Real Estate Zealot

The Perfect Storm in Real Estate

3 ways to win in real estate... Buy now! Sell now! Invest Now!  Interest rates are at all-time lows, there is no better time to get into the market! 

Metro Broker Virginia Clair can help you navigate the real estate process. Call her at Urban Mountain Associates at 303-229-2450 or get more information online at www.VirginiaClair.com.

Interviewer: Welcome to Metro Brokers TV. Today in the studio I have Virginia Clair with Urban Mountain Associates. Welcome Virginia.

Virginia Clair: Thanks, Kari.

Interviewer: So what makes you different from other realtors?

Virginia Clair: Well, let me tell you - it's really the breath and depth of my experience, I've been licensed for over 21 years now and that was after a very successful career as a diamond broker, so I've been brokering for a while. And my early experience was quite diverse. I started at a time when we were working through the savings and loan fiasco, so a lot of my projects were fairly varied in that I did a shopping center in Colorado Springs, a ranch in Larkspur, I actually had a golf course in La Veta, Colorado as well as several executive homes that were a result of that whole fiasco.

So my business now is really in and around residential as well as short sales. I have a tendency to really want to be available to people in their time of need, especially when it does come to properties that are a little bit complicated and need a little extra help.

Interviewer: Wonderful. Now you're very involved in the real estate community, correct?

Virginia Clair: I am.

Interviewer: Tell me a little bit about that.

Virginia Clair: Well I happen to be the current president of the local chapter of the Mile High Women's Council of Realtors and incoming president for the state. And this is an organization that's part of the National Association of Realtors, so we're very much in tune with consumer issues and lobbying and making sure that our members are empowered in their leadership and their education.

Interviewer: What advice can you offer to buyers and sellers and investors?

Virginia Clair: Buy now, sell now. It's a perfect storm.

Interviewer: Really!

Virginia Clair: Yeah. The interest rates are low, historically low. Our inventory is short, so for sellers that have been sitting wondering whether they should make a move or not, now is the time.

Interviewer: That's great to hear. Where can people learn more about you?

Virginia Clair: Give me a call directly at (303) 229-2450 or on my website which is www.VirginiaClair.com.

Interviewer: Great, Virginia. Thank you so much for taking the time to come and talk to me today.

Virginia Clair: It was my pleasure. Thanks for having me.

Interviewer: Again that was Virginia Clair with Urban Mountain Associates. Thank you for watching Metro Brokers TV.

Invest Your IRA in Real Estate

Art Momper from The Denver Home Team explains how to use your IRA to invest in real estate and enjoy income in your retirement!

Let Art Momper help you buy, sell or invest in real estate. He will use his experience to help you find the right property for your needs. Call him at 303-683-1222.

Interviewer: Hi I'm Kathy Soltero with Metro Brokers TV and today we are in the studio with Art Momper, and he's with The Denver Home Team. Art thank you so much for coming in to day.

Art Momper: Glad to be here.

Interviewer: You've been a realtor now for about 37 years, how would you say that your experience has helped you out over the years?

Art Momper: Well, the situation with our market is, it's always evolving and so I've learned about the markets from every dynamic that's out there. I'm able to bring a lot of big picture guidance to my clients and help them with their decision making. In our business sometimes people get real focused on little details, sometimes they get focused on the big picture and not enough on the details, so you know, you ought to be able to look at the situation and guide them accordingly. Real estate is not done in a bubble and so being able to bring a big picture overview has really been important and especially with this market.

Interviewer: How do you stay current with all the latest technology and so many things have evolved over the years too?

Art Momper: Yeah it is very fluid in our market place, but people expects you to be current and I know a lot of brokers that are experienced in the market, but they haven't stayed current in their technology and I think all our clients these days are pretty literate and they're expecting us to stay on top of it. So I'm always up to date with the most current technologies, the most innovative websites, we are able to get people's properties on the market and distribute it in a couple of hours, using all the electronic signatures, social media etcetera, so I make sure that if it's out there and it works, I'm doing it.

Interviewer: That's right. We mentioned you have been in the business for 30 some odd years, and so what do you think your clients value most about your experience that you've had?

Art Momper: Well, I think they value my honesty. I put honesty before compensation. So, when I work with people, I'm going to tell them the truth, and when I'm helping someone buy a house, I'm very critical about the details of that property, so that if they do enter into a purchase decision on it they know they are going to get a good outcome. My assistant and I kid all the time that I talk more people out of buying a house than those brokers who have sold- because if I don't think it's the right property, I'm going to tell them that. If I have to defer compensation for that, that's fine with me, I'd rather get the good outcome. As a result, I get a lot of referrals, and people are glad to include me in their future business plans.

Interviewer: Absolutely, so you've been with Metro Brokers now for over a year.

Art Momper: Yeah, I've been about a year and a half.

Interviewer: Okay, so how would you think that is the benefit to you and to your clients?

Art Momper: Yeah, it's been a big decision, I was a RE/MAX Broker for 31 years and helped build that brand. I was a broker on it for about 18 years; so I have a lot of experience in managing brokerages and taking care of that kind of business. So, I brought that over to Metro Brokers and what it's really allowed me to do is maintain my low fee structure while continuing to add services. A lot of other brokerage opportunities have extremely high overhead and that really doesn't benefit the client. Metro Brokers has provided a really good forum for me to continue to advance my technology investments while maintaining the service...so that's been great.

Interviewer: I understand that you are an expert in Self Directed IRAs to purchase real estate, can you explain a little bit about that?

Art Momper: Yeah, that's an interesting niche in the market...the IRS allows people to use their IRAs to buy real estate.

Interviewer: Okay.

Art Momper: It is self directed for any purchase, actually, but the real estate is a great one because when you buy a piece of property and it's throwing off rent, you can live off that rent in your retirement without killing the tree if you will, you can just eat the fruit. Whereas, if you have a stock-based portfolio, you start selling the stock and that's the end of your revenue stream. So, it's really a much superior way to package a retirement fund. It's a very complicated process from the broker's perspective, and so you definitely need to do it with somebody who understands it, and I've got a large investment of time and energy into understanding the process. I've done it myself and, also, I own several properties through an IRA, and it's a great program if you use an expert like me.

Interviewer: Well on that note, how do we get a hold of you because I think I might be interested myself!

Art Momper: My name is Art Momper, and I'm at 303-683-1222.

Interviewer: Alright.

Art Momper: And my website is www.ArtMomper.com

Interviewer: Alright, Art thank you so much for coming in and talking with us today.

Art Momper: Thank you.

Interviewer: You bet, and for more real estate related videos like this one, be sure to tune in online to Metro Brokers TV.

Believe in the American Dream

Metro Broker Dorothy Jones believes in the American Dream of home ownership. Let Dorothy make that dream happen for you. Call her at Metroplex Realtors - 303-726-0731 or visit her website at Metro Brokers online.

Interviewer: Hi, I'm Kathy Soltero, with Metro Brokers TV, and today in the studio we have with us, Dorothy Jones; and she is with Metroplex Realtors. Dorothy thank you so much for coming in and talking with us today.

Dorothy Jones: It's my pleasure, thank you for having me.

Interviewer: Absolutely, tell me a little bit about yourself in real estate.

Dorothy Jones: Well I've been in the real estate business for twenty years, there's about 41 years of experience within my office.

Interviewer: And you're a Denver native too, so you know a lot about the area, tell me what areas you work in primarily.

Dorothy Jones: I primarily work in the Aurora and Denver Metro area, but I've worked as far as Greeley and Boulder I've worked for thirty years for IBM, so I know the Boulder area and I know the Metropolitan area.

Interviewer: Absolutely, so what type of real estate is your specialty?

Dorothy Jones: I specialize in residential but I do also some commercial.

Interviewer: Oh, really. That's quite involved isn't it?

Dorothy Jones: Oh yes, mostly churches, apartment buildings.

Interviewer: And what types of clients do you primarily work with, do you like to work with first time home buyers.

Dorothy Jones: Oh, yes.

Interviewer: They are kind of fun aren't they?

Dorothy Jones: I'd run the gambit young, old, and poor, rich.

Interviewer: Oh no, do you work with sellers or buyers mostly, do you do both or.

Dorothy Jones: Both buyers and sellers, yes.

Interviewer: It's a pretty tough market out there still, I mean we are starting to see it rebound a little bit, but the process can be very confusing don't you think?

Dorothy Jones: Yes I think so, but I helped to navigate the waters that we have to tread in order to get through the process and with less stress for my buyers or sellers.

Interviewer: What sort of things do you think you have to focus on then?

DorothJones: Well mainly financing, for those who don't have cash, which is most of the population. Financing... and then just to inform them of what they all will be going through, so that they don't have the stress of wondering what is going to happen. Tell them in advance, they will know.

Interviewer: You feel like you are a kind of a counselor sometimes, don't you.

Dorothy Jones: Yeah more a facilitator.

Interviewer: You kind of really help them through the process, you know it really is great, helping clients, pursue their dreams, don't you think in real estate, that's something that you get an opportunity to do.

Dorothy Jones: Yes, that's the part, one of the parts that I really love is just helping them realize their dreams. Some people had never thought that they'd be home owners, especially first time home buyers, and then, some people think, "I'm too old to buy a house", you know, "I'm disabled and I can't buy a house"... there are different situations, and anybody can be a home owner. And you are going to pay somebody's mortgage.

Interviewer: So give me a quick synopsis, what you feel like the market is doing, where do you think it's headed?

Dorothy Jones: Well I think it's leveled off as far as pricing, and the prices will eventually creep up. I think it was more of a buyer's market, I think now it's more of a sellers market, it's turning, the tide is turning, and the properties that are under a certain price range, so 250,000 or less are going really quick.....

Interviewer: They certainly are.

Dorothy Jones: And so if the buyer isn't qualified, isn't pre-approved, then they will probably lose out on that deal.

Interviewer: Absolutely, so Dorothy where can customers reach you if they want to buy or sell a home.

Dorothy Jones: Well my direct number is 303-726-0731.

Interviewer: Okay and do you have a website then, as well, or.

Dorothy Jones: Yes. You can see my website at Metro Brokers online.

Interviewer: And where is Metroplex Realtors located.

Dorothy Jones: We are located just a block east of Havana; between Dartmouth and Yale.

Interviewer: Okay, well Dorothy Jones, thank you so much for coming in, and talking with us today, it's been a pleasure.

Dorothy Jones: Yeah I appreciate for having me here thank you.

Interviewer: And for real estate related videos like this one, be sure to tune in to MetroBrokersTV.com

What is a Strategic Short Sale?

Metro Broker Barbara Gregg, of Diva Properties describes how a strategic short sale can be a better alternative than just walking away, for someone about to lose their home. Let Barbara help you through the process. Call her at 303-757-7900

Interviewer: Hi, I'm Kathy Soltero, with Metro Brokers TV, today we have in the studio with us, Barbara Gregg, and she is with Diva Properties, Barbara thank you so much for coming in today, and talking with us.

Barbara Gregg: Thank you for having me.

Interviewer: Tell me a little bit about what your feel is on how the Denver economy is going in real estate right now.

Barbara Gregg: I think Denver is very strong, big part of that is we are organic, there is no device we've got, we've got our industry, power, energy, mining is big right now, we've got agriculture, so we have a lot to offer as well as the amenities, so we are certainly one of the strongest in the country.

Interviewer: You do a lot of short sales; we've done a lot of short sales in the last few years, how receptive do you think the banks are right now, and how they are responding, and that sort of thing.

Barbara Gregg: Well the banks have gone through a huge metamorphosis, at how they look at short sales, they want to do them now versus before they didn't, and I think they have decided that it actually helps their bottom line to do a short sale. So Fannie Mae and Freddie Mac just passed a rule where they have thirty days to give a short sale approval. Now I don't know enforcement, I don't know how that is going to look, but as of June 15^th, they have 30 days to get short sales approved, or not approved, so that should be huge.

Interviewer: Awesome, so there's been a lot of talk about strategic default, can you explain that and what are your views on that?

Barbara Gregg: Well the strategic default, that is when people can and have the ability to pay the mortgage, and they look at the situation, and they choose not to. They say, "Well the home is underwater by $200,000." I mean there are strategic calculators, there are strategic monitors and there are books to help people go through and see, you know, the long term picture- does it serve me to continue to pay the mortgage?

Interviewer: Okay.

Barbara Gregg: So, in Colorado, it's not so big, in places like Florida and California, it's huge, because people paid $500,000 for a house that is worth $150,000. You know, at that point you keep paying your 500,000 dollar mortgage, does it make sense.

Interviewer: Now can you define what tactical short sales are?

Okay this is my favorite; "tactical" is what I call a strategic short sale, because the definition of tactical is strategic. But the difference is that people that may not have the option of paying, both with strategic, they are making a choice, they can pay, they choose not to, but tactical people have lost their jobs, there's been health issues, they are no longer able to continue to pay, with that they lose their power, they go into the panic, the fear, the humiliation, and then they make bad decisions. So with tactical what we try to do is give them the same options that people that are using strategy, and we just turn it around, and say okay we'll look at your fear, we'll look at your humiliation, we'll look at your shame, we'll look at your pain, lets look at all that, because it's real, but then lets move on, and make great decisions, so things look better in six months.

Interviewer: Right, right.

Barbara Gregg: Now and, generally what happens is people will get afraid to move out of the house, and that's honestly the worst thing they can do...

Interviewer: ...without taking steps to maybe short sale it do modifications or something to that nature, is that correct.

Barbara Gregg: And there's all kinds of laws being passed right now, with the refinancing, so even if they have tried to refinance, provided that there is the money there, provided you know if you have lost your job, they are not going to refinance, if you don't, if you cant prove income to cover it, then we need move on, and look at bankruptcy.

You know, a lot of times people will say, "Barb we just, we want our kid to graduate from the house, we need nine months." I can get them nine months, and we do that-strategically, it doesn't just happen, we have to have a plan, and we have to work the plan, so that's why it's important to work with a specialized short sale agent, that they can make help make things better, instead of status quo.

Interviewer: Right, so what's the best way people can get a hold of you if they want to buy or sell their homes?

Barbara Gregg: We have this incredible new web site; I think it's one of the best searches in the web site, wwwdenverhomesandcondos.com.

Interviewer: Okay.

Barbara Gregg: And then my phone is 303-757-7900.

Interviewer: Alright Barbara thank you so much for coming in and talking with us, I know it's such a short time, and that's such a huge issue, but it's been very informative, thank you.

Barbara Gregg: Thank you.

Interviewer: And for more real estate related videos like this one, be sure to tune into MetroBrokersTV.com.

This is the Time to Buy!

Metro Broker Shawn Kelley of Absolute Real Estate Services has 17 years of experience to help you buy a home in the Denver area. Now is a great time to buy! Let Shawn help you buy or sell your home in the Denver metro, six county area.

Interviewer: Hi, I'm Kathy Soltero this is Metro Brokers TV and today in our studio we have Shawn Kelley and he is with Absolute Real Estate Services. Shawn, thanks so much for coming in today.

Shawn: Thanks for having me, glad to be here.

Interviewer: Absolutely. So you're a Denver native?

Shawn: Uh-hmm.

Interviewer: How many years have you been in real estate?

Shawn: Seventeen years, believe it or not.

Interviewer: You've seen a lot of ups and downs, right.

Shawn: I've seen a lot of changes in the market, got into it when I was very young, which has been a, it was a challenge at the beginning but I think it gives me a lot of different perspective for all different, all different buyers and sellers.

Interviewer: Absolutely. So what areas of Colorado do you focus on?

Shawn: You know primarily we focus on the Denver metro area, you know we call it the Six County Area now, when I first got in I think we used to call it the Five County Area maybe even four. But pretty much Denver metro, I'll do a little bit of work in the, foothills kind of west of town and under some circumstances I've done work kind of outside of the metro area. But we tend to focus on the areas that we know, and that we live in and that we deal with people in more.

Interviewer: Where are you located?

Shawn: Our office is located in the Mayfair neighborhood, just off of 9^th & Colorado.

Interviewer: Okay so you, a little central location there.

Shawn: Yeah.

Interviewer: So tell me about certain activities that you're involved in?

Shawn: You know I like to get active, be out in the community; we do some work me and my wife, with some different organizations relating to brain injuries, we have a daughter with a brain injury, so we try to educate people about that. I also like to play softball, golf, do some hiking in my free time.

Interviewer: That's awesome.

Shawn: Yeah.

Interviewer: So I'm sure a lot of your clients enjoyed conversations within a lot of different things too.

Shawn: Yeah, sure, sure.

Interviewer: What do you think the Denver housing markets looking like these days?

Shawn: You know basically, off of my conversations with other brokers in our activity in our office, we definitely think it's really turned around quite a bit. Feel like the prices have pretty much bottomed out in most segments. In many areas we're seeing serious lack of supply and you know multiple offers, it's kind of interesting to see if there's soon after, you know after the recent times. But you know the rates are good, the buyers I think there was some pent up demand and I think people are ready to get out there and buy. So I think it's a pretty exciting time for Denver real estate.

Interviewer: Think it's kind of frustrating though for some buyers because really there's not a lot of, like you said inventory things to choose from.

Shawn: It sure is, I mean if you're looking to buy you have to move pretty quickly in most areas. In fact, I read some recently that Denver was I think number two in the shortest average days on market. So if you see something out there you know people pretty much have to move quickly.

Interviewer: And what about advice for sellers because I mean I think sellers probably it might be a good time too, if they are looking at putting something on the market.

Shawn: It is, I think the key is not to get too far, too far ahead of yourselves as far as pricing and just keep it reasonable because we are still a threshold, you know what the market can bear as far as pricing.

Interviewer: So who do you work mostly as far as customers are concerned, are you a seller's agent or buyer's agent?

Shawn: I work with buyers and sellers, the last few years I've been doing a lot of work with foreclosure sales, our office is one of the select brokers selling for Freddie Mac, so I've seen that part of the business and then you know the regular part of the market, as we call it sometimes, you know with just traditional buyers and sellers. So see a little bit of everything.

Interviewer: Okay and so how can customers give you a call?

Shawn: My number, best number is my direct number 303-570-8354 and then my website is www.shawnckelleyrealtor.com.

Interviewer: Very good. Well Shawn congratulations, good luck with you and thank you very much for coming in today.

Shawn: Alright, thanks a lot. I appreciate your time.

Interviewer: And for more real estate related videos like this one, be sure to tune into MetroBrokersTV.com.

Is a Short Sale Right For You?

In this interview for Metro Brokers TV, Steve Konecny talks about short sales and how to decide if this option is right for you.

Hello my name is Steve Konecny. I'm with Metro Brokers Liberty Associates. My office is located 8480 East Orchard Road in Greenwood Village, Colorado.

I'm here today to talk to you a little bit about short sales. A short sale is negotiated by an experienced realtor such as myself using a third party transaction company to see if we can get the bank to negotiate with us to take less than what is owed on your home.

Many folks find themselves in a position today, especially in this market of unemployment, etcetera, where they cannot make their mortgage payment.

A short sale is an alternative to their foreclosure.

If you or someone you know might be in this position, give me a call (720) 936-9975 and let's see if a short sale is an alternative resolution to the position you are in today.

Thank you. Call Steve Konecny at 720-936-9975 for more information on short sales.

Terry Jenni Sells the Front Range area

Metro Brokers agent, Terry Jenni of Realty Innovations, focuses on the entire front range area. Visit his office in the historic downtown Littleton Littleton Town Center.

Interviewer: Hi I'm Kathy Soltero with metrobrokerstv.com, and today in the studio we have with us Terry Jenni, he is with the Littleton Town Center Metro Brokers office, welcome, thank you very much for coming in today.

Terry Jenni: Thank you for having me here.

Interviewer: You bet and tell me a little bit about where you are located with your office?

Terry Jenni: Our office is located close to historic downtown Littleton. right off of Prince Street and it's a very easy location to get to in the Littleton area.

Interviewer: Tell us a little about yourself, how long have you been in the business, what brought you to Metro Brokers?

Terry Jenni: I've been in the business since 1998, a Colorado native, six generations here in Colorado, our family has been here. I came to Metro Brokers because of the great desk fees or low desk fees and the low overhead, plus the technology they offer as well as their sign recognition throughout the community.

Interviewer: In this day and age it is all about the bottom line, isn't it?

Terry Jenni: Yes it is.

Interviewer: Especially for realtors in any kind of business that we do, tell me about, do you have any specific areas that you work in?

Terry Jenni: I service the Front Range area, from north to Brighton south to Castle Rock, East Aurora and West Evergreen, I do specialize the South Metro area.

Interviewer: Do you work on short sales, bank owned properties, all of the above?

Terry Jenni: I have done some work on short sales and bank owns, I like to do work with first time home buyers and helping people resell their houses as well as service the accounts. I stay in, in good communication with my clients and I work closely with them throughout the transaction.

Interviewer: How do you feel the market is going right now?

Terry Jenni: The market is steady, it's challenging, it doesn't seem to be stagnating yet. On the other hand, there are a lot of houses for sale and one of the biggest challenges right now is having the buyers be approved for their loans.

Interviewer: And tell me a little bit more about that why do you feel that way?

Terry Jenni: It seems with the new government regulations, and more and more we have each year, it's becoming harder and harder for buyers to purchase homes because the amount of information the lenders need.

Interviewer: Is it just more demanding, is that what it is or is it, is it always been that way?

Terry Jenni: Yes, it's more demanding as well as it's a constant flow of information from start, from the initial interview with the lender to almost before closing, providing with the proper information.

Interviewer: But the bottom line it's always going to be worth it if you can get out there and buy your home and get the investment.

Terry Jenni: Absolutely...

Interviewer: Do you feel that there are a lot of great properties still available out there or we are starting to see kind of a bottom end here now?

Terry Jenni: There are some great properties out there, it's a good time for buyers to purchase homes, there are so many nice properties out there, very reasonable prices.

Interviewer: Do you think that the banks are starting to do a little bit more in working on some of those properties maybe making them more appealing because for the most part they have been kind of thrashed?

Terry Jenni: Yes the banks are improving them a little bit, there are also some new loans through FHA where there is money available for the purchaser to have excess money in improving their home when they purchase the home, so there are some new programs out there through FHA that is helpful as well.

Interviewer: So you feel very satisfied then with turning over to Metro Brokers?

Terry Jenni: Absolutely, it's a great organization.

Interviewer: All right, well Terry Jenni, thank you very much for joining us today here on Metro Brokers TV.

Terry Jenni: Thank you for having me.

Interviewer: You bet, and for more real estate related videos be sure to turn your browser to metrobrokerstv.com.

How to Obtain a Reverse Mortgage

In this video by IPTVBoyz, we find out what a reverse mortgage is and how to get one to turn your home equity into cash.

Interviewer: Today we are talking with Doni Dolfinger, a reverse mortgage specialist with Universal Lending. Doni welcome to the show.

Doni Dolfinger: Thank you.

Interviewer: So, reverse mortgages, I mean some people have heard about them in the last few years and they know what they are, but just for the audience, refresh us.

Doni Dolfinger: It's a loan against a person's home that does not have to be paid back as long as they live there. It's not any more magical than that, people tend to make them a little more difficult.

Interviewer: So, do I have to own the house free and clear before I can get a loan against it?

Doni Dolfinger: No you don't, in fact many of our customers over the last couple of years have been using the reverse mortgage to come in and payoff what they owe currently on the loan, to eliminate that mortgage payment, so they have a reverse mortgage instead of a traditional loan, but there is no mortgage payment involved.

Interviewer: But there does have to be some equity involved, right?

Doni Dolfinger: Absolutely, absolutely.

Interviewer: Is there are percentage of that; you know, what's kind of a standard rule?

Doni Dolfinger: Oh! Good question, you know, it's not a flat percentage like on a traditional loan. On a traditional loan you might go in and qualify for 80% of your value, on a reverse mortgage, it's tied to the value of the home, the age of the youngest borrower, and the interest rate at the time they do the loan. So, it's different for every individual.

Interviewer: Okay, because I think one of the questions that consumer would say is well, how much money is going to be available to me.

Doni Dolfinger: Exactly, I think a good real sum would be about close to 60% right now based on our interest rates. The older the client, the more they qualify for.

Interviewer: Got it, alright, so is qualifying difficult?

Doni Dolfinger: It isn't, you know you can qualify for a reverse mortgage if you are 62 years of age or older, you live in your home as your primary residence, it has to be free and clear, or we need to able to make it free and clear with a reverse mortgage. Now, qualifying also does not entail the same criteria as a forward mortgage, so we are not looking to our customers to pay this back monthly, the equity of the home is what's going to pay us back.

Interviewer: Are there different types of reverse mortgages, or they are one standard kind of model?

Doni Dolfinger: In years past, we've had primarily reverses as a refinance product. Now we have a purchase program, which is wonderful, it allows people to come in and actually purchase the home with a reverse mortgage, and still have no mortgage payment.

Interviewer: I could see a consumer asking this question, is it possible I could get more than one reverse mortgage?

Doni Dolfinger: Only one at a time. So you might be able to refinance it at some point in time, and obtain another reverse mortgage, pulling out more equity in the future, but you can only have one at a time. That doesn't mean that you can't have multiple reverse mortgages over your life time.

Interviewer: What if you had separate properties?

Doni Dolfinger: If you have separate properties, you start to do the reverse mortgage on your primary residence.

Interviewer: Okay, so you've got to say that this is my primary and....that's the only one you can probably do it on.

Doni Dolfinger: Yes, and you have to be able to prove that, that's your primary residence. The burden of proof is on the homeowner.

Interviewer: Alright, last but not least, is it possible for the loan to become larger than the value of the home?

Doni Dolfinger: It is, that can happen, it doesn't happen on a regular basis, but we do see it, especially in the last couple of years, but if that were to happen, let's say my customer is moving out, they owe hundred thousand more than their home itself right now, FHA would have to pay that loss, this is a non-recourse loan, we cannot come after the kids, or their homeowner, FHA would pay out with a mortgage insurance that is factored into the loan.

Interviewer: Interesting, sounds like a good option, thanks great information. I appreciate it.

See more videos on reverse mortgages and real estate at BrokerIPTV.com

Is a Reverse Mortgage Right For You?

A reverse mortgage is a type of loan that allows homeowners, age 62 and older, to turn their home equity into cash, while still living in and owning their home.

Interviewer: Today, we're talking with Doni Dolfinger, a reverse mortgage specialist, with Universal Lending, and Doni welcome to the show.

Doni Dolfinger: Well, thank you so much, glad to be here.

Interviewer: In our previous segment, we have been talking a little bit about reverse mortgages and we were continuing that, but again for those not familiar with the term or what it is can you explain it?

Doni Dolfinger: Certainly, a reverse mortgage is simply a loan against a borrower's home that does not have to be repaid as long they live there. It's a loan without a mortgage payment.

Interviewer: Okay. Could they repay it, if they wanted?

Doni Dolfinger: Absolutely, and many people will use a reverse mortgaging with the intention of paying it back, and they can certainly make payments at anytime without any penalty.

Interviewer: Someone might be saying to themselves that sounds expensive, like it's going to cost me a high interest rate or something to that affect, if there is a lot of points upfront or, is that true.

Doni Dolfinger: You know, they are lot less expensive than they once were, yes in the years past, they were quite expensive, but we have done a lot to change that. In fact there is a new program called Home Equity Conversion Saver, or HECM Saver, and it's for people who would like to take less money upfront, but have less fees involved in the transaction, so it really helps people who are trying to preserve more equity for the estate.

Interviewer: Alright, walk me through this. Let's say my mom did a reverse mortgage and she passed away.

Doni Dolfinger: Right.

Interviewer: And at the time she passed, she owed a hundred thousand dollars on the house and maybe the house is worth one twenty, what happens?

Doni Dolfinger: You know, usually if my customer passes away the same thing happens that would happen on a normal transaction, even if they have just a traditional loan on the property. Usually they will sell the house by calling a realtor, listing the home with the realtor; the realtor will contact the title company. The title company orders the payoffs and at the settlement table, the check is then issued to the seller for what ever remaining equity is available.

Interviewer: Okay. If they were underwater, what would happen?

Doni Dolfinger: FHA would pay the loss, so FHA is who is on the hook for the balance to the mortgage insurance, it's not the tax payers paying that loss, if there is one its covered with the mortgage insurance

Interviewer: Alright, so now mom's getting some income in, and she is worried that it might affect her social security or it might affect her Medicare benefits.

Doni Dolfinger: Right.

Interviewer: She's worried about, is she is going to get taxed on it, what happens there?

Doni Dolfinger: You know, reverse mortgage is not considered an income by the government. So they are not taxed on it. We have customers who are on SSI, old aged pension, even Medicaid that could qualify for this program. But, if your mom is on Medicare and Social Security, they definitely don't have to worry about the funds from the reverse mortgage.

Interviewer: Alright, so is there anything that mom's got to watch out for?

Doni Dolfinger: You know, I think this is such a regulated program; we have regulations not only on what we charge but they have to go talk to a counselor to get it, to even obtain this type of a program or loan. So, I think the primary thing I would watch out for is if there's someone who is trying to sell them a reverse mortgage, and help them "Invest the money", that might be a red flag.

Interviewer: Yeah! Last but not least so somebody is saying okay, this sounds good this might be an option for me. How do they know if it's right for them?

Doni Dolfinger: First thing we are going to do is we are going to send them to a FHA counselor, we give them a list of counselors and they can choose which one they prefer to go to. The counseling is just designed to help the consumer with the questions to educate them with the pro and cons of the program, so that they can make an educated decision.

Interviewer: Great information. Thanks so much for being here.

See more videos on reverse mortgages and real estate at BrokerIPTV.com

FHA 203 (k) Renovation Loans for Fix-Up Properties

In this video from BrokerIPTV.com, renovation loan specialist Tom Yoswa from MyProspectMortgage.com discusses FHA 203 (k) loans, which can assist buyers with fix-up properties.

Interviewer: Today we are talking with Tom Yoswa. He is a renovation loan specialist. How are you?

Tom Yoswa: Hi Dan. I am doing well.

Interviewer: Well we talked in a segment about what a residential loan or renovation loan specialist does, can you explain it again?

Tom Yoswa: Well, basically, I loan people money to purchase and renovate a house. You know, what I find in the market that we are in right now, there is a lot of bank foreclosures, there is a lot of HUD properties, those properties in particular, you know, a lot of them, if you show me one that doesn't need work I will show you 10 of them that probably do. So basically it enables you to take those homes, buy them and fix them all with one loan and one close.

Interviewer: And most realtors and consumers would probably know this is an FHA 203(k) loan, is that right?

Tom Yoswa: Yes.

Interviewer: Okay, yeah.

Tom Yoswa: It's basically nothing more than a regular FHA loan with the same FHA guidelines. However, there is a construction element to it and we put the money into Escrow afterwards for the repairs.

Interviewer: And traditionally what type of buyers are using this loan and what's that price point?

Tom Yoswa: Well I mean in this market right now there is a lot of first time home buyers. You know I think there are some statistics out there say you know almost 50% of all home buyers right now are first timers, which makes sense because of the market and the interest rates, etcetera. So you know, when I look at first time home buyers most of them are not buying you know $300,000 houses, they are buying $150,000 houses and you know, the large majority of those homes need some sort of work.

Interviewer: Right.

Tom Yoswa: Carpet, kitchens, bathrooms, new roofs, etcetera.

Interviewer: So a $100,000 will say what 220, 225 is pretty much the pool you are swimming in?

Tom Yoswa: I would say for the most part I mean there are other, you know, it can go higher, it can go lower, it just really depends on who the buyer is and what they are looking at.

Interviewer: And what type of repairs can they make under this program?

Tom Yoswa: Dan, you can do just about anything, you know carpet, paint, kitchens, bathrooms are usually the typical ones. People don't know you can put appliances into the loans, if it has a furnace or any of the HVAC stuff that isn't functioning, you can do that.

Interviewer: Hot water heating?

Tom Yoswa: All that stuff,...

Interviewer: Roofs?

Tom Yoswa: Roofs, you can do it, obviously anything exterior, landscaping in some situations, etcetera.

Interviewer: All right, a couple the obstacles that prevent people from buying a house. One is usually down payment, how much money do they have to put down with this loan?

Tom Yoswa: Well I mean, there is again, options there, too. I do conventional as well as FHA, it's the same guidelines as FHA and conventional. So with the 203(k) loan, it's, you know, as little as three and a half percent down.

Interviewer: Okay.

Tom Yoswa: So you know whatever the purchase plus the renovation is combined, it's three and a half per cent off of that, but there are other programs, HUD has a $100 down program if it still exists, I think it does.

Interviewer: Yeah.

Tom Yoswa: And you can use that in certain situations, so it really depends but it's as little as three and a half percent down.

Interviewer: So one of the questions I know I have been asked by buyers is can you combine the programs? I want to do the $100 down HUD program, but I need the construction financing. Can you do it?

Tom Yoswa: I have done it, just so long as it's a full-price offer.

Interviewer: Oh, it's got to be full-price offer?

Tom Yoswa: It's got to be a full-price offer. So if HUD's asking 160, you bid 156, no-go. If you bid, if it's 160, you bid 160, then yes, and then again, I am not 100% sure. I believe the program is still there.

Interviewer: It sounds good. Tom, thanks I appreciate it.

Tom Yoswa: Thank you very much, Dan.

You can reach Tom Yoswa at 303-668-4499 and at MyProspectMortgage.com online.