The Mindset of a Superstar

Crofton, MD Bill Vourazeris

The Mindset of a Superstar
Three Steps to Success

Brett Figueroa is a personal success coach who worked under Tony Robbins for 6 years, and is now the owner of Momentum Strategies in Denver, Colorado. Brett says that there are three primary factors that put someone at the top of their game.

The Ultimate Goal.

Remember the movie City Slickers? What is your "one thing?" The one thing you want to truly make your life feel complete. "Too many people", Brett says, "go through life with a notion of what they want, without ever figuring out exactly what they want." Do you want to retire in a beachfront estate? Create a happy family? End world hunger?

The Strategy.

Once people know what they want, they need to map out how to get there. How will they position themselves to where they can reach their goal? If you don't yet have your map, look to others who have achieved what you want. Offer to buy them lunch so you can pick their brains. Create a map rather than just wandering around, hoping to stumble onto your dreams one day.

The Timeline.

When will you achieve your goal? What do you need to get there? When must you reach specific sub-goals in order to reach your final goal? Brett points out that if a person sets aside just one hour a day for their personal goal, they will have spent nine 40-hour weeks working on it by the end of the year!

If you don't already have these three components defined in your life, I recommend taking some time to do so when you're away from work. Check out some self-help books from the library, or buy a highly-rated one at Amazon.com. Get inspired, get ready, then get to work!

Stay tuned for more coming your way!

The FSBO Assistant

Crofton MD Bill Vourazeris
The FSBO AssistantGiving to Receive

One nice thing about For Sale By Owner (FSBO) homes is that the owners advertise to the general populace, which makes them easy to find! You have their address in any ad they put out, which means you can do some extremely targeted marketing.

Another important thing to know about these "do-it-yourself" types is that most of them fail in trying to sell their own homes, and end up needing the services of a Real Estate Agent. You just need to make sure you're the first agent on their mind!

To that end, I recommend giving the FSBOs in your area a small kit you can label the "FSBO Assistant." There is actually a two-fold reason to give out these kits. The first one is obvious: You have to give in order to receive. By presenting value up front, you are earning the trust of the homeowner, and making it much more likely that they will choose you should they decide to use an Agent.

The second reason is a bit more subtle: By introducing them to the piles of paperwork and material that FSBOs need to understand, you show them what you get paid for, and why it's worth it to use you rather than try to do it themselves!

Here is an abbreviated list of some of the documents I would include:

A Generic Purchase Agreement
Escrow, Settlement, or Closing Instructions
Title Insurance Policy
Settlement or Closing Statement
General Warranty Deed
Special Warranty Deed
Bargain and Sale Deed
Lead-based paint Seller Disclosure
A list of other documents they'll need

Your Personal Brochure Most importantly, include an offer to help them should they feel overwhelmed! This will give you more opportunities to sell them on your service later on. Be sincere in your desire to help them, and they'll be more receptive to you becoming their agent.

Let me know how this helps you as you pursue FSBO clients!

Call me when you have a client who needs special assistance in obtaining their next home loan.

Creative Tax Tips for Real Estate Agents

Crofton, MD Bill Vourazeris

Creative Tax Tips for Real Estate Agents Money-Saving Ideas You Won't Want to Miss
Albert Einstein once said that "the hardest thing in the world to understand is income tax." For Einstein, tax return preparation was the business of "philosophers, not mathematicians." If there's anyone who can truly relate to this famous quote, it's a real estate professional. With fluctuations in income and an ever-changing real estate market, it's easy to see how one or two minor mistakes can be costly or even detrimental to your bottom line. As your long-term strategic business partner, your success is important to me, and so I'm always searching for ways to add value to your business to help give you an edge over the competition. With this in mind, I'd like to share with you a great interview I have on CD with expert tax attorney, Ed Lyon, an award-winning author, speaker, and consultant. Ed Lyon concentrates his practice on helping real estate agents and investors avoid costly tax mistakes. In just one hour, you can learn several small changes you can make to save thousands of dollars in income taxes. For Ed, the key to tax preparation is preparation itself, and his forward-planning process provides "audit-proof" tax deductions, credits, and loopholes that even Einstein could appreciate. From cars, meals, entertainment, client gifts, and home offices to retirement plans and medical expenses, these deductions amount to huge savings for real estate professionals in today's marketplace. Topics discussed include:
Create an ongoing, proactive business plan to legally beat the IRS without raising a single red flag.
Discover the pros and cons of S Corp, C Corp, and LLCs, and how real estate agents should structure their businesses to maximize money-saving deductions.
Learn the proper documentation to avoid "gray areas" and protect yourself from IRS audits. The IRS provides very specific guidelines as to what records to keep and for how long. By being prepared to produce these records, any potential action taken by the IRS can be immediately resolved.
Utilize family employment strategies to recover many qualified "unreimbursed" expenses, including high-ticket items, like braces for your children's teeth!
Find out about the "creative tax deductions" real estate agents most often overlook, including home office, automobile, meal, and entertainment expenses, as well as the IRS-approved method for simplifying the documentation associated with these deductions.
Learn the importance of meeting with your CPA or Tax Preparer quarterly to create peace of mind and avoid the anxiety of the April Tax scramble.
Listen to this interview while you're in the car or at the gym and see if there aren't a few ways you can make your income taxes less taxing. Call me, and I'll send it over right away.

Make your next open house a winner!!!

Crofton,MD Bill Vourazeris

Make Your Next Open House a Winner

Provide Prospects with Finance Options
Many Real Estate professionals feel that open houses are too time-consuming. Frankly, they are time-consuming. But I can provide assistance as a mortgage professional on hand to field many questions for you regarding financing options.Even in a booming market, homes don't sell themselves. I would like to be an ally for you and assist you at your open house events by providing answers to questions about financing on location. I am prepared to help you roll out the red carpet for your upcoming open houses with the following info-marketing materials:

Pre-qualification on the spot
Sample financing options for the property
Current "Hot List" of loan programs
Information about the credit scoring process
Tips for credit cleanup
First Time Home Buyer's Guide*

As a follow-up, I can also provide pre-approval for prospects so they may shop as a cash buyer. Your seller will receive legitimate offers through this process, and I will be able to weed out any unqualified prospects. I have a sophisticated database management system for follow up, and I ask many questions about each prospect's long-term goals. This enables me to get a clear picture of what type of financing is best for them, and work with them as an advisor rather than someone who simply quotes rates and provides the debt.

It is important for you to know that my policy is as follows: My job just begins when the client's loan closes with me. I continue to monitor rates for the borrower and stay focused on helping them manage this debt. In addition, I send out a friendly quarterly newsletter, a financial newsletter, and follow up with an Annual Mortgage Planning Review. At any time throughout the life of their loan, my clients are advised to inform me of any changes which might affect their financial situation, at which point I provide them with spreadsheets to help them see what their options are.

Let me know when you would like me to work an open house with you, and provide me with the property information so I may prepare relevant materials to outline financing options for the home.

*RESPA laws require Real Estate professionals to pay a proportionate amount of the costs for co-op marketing and distribution. I have negotiated fair rates with my vendors, and I believe you will find the costs are reasonable. (See http://www.hud.gov to access RESPA ruling 24CFR3500.14.)

Summary of the “Housing and Economic Recovery Act of 2008"

Crofton, MD Bill Vourazeris Here is a summary of the new bill That President Bush just signed.

Summary of the “Housing and Economic Recovery Act of 2008"

A. Summary of the “Federal Housing Finance Regulatory Reform Act of 2008"

This legislation strengthens and modernizes the regulation of the housing government-sponsored enterprises – Fannie Mae and Freddie Mac (the enterprises) and the Federal Home Loan Banks (FHLBs or Banks) – and expands the housing mission of these GSEs. In addition, it creates a new program at FHA that will help at least 400,000 families save their homes from foreclosure by providing for new FHA loans after lenders take deep discounts.

I. Safety and Soundness Regulation of the Housing GSEs

The “Federal Housing Finance Regulatory Reform Act of 2008" establishes a new, independent, “world class” regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the housing government-sponsored enterprises (GSEs). The legislation endows this regulator with broad new authority, equivalent to the authority of other federal financial regulators, to ensure the safe and sound operations of the GSEs, including the power to:

establish capital standards;

establish prudential management standards, including internal controls, audits, risk management, and management of the portfolio;

enforce its orders through cease and desist authority, civil money penalties, and the authority to remove officers and directors;

restrict asset growth and capital distributions for undercapitalized institutions;

put a regulated entity into receivership;

and review and approve (subject to notice and comment) new product offerings.

II. Mission Improvement

The new legislation also significantly enhances the affordable housing component of the GSEs’ mission, and expands the number of families Fannie Mae and Freddie Mac (the enterprises) can serve by raising the loan limits in high cost areas (areas with median house prices that are higher than the regular conforming limit) to 150% of the conforming loan limit. Currently, this would be $625,000.
For the enterprises, the legislation tightens targeting requirements of the affordable housing goals, and rewrites those goals to ensure that the enterprises provide liquidity to both ownership and rental housing markets for low and very-low income families. The legislation requires the enterprises to serve a variety of underserved markets, such as rural areas, manufactured housing, and the preservation market. The legislation improves reporting requirements for affordable housing activities, including the expansion of the public use data base, and strengthens the new regulator’s ability to enforce compliance with the housing goals.
Finally, the legislation creates a new Housing Trust Fund and a Capital Magnet Fund, financed by annual contributions from the enterprises, which will used for the construction of affordable rental housing.

For the Federal Home Loan Banks (FHLBs), the legislation requires new affordable housing goals similar to those that apply to the enterprises for FHLB mortgage purchase programs. The legislation also requires the FHLBs to create a public use data base for such programs. Treasury-certified Community Development Financial Institutions (CDFIs) would become eligible to join FHLBs. Finally, community financial institution members of the FHLBs may use FHLB advances for community development purposes.

B. Summary of the “HOPE for Homeowners Act of 2008"

The “HOPE for Homeowners Act of 2008" creates a new, temporary, voluntary program within FHA to back FHA-insured mortgages to distressed borrowers. The new mortgages offered by FHA-approved lenders will refinance distressed loans at a significant discount for owner-occupants at risk of losing their homes to foreclosure. In exchange, homeowners will share future appreciation with FHA.
The program is built on five principles:

1. Long-term affordability. The program is built on the idea, expressed by Federal Reserve Chairman Bernanke, that creating new equity for troubled homeowners is likely to be a more effective way to avoid foreclosures. New loans will be based on a family’s ability to repay the loan, ensuring affordability and sustainable homeownership.

2. No investor or lender bailout. Investors and/or lenders will have to take significant losses in order to benefit from the proceeds of the loans refinanced with government insurance. However, these losses would be less than the losses associated with foreclosure.

3. No windfall for borrowers. Borrowers will share their new equity and future appreciation equally with FHA. Borrowers will pay for the FHA insurance.

4. Voluntary participation. This will be a voluntary program. No lenders, servicers, or investors will be compelled to participate.

5. Restore confidence, liquidity, and transparency. Credit markets are fearful and frozen in part because banks and other financial institutions do not know what their subprime mortgages and related securities are worth. The uncertainty is forcing lenders to hoard capital and stop the lending necessary for economic growth. This program will help restore confidence and get markets flowing again.

Program Oversight. The new program will be overseen by a Board made up of the Secretary of HUD, the Secretary of the Treasury, the Chairman of the Federal Reserve Board, and the Chairman of the Federal Deposit Insurance Corporation (FDIC). The Board will have the authority to develop standards within the framework of the legislation.
Eligible Borrowers. Only owner-occupants who are unable to afford their mortgage payments are eligible for the program. No investors or investor properties will qualify. Homeowners must certify, under penalty of law, that they have not intentionally defaulted on their loan to qualify for the program and must have a mortgage debt to income ratio greater than 31 percent as of March 1, 2008. Lenders must document and verify borrowers’ income with the IRS.

New Loan Amount. The size of the new FHA-insured loan will be lesser of the amount the borrower can afford to repay, as determined by the current affordability requirements of FHA; or, 90% of the current value of the home. Loans must be 30-year, fixed rate loans.
Equity & Appreciation Sharing. In order to avoid a windfall to the borrower created by the new 90% loan-to-value FHA-insured mortgage, the borrower must share the newly-created equity and future appreciation equally with FHA. This obligation will continue until the borrower sells the home or refinances the FHA-insured mortgage. Moreover, the homeowner’s access to the newly created equity will be phased-in over 5 years.
Eligible Mortgages. In order to protect against adverse selection, the program prohibits the Secretary from paying an insurance claim whenever the representations and warranties required to be made by lenders are violated, or in cases in which a borrower has an early payment default and misses the first payment. The Act provides the Board the authority to establish other protections against adverse selection, such as requiring “seasoning” for certain higher risk loans before they can be insured under the program. Appraisers of property insured by FHA must be certified by the state where the property is located, or by a nationally recognized professional appraisal organization, and have “demonstrated verifiable education” in FHA appraisal requirements.
Existing Subordinate Liens. Before participating in this program, all subordinate liens must be extinguished. This will have to be done through negotiation with the first lien holder.
Qualified Safe Harbor. The legislation provides servicers with an incentive to participate in the program by offering a safe harbor against legal liability.
Program Size. The program is authorized to insure up to $300 billion in mortgages and is expected to serve approximately 400,000 homeowners.
Program Sunset. The program will begin October 1, 2008 and sunset on September 30, 2011. CBO say the program will net nearly $250 million for taxpayers. The program is paid for by using part of the Affordable Housing Trust Fund; the GSE bill provides a further $2 billion cushion for the government by establishing a reserve fund at Treasury over ten years. If the program costs less than projected, the unused funds are returned to the Affordable Housing Trust Fund. If the program more than pays for itself (as was the case during the Roosevelt Administration), any excess savings are dedicated to reducing the national debt.

C. Summary of the “Foreclosure Prevention Act of 2008"
The Foreclosure bill passed by the Senate on April 10 contains the following provisions designed to address the problems faced by families and their communities in light of the foreclosure crisis:

FHA Modernization. To ensure that additional families can access the FHA program, which provides safe, fixed-rate mortgages, significant FHA reform is included to modernize, streamline and expand the reach of the FHA program. Under this bill, the FHA loan limit is


increased from 95% to 110% of area median home price with a cap at 150% of GSE limit (currently, $625,000), allowing families in all areas of the country to access homeownership through FHA. Downpayments of 3.5% will be required for any FHA loan and counseling requirements are enhanced to help provide for stable homeownership.

Assisting Communities Devastated by Foreclosures. Homes that have been foreclosed upon and are sitting unoccupied lead to declines in neighboring house values, increased crime and significant disinvestment. To ensure that communities can mitigate these harmful effects of foreclosures, $3.92 billion is provided to communities hardest hit by foreclosures and delinquencies. These supplemental Community Development Block Grant Funds will be used to purchase foreclosed homes, at a discount, and rehabilitate or redevelop the homes to stabilize neighborhoods and stem the significant losses in house values of neighboring homes.


Providing Pre-Foreclosure Counseling for Families in Need. To help families avoid foreclosure, this bill provides $150 million in additional funding for housing counseling. These funds will be distributed by the Neighborhood Reinvestment Corporation by the end of 2008 to ensure families can quickly get the help they need. As many as 250,000 additional families connect with their mortgage servicer or lender to explore options that will keep them in their homes as a result of these counseling funds. In addition, $30 million is provided to help provide legal services to distressed borrowers.


Enhancing Mortgage Disclosure. To ensure that consumers are provided with timely and meaningful disclosures in connection with mortgages, the bill expands the types of home loans subject to early disclosures (within three days of application) under the Truth In Lending Act (TILA) including refinancings. The bill requires that disclosures be provided no later than 7 days prior to closing so borrowers can shop for another loan if not satisfied with the terms. The bill requires a new disclosure that informs borrowers of the maximum monthly payments possible under their loan, and also increases the range of statutory damages for TILA violations from the current $200 to $2000 to $400 to $4000.


Preserving the American Dream for Our Nation’s Veterans. To assist returning soldiers avoid foreclosure, this bill lengthens the time a lender must wait before starting foreclosure from three months to nine months after a soldier returns from service and also provides returning soldiers with one year relief from increases in mortgage interest rates. In addition, the Department of Defense is required to establish a counseling program to ensure veterans and active service members can access assistance if facing financial difficulties. Also included is a provision that increases the VA loan guarantee amount, so that veterans have additional homeownership opportunities. The bill contains provisions to do the following: increase benefits paid to veterans with disabilities such as blindness for the purpose of adapting their housing; provide a moving benefit to servicemen and woman who are forced to move out of rental housing because the owner of the housing was foreclosed on; provide that veterans benefits received in a lump sum are treated the same for the purposes of eligibility for housing assistance as monthly benefits; and to allow the Veterans Administration to provide for improvements and structural alterations to homes of veterans with service-connected disabilities.

How does this Stimulus Package affect local real estate markets?

Crofton MD, Bill Vourazeris-How are the rapidly changing real estate and credit markets are affecting us locally?

I've worked in the mortgage industry for 10 years, and I've funded over 2000 loans in my career - and I've seen this market hit many highs and survive some tough lows. Let me be your resource as you cover this rapidly changing market.

In February, the President signed into law the Economic Stimulus Package in an effort to revive our battered economy. I wanted to be sure you knew that the legislation is about more than just rebate checks; it can also have a positive impact on current and future homeowners.

Many of your readers may not be aware of how this bill could create opportunities to save money on their home financing. Here are some of the questions I believe your readers should consider, and I would be happy to lend my experience and expertise to help explain how our community may be able to take advantage of the temporary rules created by this important legislation:


What impact does the Stimulus Package have on borrowers?
•"The Economic Stimulus Act of 2008 is a $168 billion plan intended to jumpstart the sliding U.S. economy. The new bill is designed to help certain ‘high-cost regions' of the struggling housing market by 1) Temporarily increasing the ‘conforming loan limit' from $417,000 to as high as $729,750 in specified areas; and
2) Temporarily increasing the size of loans the Federal Housing Administration (FHA) can insure from $362,000 to as high as $729,750 in specified areas."

What do these new provisions mean for our community?
•"For those looking to purchase or refinance real estate in a ‘high-cost region,' this is great news. These temporary increases could help consumers avoid the higher interest rates associated with ‘non-conforming' or jumbo, loans - which are currently more than a point higher than rates on conforming loans. This means more consumers will be able to take advantage of great real estate deals and get more home for less money. In fact, many homes that some borrowers could not afford just a few years ago could now be within reach, thanks to this temporary government program.The Stimulus Package is also very good news for homeowners looking to refinance out of their expensive jumbo loan and into a new ‘conforming loan.' While the legislation limits new mortgage contracts to 2008, it does not exclude the refinancing of any past mortgages. This means that, if borrowers qualify, they can take advantage of the new conforming loan limits no matter how many years have passed since they obtained their mortgage - as long as they get it done before the end of 2008."

How is a high-cost region determined? And does our community qualify as one?
•"A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Not to be confused with the average home price, the median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes. If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine and publish what the median home price is for regions across the country. I can easily access and interpret these figures for our local residents, and help them calculate the new conforming and/or FHA loan limits within minutes."


I look forward to hearing from you. My contact information is listed below.

Bill Vourazeris
M-Point Mortgage Services
443-618-2880

Getting the Best Interest Rate on Your Home Loan?

Getting the Best Interest Rate on Your Home Loan?
A Qualified Mortgage Consultant Can Help Boost Credit Scores
By Bill Vourazeris, M-Point Mortgage Services

Crofton, MD Bill Vourazeris – Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower’s income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It’s important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it’s safe to assume that as the consumer’s credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit – sometimes referred to as “sub-prime” – can range anywhere from A-minus, B-paper, C-paper or D-paper loans.

If you have already taken out a mortgage loan with a higher interest rate because your credit score was a little under par, you will really appreciate the value in doing a little work to improve your credit score. Refinancing from a D-paper loan to a B-paper classification can save literally thousands of dollars in financing fees over time, even though the B-paper loan is still considered sub-prime.

A qualified mortgage consultant will guide you through the nuances of the process of improving your credit score to refinance and save money. First and foremost, he or she will want to review the terms of the existing mortgage loan to determine if you have a pre-payment penalty clause written into your contract. In general terms, that means that if you sell the home or try to refinance before the pre-payment penalty expires and you have not already paid off 20 percent of the original loan amount, you will most likely have to pay a 3 percent fee back to the lender to compensate for the high risk and high costs incurred to provide that financing.

Next, you should obtain free copies of your credit reports from http://www.annualcreditreport.com/ and start working on improving the credit score six months prior to the expiration date on your existing pre-payment penalty.

There are five factors that make up the credit score and your mortgage consultant can coach you through some basic strategies to improve your credit score. This means very conservative use of credit cards, paying off debt as much as possible and not applying for additional credit cards unless you will benefit from such action. You will want to verify that negative items you have paid off are being removed from your credit report, and that good credit history is being reported to all three bureaus. You’ll also want to dispute any errors that appear on your credit reports and seek to have those removed entirely.

Once your credit score improves, it’s time to refinance at a better interest rate. Your mortgage professional should look for a program that carries no more than a two-year prepayment penalty so you can continue to refinance as your credit score increases. You can repeat this process until you reach A-paper status and secure the best interest rate available.

This is a strategy that also works well for first time home buyers who do not have enough credit history under their belt to get an A-paper loan at the time of purchase. The important thing is to work with a mortgage consultant who can give you a roadmap to follow and a strategy for success in building personal wealth.