Saturday, July 19, 2008

Short Sale Exit With FNMA Flip

There was a real estate investor or maybe it was a realtor in Florida talking about FNMA Flip and the policy that FNMA had with Flips in Florida. The FNMA MyCommunity Mortgage loan was the subject of the short sale. The short sale was purchased with a FNMA loan. The FNMA oan was flipped in a FNMA flip transaction.

There have been FNMA flips for a long time in Florida. This is nothing new. What is new is that now we know the FNMA flipping rules for short sale investing. This is how FNMA short sale underwriters views this type of transaction and I just thought it was helpful.

Examining FNMA Flips with short salleing of real estate. That is the Federal National Mortgage Association for those of you who don't know.

Tuesday, July 15, 2008


This is the matrix for MIP, FICO, and FHA. If you haven't checked out the FHA MIP FICO MATRIX then get to it. Your fha loans are costing more money these days and the MIP for FHA will be based on a perceived risk to the FHA pool of government sponsored loans.


Saturday, July 12, 2008

Define Option Contract & Florida Real Estate

Let’s take a look at the word Option. The definition of “Option” is provided by

“The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. For stock options, the amount is usually 100 shares. Each option has a buyer, called the holder, and a seller, known as the writer. If the option contract is exercised, the writer is responsible for fulfilling the terms of the contract by delivering the shares to the appropriate party. In the case of a security that cannot be delivered such as an index, the contract is settled in cash. For the holder, the potential loss is limited to the price paid to acquire the option. When an option is not exercised, it expires. No shares change hands and the money spent to purchase the option is lost. For the buyer, the upside is unlimited. Options, like stocks, are therefore said to have an asymmetrical payoff pattern. For the writer, the potential loss is unlimited unless the contract is covered, meaning that the writer already owns the security underlying the option. Options are most frequently as either leverage or protection. As leverage, options allow the holder to control equity in a limited capacity for a fraction of what the shares would cost. The difference can be invested elsewhere until the option is exercised. As protection, options can guard against price fluctuations in the near term because they provide the right acquire the underlying stock at a fixed price for a limited time. risk is limited to the option premium (except when writing options for a security that is not already owned). However, the costs of trading options (including both commissions and the bid/ask spread) is higher on a percentage basis than trading the underlying stock. In addition, options are very complex and require a great deal of observation and maintenance. also called option contract.”

Now let’s take a look at the word Contract. The definition of “contract” as provided by is:

“A binding agreement between two or more parties for performing, or refraining from performing, some specified act(s) in exchange for lawful consideration.”
When we put them to gether, we have the option contract. You may use the option contract to purchase a short sale in the State of Florida. Much has been written about Florida real esate and the short sales that can be bought and sold with the option contract. To learn more, simply follow the option contract for Florida real estate and you will learn much more about Florida short sales.

Locate Florida short sales with option contracts and in other real estate markets.

Friday, July 4, 2008

Conclusion of Current, FHA, and APR

This is my final post of the hour regarding current fha apr. You may have been hearing much around the internet about the current fha apr and you have decided to check in with the FHA loan expert to see what’s what with regards to the current FHA APR. I will not keep you in suspense and longer. Here are the website to visit to check on current FHA APR:

As you can see there has been a great deal written today on the current fha apr situation and there will undoubtedly be much more on the fha apr situation in coming months. Stay tuned for the effects of the current fha apr dilemma and above all, make sure you don’t read too many boring posts like this one about current, fha, and APR.