Good afternoon ... I hope this posting finds you well. Before we get down to business, I have to tell you how excited I am that David Cook won American Idol. If you are reading all my posts, you know I always watch Idol ... what can I say - I do waste time once in a while, I guess:-). I think what excites me is that I see people get to live their dreams. I am living mine and it is the greatest feeling in the world. I teach to help you live yours and I get all weepy watching others live theirs. I was so excited last night I screamed when he won:-).
OK - down to business ... Freddie Mac has made a change to their lending guidelines - they are NOT refinancing properties that have been held in an LLC at any time in the previous six months. What does this mean to us? Nothing really - it just means we have to plan a little better.
- If you have any properties you plan to keep for long-term, this won't affect you at all.
- If you have a property you want to refinance and it is in an LLC - take it out of the LLC seven months prior, refinance it, and then put it back into the LLC.
- Find a lender who is willing to refinance a property in an LLC - other than Freddie Mac or Fannie Mae.
- Put the property into a Land Trust naming the LLC as your beneficiary.
- Do what we do and take properties "subject to."
We take properties subject to. Once we accumulate several, we make the homeowners payments on time for awhile, and then refinance them all at once using different banks. This way, I am not applying for 10 loans at the same bank. I am applying for 10 loans at 10 different banks. It is much easier to qualify this way. I do all my re-fi's at once and then collect rentals for awhile and do it again. This also gives me lots of different banks or work with when I do need to borrow money.
As lenders, the government or the IRS try to change laws, we have to stay ahead of the game. Most of these new laws in the foreclosure business are in place to prevent homeowners from being taken advantage of. Sadly - there are lots of predators out there. A few bad apples ruin it for the rest of us.
As long as we stay ahead of the game, run our business ethically, and ALWAYS do what is right for the homeowner - we can sleep at night without worry of going out of business.
If you don't already have a Land Trust - I'll give you one. Email me at www.dwan@theieu.com and request a FREE Land Trust. I'll email you the one I use ... FREE!
Don't wait - email today - also ... we are having a scratch and dent sale on some products that came back to us slightly damaged. If you need something, name it in your email, and I'll have Billy call you and see what we have left. We are selling things as low as $149.
Have a Blessed Day,
Dwan
BTW - Fannie Mae hasn't adopted this policy yet, but, most likely, will very soon.
www.theieu.com
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