Southern Oaks Mortgage, Inc.

Weekly Preview from Jeff Eisenberg

2011-11-29T11:21:00.000-08:00

Forwarded exclusively by:

Jeff Eisenberg

Southern Oaks Mortgage, Inc.

Office: 661-964-2600

Email: jeff@somloans.com

website: www.somloans.com

When the RIGHT loan matters!

Monday, November 28, 2011

This Week; interest rates are opening weaker on Monday with stocks rallying on better than expected Holiday shopping on Black Friday and the rest of the weekend. We continue to believe that US interest rates are about at their lows when the 10 yr moves below 2.00% as it did last week. Europe continues to play a role in the global bond markets however unless there is an actual default in Greece or Italy markets appear to have discounted the problems in the region; until more negative news unfolds the bond market will be focused more on domestic issues.

This week has a number of key data points beside the daily report on retail sales this holiday season. Monday we get new home sales for Oct (expected generally unchanged). Tuesday Nov consumer confidence. Wednesday ADP report on non-farm private jobs, Nov Chicago purchasing mgrs index, Sept pending home sales, and the Fed's Beige Book. Thursday weekly claims, the ISM manufacturing index for Nov. Friday the Nov employment report (non-farm jobs +118K, non farm private jobs +133K and the unemployment rate at 9.0% unch frm Oct).

As long as there is nothing consequential from Europe this week will be about equity markets and that sector will focus closely on any report on retail sales. Prior to this weekend analysts were generally expecting weaker sales this year than last year. Based on the momentary optimism the current view is that sales may exceed last year's sales pace. The bellwether 10 yr note will be testing its key moving averages through the week with MBSs moving with it as is the norm.

(information from Rate Watch - TBWS)

Fraud Alerts

2011-07-17T22:39:00.000-07:00

Last time, we talked about how to manage Credit Freezes. I promised to discuss something else that could impact your loan - Fraud Alerts.

A fraud alert is a notation on your credit report that states that in order for any new credit to be obtained, the lender has to first call you to confirm that you are allowing this account to be opened. In order for this to work properly, make sure that the phone numbers you supply the bureaus with is accurate. If you enroll in fraud alert protection, you will be asked for a phone number that you can be reached at to verify any new activity. If you move or change your number, you will not be able to get a home loan, or any new credit, until you can be reached for confirmation at the number on your credit report. If the number is wrong, you have to call the credit bureaus, have them change it and then re-run your credit so that the phone number is correct on the credit report and the lender can reach you at that number. Lenders are very strict about this. If you are in escrow and the lender tries to call the number on the credit report and it isn’t the right number, it will cause problems.

My suggestion is to always keep the bureaus up-to-date on any changes with your phone numbers when you have a fraud alert on your credit. Take care of any needed changes months before you apply for a loan. It will make a huge difference in having a much smoother loan process. I'm ready to discuss this further - just send me an email and I'll be happy to go into more detail, jeff@somloans.com.

Credit Freezing

2011-07-10T20:36:00.000-07:00

Credit Freezing

Credit freezing occurs when you call the credit bureaus and instruct them to freeze your credit, thus allowing no one access to your information in order to gain new credit. This is a great tool if someone has recently had his or her information stolen. It will provide protection from an identity thief. However, with a credit freeze in place, that person will not be able to get a home loan. He or she would first have to call all three credit bureaus and ask them to remove the freeze. This could take some time depending on what information the bureaus require be provided and may cost a fee, as well.

Next time, I'll talk about Fraud Alerts, so stay tuned! Or, you could always email me to find out right away - jeff@somloans.com.

Pre-Approval Inquiries on Credit

2011-06-24T10:29:00.000-07:00

Pre-Approval Inquiries on Credit

We’ve all gotten pre-approval letters in the mail stating that we are pre-approved, for example, for a $10,000 credit card, requiring only a signature to seal the deal. The real reason behind how the credit companies know to send these to you is that they have run a soft credit inquiry on you. This soft inquiry tells them that you have good enough credit to potentially qualify for their card. It will not tell them your income, job status or whether you can afford this new extension of credit. Running this soft credit inquiry will not, in itself, affect your credit score. What will affect your score is if you decide to take them up on the offer by filling out their form and sending it in. What you are then essentially doing is giving them the right to pull a hard inquiry on your credit. This will affect your score roughly five to six points. You are not necessarily assured of getting approved for the card, but now that they have run your credit, they can determine if you fit their criteria. So my suggestion is to be very careful on filling out these pre-approval offers. Make sure you absolutely need or want the card. After you close your loan is really the best time to apply if you want the card because it doesn’t matter at that point if your credit score goes down five or six points.

More on this? Email me - jeff@somloans.com

Short on Assets and Reserves? Part Two

2011-06-17T10:32:00.000-07:00

Last time we talked about what you can do if you find yourself short on the assets or reserves you need to qualify, an option would be to ask a relative to add you onto his or her account which has the needed balance or history that you are lacking. Be sure to let your good Samaritan in on this:

It is much easier to add someone to an account than it is to remove him or her. If they want to take you off of it, the only way to do so is to close it and re-open another one. This could erase the banking history that this account has provided for them. Be sure they confirm with the banker that if they close the account and re-open another one, the bank will transfer over their history to the new account. Furthermore, before they can close a checking account, they will have to make sure all checks have cleared and if they have any electronic or automatic payments coming in or out of the account, they will have to be canceled and reestablished in the new account. All of this is a bit of a pain and inconvenience for your family member, but is a great way to help you obtain your financing. See www.southernoaksmortgage.com for more information or email me directly at jeff@somloans.com.

Short on Assets or Reserves?

2011-06-07T10:29:00.000-07:00

Short on Assets or Reserves?

If you find yourself short on the assets or reserves you need to qualify, an option would be to ask a relative to add you onto his or her account which has the needed balance or history that you are lacking. For example, you need $10,000 in assets to qualify but you only have $4,000. If mom and dad have an account with at least the amount you need and would be willing, they could add your name to it as a co-signer and then your mortgage professional can order a verification of deposit from the bank, showing that the account is in your name, too. This will satisfy the reserve requirement. Be aware, though, that the lender may need a letter from the relative stating that you have total access to all of the funds in that account.

Let this most generous relative know that once the loan is funded, they won’t be able to simply remove you from the account. See my next post for details... and if you can't wait, please feel free to email me jeff@somloans.com and I'll tell you myself.

Don’t Reduce Balances on Your Assets!

2011-05-28T10:23:00.000-07:00

Don’t Reduce Balances on Your Assets

Do NOT take money out of your checking or savings account right before you are going to close escrow. If it is just for normal living expenses, you should be okay. Otherwise, don’t arbitrarily take funds out of an account that was used to help you qualify. I’ve seen borrowers that had borrowed their down payment from a friend or relative and, after they were pre-approved, decided to give the money back to their friend or relative in the middle of their escrow period. This is a bad decision because if the lender wants to see a more current bank statement from your account, it could cause a major problem. You should always ask your mortgage professional how much money you should keep in your account until the end. The lenders can request a verification of deposit from your bank at the last minute if they choose. A verification of deposit is a form that the bank has to fill out that tells the current balance in the account as well as the last two months average balance. To be on the safe side, keep as much money in your account as you can until you are informed by escrow that your loan has recorded with the county. FIRST 10 PEOPLE - Email for a FREE copy of my

book - Makers and Breakers jeff@somloans.com

Are You Unable to Open a Checking Account?

2011-05-17T10:10:00.000-07:00

Are You Unable to Open a Checking Account?

I have good news and bad news…

If you are unable to open a checking or savings account because you are on CHEX SYSTEMS (a system the banks use to deny you an account due to excessive non-sufficient funds, fraud or check kiting), you might be out of luck.

But you have options! You may have to use a co-signer on your loan in order to show enough assets to qualify. In the past, there were many programs designed for those who could not show assets the traditional way. There were stated income loans, stated asset loans, no documentation loans, no ratio loans and more. For now, however, such programs are unobtainable.

As the market relaxes and guidelines are loosened, those programs will probably be made available again. They may have tighter restrictions than in the past, but they will most likely make their way back in to the system, which would be especially helpful to the self-employed borrower. Do you have a copy of my book, Makers and Breakers? If so, please see the Self-employment Section. If you don’t own a copy, call me today for a free copy! Ask for Jeff 661-964-1320 .

Please visit www.southernoaksmortgage.com let’s get acquainted.

Mattress Money!

2011-05-05T10:00:00.000-07:00

Mattress Money!

How about you? Do you have cold, hard cash in a drawer, under the bed or behind a box in the closet? Many borrowers do. They either get paid “under the table” and don’t want to deposit the cash in order to avoid paying taxes to the IRS or are scared to put their money into a financial institution. The latter was definitely a concern during The Great Depression, but now that the Federal Government insures accounts up to $250,000, it is much less of a concern.

When applying for a home loan, the problem with this so called “mattress money” is that the lender will not count it toward the reserve requirement or down payment. This is the same with gold and silver. Even though these are valid commodities, lenders will not use them. So what is one with such assets to do?

If it is cash that you have, you will have to put it into a checking or savings account at least three months prior to buying a home in order to have at least two months worth of bank statements to show the lender. As far as commodities, they are difficult to convert and typically aren’t counted as liquid assets in a real estate loan transaction.

If you are unable to open a checking or savings account for any reason, you won’t want to miss my next post! If you can’t wait, call me 661-964-1320 or email jeff@somloans.com

I Have a Suggestion…

2011-04-17T10:02:00.000-07:00

I Have a Suggestion…

Glad you’re back! Last time we talked, I promised to offer a suggestion for managing your credit accounts.

The right thing to do is to keep long standing accounts open even though you don’t use them any longer. My suggestion is to charge a small amount every few years and when the bill comes in, pay it off entirely. This will keep the account active so the creditor doesn’t decide to close it for you for non-activity. In a few instances, I’ve instructed borrowers who have closed accounts right before getting their loan to re-activate them immediately, after ensuring that the creditor will re-establish the history. If the creditor won’t re-establish credit history, then I recommend leaving the account closed because beneficial credit history has already been lost. Accounts that are in the open section of your credit report will have the most positive effect on your score, especially if they have a very small balance to limit ratio. Once the account moves into the closed section of a credit report, the history is lost. History makes up a big portion of your overall credit score. Visit www.southernoaksmortgage.com

Here’s the Answer I Promised

2011-04-11T10:11:00.000-07:00

Here’s the Answer I Promised

Last time I posted about how you might assume that your score would improve since you now have eliminated an account that you could have, in an instant, borrowed against entirely.

I promised an answer. As I said, the reality is different and is two-fold…

First, if this account has been established for many years, let’s use 15 years as an example, and you rarely use it, you would have 15 years of good credit with limited usage. This works in your favor because you’ve got an established account with a long history of good credit. Second, if you have a high credit limit and don’t use this credit, you’ve shown that you have willpower and can refrain from using credit even though it’s staring you right in the face.

Thus, the right thing to do is to keep long standing accounts open even though you don’t use them any longer. I have a suggestion. Stay tuned to my next post!

Visit my website and let’s get to know each other! www.southernoaksmortgage.com

Closing Credit Accounts

2011-04-04T10:09:00.000-07:00

Closing Credit Accounts

Assumptions can cost you dollars and time when you’re in the market for a loan. There are deadly mistakes you want to avoid! Some of them include your credit accounts. Listen closely…

It would seem logical that if you have many open trade lines with moderate to high credit limits, closing some of them would improve your score. The theory is that since you have no use for this card or credit line, why keep the account? It seems to make sense to close it. One would assume that your score would improve since you now have eliminated an account that you could have, in an instant, borrowed against entirely. Well, the reality is different and is two-fold.

There is a huge misperception that exists regarding the closing of existing credit accounts in an effort to improve credit scores. Check my next post to discover what it is, or email me directly at jeff@somloans.com Trust me, you want to know this if you’re trying to get a loan!

Inquiries on Your Credit Could Lower Your Score

2011-03-23T10:06:00.000-07:00

Inquiries on Your Credit Could Lower Your Score

Are you ready to buy? Look for the right loan. Opening more accounts just prior to getting your loan, which will result in inquiries on your credit and could lower your score, would not be a good move. But if you don’t have enough credit to qualify, a good suggestion would be to start building credit now so that you’ll be able to qualify at a later date. Knowing this in advance, especially two years in advance, could really make a difference. However, please make sure that you consult with your mortgage professional before applying for too many cards to ensure that you are improving your credit score and not hurting it. Be sure you have all of your bases covered! Email me jeff@somloans.com No obligation.

Jeff s 6 minute video, Episode #2

2011-03-18T13:06:00.000-07:00

iframe width 425 height 344 src http://www.youtube.com/embed/rfthqzuGMGw?fs 1 frameborder 0 allowfullscreen> /iframe>

2011-03-18T13:03:00.000-07:00

http://www.youtube.com/watch?v=M8K9piZmXZ4

Come on! Build Your Credit Score

2011-03-18T10:03:00.000-07:00

Come on! Build Your Credit Score

I often advise my clients who have a minimal credit history to open a couple more accounts to help build their credit scores. This does not mean, however, to abuse these cards. I generally suggest a department store charge card that they charge as little as $20 on, pay off in full at the end of the month and then put away for a while. The goal is for these accounts to build a 24 month history.

The idea to build more credit is great in many circumstances, but can be dangerous in others. Want to know what they are? Drop me an email at jeff@somloans.com. It could change your future…

There Are Circumstances That May Actually Hurt Your Score!

2011-02-20T17:05:00.000-08:00

If you're not careful, certain circumstances can actually bring your credit score down - the last thing you want to happen when you're ready to buy! This tip is not mandatory, but it is a suggestion that may increase your credit score. However, there are circumstances in which it may actually hurt your score. Understanding the difference can make or break your loan. Lenders like to see a borrower who has a credit history of at least five open trade lines or credit accounts. These could be major credit cards, an auto loan, a student loan, gas cards or department store cards. Typically they like to see that at least three of the accounts have a history of 24 to 36 months. This shows them that the person they are considering lending money to has a history of paying bills on time.

Want to hear more…? Drop me an email jeff@somloans.com and I’ll tell you how!

Are You Credit Ready?

2011-02-20T16:57:00.000-08:00

Think of a time when you had to give a presentation, perform in a production or play in a sporting event. Were you prepared? Did you practice? I bring this up because, too often, we don’t prepare ourselves for buying a home. Your credit is a key component to the loan, interest rate and terms of the financing that you ultimately end up with. Being prepared and ready to move quickly is instrumental when buying a home. Don’t wait until you are ready to buy to run your credit. Run it six months before. This is, most likely, the biggest purchase you will ever make in the time you have on this planet. So be ready. You will not have a low credit score due to erroneous, derogatory items if you take the time to fix those months before you apply for your loan. Even a slightly higher credit score could save you thousands of dollars in interest over the years. So get yourself in the credit ready position. If you need help or guidance getting there, talk to your mortgage professional.

Visit me at www.somloans.com for more information.

Jeff Eisenberg's New Book!

2011-01-20T13:50:00.000-08:00

Mortgage Interest Rates - All-time Low's!

2010-10-22T16:10:00.000-07:00

It is shocking to me how low interest rates have been going lately. The one thing that amazes me is the fact that internet mortgage companies advertise even lower rates. Why is that? Well, honestly, to get you to call them......Then when they have you on the phone, for some reason or another, the interest rate goes up because, oh, you have to have a loan-to-value ratio of 60% or below, your FICO score has to be 780 or above, and you have to have impound accounts whether you want them or not. Oh, and also you must have a loan amount above $300K........kinda like that commercial where the lady goes into buy something from a clothing store and the clerk offers her a discount card and all of a sudden this man shows up and states all these conditions she must meet to get the discount, so she just hands back the discount offer.......typical. Makes me sick! Oh well, what can you do?

For the best rates on mortgages, call me, 661.964.2600
Jeff Eisenberg
Broker
Southern Oaks Mortgage, Inc.
jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Southern Oaks Mortgage's New Webpage (New and Improved!)

2010-09-08T11:36:00.000-07:00

Check out our new and improved site: http://www.somloans.com/
would love to hear your feedback.

Thanks,
Jeff Eisenberg
President
jeff@somloans.com
http://www.loanmanjeff.com/

What are you looking for?

2010-06-02T15:33:00.000-07:00

This is a great question. As you know, I now offer my "Jeff Eisenberg's 6-minute right to the point video series" and would like to know what topics you'd be interested in hearing about. Some examples would be: Living Trusts; Health Insurance; Short Sales and Foreclosures; What to look for in an investment advisor; Natural and Organic Herbs and Vitamins: How do they help you?; and much more....just say the word and I will interview an expert in that field and put it on YouTube for your enjoyment. And best of all, it's only 6 minutes and will give you direct contact information to ask more questions directly with the expert.

Please respond and let me know your topics...

Jeff Eisenberg
Broker
Southern Oaks Mortgage, Inc.
jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Crazy Day of Trading

2010-05-07T12:40:00.000-07:00

Yesterday, if you aren't aware of how volatile the market was, a big error occurred. Someone pushed the wrong button on a sell order and the market just went haywire. The fixed it, but boy, what a ride. Today, we are currently down 3 basis points for the day, but were much higher this morning. There was an alert to lock today, however, if you aren't closing escrow in the next to weeks or so, floating may prove to be the best option.

Your Eyes, Ears and Voice in Mortgage Finance,

Jeff Eisenberg
http://www.somloans.com/
http://www.loanmanjeff.com/
jeff@somloans.com
661.964.2600

Loan Modifications and the ramifications to your credit

2010-04-21T17:01:00.001-07:00

Below is a link to an article that explains how a loan modification will effect your credit scores. Very Interesting.

Loan Modifications & Credit - It’s All In The Code

Posted using ShareThis

Jeff Eisenberg
Broker/Owner
Southern Oaks Mortgage
http://www.somloans.com/
http://www.loanmanjeff.com/

Assembly Bill No. 183 - California Tax Credit $10,000 for First-Time Buyers

2010-04-20T17:13:00.000-07:00

This information is taken right from the California State Franchise Tax Board or this link: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtmlGeneral

Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.

These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

We will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.

The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)

The taxpayer or the taxpayer’s spouse/RDP is related to the seller.

The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

The seller does not certify the home has never been occupied.

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application or reservation request after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.

Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. To reserve a tax credit, the taxpayer and seller need to complete, sign, and fax to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. Taxpayers who reserve a tax credit still need to fax an application and a copy of the settlement statement within 2 weeks after the close of escrow. Taxpayers may not reserve a tax credit if the contract was entered into before May 1, 2010. We will post the reservation form and details about the process by May 1, 2010.

If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.

Claiming the tax credit:

The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.

The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).

Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.

If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.

The tax credit may not reduce regular tax below TMT.

The tax credit is not refundable.

Any disallowance of the tax credit may not be protested or appealed.

For more information, please email me at jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Interesting information regarding our economy and interest rates!

2010-04-03T22:30:00.001-07:00

Thought this page in the paper was an interesting read!

The Signal
03 Apr 2010
From Jeff Eisenberg

Your Eyes, Ears & Voice in Real Estate Finance.

jeff@somloans.com

www.somloans.com

www.loanmanjeff.com

Short Pays!

2010-03-13T11:32:00.000-08:00

Short pays can be a nightmare. I just had a client who bought a short pay from a well known "Big Bank" and this is what happened...... The listing agent got the approval from the bank and this particular home had two loans, a 1st and a 2nd. The approvals for both were sent over in an email to the agent, but the agent didn't see that the 2nd approval was right behind the 1st approval, so escrow has been trying to get this bank to send something in writing to show that the 2nd was approved as well. The bank was tellling her that it would take 2 days to get an approval and 2 days to get it in writing. We were already approaching the close date. Finally, after much research, the bank said that the approval on the 2nd was sent weeks ago with the 1st approval.....My point here is that agents, escrow and the banks need to review all pages of items sent to them before creating havoc. The agent should have noticed that approval on the 2nd in the first email, the bank should have known that it was in that email and we would have all been in a better place. Nothing is worse than scrambling around trying to get things rushed the day or two before close of escrow. So all I have to say is communication, communication, communication.......It would make all our lives so much easier! One more tip for this banks is that they should have one contact person that handles everything regarding each property. Instead, they have many folks getting involved and the more involved, the less each seems to know.....

The New Good Faith Estimate for 2010!

2010-01-17T18:16:00.000-08:00

Okay, our wonderful Government just instituted a new Good Faith Estimate that all brokers and banks have to begin using as of 1/1/2010. This estimate is supposed to help take any confusion out of the consumers mind and help them better compare one lender with another. Hmmmm! Not so sure that it will work. Basically it lumps all the fees into one and holds the broker or lender to tolerance levels. If the fees are more than 10% of what was quoted, the broker/lender will have to eat it. They are making us quote fees that we have no control over, like escrow, title, etc., but we are still liably. Okay, so this is what our government wants. We also were told not to issue a good faith estimate unless we have all six of the following items: borrower name, social security, loan amount, property address, income and value of the property. So don't expect to get a written good faith estimate if you are just looking for a pre-approval without a property. We can tell you or give you something in writing that will give you a rough estimate of the closing costs, but we can't give you an actual good faith until all 6 of those items have been given.

2010 looks to be an interesting year for the mortgage industry. Loans may take a bit longer at closing because escrow companies are required to rectify any tolerances over that 10% mark and that could delay closing. For more information on this topic, please contact me at 661.964.2600 or email me at jeff@somloan.com.

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

My latest 6 minute right to the point video - With Bill Clingen

2010-01-17T18:00:00.000-08:00

Please click on the link below to watch my 6 minute video with Bill Clingen, an Asset Protection Advisor who talks about life insurance.

http://www.youtube.com/watch?v=PtNUnAZj940

Stay tuned for next month's video, there will be an exciting topic, I promise!

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

Check out my new Video Series

2009-12-08T21:23:00.000-08:00

Jeff Eisenberg's 6-minute Right to the Point Video Series...... http://www.youtube.com/watch?v=RJcGNb_T8dE

Great information is on its way......stay tuned.

Jeff Eisenberg
President
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
www.twitter.com/loanmanjeff
http://www.loanmanjeff.com/

Upcoming "Maximizing Your Assets" Panel Discussion with the Experts

2009-12-05T19:24:00.000-08:00

On Dec. 19th at Union Bank in Newhall at 9:30 am to 11 am, I will be having a Panel Discussion with Bill Clingen - Asset Protection Specialist, Robert Mansour, Esq. -Estate Planning Attorney, Brad Polak - CPA and none other than myself - Jeff Eisenberg - Mortgage Consultant & Advisor. We will cover various topics that will relate to issues and concerns in our respective fields in the coming year 2010. This is not one to miss. To reserve your seat, please call 661.964.0200 or go to http://www.maximizingyourassets.com/ to register.

Jeff Eisenberg
President
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff.com

Tax Credit for 1st-time Buyers Extended!!!

2009-11-06T11:21:00.000-08:00

Tax Credit for Homebuyers

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

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

------------------------

Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

jeff@somloans.com
http://www.somloans.com/
http://www.southernoaksmortgage.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

Mortgage Backed Securities having a GOOD day!

2009-10-30T14:22:00.000-07:00

We are up about 44 basis points on the MBS for the day. We've seen two price improvements throughout the day. Rumor has it that the government will extend the $8000 tax credit and also make it available to people who already own, but are moving up. We'll have to see how that pans out, but at least we are moving in the right direction.

For more information, call Jeff Eisenberg 661.964.2600 x 104
http://www.southernoaksmortgage.com/
http://www.somloans.com/
http://www.loanmanjeff.com/ for my book
www.twitter.com/loanmanjeff

Voted Best in Valencia 2009 for Loan Agent

2009-09-20T16:07:00.000-07:00

Press Release

FOR IMMEDIATE RELEASE

Southern Oaks Mortgage Receives 2009 Best of Valencia Award

U.S. Commerce Association’s Award Plaque Honors the Achievement

Southern Oaks Mortgage is located at 25000 Avenue Stanford, Suite 95 Valencia, CA 91355 Jeff Eisenberg, Broker - 661-964-2600 jeff@somloans.com www.somloans.com

WASHINGTON D.C., June 8, 2009 -- Southern Oaks Mortgage has been selected for the 2009 Best of Valencia Award in the Loan Agents category by the U.S. Commerce Association (USCA).

The USCA "Best of Local Business" Award Program recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2009 USCA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

About U.S. Commerce Association (USCA)

U.S. Commerce Association (USCA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USCA is to promote local business through public relations, marketing and advertising.

The USCA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.

SOURCE: U.S. Commerce Association

CONTACT:

U.S. Commerce Association

Email: PublicRelations@us-ca.org

URL: http://www.us-ca.org

Should you shop your loan?

2009-09-20T16:02:00.000-07:00

The answer is yes. In a competitive world, shopping your loan could very well save you thousands of dollars, if not more. But here is the catch; the lowest interest rate or the lowest fees doesn’t necessarily mean you are getting the best deal. Key factors could include: recuperation periods, type of loan, prepayment penalties, knowledge of loan products of mortgage professional and future plans. Also, shopping for loans could affect your credit score. Be very careful that when shopping, you don't give out your social security number because if you do, each lender will run your credit. For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with

Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

Reporting your rental properties on Schedule E

2009-08-31T18:14:00.000-07:00

If you own rental properties, it’s very important to file a Schedule E with your personal tax returns. This reports the income or loss generated from your rental. This will help show proof that you have experience renting properties. Lenders typically like to see a two year history. Keep current rental contracts on file just in case the lender wants to see them. If you are renting out a home/condo and not reporting the rent on a Schedule E, then the lender cannot give you credit for the income to offset the debt you may show on your credit report, thus making it harder to qualify. For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.

http://www.somloans.com/

http://www.loanmanjeff.com/

www.twitter.com/loanmanjeff

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with

Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

Second Homes

2009-08-19T12:18:00.000-07:00

Buying a second home is a dream for many folks. The true definition of a second home is a home that one can travel to that will provide a getaway from the daily grind. Well, that is my definition. A lenders definition relates to whether or not it makes sense to consider the other home a second home. The proximity to your current home is a major factor. Is this home near a beach, golf resort, ski resort, lake, river, snow or just considered a getaway city, like Palm Springs? If the answer to this question is no, then the lender will most likely consider it a rental property. For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.

www.somloans.com
www.southernoaksmortgage.com
www.twitter.com/loanmanjeff

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with
Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

New $10,000 Tax Credit for New Home Buyers in California

2009-07-16T18:07:00.000-07:00

California lawmakers approved a new budget that included a $10,000 tax credit for home buyers, the largest home-buyer incentive ever offered in US history to date. Here's what you need to know. The $10,000 tax credit is for any home buyers that purchase a new home between March 1, 2009 and March 1, 2010.
This is NOT limited to first-time buyers;
There is NO income limitation; and most importantly
You do NOT have to pay it back, as long as you remain in the home for 2 years.
The bill, however, only set aside $100 million for this tax credit, so after 10,000 new homes are purchased, the credit is gone – so don't wait. The credit CAN be utilized along with the new $8,000 first-time home buyer's credit made available by the new Stimulus Plan. This means that if you're a first-time home buyer, and you purchase a qualified new home in California that costs more than $200,000, you'll get $18,000 in tax credits that you do not have to pay back, if you're a first-time home buyer and you purchase a new home that remains your primary residence for three years.It's important to note that qualified home buyers will receive the tax credit, in equal amounts, over 3-years. If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years. If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years. Finally, there is no down payment requirement to receive the $10,000 tax credit, although you will likely have a down payment requirement to secure a mortgage in today's market, at least 3.5% if you use FHA financing. The good news is the Stimulus Plan also restored the higher maximum loan limits of $729,750 for FHA and conventional loans for 2009. This is largest home buyer tax credit ever offered in US history, let alone California. If you have even been thinking about buying a new home in California, give us a call before it's too late. Don't miss out on this great opportunity to buy the new home of your dreams.

Sincerely,

Jeff Eisenberg

Southern Oaks Mortgage, Inc.

661.964.2600

jeff@southernoaksmortgage.com

http://www.somloans.com/

http://www.loanmanjeff.com/

Buying a Home? New Appraisal Rules Could Impact You

2009-07-16T18:05:00.000-07:00

In the last several years, significant changes have impacted financing for residential real estate. The issue I would like to bring to your attention today could impact the value that will be used to underwrite your loan.The Home Valuation Code of Conduct (HVCC), effective May 1, 2009, governs the way in which appraisals must be ordered for all residential real estate transactions, where the loans are sold to Fannie Mae and Freddie Mac.The purpose of this new regulation is to ensure that the value of the home - on which a mortgage is being issued - is arrived at both independently and objectively.While I have traditionally been able to order appraisals directly from local appraisers whom I know are familiar with the neighborhood or region, this legislation will prohibit this practice and will instead randomly assign an appraiser, potentially to someone not in the immediate area. The new legislation also eliminates my ability to discuss the property with the appraiser.As a result, the task of providing information that will help the appraiser arrive at an accurate value now falls upon the seller and the real estate agents involved.While your real estate agent may already be providing this assistance, I thought it would be appropriate to stress how important this becomes in light of HVCC.If any issues occur in arriving at a fair value for your home, I will work with you to resolve them. While I don't expect any problems, being prepared is always a best practice.
Sincerely,
Jeff Eisenberg
Southern Oaks Mortgage, Inc.
661.964.2600
jeff@southernoaksmortgage.com
www.somloans.com
www.loanmanjeff.com

Housing Starts and Possible Signs of Recovery!

2009-06-16T09:19:00.000-07:00

Housing starts rose sharply to 17% in the month of May. Stocks and Bonds are teetering back and forth like a seesaw. When stocks go up, investors usually take money out of bonds and when stocks go down, they temporarily place them in bonds causing them to improve. Improved bond yeilds means better mortgage rates. As we speak, mortgage bonds are up 19 basis points for the day. Lets hope this continues as rates are getting closer to the high 4's compared to the mid to high 5's over the past week or two.

Visit my site: http://www.somloans.com/
http://www.loanmanjeff.com/
http://twitter.com/loanmanjeff
For all your Real Estate Finance needs!

Just Joined Twitter

2009-06-03T21:02:00.001-07:00

http://twitter.com/loanmanjeff

This is my new Twitter blog. If so inclined, please follow. I'm going to be updating it daily (well hopefully if I can find the time between everything else) with current rates and programs available. I will also announce seminars and events that are happening in the industry.

Great News for Rates!

2009-03-18T15:53:00.000-07:00

Looks like the Fed did it again! The announced that they will purchase 750 Billion dollars worth of Fannie Mae, Freddie Mac and Ginnie Mae Mortgage Backed Securities as well as an additional $300 Billion of US Treasuries. Wow, they have big pockets. Well this is good news for mortgage rates and we saw a .325 basis points to the fee improvement today. Rates are hovering around 4.5%. Many lenders decided to hold off on improving their rates today because they are already at their capacity of loans in their pipeline. The days ahead will surely be interesting.

More info on Stimulus Package

2009-02-24T10:49:00.000-08:00

More Exciting Information on Obama's Stimulus Package

Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!
Phaseout Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Remember to visit my site: http://www.southernoaksmortgage.com/, http://www.somloans.com/, and http://www.loanmanjeff.com/ for a copy of my newly published book

Obama's Stimulus Plan 2009

2009-02-17T15:35:00.000-08:00

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.
The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.
As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

And Remember to visit my site at: http://www.somloans.com/, http://www.southernoaksmortgage.com/, or http://www.loanmanjeff.com/

Why are loans taking longer than 30 days?

2009-02-01T22:05:00.000-08:00

Good question! The answer to this question is the result of lower mortgage interest rates.
A few months ago, many lenders were laying off their underwriters, processors and customer service positions due to the slow refinance market. Then the Fed decided to purchase $600 billion worth of mortgage backed securities, which put confidence into the mortgage bond market. Rates dropped considerably and everyone was racing to their broker or bank to refinance. They just weren’t prepared for this influx of new loan applications, so what happened was a slow down in underwriting files. The lenders now had to re-hire new employees and train them in order to get back up to speed. This in turn is why it was taking so long to process loans. As we speak, they are still ramping up for this mini-refinance boom we are experiencing. Good news is that I have a lender who can close a loan from start to finish in 12 business days. Call Jeff Eisenberg - President, Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600

Remember to visit my website at: http://www.somloans.com/ or http://www.southernoaksmortgage.com/ and stop by my website http://www.loanmanjeff.com/ to get a copy of my new book.

Interest rates climbed a bit today!

2009-01-21T21:38:00.000-08:00

Today, the mortgage bond market was off by as much as 51 basis points. This in turn, caused mortgage rates to go up. Since investors aren't paying much for purchasing closed loans these days, the spread between rates is much lower than it has been over the last 5-7 years. So a large decrease in movement like we saw today could change interest rates roughly .375% in rate. So today probably wasn't the best day to lock in a rate.

On another note, did you know that when applying for an FHA loan, both spouses have to have their credit run even if one of them isn't going to be on the loan? The purpose of this is to add the non-applying spouse's monthly debts against the actual applying spouse's debts since they are married and will be living there together. So if your spouse has lots of debt and you are thinking that by applying as a married man/woman as your sole and separate property, you could avoid the other persons debt, that will not be the case on an FHA loan.

And remember to visit my website: http://www.somloans.com/, http://www.southernoaksmortgage.com/ and my new site for my book: http://www.loanmanjeff.com/

Happy New Year to All!

2009-01-04T20:15:00.000-08:00

This year should be a great year to buy and to refinance! Rates hopefully will stay at all time lows and if you are in the market to purchase, home prices should stay relatively low. I do, however believe that sometime in July 2009, we will start to see a turnaround in the real estate market. I feel that housing prices will start to stabalize and possibly even appreciate 1-3% and interest rates will stay low and consistent. There you have it, my prediction!

Remember to visit my website: http://www.somloans.com/ or http://www.southernoaksmortgage.com/. Also, my new website is up for my new book: http://www.loanmanjeff.com/

Jeff's new book is here! Get one today!

2008-12-20T16:26:00.000-08:00

My book is now published and available. If you'd like a copy, email loanmanjeff@gmail.com. The cost is $14.95 plus tax, but shipping is free. This book is loaded with tips and tricks that will help you get the best loan possible.

Remember to visit my site: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

Rates are at all-time lows!

2008-12-17T21:09:00.000-08:00

The Fed announced that they will lower the Fed Funds rate down to a target range from 0 to .25%. This sparked a rally in the stock market and in the mortgage bond market. Mortgage interest rates went down to their lowest levels in years. Rates are hovering around the high 4's to low 5's. Is it possible to see rates drop even further? Only time will tell. Now is the time to refinance or purchase, so don't let this amazing opportunity slip by. Call 661.964.2600

Remember to visit our website at: www.southernoaksmortgage.com or www.somloans.com

Hope for Homeowner Program is a Big Flop!

2008-11-26T20:37:00.000-08:00

The Federal Governments stimulus package that was supposed to help homeowners who are facing foreclosure and who are upside down on their homes turned out to be a big flop. The Hope for Homeowner program which is all over the governments website: http://www.fha.gov/ is having it issues. The main issue is that this program is voluntary. Lenders do not have to participate and they aren't. I've heard that one lender, Flagstar Bank is one of the few that is utilizing this program. Only problem is that they are only refinancing loans that they are servicing, so if your mortgage isn't with Flagstar, then you are out of luck. I will do my best to keep you informed of the latest developments with this program as it unveils.

Remember to visit my site: http://www.southernoaksmortgage.com/ or www.somloans.com

Fed to buy Mortgage Backed Securities!

2008-11-25T18:38:00.000-08:00

Great news, the Fed decided to purchase $600 Billion worth of mortgage backed securities today which sparked a fantastic boost to mortgage bonds. Rates went down approximately .5% today, reaching roughly 5.25% on a conforming 30 year fixed. (APR 5.373) We could be in for a short term refinance boom in the coming days. Enjoy it while it lasts.

And please visit my site: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

New 2009 Limits for Home Loan with Fannie/Freddie

2008-11-07T11:51:00.000-08:00

The Federal Housing Finance Agency (FHFA) announced today that the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009 will remain at $417,000 for most areas in the US. As in previous years, the 2009 limits are higher in Alaska, Hawaii, Guam, the US Virgin Islands, and other high price areas such as parts of California. In those areas, loan limits vary from $625,500 to $721,050 for one-unit properties.

Looks like Los Angeles & Orange County will be $625,500. Ventura County will be at $598,000. If you are interested in knowing your county, please call. And remember to visit our website: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

A New President!

2008-11-05T18:59:00.000-08:00

Wow, what a crazy election this was. As Obama says, "We can change". Well, once he is sworn in and begins his term, we will see if he can change this country for the better. Interesting news on the mortgage side, rates improved a bit today. This is a good sign because that means that the investors are confident and are investing in mortgage backed securities. Let's hope this continues. Visit my site: www.somloans.com

This is Not Your Father's FHA Seminar

2008-10-26T21:13:00.000-07:00

Tuesday, 28th of October, Southern Oaks Mortgage will be hosting a seminar for Real Estate Agents called, "The New FHA, This is Not Your Father's FHA". It will be at 10 - 11:30 am at the Marriott Courtyard near the 126 and Newhall Ranch Rd. For more information, call 661.964.2600 or email sheila@somloans.com

and remember to visit our site at http://www.somloans.com/

My Book is almost Complete!

2008-10-25T12:11:00.000-07:00

If you didn't know already, I'm in the process of writing a book on home loans. It will be tips and tricks that will make or break your home loan. It will be about 96 pages long and will sell for approx. $12.95. Trust me, it will be well worth it! Visit my website at:

http://www.somloans.com/

Richard Alascano Memorial

2008-10-21T18:22:00.000-07:00

My wonderful and loving uncle passed on Friday 17, 2008. He was loved by many and as my cousin says, "he was a Good Man". Please say a pray for my Aunt Fran. He was 69 years old and if you are so inclined to, you can donate in his memory to www.pacificwildlife.org and click on the DONATE button on the left, then underneath that, the memorial button. He loved animals and would always rescue them and nurse them back to health.

visit my site at: www.somloans.com

Market Turmoil!

2008-10-11T13:48:00.000-07:00

What a week it has been. The stock market took one of the largest hits in years, the mortgage bond market has deteriorated and the overall economy is looking pitiful. Friday the 10th of October, the Fannie Mae 30 yr. bond took a dramatic 109 basis point drop, which sent mortgage interest rates higher. Now that the bond has fallen far below the 200 day moving average, we are in store for some short term increases in interest rates. Ouch!

visit my site at: www.somloans.com

The Changes Just Keep Coming!

2008-09-25T18:43:00.001-07:00

Well, guess what? Another road block. FHA just came out with a new guideline regarding the rent of your current residence. The Buy & Bail policy. If you currently own your home and want to rent it out to buy another one, in the past, you'd be able to use 90% of the rent to offset the payment so you could qualify for more. The new rule basically says, you cannot do this unless you have 75% equity in your current home, proven by an appraisal within the last 6 months or you are relocating jobs or residences out of the area. So if you are in a situation where you don't have any of these conditions met, you will have to qualify for the new home provided you can qualify with both debts against you.

visit my site at www.somloans.com

The Time Has Finally Come!

2008-09-21T17:14:00.000-07:00

Southern Oaks Mortgage, Inc. is officially approved to originate FHA loans.

visit my site at www.somloans.com

Rates!!!

2008-09-17T17:38:00.000-07:00

Wow! The fun never stops. Rates again got better today. Now is the best time to consider a refinance or purchase! Call me for a Free quote!

visit my site at www.somloans.com

New Conforming Loan Limits for 2009!

2008-09-16T20:54:00.000-07:00

Finally, someone has heard our prayers. The new conforming loan limit will be $625,500 in high cost areas like, Los Angeles, Orange & Ventura Counties. This is an increases from the old conforming limit of $417,000.

visit my site at www.somloans.com

FHA Approval is on the Way!!!

2008-09-10T23:25:00.000-07:00

Looks like Southern Oaks Mortgage, Inc. will be FHA approved by the end of this week. We will offer FHA and Reverse Mortgages. Very exciting times.

visit my site at www.somloans.com

Fed takes Control of Fannie Mae and Freddie Mac

2008-09-08T20:53:00.000-07:00

Sunday, 9.7.2008, the Federal Government took over Fannie Mae and Freddie Mac in Conservatorship. How did this affect the interest rates today? Well, let me tell you. Bonds soared much higher today, in fact, over 150 basis points higher. Rates actually dropped about .375% in one day. Investors were worried that Fannie and Freddie were going to fail so their stock prices went way down. Now with the Fed taking over, the fear of them failing is now gone, so investors now feel that Fannie and Freddie will continue to be strong and therefore felt comfortable putting money into mortgage backed securities, this giving us the best rates since 3.2008. Let's see how this will pan out in the next coming weeks.....

Listen Now!

2008-09-07T09:37:00.000-07:00

Here is the link to my new Internet Radio Show: http://www.bigmediausa.com/archive.asp?aid=12250 I hope you enjoy it!

Don't Forget to Check Out My Website!

2008-09-05T11:02:00.000-07:00

www.somloans.com
I will be posting the link to my Internet Radio Show in a few days!

Mortgage Market - moving in positive direction!

2008-09-04T14:36:00.000-07:00

Mortgage Bonds are trading slightly higher and have made a break above the important ceiling of resistance at the 200-day Moving Average. A convincing break above this important barrier would signal a major trend shift towards lower rates. It is highly probable that the results of tomorrow's Jobs Report will be the deciding factor whether Mortgage Bonds can make the break above the 200-day MA or if they will be pushed back towards worse pricing. Our Jobs report strategy below lays out our thoughts.
Some good news on Productivity is helping Bond prices this morning, as productivity for the second quarter was revised higher to 4.3% from a previous reading of 2.2% and well above expectations of 3.5%. Higher productivity is good news for the economy and inflation as it shows employers are able to squeeze more output from hours being worked. And if employers can produce more goods from their existing workforce, without a need to hire or increase pay, it keeps wage-based inflation down. Within the Productivity Report, Unit labor costs -- a key inflation gauge - fell 0.5%, revised down from a gain of 1.3%, representing the biggest decrease since the third quarter of 2007. Lower Unit Labor Costs means less of a threat for wage-based inflation and this is good news for Bonds.
Initial Jobless Claims came in at 444,000, significantly higher than expectations of 420,000. And the ADP Report showed a loss of 33,000 private sector jobs, pretty much in line with expectations. After factoring in the usual 20,000 new government jobs added to the economy, the ADP Report suggests tomorrow's official Jobs Report will come in somewhere near -13,000. Expectations for tomorrow's Non-farm payrolls is -75,000.

--this comes directly from Barry Habib, The Mortgage Market Guide CEO.

Thursday, Sept. 4th - 1st Show

2008-09-03T21:01:00.000-07:00

Sept. 4th at 10:30 am will be the 1st of 52 internet radio shows of the "Jeff Eisenberg's Mortgage Show". I will forward the URL once the show has been posted. Tomorrows topic will be the difference between a short pay and a foreclosure. Stay tuned...

Also, I'd love to hear any comments on the speech made by Republican Candidate for Vice President, Palin at the Republican Convention.

Housing in L.A. is IMPROVING!

2008-08-21T17:22:00.000-07:00

Good news, I'm starting to see multiple offers on properties. This means more people are making offers on the same homes which helps drive up the price. I recently had a client who made an offer on a home in which 16 other offers were presented. Luckily my client got the home. I am also seeing that homes are selling much faster than before as well. All good signs!

Jeff Eisenberg's Mortgage Show - Internet Radio Program

2008-08-20T22:39:00.000-07:00

Well it's official, my 1st show will commence next Thurs. I will follow up with the URL so that you may listen to it. The show will talk about the difference between a foreclosure and a short pay, with guest Realtor, Kate Christiansen from Legacy Real Estate Group. My co-host will be the phenomenal personality, Mitch Krayton. I'm very excited!