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FTC Cracks Down on Deceptive Lending Ads

"The Federal Trade commission has warned more than 200 lenders and brokers that their mortgage advertisements could be deceiving buyers.

"Many mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story," Lydia Parnes, director of the FTC's Bureau of Consumer Protection, said in a statement.

The FTC declined to make available a list of the companies it warned because it has not concluded that the companies are breaking the law.

The FTC has detailed guidelines on how mortgage lenders should advertise their products to comply with federal law. It said the ads, some of which were in Spanish, were identified in June as part of a nationwide review."

Source: The Associated Press (09/12/2007)

The above article is from The Associated Press.  To be sure that you don't fall victim to deceptive lender advertising be sure to contact me when you are ready to be pre-approved.  I can refer you to a fantastic lender that will be honest and up front from the get go.  You will be sure that every step of the way your REALTOR® and your lender are looking out for your best interest. 

Active residential homes currently on the market-195.

Asking prices range from $194,000-$995,000.

Current Median ASKING PRICE-$369,000. 

Current Average ASKING PRICE-$394,008.

19 Sold properties in the last three months from June 28st to September 28, 2007.

Median ASKING PRICE of those SOLD properties-$309,00.

Average ASKING PRICE of those SOLD properties-$312,565.

Median SOLD PRICE-$300,00.  AVERAGE SOLD PRICE-$301,305.

Contingent Homes-6

Pending Homes-5

24.65% of Current Inventory is 2006/2007 built.

Days on Market Ranges from 2-542.

Square footage ranges from 900 to 5000.

Number of Bedrooms ranges from 2-5.

Tighter Mortgage Rules Keep Some Buyers Out

"The time for a would-be home buyer to think about their credit score is long before applying for a mortgage.

Mortgage standards are getting tougher. To qualify for a lower rate, a borrower needs a credit score of at least 680, out of a possible 850, according to a consensus of lenders. Last year, consumers needed a credit score of at least 650.

Free credit reports are available online. The best sites offer results from all three credit reporting agencies, including Experian, TransUnion, and Equifax. One possibility is AnnualCreditReport.com.

Next, borrowers should check out their FICO score, provided by Fair Isaac. For $15.95, they can see how they rank.

To lift ratings, consumers should make on-time payments and keep their credit card balances below 35 percent of their limits.

Source: BusinessWeek, Emily Thornton and Lauren Young (09/17/07)"

   The above article was taken from Business Week.  As stated here it is an excellent time to start working on repairing your credit if you are thinking about applying for a loan.  I know a fantastic lender that has a passion for assisting people with cleaning up there credit.  Please contact me for more information.

Above is an excerpt from a recent article from Business Week.  If you are interested in receiving a list of FORECLOSURE properties in the Lake County area please feel free to contact me.  Of course there is no-obligation.  I am here when you are ready.

Remember if you are thinking of purchasing a foreclosure it is EXTREMELY important to have your financing in place before you put in an offer.  I have a relationship with several great lenders and would be happy to provide you with a referral.

CPS Country Air Properties will be holding our annual Country Trails Event this Saturday, September 15th & Sunday, September 16th.  There will be multiple homes open for your viewing pleasure starting at one end of the County and finishing up at the other end. 

At every open home that you attend you will receive an entry form to enter a drawing for a $100 gift certificate to Lake County's own Piedmont Lumber store.  So come on out and enjoy the fresh air and sunshine that Lake County has to offer, meet some nice folks and maybe find the home of your dreams!

You can visit the CPS Country Air Properties website for more information.  You can also stop by any of our six branches around the lake to pick up a list of times and addresses. 

See you there!

Below is a recent article from: USA Today, Noelle Knox (08/30/2007) my comments follow:

"Mortgage market troubles are bad news for renters, too, according to a study released today by the Center for Housing Policy.

The study says that one in four renters are paying more than half their income on rent, the highest level in two decades. It projects that rents will rise about 4 percent this year and next because of a shortfall in apartment construction.

At the same time, more renters are renewing their leases because they can’t qualify for a mortgage. That demand threatens to drive rents still higher.

The affordability crisis for renters is growing, says Barbara Lipman, research director at the center, the research arm of the National Housing Conference, a housing advocacy group.

"It's hard to see a bright spot on the horizon here, unless there is a concerted effort to produce more affordable housing," Lipman says."

The answer to this problem is simple-Buy in Lake County where homes are still affordable.  No matter what your price range is there is something for everyone.  Stop paying someone else's mortgage. 

Call me today.  I can refer you to a fantastic lender who will walk you through the pre-approval process.  Once approved I will walk you through the buying process.  Together we make the perfect team!

The more you know about your rights as a home buyer or seller, the better prepared you will be to protect yourself from potential scams.

· Check your credit report once a year for accuracy and completeness. Any inaccuracies on the report can prevent you from obtaining a mortgage, refinancing or a home equity loan.

· Use the Internet wisely. More homeowners are using the Internet to shop for homes, products and services, including those of real estate agents, home inspections and mortgage lenders. Be sure you are dealing with a reputable organization before sharing your personal and financial information with them over the Web.

· Educate yourself about mortgages and mortgage fraud. Many products are available, but they may not be right for you. Learn about different financing options and be aware of predatory lending practices.

· Know your home’s value. A comparative market analysis with local sales and market information can help you and your agent determine the best price at which to list your home.

· Protect yourself and your valuables. If you are selling your home, don’t allow anyone inside unescorted. A serious buyer will be working with a real estate professional or should contact your agent to schedule an appointment. Also, lock valuables away before showing your home.

CRS Newsletter August 2006

"ENTRY-LEVEL HOUSING AFFORDABILITY AT 24 PERCENT IN CALIFORNIA
The percentage of households that could afford to buy an entry-level home in California stood at 24 percent in the second quarter of 2007, compared with 23 percent for the same period a year ago, according to a report released by C.A.R."

However you still have many options in Lake County! 

Browse the MLS-You will see that no matter what you are looking for you can find it here in Lake County!

Call me today.  Tell me what you are dreaming of and let me show you how easy it can be to be a homeowner.

As of August 31st-

"30-Year Mortgages Fall to Lowest Rate in 3 Months
Borrowing costs on home loans dipped to a three-month low this week, providing much-needed relief to home buyers who are facing a tight lending climate.

Freddie Mac reported a drop in the 30-year fixed rate to 6.45 percent from 6.52 percent a week earlier, while interest on 15-year fixed loans slipped to 6.12 percent from 6.18 percent. Adjustable-rate mortgages, however, moved in the opposite direction.

The five-year ARM settled at 6.35 percent for the week, up a notch from 6.34 percent a week ago; and interest on one-year ARMs averaged 5.84 percent compared to 5.6 percent."

Source: Baltimore Sun (08/31/07)

Want to learn more?  I can refer you to some fantastic lenders.  Just ask me.