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April 2007

100% Financing, the Right Way!

I am sure that you are hearing all kinds of bad press on the topic of 100% financing.  The foreclosures are increasing at an alarming rate, and the lenders are going bankrupt.  This phenomenon is due mainly to the fact that subprime lenders have been offering adjustable rate mortgages with fancy names(option arm) and lower payments to start (interest only).  The birth of the internet has allowed people to do research before applying for a mortgage.  The problem is that the borrowers get themselves into situations where they can't get out.  Once the interest rates rise, and the payments adjust upward, they come to another realization.  They can't refinance since their loan contains a prepayment penalty... upwards to tens of thousands of dollars.  Buyers need to start listening to their realtors, go with a locally experienced lender and choose a basic fixed rate loan.  With rates still very low, there is no reason why buyers need to be applying for anything other than a fixed interest rate.  I can still get many buyers approved with 100% financing including borrowers with mid 500 scores.  With a 6% sellers assistance toward their closing costs they can buy a home for as little as $ 500.  There aren't any prepayment penalties, adjustable rates, or anything other than a standard fixed rate.  People need to look no further than their own local lender for their mortgage.

Andy Williams


Abacus Regional Mortgage( formerly EHJM Mortgage Corp)

Visit me on the web!

Adopt a Kitten

Penn Estates' volunteer cat lady, Naomi Gauntlett, has a continuous supply of gorgeousKittens kittens available for adoption.  Here are a couple she has right now.   Please contact her if you are interested...but don't be offended if she asks you alot of questions because she does screen potential adoptors and will only let the kittens go to good homes.  Fees may apply to cover the cost of shots and sterilization.  You can reach Naomi at 570.420.1122 but please only call her on weekends.

Doing homework is homebuyer's best strategy

This bears repeating:  A homebuyer's best strategy is to do her/his homework.

Alot of times, potential homeowner's think that looking at houses online, before actually getting out to look at homes, qualifies as research.  While this may be true to a certain extent, finding the house is really one of the last steps.  I have written before about the importance of choosing a professional Buyer's Agent early on in the process, so I won't get in to that here.  However, the next-most-important piece of the puzzle is the are you going to pay for the home that you choose, and how are you going to convince the seller to negotiate with you (ie with a pre-approval letter)?

While looking at properties online, no matter what site or sites you use, you will be bombarded with offers of financing from a myriad of companies, brokers and banks.  Be wary, be VERY wary.  Predatory lending is a huge problem these days, especially online.  I highly recommend that you get lender references from people you know who have had good experiences, work with the bank that currently handles your other accounts (checking, savings, etc), or, the absolute best choice, ask your Buyer's Agent for some lender references!  This is the best choice because your Agent knows who does a good job in the area you are purchasing in and, hopefully, the recommendations will be based solely on his/her successful transactions with them and past client satisfaction.

The two rules of thumb with regard to obtaining mortgage financing are as follows:  1) The more questions you ask, the better; and, 2)  If it sounds too good to be true, it probably is.  I am not making light of this but these are the simplest, basic truths when it comes to avoiding predatory lending and, worse, possible eventual foreclosure.

So, here is your homework: write to me at [email protected] for a list of reputable Pocono lenders and a copy of a great pamphlet, 'How to Avoid Predatory Lending', which was put together through a joint effort of the National Association of REALTORS (c) and The Center for Responsible Lending.  It details warning signs, what can happen and what questions you should be asking a prospective lender.  This is only available in hard copy, so please send me your name, snail-mail address and phone # (in case there is a problem with your order-don't worry, I won't harrass you on the phone or give or sell the # to anyone!).

Additionally, do some reading online: is a great place to start. 

And of course, post your questions here, give me a call, or send me an email!   

Stroudsburg Cheerleading Flower Sale Fund Raiser

If you normally buy flowers every spring, why not buy from the Stroudsburg Cheerleading Association?

School budget cuts make it necessary for the cheerleaders to find alternate methods of replacing their 5 year old uniforms so they have come up with this great flower sale idea! Robin Hightman, PEPOA Board member and volunteer extraordinaire is accepting orders on behalf of her daughter who is in the program.  Proceeds of this sale will also assist the cheerleaders with the cost of going to camp and related expenses. 

You will see a wide variety of flowers sold by the flat for your garden or patio/deck boxes, and hanging baskets:  Download Flowersalepics.doc (813.0K)

Orders should be emailed to [email protected] by May 4-Download flowerorderform.doc (74.5K) Cash or check payable to Robin Hightman.  Flowers will be in around May 18.