You Keep Your F — I’m Keeping My Dream!

  When Monty Roberts was in high school, his teacher asked the class to write about what they wanted to do when they grew up. Monty wrote that he wanted to own a ranch and raise thoroughbred racehorses. His teacher gave him an F and explained that the dream was unrealistic for a boy living in a camper in the back of a pickup truck. He would never be able to make this a reality. When the teacher offered the chance to rewrite his paper for a higher grade, Monty told him, “You keep your F - I’m keeping my dream.”

  Today, Monty’s 154-acre ranch in Solvang, California, is home to world-class thoroughbred racehorses, and his gentle Join-Up method of training horses (and kids) is the inspiration of companies around the world. Join-Up is a method of training horses without the use of pain or force. Monty studied the nonverbal communication between horses and gives a horse the option of accepting the leadership of a human, thus “joining up” rather than being forced into submission. He and his wife, Pat, have raised their own three children as well as forty-seven foster children, who return regularly to spend time on the ranch. This real-life horse whisperer inspired the book of that title and the Robert Redford movie that propelled Monty to fame and fortune beyond his wildest boyhood dreams.

  So, who’s been trying to talk you out of your dream? Who’s been telling you you’re crazy and it can’t be done? What level of success is that person experiencing? Did you ever notice that most naysayers and dream kickers are unhappy and unfulfilled themselves? Don’t let them bring you down to their level. Find people who are already doing or performing at the level at which you’d like to be. You'll find they will encourage and inspire you even more.

You’ll want to share this with your friends, family and co-workers

Did you know that the major credit bureaus in the US are allowed to release your credit information, mailing address, phone numbers and other information to any one of their credit bureau members who request it? They are called Promotional Pulls and you don’t even know when it happens . . . even if you have a monitoring service.

If you want to protect your information and be excluded from these un-known releases of your information simply follow these steps:

1. Call 1-888-567-8688
2. Dial Option  for ENGLISH or SPANISH
3. Dial Option #3 – it allows you to opt-out forever
4. The system will ask for your information
5. The last step in this process is the MAIL RESPONSE that they send you. You MUST complete this to complete the process.

This may sound like a lot to do, but think about it. Why would they make it hard to remove your name? Because they make MONEY by selling your information. Stop this practice and protect your private credit related information.

FOMC Statement: Continued Recovery

Great announcement from FOMC today. It echoes what we have been saying about Economic forecasting. Click the link below for full article.


FOMC: Inflation Still Transitory. QEII to End as Planned

Gas and Real Estate

At a recent Economic Update speaking engagement, we spoke about the fact that Gas prices could affect the Real Estate market. The trigger point is $4.25 per gallon. This has been deemed as the price that will make a noticeable reduction in the wallets of the consumer. We call it the “Hurt Factor” and this has played itself out many times before in our economy, especially with gasoline. I was not driving in the ‘70’s, but I do remember waiting in the Gas lines.

In the video below, Russ Haraus from Single Family DEvision, mentions Gas prices as making an impact. RealtyCheck also points out that Cash Buyers make up 35% of all transactions; the highest on record. The overall news in this clip remains very positive for the Real Estate market as a whole, and we continue to see positive news each day.

Chapter 7 Bankruptcy New Mortgage Qualification

The answer depends on the type of financing the client is looking for, so we break it down by loan type:

SEE UPDATE NOTE AT END DATED 6/24.

FHA Financing - Minimum of TWO YEARS from the date of discharge. They may qualify for FHA financing inside that two year window, but NOT BEFORE 12 MONTHS, if they experienced a hardship such as loss of spouse or severe medical condition which was beyond the control of the borrower.

It is important to note here that Divorce is not considered beyond the control of the borrower. The qualifying hardship will need to be supported by documentation such as doctor letter(s), CPA letter or employer letter.

CONVENTIONAL Financing - Minimum of FOUR YEARS from date of discharge. Unlike FHA, the client can not qualify for a hardship waiver until after the 24th month following the discharge.

In these cases the hardship must be deemed as non-recurring, beyond the control of the borrower and resulted in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations. Again, these situations need to be well supported with documented proof.

VA Financing - Minimum of TWO YEARS from date of discharge. The Veteran or Veteran’s spouse with a bankruptcy within the two years may qualify for a waiver.

Proving credit worthiness after a bankruptcy is toughest with VA Loans. This credit worthiness must be demonstrated both outside the two year requirement as well as within the two years if a waiver is needed. Credit worthiness must be well documented with NO late payments and reestablished credit. This usually requires credit score assistance as well.

In all cases, the client must have NO Late Payments since the discharge date of the Bankruptcy. It is imperative that a thorough check of credit is done well before a letter of pre-approval is supplied or submission to an underwriter.

With the exception of FHA, all other loan types require the reestablishment of credit after the discharge. FHA does allow borrowers who do not wish to reestablish credit to use NON-TRADITIONAL Trade Lines. These are accounts such as auto insurance, cellular phone companies and rental payments. They need to be well documented for no less than 12 months with NO LATE Payments; and updated on the borrowers credit report.

IMPORTANT NOTE TO REALTORS - When working with a client that has a Chapter 7 BK, and you are going to contract prior to the discharge date, make sure you leave ample time for mortgage application. The client can not make application for financing until at least ONE business day AFTER the date of discharge.

ADDED 6/24 - IMPORTANT NOTE REGARDING DISCHARGE OF MORTGAGES - A recent determination has been made that if someone had a mortgage included in a Chapter 7 Bankruptcy discharge, that it will be regarded as a Foreclosure. The result in this ruling extends the period of time within which they will qualify as the same as listed under Foreclusre rules. CLICK LINK TO SEE POST ON FORECLOSURES
There will be some instantces when this is not the case based on the results of automated guideline results. Contact us for more details. 

We are always happy to answer questions even if you are going through another lender. Email us at questions@mortgage-safari.com or call us at 1-800-323-0954.