision (OTS) The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home Loan Bank Board TOP One Year Adjustable Rate Mortgage Mortgage where the annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender. TOP Origination Fee The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan. TOP Owner Financing A property purchase transaction in which the party selling the property provides all or part of the financing. TOP Payment Change Date The date when a new monthly payment amount takes effect on an adjustable rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the adjustment date. TOP Periodic Payment Cap A limit on the amount that payments can increase or decrease during any one adjustment period. TOP Periodic Rate Cap A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be. TOP Permanent Loan A long term mortgage, usually ten years or more. Also called an "end loan." TOP PITI Principal, interest, taxes and insurance. Also called monthly housing expense. TOP Pledged Account Mortgage (PAM): Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments. TOP Points (Loan Discount Points) Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000). TOP Power of Attorney A legal document authorizing one person to act on behalf of another. TOP Preapproval The process of determining how much money you will be eligible to borrow before you apply for a loan. TOP Prepaid Expenses Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments. TOP Prepayment A privilege in a mortgage permitting the borrower to make payments in advance of their due date. TOP Prepayment Penalty Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in many states. TOP Primary Mortgage Market Lenders, such as savings and loan associations, commercial banks, and mortgage companies, who make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to the secondary mortgage markets such as FNMA or GNMA, etc? TOP Principal The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage. TOP Principal Balance The outstanding balance of principal on a mortgage not including interest or any other charges. TOP Principal, Interest, Taxes, and Insurance (PITI) The four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts are paid into an escrow account each month or not. TOP Private Mortgage Insurance (PMI) In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your loan's structure. TOP Qualifying Ratios Calculations used to determine if a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio. TOP Rate Lock A commitment issued by a lender to a borrower or another mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time. TOP Realtor? A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors. TOP Real Estate Agent A person licensed to negotiate and transact the sale of real estate on behalf of the property owner. TOP Real Estate Settlement Procedures Act (RESPA) A consumer protection law that requires lenders to give borrowers advance notice of closing costs. TOP Recission The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security. TOP Recording Fees Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records. TOP Refinance Obtaining a new mortgage loan on a property already owned often to replace existing loans on the property. TOP Renegotiable Rate Mortgage A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage. TOP RESPA Short for the Real Estate Settlement Procedures Act. RESPA is a federal law that allows consumers to review information on known or estimated settlement costs once after application and once prior to or at settlement. The law requires lenders to furnish the information after application only. TOP Reverse Annuity Mortgage (RAM) A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as collateral for and repayment of the loan. TOP Revolving Liability A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods and services. TOP Satisfaction of Mortgage The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage." TOP Second Mortgage A mortgage made subsequent to another mortgage and subordinate to the first one. TOP Secondary Mortgage Market The place where primary mortgage lenders sell the mortgages they make to obtain more funds to originate more new loans. It provides liquidity for the lenders. TOP Security The property that will be pledged as collateral for a loan. TOP Seller Carry Back An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage. See owner financing. TOP Servicer An organization that collects principal and interest payments from borrowers and manages borrower escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market. TOP Servicing All the steps and operations a lender performs to keep a loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like. TOP Settlement/Settlement Costs See closing/closing costs TOP Shared Appreciation Mortgage (SAM) A mortgage in which a borrower receives a below market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgage where the borrowers shares the monthly principal and interest payments with another party in exchange for part of the appreciation. TOP Simple Interest Interest which is computed only on the principle balance. TOP Standard Payment Calculation The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate. TOP Step Rate Mortgage A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan. TOP Survey A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any buildings. TOP Sweat Equity Equity created by a purchaser performing work on a property being purchased. TOP Third Party Origination When a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market. TOP Title A document that gives evidence of an individual's ownership of property. TOP Title Insurance A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller. Policies are also available to protect the lender's interests. TOP Title Search An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company. TOP Total Expense Ratio Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts. TOP Truth in Lending A federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for the loan. Also known as Regulation Z. TOP Two Step Mortgage A mortgage in which the borrower receives a-below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan due with 30 days notice at the end of seven or 10 years. Also called "Super Seven" or "Premier" mortgage. TOP Underwriting The decision whether to make a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount. TOP Usury Interest charged in excess of the legal rate established by law. TOP VA Loan A long term, low-or-no down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements. TOP VA Mortgage Funding Fee A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a fixed rate loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed. TOP Variable Rate Mortgage (VRM) See adjustable rate mortgage TOP Verification of Deposit (VOD) A document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts. TOP Verification of Employment (VOE) A document signed by the borrower's employer verifying his/her position and salary. TOP Warehouse Fee Many mortgage firms must borrow funds on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market (or to investors). When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee. TOP Wraparound Mortgage Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. TOP Business Inventories And Sales These figures measure the inventories and sales of manufacturing, wholesalers and retail establishments. These figures are released monthly by the Bureau of Census. In most cases, an increase in these numbers indicates an expanding economy which could be inflationary. Bond Market Moves Down In Price. Capacity Utilization The capacity utilization rate measures the percent of industrial output currently in use. A change in the rate indicates a change in the direction of economic activity. As the percentage rate moves closer to 90% the industrial output is practically at full capacity and is inflationary. A number closer to 70% is recessionary. A higher percentage indicates a stronger manufacturing sector and an expanding economy which can be inflationary. Bond Market Moves Down in Price. Consumer Price Index (CPI) The consumer price index is an indicator of the general level of prices. Components include energy, food and beverages, housing, apparel, transportation, medical care, and entertainment. When the consumer price index goes up, it is a sign of an inflationary environment. Consumers have to pay more for the same amount of goods and services. Bond Market Moves Down In Price. Durable Goods Orders This gives a reading on the country's future manufacturing activity. Durable goods include those manufactured items with a normal life expectancy of three years or longer. An increase in the amount of durable goods orders may indicate an expansion in the economy and, if inflationary, the Federal Reserve could choose to tighten money by raising interest rates. Bond Market Moves Down In Price. Effect Of Economic Indicators On Fixed Income Investments Market participants look to U.S. Government economic releases as an indication of the economy's strength and general direction. Overall, economic indicators reflect the rate of economic growth and inflation which, in turn, affects interest rates. There is an inverse relationship between interest rates and bond prices. If the economic indicators indicate that the rate of inflation is on the rise, it will most likely result in higher interest rates and lower bond prices. Conversely, if these indicators indicate the rate of inflation is falling this will result in lower interest rates and higher bond prices. The following glossary defines what these indicators are and how they might affect the bond market. Factory Orders Manufacturer's shipments, inventories, and orders. Factory orders include shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the economy and could be an inflationary factor. Bond Market Moves Down In Price. FED Is Easing Exactly the opposite of Fed tightening. The Federal Reserve feels that the economy is not growing at the desired level and eases credit conditions by lowering interest rates to help stimulate the economy. Bond Market Moves Up In Price. FED Is Tightening This term refers to efforts by the Federal Reserve to curb excessive growth in the money supply. This can be accomplished by raising the discount rate and/or increasing the federal funds rate. Bond Market Moves Down In Price. Gross National Product (GNP) The Gross National Product is the broadest measure of the nation's production. It measures the market value of all newly produced goods and services in the United States. When GNP is down, it shows a slowing down in the economy. To counteract this, the Federal Reserve may loosen money by lowering interest rates. Bond Market Moves Up In Price. Industrial Production Index The industrial production index measures the monthly level of the physical output of the manufacturing, mining, and gas and electric utility industries. When industrial production is down, it indicates a slowing of economic growth and, therefore, the Federal Reserve is inclined to allow interest rates to drop to stimulate the economy. Bond Market Moves Up In Price. Leading Economic Indicators This index is a composite of 11 statistics designed to foretell economic activity 6 to 9 months hence, (i.e. building permits, new orders for consumer goods and materials, the average workweek, index of consumer expectations). Merchandise Trade Balance Released monthly, this figure measures the difference between imports and exports. When exports are higher than imports, there is a surplus in the balance of trade. When imports are higher than exports, there is a deficit. The import-export differential is referred to as the trade gap. Money Supply The amount of money in circulation. M1 = cash + regular demand deposits + other check-type deposits. M2 = M1 + savings and small denomination time-deposits. When the money supply figure is up, it is an inflationary factor and, therefore, generates concern that the Federal Reserve will tighten money growth by allowing short-term interest rates to rise. Bond Market Moves Down In Price. Non-Farm Payroll The non-farm payroll figure is a component of total civilian employment and measures the number of peopleemployed in all activities except agriculture. Producer Price Index (PPI) The monthly producer price index measures the level of prices for all goods produced and imported for sale in the primary marketplace. Increase in the PPI tends to lead other measures of inflation. Bond Market Moves Down In Price. Retail Sales Key components of retail sales include automobiles, building materials, furniture, department store sales, food stores, gasoline, clothing, restaurants and drugstores. High retail sales are an indication of economic growth and an expanding economy. Bond Market Moves Down In Price. Unemployment Rate This is the percent of the civilian labor force currently unemployed. If unemployment figures are up, it indicates a lack of expansion within the economy and is, therefore, good for the bond market. Conversely, a big gain in employment would be an obvious cue for the Federal Reserve to tighten (raise) either the federal funds rate or the discount rate. Bond Market Moves Up In Price. Appraisal Basics An appraisal of real estate is the valuation of the rights of ownership. The appraiser must define the rights he intends to appraise. The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property. An appraiser may spend only a short time inspecting the property, however, this is only the beginning. Considerable research and collection of general and specific data must be accomplished before the appraiser can arrive at a final opinion of value. Due to the many types of value, such as fair market value, insurance value, tax value and value in use, the need to precisely define the purpose of the appraisal is essential. Appraisal Methods An appraisal is an opinion of value or the act or process of estimating value. This opinion or estimate is derived by using three common approaches, all derived from the market. 1. The cost approach to determining value is to estimate what it would cost to replace or reproduce the improvements as of the date of the appraisal, less the physical deterioration, the functional obsolescence and the economic obsolescence. The remainder is added to the land value. 2. The comparison approach to determining value makes use of other "benchmark" properties of similar size, quality and location that have been recently sold. A comparison is made to the subject property. 3. The income approach to determining value is of primary importance in ascertaining the value of income producing properties and has little weight in residential properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces. Then, after thorough analysis of all general and specific data gathered from the market, a final estimate or opinion of value is correlated. Appraisal Needed To Obtain Loan Usually, individuals applying for a loan are only interested in obtaining the loan and unfortunately are not worried about the prudence of buying the property at the agreed price. In fact, many purchasers will try to encourage appraisers to increase the appraised value so that they can purchase the home regardless of its value. The majority of real estate appraisals are requested by mortgage companies to validate the property's purchase price for loan purposes. Except for periods of very low interest rates when everyone is refinancing, most loans are for the purchase of real estate and ordered after a sale price is negotiated. Purchasers mistakenly assume that mortgage companies are looking after their interests in the purchase transaction. The law states that if the mortgage company orders the appraisal, the appraiser is responsible only to the mortgage company. We expect mortgage companies to be prudent and they should be, but being prudent is protecting their interest, not necessarily the purchaser's. The mortgage company's position is: * It has two sources of repayment: the purchaser's income and the property. * The responsibility to repay the loan is not based upon the property's value, so the purchaser is obligated to pay the note even if the property value declines to zero. * The loan may be insured or guaranteed by a government agency. * The government does not promise to pay the purchaser's debt if the property value is wrong. * If the loan is greater than 80% of the value, a portion of the loan may be insured by a private mortgage insurer. * There is no decrease in risk for the purchaser regardless of the loan to value ratio. The investment by the purchaser is the same, a mixture of personal cash and a loan that must be repaid. Appraisal to Establish House Market Price In the real world, very few individuals order appraisal reports to establish an offering price or to substantiate a purchase price. At the point that an offer to purchase (in a typical residential transaction) is made, the price has been set by other parties, not the purchaser. The price has been determined by the seller, who wishes to obtain the highest price possible, or the agent, who receives a percentage of the price as compensation and often represents the seller in the transaction. The real estate agent will typically perform a comparative market analysis (CMA). The appraisal laws in most states allow real estate agents to perform CMAs without an appraiser's license or certification. A CMA is a necessary part of the agent's preparation for a listing and consists of examining sales of properties in the area to arrive at a listing price. The reliability of the CMA depends upon the agent's experience and the characteristics of the property. The agent will suggest a selling price to the seller based upon the analysis. However, neither the seller nor the agent is bound by the results of the analysis, and the agent is not required to follow any formal procedure in completing the CMA. If a seller wishes to list the property at a price higher than the price suggested by the agent, then the agent may be forced to accept the listing at that price or risk losing a commission. Purchasers believe that they are getting a good deal if they make an offer lower than the listed price, but how far above the market value was the property listed? 10%, 15%, maybe even 20% above the fair market value? A negotiated price of 10% less than the listed price on a property that was listed at 20% above its value is not a bargain. The agent cannot tell the purchaser that the offered price is higher than the value, or even higher than their own CMA. In most states, they must submit the offer to the seller. The seller of a property may want to order an appraisal before listing the property. Of course, the cost of the appraisal is always a deterrent, especially if the seller knows that a buyer will pay for it when applying for a loan, but the appraisal is often justified. The seller could lose a sale if the property appraised for less than the sale price when appraised by the appraiser. Other Reasons to Order an Appraisal There are many reasons to obtain an appraisal. The most common reason is for a real estate or mortgage transaction, but we have compiled a list of other reasons you may need to order an appraisal. To Settle an Estate Taxing authorities such as the IRS often require appraisals to establish the value of an estate when a death occurs. Generally, the survivors want a conservative value estimate that limits their tax liability as much as possible. Most estate appraisals are ordered by attorneys, not by the survivors. To Establish the Replacement Cost for Insurance Appraisals obtained for establishing the loss risk in case of fire are often limited to providing an estimate of the replacement or reproduction cost of the improvements. The insurable value may not be representative of market value and usually does not include the value of the land. Insurance agents may order appraisals when their standard cost service manuals are not adaptable to an atypical home or structure. Property owners may order appraisals to contest the annual appreciation increases mandated by some insurance companies, especially when the increase in the insurance coverage results in an unrealistic premium. To Establish Just Compensation for Condemnation The appraiser may represent either the landowner or the condemning authority. Usually, the government entity that needs the land for public use orders an appraisal and offers to purchase the land for the value indicated by the appraisal. If the landowner feels that the amount offered by the condemning authority is not enough, then the landowner may also order an appraisal. If the parties cannot agree on a price, then the matter will be settled in court with each appraiser testifying on behalf of their respective value estimates. The appraisers are not advocates for their client; they are expert witnesses trying to support their value estimates. Often landowners do not consider ordering another appraisal from an appraiser of their choice. Usually, they try to settle with the authority by negotiation rather than incur the expense of an appraisal. It is obvious that the landowner's negotiating position would be enhanced if a supporting professional appraisal report were available. To Contest High Property Taxes If property owners feel that their property is assessed too high, then they may order an appraisal from a qualified appraiser to contest the assessment. In certain parts of the country this practice is common, but many property owners are not aware that this avenue for reducing their tax burden is available. The return on investment is easy to perceive when the cost of an appraisal is compared to several years of lower taxes. Sometimes these assignments include an appearance in front of the equalization board to argue the landowner's case. The appraiser, however, must be careful not to base the appraisal fee on the dollar amount of the appraised value, which could be a violation of the USPAP. Alternatives to Filing Bankruptcy There is just no easy way to get out of debt, you have to face up to the consequences. A bankruptcy is not always the answer, as the effects are long lasting. There are four ways to handle debts that are out of control, listed in best to worst in regards to the effect it will have on your credit: * If your credit isn't in terrible shape, can you reduce your other expenses, even if it means making hard choices or just change your lifestyle to fit your income? Some ways to do this: 1. Selling the second car 2. Pulling equity out of your home 3. Applying for a non secured signature loan 4. Obtaining a loan from a relative 5. Selling your home and paying off your debts with the proceeds and then renting 6. Cashing out your 401K/retirement benefits 7. Selling family heirlooms, jewelry, etc? * If your credit is already gone or one of the above isn't an option, go through Consumer Credit Counseling Services (CCCS). Check your yellow pages for the local number. In this way you're paying off your debts as if you were in a Chapter 13 bankruptcy, but you don't file a bankruptcy. * If CCCS won't take you, you may want to consider bankruptcy. Filing a Chapter 13 takes longer, but your credit is in a little better standing than if you file a Chapter 7. In Chapter 13 you are given up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts. * If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. Chapter 7 is the least desirable credit wise, but you are typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy, and creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing. There is no magic solution. Don't believe anyone who tells you otherwise. Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. How to Avoid Foreclosure When you miss your mortgage payments, foreclosure may occur. This is the legal means that your mortgage company can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your mortgage company or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your mortgage company or HUD an additional debt. Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future. So you should avoid it if all possible! DO NOT IGNORE THE LETTERS FROM YOUR MORTGAGE COMPANY. If you are having problems making your payments, contact your mortgage company immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help. Stay in your home for now. You may not qualify for assistance if you abandon your property. Some of your options include the following: * Special Forbearance Your mortgage company may be able to arrange a repayment plan based on your financial situation. Your mortgage company may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your mortgage company to show that you would be able to meet the requirements of the new payment plan. * Mortgage Modification You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay). * Partial Claim Your mortgage company may be able to work with you to obtain an interest free loan from HUD to bring your mortgage current. You may qualify if: o Your loan is at least 4 months delinquent but no more than 12 months delinquent; o Your mortgage is not in foreclosure and o You are able to begin making full mortgage payments When your mortgage company files a Partial Claim, HUD will pay your mortgage company the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest free and will be due if you sell or leave your property, or when your mortgage matures. * Pre-Foreclosure Sale This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. You may qualify if: o The "as is" appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value o The loan is at least 2 months delinquent prior to the pre-foreclosure sale closing date and o You are able to sell your house within 3 to 5 months (depending on what your mortgage company agrees to). An additional benefit to this option is the assistance you will receive with the Seller Paid closing costs. * Deed in Lieu of Foreclosure As a last resort, you may be able to voluntarily "give back" your property to the mortgage company. This won't save your house, but it will help your chances of getting another mortgage loan in the future. You can qualify if: o You are in default and don't qualify for any of the other options o Your attempts at selling the house before foreclosure were unsuccessful and o You don't have another mortgage in default. A housing counseling agency can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your mortgage company. One last thing, beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following: * Equity Skimming In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the mortgage company to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan. * Phony Counseling Agencies Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself, for free, such as negotiating a new payment plan with your mortgage company or pursuing a pre foreclosure sale. If you have any doubt about paying for such services call a HUD-approved housing counseling agency. Dothis before you pay anyone or sign anything. Here are several precautions that should help you avoid being "taken" by scam artist: * Don't sign any papers you don't fully understand. * Make sure you get all "promises" in writing. * Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale. * Check with a lawyer or your mortgage company before entering into any deal involving your home. * If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information. Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Chapter 7 Bankruptcy Chapter 7 bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts. To File a Chapter 7 Bankruptcy * You must reside or have a domicile, a place of business, or property in the United States or a municipality. * You must not have been granted a Chapter 7 discharge within the last 6 years or completed a Chapter 13 plan. * You must not have had a bankruptcy filing dismissed for cause within the last 180 days. * It must not be a "substantial abuse" of Chapter 7 to grant the debtor relief. Generally speaking, if after you pay the monthly expenses for necessities there is not enough money to pay the remaining monthly debts, then granting a discharge would not be an abuse of Chapter 7. * It would not be fundamentally unfair to grant the debtor relief under Chapter 7. The Most Common Reasons for Consumer Bankruptcy Are: * Unemployment * Large medical expenses * Seriously over extended credit * Marital problems * Large unexpected expenses Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Bankruptcy and Bill Collectors One of the major benefits of filing for protection under Chapter 7 is that many creditor actions are stayed. This means that debt collection efforts and foreclosure is halted. Once a creditor or bill collector becomes aware that you have filed for bankruptcy protection, he or she must stop all efforts to collect the debt. After your bankruptcy is filed, the court mails a notice to all the creditors listed in your schedules. This usually takes a couple of weeks. If this is not soon enough, then you should have your representative inform the creditor immediately. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct. After your bankruptcy is filed, the court mails a notice to all the creditors listed in your schedules. This usually takes a couple of weeks. If this is not soon enough, then you should have your representative inform the creditors immediately. Your attorney deals with your creditors. It may be the only time you ever have the luxury of saying "you'll have to talk to my lawyer." Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Your Property and Assets Once the bankruptcy is filed, all the property of the debtor at the time of the filing and certain other property to be received in the future becomes the property of the bankruptcy estate. This means that the bankruptcy trustee will take control of this property for purposes of satisfying the creditors. However, there is certain property which is either excluded or exempt and the debtor will be able to keep it. Property or asset exemption is determined based upon your situation, income and the laws of your state. The best way to determine which property to keep requires a detailed analysis of your situation. You need a good lawyer. As for real property in many states, dependent upon which exemption scheme is selected and your circumstances, you may exempt up to $100,000 in equity. When calculating your equity you should use a value that is based upon a forced liquidation as opposed to the best selling conditions to arrive at a value for your home. Once you determine this value, subtract the amount owed plus selling and transfer costs from the value to calculate the equity. As for personal property, in California, you are permitted exemptions for a variety of personal property. This includes automobiles, household furnishings and personal effects, jewelry, tools of the trade, retirement plans, un-matured life insurance, personal injury awards, earnings, animals and some other miscellaneous property. The value of each exemption and which exemptions can be used are determined by the statutory exemption scheme is selected. (State laws vary.) Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Your House and Car Depending upon which exemption scheme is selected and your circumstances, you may exempt up to $100,000 in equity. When calculating your equity you should use a value that is based upon a forced liquidation as opposed to the best selling conditions to arrive at a value for your home. Once you know the value, subtract the amount owed plus selling and transfer costs from the value to calculate the equity. In a depressed market, liquidated properties are often valued less than what we like to think the property is worth. Depending upon which exemption scheme is selected, you make keep your car if your equity is equal to or less than the allowed exemption. Generally speaking, depending upon the exemption scheme selected, you may exempt as little as $1200 or as much as $9100. When calculating your equity you should use the Kelly Blue Book or a comparable guide. Once you know the value, then subtract the amount owed from the value to calculate the equity. Generally, most courts understand that you need a car to work to get back on your feet. Apply rules of common sense here: If you own vintage cars which are free and clear and worth thousands of dollars, you are probably not going to be able to keep them. If, on the other hand, you have a car worth $10,000 and you owe $8000 on it, you will most likely keep it. Again, the need to talk to a good lawyer should be evident. Most leased vehicles have no equity and therefore are entirely exempt. If you owe money on your car or it is leased you must still make the payments. In those instances you will have to redeem or reaffirm the property to keep it. However, in some circumstance your representative can renegotiate the loan or the lease to get a more favorable deal for you. Disclaimer: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not discussed in the above FAQs. The information contained in the following FAQs is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Commercial Underwriting Guidelines Commercial Financing is underwritten on a case by case basis. Every loan application is unique and evaluated on its own merits, but there are a few common criteria lenders look for in commercial loan packages. Financial Analysis A key component in making an underwriting evaluation is the debt coverage ratio (DCR). The DCR is defined as the monthly debt compared to the net monthly income of the investment property in question. Using a DCR of 1:1.10 a lender is saying that they are looking for a $1.10 in net income for each $1.00 mortgage payment. Typically they will determine the DCR ratio based on monthly figures, the monthly mortgage payment compared to the monthly net income. The higher the DCR ratio is the more conservative the lender. Most lenders will never go below a 1:1 ratio (a dollar of debt payment per dollar of income generated). Anything less then a 1:1 ratio will result in a negative cash flow situation raising the risk of the loan for the lender. DCR's are set by property type and what a lender perceives the risk to be. Today, apartment properties are considered to be the least risky category of investment lending. As such, lenders are more inclined to use smaller DCR's when evaluating a loan request. Make sure that you are familiar with a lender's DCR policy prior to spending money on an application. Ask them to give you a preliminary review of the investment property that you want to purchase. Information is free, mistakes are not. Loan to Value Unlike residential lending, commercial investment properties are viewed more conservatively. Most lenders will require a minimum of 20% of the purchase price to be paid by the buyer. The remaining 80% can be in the form of a mortgage provided by either a bank or mortgage company. Some commercial mortgage lenders will require more than 20% contribution towards the purchase from the buyer. What a bank/lender will do is subject to their appetite and the quality of the buyer and the property. Loan to value is the percentage calculation of the loan amount divided by purchase price. If you know what a lender's LTV requirements are, you can also calculate the loan amount by multiplying the purchase price by the LTV percentage. Keep in mind that the purchase price must also be supported by an appraisal. In the event that the appraisal shows a value less then the purchase price, the lender will use the lower of the two numbers to determine the loan that will be made. Credit Worthiness For businesses less than three years old, personal credit of principals will be evaluated. This may hold true for longer periods of time for tightly held companies. For corporations, business performance and credit ratings will be evaluated with a proven track record. Property Analysis Fair Market Value and Fair Market Rent will be analyzed. Special use property may require additional underwriting. Age, appearance, local market, location, and accessibility are some other factors considered. Commercial Lending Ratios Most of real estate lending can be boiled down to the results of three ratios: * Loan-To-Value Ratio * Debt Ratio * Debt Service Coverage Ratio (DSCR) The bulk of the energy spent "processing" a loan is merely an attempt to verify the numbers that go into the numerator and denominator of the above 3 ratios. The Loan-To-Value Ratio (LTVR) equals the total loan balances (1st mtg+2nd mtg+3rd mtg) divided up the fair market value (as determined by appraisal). Loan-To-Value Ratios seldom exceed 80% because the lender always want some extra protection against default. The second ratio that lenders use when underwriting a loan is the Debt Ratio. The Debt Ratio compares the amount of bills that the borrower must pay each month to the amount of monthly income he or she earns. More precisely, the Debt Ratio equals the monthly debt obligations divided up the monthly income. Obviously someone whose Debt Ratio is 150% is in trouble. A Debt Ratio of 150% would mean that a borrower's obligations are one and a half times his income. Debt Ratios seldom are allowed to exceed 40% in practice. The final ratio used in lending is the Debt Service Coverage Ratio (DSCR). The Debt Service Coverage Ratio is a sophisticated ratio only used for large loans on income producing properties. Debt Service Coverage Ratio equals net operating income divided by debt service. Net operating income is the income from a rental property after deducting for real estate taxes, fire insurance, repairs and all other operating expenses; and Debt Service is the mortgage payment on the property. Most lenders insist that this ratio exceed 1.0. A debt service coverage ratio of less than 1.0 would mean that the property did not produce enough net rental income for the owner to make the mortgage payments without supplementing the property from his personal budget. Commercial LTV Ratio The loan-to-value (LTV) ratio is probably the most important of the 3 underwriting ratios. The loan-to-value ratio is defined as: LTV Ratio = Total Loan Balances (1st mtg+2nd mtg +3rd mtg) / Fair Market Value of the Property First let's look at the numerator. If the borrower is only applying for a first mortgage and there will be no other loans on the property, then the beginning balance of the new loan requested should be inserted in the numerator. However, if the borrower is applying for a second mortgage, then the "underwriter" (the person who determines whether or not the loan qualifies) should insert the sum of the first and second mortgages in the numerator. Similarly, if the borrower is applying for a third mortgage, then the underwriter should insert the sum of the first, second and third mortgages into the numerator. When the borrower is applying for a second or third mortgage, the loan-to-value ratio is often known as the combined loan-to-value ratio (CLTV ratio). Now let's look at the denominator. Generally the fair market value of a property is determined by an appraisal. There is one important exception, however. When the proceeds of a mortgage loan are used to buy the same property that is securing the loan, then that mortgage is known as a "purchase money loan." If the appraisal comes in lower than the purchase price in a "purchase money" transaction, then the lender will use the LOWER of the purchase price or appraisal. Mortgage brokers are often asked by real estate agents and buyers to base their loan on the appraised value rather than the purchase price. Their claim is that they have negotiated a super deal and that the property is worth much more than what they are paying for it. This may be so (although generally untrue), but lenders always base their maximum loan on the lower of purchase price or appraisal. The lender's argument is that an appraisal is really no more than an estimate of fair market value, no matter how competent or conscientious the appraiser may be. The only true indicator of value is the marketplace in which "a willing buyer and a willing seller, each in full knowledge of the salient facts, and neither under undue pressure, agree upon terms." If the property sells for "X," then it is probably only worth "X." Commercial Debt Ratios When analyzing the personal budget of a borrower, lenders use two different debt ratios to determine if the borrower can afford his obligations. These two debt ratios are: 1. Top Debt Ratio 2. Bottom Debt Ratio The "top" debt ratio is defined as: Top Debt Ratio = Monthly Housing Expense/Gross Monthly Income By "monthly housing expense" we mean either the borrower's monthly rent payments, or if he/she owns a home, the total of the following: * 1st mortgage payment on home * Real estate taxes (annual cost/12) * Fire insurance (annual cost/12) * Homeowner's association dues (if the home is a condo or townhouse) * Second mortgage payment (if any) * Third mortgage payment (if any) You will often hear the term "PITI." It refers to (P)rincipal, (I)nterest, (T)axes and (I)nsurance. While PITI is not exactly the same as Monthly Housing Expense because it does not include homeowner's association dues, the two terms are often used interchangeably. Lenders have learned over the years that a borrower's "top" debt ratio should not exceed 25%. In other words, a person's housing expense should not exceed 1/4 of his income. While lenders will often stretch this number to as high as 28%, traditional lending theory maintains that anyone with a debt ratio in excess of 25% stands a good chance of developing budget problems. The second ratio that lenders use to determine if a borrower can afford his/her obligations is the "bottom" debt ratio. It is defined as follows: Bottom Debt Ratio = (Total Housing Expense + Debt Payments) / Gross Monthly Income The only difference between the two ratios is the inclusion in the numerator of "debt payments." Debt payments include the following: * Car payments * Charge card payments * Payments on installment loans, for example - a payment on a washer & dryer that the borrower purchased * Payments on personal loans, for example, a signature loan from the borrower's bank. What is not included in "debt payments" is Utilities such as PG&E, water or telephone and payments on real estate loans. Real estate loans are usually offset first by the net rental income from the property. If the borrower has a net positive cash flow from all his rentals, then the net income is usually added to his "gross monthly income." If the borrower has a net negative cash flow from all of his rental properties, then the amount of the negative cash flow is usually added to the numerator of the "bottom" debt ratio as if it were a monthly debt obligation, like a car payment. Traditional lending theory maintains that a borrower's "bottom" debt ratio should not exceed 33 1/3%. In other words, the total of the borrower's housing expense and debt obligations should not exceed 1/3 of his income. Lenders often will stretch on this ratio to as high as 36%, and some have even been known to stretch as high as 40% or more. Obviously a loan with a debt ratio of 40% is a far more risky loan than a loan with a debt ratio of 32%. Debt Service Coverage Ratio (DSCR) The most al status. You may use our custom prequal analysis especially if you want to request for a prequal. As soon as you ask for this kind of request, you only have to send it to our staff of mortgage professionals. We can actually provide you with residential or even commercial investment loans. In a residential investment loan, you may choose between a short term and a long term investment financing solutions. The short term investment actually takes six months or less. This option will give you up to 100% loan to value leverage financing, prime or sub-prime credit status, no pre-payment penalty, low fixed or adjustable interest rates and financial negotiation assistance. On the other hand, you may also choose our more than 6 months of investment. This will give you the opportunity to get up to 100% loan to value leverage financing, specialty programs for maximum cash flows, low fixed or adjustable interest rates, prime or sub-prime credit status and financial negotiation assistance. When it comes to commercial investment loans, we actually finance various establishments. This includes multi-family or apartment complexes, mixed use, office, retail, warehouse, self-storage, mobile home Park, funeral homes, rooming house, day care, hotel or motel, campground, bar or restaurant, and many more. The best things that our commercial investment loan offers are the stated income or stated asset of a particular price up to 90% combined loan to value financing. This also includes full documentation of up to 95% combined loan to value financing. With this kind of investment loan, you may also have the lowest commercial interest rates on the market plus financial negotiation assistance. For your total guarantee, you may already request an application where you can acquire a full secure 1003 application and other forms through the use of our online application library or even by phone. For other information and inquiries, you may also check out other topics like your initial meeting with a mortgage professional, after the mortgage application, speed up the mortgage process and escrow account basics.

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HUDC apartment flat posted by realtors or agents here in this MLS (Multiple Listing Service) are all willing co-brokers. Hence our network with them are a lot easier to address your need to buy a HUDC unit. You can find Maisionette, high rise or low rise HUDC apartment flat for sale here.

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You may explore those Ads by Google, or use our top right's Google Search to find relevant landed housing for sale or rental. These also expand your global reach to international and regional property market as well as Singapore property agencies, developers and realtors, including those non co-brokers, where you can deal with them direct. Call us if you need help.

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