Mortgage Seminar Delray Beach

Suzanne Morton of The Mortgage Firm Delray Beach will be presenting "Real Talk About Mortgages" at the Greater Delray Beach Chamber of Commerce on February 4, between 5:30 - 6:30 p.m.

Don't be a victim of FRAUD!

Living in the technology age is somewhat nerve racking when it comes to personal information and the internet. The best defense against fraud begins with you, and one of the ways to not become a victim is to be familiar with what fraud is and how fraudsters work.

Types of fraud

Elder Fraud and Financial Exploitation

Elder financial exploitation is the illegal or improper use of an older adult's funds or property.

This type of fraud is an act directed at older adults in which efforts are made to mislead with promises of goods, services, or financial benefits that don't exist, were not planned on being provided, or were distorted.

Health/Medicare Fraud

Health/Medical Fraud is purposely billing Medicare for services that were never received.

Identity Theft/Privacy Issues

Identity theft is the use of another’s personal information without permission — such as their name, Social Security number, and/or credit card number with the intention to commit fraud.

Mass Marketing, Mail, Wire, Telephone and Internet Fraud

Mass Marketing Frauds target individuals of all ages. Victims are lured in with false promises of cash prizes, goods, or services in exchange for up-front fees, taxes or donations.

Mail, phone, and internet can be used by criminals to commit many different types of fraud, including sweepstakes and lottery frauds, loan fraud, phishing scams, buying club memberships, credit card scams, identity theft, and more. All of these types of fraud are under this category.

Wire Transfer Fraud entails of using wire communications in a scheme to defraud the following: wire transfers of monies to or from a financial institution; electronic mail communications; Fax transmissions; and radio or television communications.

Mortgage, Loan, Lending and Related Fraud

Mortgage scams and frauds include traditional mortgage fraud, foreclosure rescue scams, loan modification scams, and reverse mortgage scams.

Securities and Commodities Fraud

Securities Fraud covers a wide range of illegal activities, all of which involve the schemes of investors or the handling of financial markets.

Tax Fraud

Any misrepresentation of the tax laws or effort to undermine the integrity of the tax system to the gain of a person or business at the expense of the federal government.

Other Types of Fraud

Charity Fraud: Scammers representing themselves as a charitable organization and using similar techniques to request donations as telemarketing, direct mail, email and online ads.

Job Scams: Scammers who promise employment, access to special employment listings, interviews, or a way to make a big income working from home for a fee or for credit or debit card information.

• Protect your personal information 
• Know who you are dealing with
• Make sure your systems are set up properly and protected
• choose a secure password- at least 8 characters long and a combination of letters &number

Sinkholes Suck

Earthquakes, tornadoes  floods, hurricanes, and landslides cost homeowners millions of dollars in damage each year; us Floridians have always focused our attention to hurricanes, but with growing number of sinkholes being reported the focus is shifting.  

Sinkholes are naturally occurring holes in the surface of the earth.   They can form gradually over time as the underground water dissolves layers limestone bringing the soil with it or suddenly.

In addition to Florida being made up of a young very weak, porous, Limestone that is easily weathered by the extreme conditions endured throughout storm season. Pumping from aquifers increases the chances of formation. As well as droughts that cause low ground water levels, that reduces the support of a cavity or the combination of low ground water then heavy rains or floods. 

Sinkholes can also be caused by growing population and development. The changes in drainage patterns, construction, and heavy traffic all have impacts. Building in areas like “sinkhole alley” with limestone depth less than 200 feet are examples of the modern sinkholes that we see on the news today. 

Whether natural or man induced, there are many types of sinkholes. The most common three are:

• ·        “Solution” sinkholes: when the limestone is exposed at the surface or covered by a thin  layer of soil leaving the limestone subject to physical and chemical process that break downs the rock forming a cavity or void. These type develop slowly, but are continuous.
• ·        “Cover-subsidence” sinkholes: when the sand layer is around 50-100 feet with very little clay around it. As the limestone dissolves, sand falls in filling the void. These types are known to not get very large in diameter or depth due to the sand fill.
• ·        “Cover-collapse” sinkholes: when the solution cavity develops in the limestone that the overlaying cover material can no longer support the weight. Greater chance of collapse when the limestone aquifer is below level.

Certain Signs that a sinkhole is about to open up.

-Slumping trees or fence posts

-Formation of small ponds where they had not been before

-Wilting of small area of vegetation in circular pattern

-cracks in building foundation

If you notice signs

-provide safety for your family. Evacuate if necessary

-secure or move valuable possession safely

-Notify your insurance company

-Mark the sinkhole or property with tape or rope to signify danger. 

 * You could be held liable if someone is injured.

For those who are buying a home...

• Be sure that the house is insurable. Is sinkhole coverage included in your policy?
• Hire a home inspector that can find signs of potential activity (especially in central-western Florida)

C.Y.A. (Cover Your Assets)

Rule #1 Cover Your Assets

We are over a month into storm season, you have prepped the yard, your family emergency plan and supply kit are stocked and in place, but what about your insurance? Let the images still haunting us from last years destruction be the extra motivation insurers need to take a much closer look at their policies this year. 

You have worked hard for what you have, so why would you risk it to something as unpredictable as mother nature? Isn't it better to be over prepared then not prepared enough and with changes in the future

1. Do you have your insurance in order? Have you read your policies? Do you understand exactly what is covered for the money you are spending? A standard homeowner insurance policy only protects you from wind and wind driven rain, water that is on the ground is covered under a flood insurance policy. Do you have one? It takes about 30 days for a new policy to take effect...For more information visit National Flood Insurance Program (NFIP)  
2. In your home gone from room to room and photograph and/or video the contents of that room. Electronics, clothing, furniture, art work, etc. You will also want to scan all important documents and policies that you have before sealing them in a water proof bag. Save the photos and scans to a hard drive that you can store safely in a safe location outside your home. Also store a PDF copy on your phone. 

• Property Insurance 
• Boater Insurance       
• Renters Insurance           
• Flood Insurance                
• Wind Only Insurance           
• Auto Insurance                    
• Health Insurance              
• Life Insurance

Post Storm Claims

• Immediately report property damage to your agent, they will arrange a time to visit and assess the damage.                                
• Any emergency repairs you have to make, document and keep all receipts, videos, and photos to submit with your claim.
• During the claim process, keep a log of who and when you spoke to anyone involved in the claim. Also a brief summary as to what was discussed.
• When dealing with contractors, get copies of estimates including the dates it would be completed, & payment schedule. To check their license contact the FL Dept. if Business and Professional Regulations 850-487-1395

We never know what mother nature will bring or the damage she will leave behind. 

Being prepared for the worst is the best way to protect your family and your investment. 

  *If you have a smartphone check to see if your insurance company has a app that you can download ahead of time. 

The Anatomy of a Hurricane

Hurricane: hur·ri·cane (noun)

1. A storm with a violent wind, in particular a tropical cyclone in the Caribbean. 
Synonyms: storm-tornado-gale-tempest-typhoon-whirlwind

Facts: 

¨ On average hurricanes are about 300 miles wide although they can vary in size.

¨ The eye at a hurricane's center is a calm, clear area around 20-40 miles across.

¨ The “eye wall” surrounding the eye is composed of dense clouds that contain the strongest winds in the storm.

¨ The storm's outer rain bands are made up of dense bands of  thunderstorms They range a few miles to tens of miles wide and 50 to 300 miles

¨ Hurricane-force winds can extend out to about 25 miles in a small hurricane and to more than 150 miles for a large one. Storm-force winds can stretch out as far as 300 miles from the center of a big hurricane.

¨ Usually, the right side of a hurricane is the most dangerous in terms of storm surge, winds, and tornadoes.

¨ A hurricane's speed and path depend on ocean and atmospheric interactions, including the presence or absence of other weather patterns. This complexity of the flow makes it very difficult to predict the speed and direction of a hurricane.

¨ Do not focus on the eye or the track–hurricanes are immense systems that can move in complex patterns that are difficult  to predict. Be prepared for changes in size, intensity, speed, and direction.

Safety Tips:.
Pre-Season

• Enter the season prepared.
• Know all evacuation routes if you live close to the coast.
• Make sure your home meets building codes for withstanding hurricanes, and they have storm shutters.
• Have proper tools, supplies, and a first aid kit.
• Have plenty of batteries and flashlights
• Always have plenty of non-perishable foods on hand.

Watch or Warning in effect:

• Leave low lying areas.
• Protect windows with plywood boards, or storm shutters.
• Secure outside objects.
• Make sure you have plenty of fuel and water.
• Have several days supply of food and water for each family member.
• If called to evacuate, do so immediately.

Before the storm

• Be ready to put your plan and preparation into action.
• Pay attention to local weather reports on radio, television, or the internet.
• Have house boarded up, or have storm shutters in place.
• Have plenty of food and water.
• Make sure all your tools, supplies, and first aid kit available for use.
• Have a secure room available.

During the storm

• Stay in Secure Room.
• Stay away from windows.
• Do not use the phone, or candles.
• Monitor Weather and Civil Service Bulletins on either regular or NOAA radio.
• Have supplies on hand.
• Remain indoors when the eye moves over your area because the storm will resume shortly.

After the storm

• Make sure that all is definitely clear outside, and the storm has completely passed before going out.
• Report downed power lines, and stay away from them.
• Use stored water and food.
• Be patient. Things will take a while before they get back to normal.

Watch vs. Warning, do you know the difference?

June 1st - November 30th 

Tropical Storm/Hurricane WATCH is in specified area of watch within the next 48 hours. During a  hurricane watch is when you want to prepare to take immediate action to protecting your family and investments.

Tropical Storm/Hurricane WARNING is in specified are of the warning in the next 36 hours. During this time is when you want to complete all preparations.

*Tropical storm is a severe offshore storm developing in tropical seas with less than hurricane for winds, can develop into a hurricane.

*A hurricane is a type of tropical cyclone that forms in the southern Atlantic Ocean, Caribbean Sea, Gulf of Mexico, and in the Eastern Pacific.

BEWARE! Hurricane 2013 is here!

Floridians & East Coasters...tis' the season to be prepared for the WORST!!

Whether it is a Cat 1 or a Cat 4, you need to be ready for anything and everything that these destructive storms can throw at you. We have seen the media plaster the pictures of damage from past storms such as Hurricane Sandy,Katrina, Wilma, Andrew, as well as aftermath of Oklahoma tornado devastation. As a Floridian, we learn to take it as it comes, but we tend to not blink at a smaller storms. The problem with that is you cannot predict mother natures plan. As a homeowner you cannot take the risk, you are protecting not only your family, but also your investment. So ask your self...

Am I ready? 
Here are a few questions to ask yourself...

What is the plan for my family? Will we evacuate or stay home?
Are we in a flood zone? Will we HAVE to?

Evacuating? Where to? What is the best route?
           Will your pets be able to accompany us? Is a pet friendly hotels an option?

Is my home ready?
- Is my roof up-to-date & secure?
- What about storm shutters? generator?
- Yard debris free?

How is our Emergency Supply Kit? Stocked: Food? Water? Batteries? First Aid? 

Is my insurance current? What are my deductibles? 

Do I have a current inventory of my home and boat?
Pictures/Video of each room and all of the contents?

What will I do with my boat/waverunner?
On a trailer? Will it fit in my garage?
In a marina? What are the dockage policies for storms? Is there a Hurricane Club?
What does the Coast Guard dockmaster advise

What to be prepared for?
-Loss of electricity
-No roof
-Severe water damage
-No way to get money out of bank
-No credit cards
-No grocery store/ gas station
-No car- debris blocking streets
-No phones (land or cell)
-No trees
-Not recognizing surroundings
-$5 bags of ice
-lost personal belongings
-Warlike setting with military presence
-Extreme heat and no way to cool off
-Out of home possibly for weeks
-Not able to work
-Chaos!
-Devastation!

Let your smart phone help:
American Red Cross
American Red Cross: Hurricane
American Red Cross: Tornado
American Red Cross: Shelter
FEMA
FloodSmart.gov

NAR Member Profile Report

I found this very interesting.  The biggest issue for REALTORS is the difficulties encountered in getting financing for their clients.  The bulk of my new business comes from clients that came to me because their REALTOR sent them to an "in-house" mortgage person or a "to big to fail bank" that couldn't get them approved due to a lack of knowledge or lack of motivation on the lenders part.

Buying a new home? Refinancing? Now is the Time!

Are you thinking about refinancing your home? Contemplating buying a home? 

If you answered yes either of those questions there are a few tips that will help you in the process...

1. Procrastination NOT allowed
If you haven't recently refinanced your mortgage there is a big chance that you are paying a higher interest rate then you should. Now is the time to take advantage of the current record low mortgage rates. The rates will gradually grow as the year progresses. Don't miss the opportunity to utilize the lowest mortgage rates in history.

2. Hurry Buyers Hurry!
Rates are low. Homes prices are on the rise. Now is the time! If you qualify for a mortgage, TAKE ADVANTAGE! Get pre-approved, don't miss out on the home of your dreams.

3. FHA vs. Conventional
The FHA's 3.5% down is very enticing for a buyer, but don't forget about the fees that are added to your loan (increase expected this summer). A Conventional loan is 5% down given your credit history. If you are able to afford the higher down payment, get quotes from both and compare to see what works best for you.

4. Good Credit, Good idea
2013 will bring new rules and guidelines, but the standards will not change. IF a new mortgage is a goal, then you must consider your credit to be the most valuable asset in obtaining that mortgage. A credit score of 720, no problem; at 680 you will still be able to get a good deal, but the approval process may be a bit more difficult. Tip: check your credit, if you are using more then 30% of your available credit you may be hurting your score. 

5. Pay off early? 
Every though about refinancing from a 30 year to a 15-20 year mortgage? Can you afford a slightly higher monthly payment? 

6. Underwater?
Like many Americans you may owe more than your home is worth, but have had no luck with refinancing in the past? There is a program that may be able to help. The Home Affordable Refinance Program (HARP) was altered to help the homeowners to refinance no matter how underwater they were on their mortgage. There were recent revisions to the program that will help borrowers overcome obstacles they have run into in the past. Don't let a lenders' No, be the end.                                                                                     

7. Communicate, your Lender knows
There are new programs available for those who grapple to keep up to date with their mortgage payments. Lender are willing to work through delinquent loans and assist the homeowner in the best way possible. They can help modify the loan  or even short sale the home if the homeowner cannot afford to stay in it. The only way to find a solution is to communicate through what will be a maddening process. 


8. Compare & Shop
Comparison shopping is for more then groceries and car insurance, but what lender can help you get the best mortgage possible. To make a fair comparison get 3 quotes from different lenders, quotes including closing costs. Start with referrals from friends and relatives, even someone you worked with on a previous home. Read online reviews from others borrowers they have worked with in the past, favor a good reputation. 

9.  You're APPROVED, don't mess it up now!
It is not uncommon that a lender order a second credit report just prior to the closing dates. Knowing this you don't want to open a new bank account or make any changes to existing accounts or credit cards. These actions are a capable of hurting your score and causing a last minute denial of your mortgage loan. 



10. It's only just begun
Your application is in, rate is locked, and yet the fun has just begun. It is important to submit any and all requests from your loan officer in a timely manner to avoid any delay ion closing or worse,risk losing your locked rate. Follow up with your lender at least once a week to ensure there are no snags in the process.

Floods, Hurricanes, and Tornados, Oh My!

Floods, Hurricanes, and Tornados, Oh My! 

Florida is famous for weather related problems and those weather related problems cause insurance problems. Problems that lead to the cost of insurance is one of the main concerns for buyers when purchasing in Florida. Anyone that works in real estate sales or the mortgage industry has to be capable of addressing legitimate concerns of clients when it comes to the cost of homeowners insurance. To do that you must be familiar with the history of Florida’s insurance issues over the years.

Over the last forty years Florida has been one of the fastest growing states in the US. Florida, also known as The Sunshine State is known for its sandy beaches and beautiful coastline, it is not hard to figure out where people want to live. The most desired location is of course the hardest hit when it comes to hurricanes and floods.

In the aftermath of 1992’s Hurricane Andrew Category 4 devastation that cost insurance companies more than $25 million, smaller companies closed and larger insurance companies were able to petition the state for a massive premium increase to help cover their losses. It took until 2004 for them to catch up, leaving many of the smaller insurance companies hesitant to write policies in Florida. Homeowners were left with rising insurance rates and cuts to the coverage just in time for not one or two or even three, but four major storms in one hurricane season throwing the insurance industry in to complete chaos. The next season brought even more destruction with five major storms including Katrina, the most expensive Atlantic hurricane in history. 

The vast number of claims submitted to insurance companies still in business lead to a large number of policy holders to be dropped while others joined the mass "evacuation" that started in the wake of Andrew.

As for real estate agents, they understood that the only thing worse than expensive insurance was no insurance at all. The banks will not close on a loan without proper proof of insurance. So Citizens Property Insurance Corporation was put into action in 2002, to ensure that Florida home owners, no matter where they lived would have access to property insurance. The more other insurance companies dropped their policy holders the more Citizens evolved from the last resort insurance to the largest insurance provider for the state. Since Citizens is a tax-payer funded insurance company, this created new issues, potentially every homeowner in the state could be on the line for claims. 

With the cost of insurance and its availability becoming an important hot topic during the 2006 Florida elections, Citizens Insurance charged its customers the highest rate approved by the Office of Insurance Regulation to avoid competing with private carriers. Insurance agents were actually prohibited from writing policies through Citizens if there was a private (not surplus lines) carrier who would write the risk. If a qualified insurance company was willing to take a group of policies, Citizens Insurance would transfer them to that company and cancel coverage. Customers had no recourse.

As a result Florida Senate Bill 2498 a.k.a. The Glitch Bill, was signed into law by Governor Christ in June of 2007. This legislation permitted agents to write a Citizens policy for customers if the premium for a comparable policy offered by a private carrier was 15% more expensive. Customers were also allowed to stay with Citizens Insurance if they were notified that their policy was being assigned to a private carrier.

In 2010, eight global insurance carriers entered or re-entered the Florida market. While the cost of reinsurance dropped 10% the cost of insurance to consumers remained the same.

Which brings us to February of this year, Florida Sen. Jeff Brandes filed Florida Senate Bill 724, a comprehensive bill to overhaul Florida property insurance law to avoid new "hurricane taxes" which would be necessary if another catastrophic hurricane ravaged the state. The proposal is unpopular among many Citizens customers because it would mandate more rate increases to what they consider to be already high premiums. A similar bill was defeated in 2012.

I hope this helps you in understanding the many issues that can effect a successful closing of your home purchase and the added demands of homeownership.

Cutting Edge Marketing with Digital Docs and Forever Marketing Presentation

Cutting Edge Marketing with Digital Docs and Forever Marketing Presentation

We are happy to deliver a presentation focused to assist professionals in the real estate industry brought to you by Digital Docs and Forever Marketing, Smart Title and Settlement Service, Inc., and The Mortgage Firm.  This cutting edge hyper-focused event is being put on to showcase the next generation of real estate closing and post closing marketing. The union of these three companies works out in every Realtor’s favor because of the unique benefits each company provides.

Digital Closing Docs with Forever Marketing - Created by real estate professionals, for real estate professionals. Digital Closing Docs with Forever Marketing provides you with automatic effective contact with past clients and repeat business—just by closing with Smart Title & Settlement Service Inc.

Smart Title and Settlement Service Inc. - Title orders have a 24 to 48 hour turnaround time. Providing nationwide coverage requires them to adhere to the individual state guidelines therefore each state has a different time schedule. Smart Title and Settlement Services Inc. has a network of notary closers and attorneys available day, night, & weekends. They close and disburse accurately and timely.

The Mortgage Firm - Suzanne Morton - The Mortgage Firm takes great pride in the ability to offer the most complete selection of financial options available. They are a full service mortgage banker with an experienced, knowledgeable staff who will work closely with you offering you both guidance and support in recommending mortgage solutions that meet your financial situation.

The skill and experience these professionals bring to any real estate transaction will help you close deals and provide repeat business down the road. Please join us for the presentation on April 17^th, 2013 at Slainte Irish Pub in Boynton Beach, Florida at 9:30 am for the presentation.

10 Things That SQUASH Your Mortgage Application

10 things that could SQUASH your ability to get a mortgage...

1. Bouncing from job to job
2. You're a deadbeat paying child support or alimony
3. You continue to apply for credit
4. Closing a credit account
5. Borrowing money for the down payment
6. If buying a condo, current condo owners are in arrears on their association dues
7. Small loan amount
8. Outstanding collections
9. Too many hits on your credit score
10. Double "apping"

Confusing?  Contact us today...