Archives For Mortgage

Know Who You Owe – 242 DSR

February 23, 2018

Podcast: Play in new window | Download

Today I discuss a real estate closing fiasco of an old friend and how you can avoid it.

Late 2016 sold house, moved back to CA.

Closing attorney ordered payoff 1st but not 2nd mtg. Closing attorney said “2nd mtg was included in the first mtg payoff.”

Months later, friend got notice from HUD – owe $11k. Consulted an attorney. Now making mo. pmt $200 to 300 to HUD.

Their buyers attorney contacted them. We payoff 2nd, you borrower $9k from us, do you have any collateral?

Buyer is trying to either refinance or sell and can’t. Doesn’t have clear title. Title clearly shows 1st and 2nd mtg. Seller’s attorney screwed up big time.

Seller pocketed enough to pay the $11k at closing but wasn’t aware of it. Ultimately responsible.

Lesson?
Know who you owe. Read CD, look at who is being paid off. If you write two mo. mtg pmt checks, both lenders should be in the payoff section.

Credit score hurt if HUD reports to credit bureaus.

Resources:
What is a closing disclosure?

Get in touch:
Comments, Questions, or need coaching?
Contact

Get Your Mind Straight. Get Your Money Straight
2018 Debt Shepherd, All Rights Reserved

In Mortgage, Personal Finance Education , , ,
permalink

Credit Cards and The Rapture – 240 DSR

January 6, 2018

Podcast: Play in new window | Download

Do you take your debts with you when you die?

This show topic is inspired by a text from a listener and former student of Debt Shepherd. Brenda G. on the east coast of The US.
who asked, “Is there a metaphysical relationship between death and debt? Do we carry debt over into the next realm?”

1) Do we carry debt over into the afterlife? Karma. Do unresolved issues stay with us if/when we are reborn?

Is our thinking about money, abundance, etc formed after we get here? Or is it part of the part of us that isn’t physical, that we already were before our bodies showed up?

2) Credit Cards and The Rapture

Co-worker in mortgage business once said, “I’m not worried about paying off my credit cards. The rapture is near and when Jesus comes, I’m outta here.” That was about 10 yrs ago. I’m not sure he still has that outlook, but it’s interesting nonetheless.

Closing:
As far as karma goes. What comes around goes around is a good adage in the here and now regardless of our thoughts, feelings, around the afterlife.

I don’t recommend an attitude toward debt of, “Screw it, when I die I don’t have to pay these debts/bills.” I say clean it up best you can while you’re here.

Ever treated an old, unpaid debt like death? You put it out of your mind for a while but it keeps coming back to bother you. You’re afraid the debt collector will come calling some day when least expected, kinda like the grim reaper?

Irony. Word Mortgage. Mort means death. MORTician, RigorMORTis. MORTgage. The word debt kinda sounds like death a bit. Think about it.

Resource:
debtshepherd.com

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2018, All Rights Reserved

In Listener Feedback, Money, Mortgage , ,
permalink

The 4 C’s of Lending – 232 DSR

June 26, 2017

Podcast: Play in new window | Download

Without you the bank wouldn’t be in business.

1) Character – You actually knew the banker. Local lending.

2) Collateral – Car, house, 4 wheeler, tractor, etc.

3) Credit – Payment history. 3 X 5 cards at Sears when my wife was young.

4) Capacity (paycheck) – This is the real asset. The real collateral.

Closing:
The real asset is you. No paycheck, no monthly payments. They’re not in the car business or the 4 wheeler business. They’re in the business of collecting interest payments from you. Selling the installment contract to someone else who collects the interest payments and getting paid a fee.

Bank doesn’t want empty houses they have to pay taxes/insurance/maintenance on. They want interest payments, your rent payment for the use of their money.

Resource:
You know where to find me. Podcast page. email or voicemail.
Coaching is available.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved

In credit, Mortgage, Personal Finance Education , ,
permalink

Collections & Credit Scores – 231 DSR

June 17, 2017

Podcast: Play in new window | Download

How collections affect your credit score.

1) My collection.
Medical, $2 or $3k. No credit score issue. Couldn’t get checking account.

2) Client’s collection/derogatory credit.
10 days PTC, Soft pull. Re-pull. 620 min for home loan.
642 to 500. Mortgage loan denied. FHA loan, $2,000 or less total don’t have to be paid off. Over $2k, use 5% of balance as mo pmt, or show payment history.

3) Pay something each month.
Negotiate lower balance if you can pay in full. Get it in writing before paying in full. Get paid in full letter in writing. Send paid in full letter to credit bureaus (resource).

Closing:
Collections are like an anchor keeping you stuck in one place. Baggage. Eventually roll off after 7 yrs? Imagine being 1 collection away from getting a home loan. One 90 day late student loan away from getting a home loan.

Resource:
Equifax.com, Transunion.com, Experian.com.
To send paid in full letter. Don’t assume who you paid will report to credit bureau.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved

In Education, Mortgage, Personal Finance Education , ,
permalink

A Tale of Two Houses – 210 DSR

March 12, 2016

Podcast: Play in new window | Download

Tale of Two Houses

We interview Jon White. He shares the mistakes he made when buying his first house. And he shares how you can avoid doing the same. He’s all about giving you a new perspective on your money.

Jon shares with us:

1) Who he is. Where he works. What he does.
2) Why he wrote the book A Tale of Two Houses.
3) How the book can help you.

Resources:
Jon White

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2016, All Rights Reserved

In Mortgage, Personal Finance Education , ,
permalink

Truth About Interest Rates- DSR 203

November 22, 2015

Podcast: Play in new window | Download

Rates

In the audio (click above) we cover:

What is the interest rate?
Who decides?
Difference between the interest rate and the REAL interest rate.
3 ways to save interest paid over the life of the loan.
Why do we borrow money from strangers?

Resource:

The Man Who Quit Money

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2015, All Rights Reserved

In credit, Money, Mortgage, Personal Finance Education, The Basics , ,
permalink

185 DSR – Power of Prepaying Debt

June 27, 2015

Podcast: Play in new window | Download

Interest

What would happen if you pre-paid your debts? How about saving thousands & thousands of dollars and several years of your working life?

1) Who can prepay?
2) What if I can’t afford it?
3) When can I prepay?
4) Why would I prepay?

$100k loan, 4% interest, 30 yrs.

$2,000/mo net/take home income.
10% = $200/mo prepay

$34k interest saved.
Turn 30 yr mtg into a 17 yr mtg
13 yrs of your life saved.

Give us a call on our voicemail listener feedback line at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

Debt Shepherd, 2015 All Rights Reserved

In Money, Mortgage, Personal Finance Education , ,
permalink

181 DSR – Interest Rate Myth

May 9, 2015 — Leave a comment

Podcast: Play in new window | Download

Interest

You’re borrowing the purchase price and you’re borrowing the interest paid. At the same time. Two loans, not one. Look at your amortization schedule. A – Mort – ization – Mort means death.

What is interest?
Rent for the use of the bank’s money.
They didn’t have it to lend anyway. You created it when you signed the promissory note.

$100k loan @ 4% interest for 30 years. You pay back $100k.
And you pay back $72k interest or rent for the use of the banks money.

$72K divided by $100k = 72% interest, not 4% as you’ve been lead to believe.

You don’t question it because the monthly payment fits into your comfort zone.

So you borrow $100k and payback $172K. You have to earn $172k plus (for example) your 25% tax bracket. You have to earn $172k plus $43k to payback the loan. That’s you earning $215k to pay back a $100k loan.

Check out the blogtalk interview with host Rick Fiorio:
The Right Side of Things

Give us a call on our voicemail listener feedback line at 615-200-7189
or drop Greg an email at: greg [at] debtshepherd [dot] com

Debt Shepherd, 2015 All Rights Reserved

In credit, Money, Mortgage, The Economy , ,
permalink