Scams and Refinances

You know I am always on the lookout for scams that offer deceptive or bogus mortgage financing to my friends and clients. Well, I also keep a lookout for other scams, and here's one that is spreading like wildfire.

Many of us shop at convenient stores or those little gas station stores. Some clerks in those stores have found a way to shop on line using YOUR credit card!

Here's how they do it. When you hand them your credit card, they swipe it and then put it on the counter beside the cash register, just out of your view. During this process, they pretend to be on their cell phone. While the card is out of your view and they are waiting for your transaction to be "approved," they set their cell phone beside it and take a picture. With this picture, they now have your name, credit card number, expiration date, and what kind of credit card it is, you know, master card, visa, and so on. This is really bad news.

Now they can go online and buy items with your credit card, or sell your information to other on-line thieves.

Your thinking, "But they don't have the 3 digit verification number from the back of your card?".

Well it may surprise you to know that many online websites do not require that verification number. There are thousands of on-line stores that will gladly charge your credit card with only the information from the front of your card.

So what do you do? This scam is very hard to safeguard against. So try to be aware of it. When you hand someone your credit card, try not to let it out of your sight, and be conscious of the fact that virtually every cell phone these days has a camera built into it.

Try to find stores where you scan the card yourself. And be sure the employee is giving you their full attention and not "talking" on their cell phone.

While identity theft continues to be a huge problem, I will do everything I can to help protect you against this invasion of your privacy.

This would be a great tip to forward to your friends. They will sure thank you for it. And here's another good tip for you. When you get those financing offers in the mail with the fake checks or unbelievable offers,scan and email them to me, or simply call me on the phone and we can go over them together.

About 99% of them try to look like they are from your bank and well, they are not. Anyone can buy leads from a list company. These list companies provide your full name, address, amount of your mortgage, when you got your mortgage, and the name of your mortgage company.
This is all public information available on-line from your county courthouse.

The people who buy these "leads" then try to trick you into thinking the letter is from someone you can trust. Unless it's from me and has my return address, it's very likely from someone you CANNOT trust.

Please let me save you from a lot of confusion and headaches. Send me the offer; we'll go over it and see if it's a real deal or a rip off. If it's real and I can't beat it, I'll send you 3 crisp $100 bills after you've closed with them. How's that for a no-brainer? Someone you can trust and provides honest information; it just doesn't get any better than that!

Thanks for letting me give you helpful tips today; I'll see you right here next week with another great tip!


Jayne Combs
Mortgage Consultant
NMLS#222444
jcombs@lhfinancial.com
Land Home Financial Service, Inc.
1355 Willow Way #250
Concord, CA 94598

Buying a Primary Residence Without Selling Your Current Home?

Rules for Buying a Primary Residence

Without Selling Current Home! 

Rule:  Home on the market and purchasing new primary residence

Q: What if the current home is NOT sold before purchasing primary residence?

• Must qualify with both monthly payments

• 6 months worth of monthly payments for BOTH homes as a “cushion”
• Can be reduced 2 months worth of monthly payments if current home is 70% LTV or below

Q: What if current home is sold—but NOT closed before purchasing primary residence?

• Must present non-contingent sales contract for sold home
• Must present a lender’s valid loan approval for the new buyer
• Does not have to qualify for both payments

• 6 months worth of monthly payments for BOTH homes as a “cushion”
• Can be reduced 2 months worth of monthly payments if current home is 70% LTV or below
• If sold to relocation company, copy of executed buyout agreement, client does not need mortgage payment cushion or count current payment in qualifying ratios

Rule:  Converting Primary Home into Second Home and purchasing new primary residence

Q: What if client wants to convert their current home into a second home and purchase another primary residence?

• 6 months worth of monthly payments for BOTH homes as a “cushion”
• Can be reduced 2 months worth of monthly payments if current home is 70% LTV or below
• Qualify for both monthly payments

Rule:  Converting Primary Home into an Investment Property

Q:  Can you qualify using rental payments?

§  70% LTV or less on home being converted to rental home

§  Fully executed lease agreement and Proof of receipt and deposit (into bank) of security deposit

§  2 months worth of payments for BOTH homes as a “cushion”

Q: What if the LTV is more than 70%?

• Must qualify with both monthly payments
• 6 months worth of monthly payments for BOTH homes as a “cushion”

Q: How is the LTV determined?

• Exterior-only appraisal dated no more than 60 days from the date of closing.

Only certain borrowers will qualify now to purchase a new primary residence.

Jayne Combs

Land Home Financial Services

Loan Officer

NMLS#222444 and DRE#01231515

jcombs@lhfinancial.com