"You miss 100% of the shots you never take."
-- Wayne Gretzky, Hockey Great
"A man does what he must -- in spite of personal consequences, in spite
of obstacles and dangers and pressures."
-- John Kennedy, 35th U.S. President
"It is not the employer who pays wages -- he only handles the money. It
is the product that pays wages."
-- Henry Ford, Industrialist
"We must take change by the hand or rest assuredly, change will take us
by the throat."
-- Winston Churchill, Former British prime minister
"You make the world a better place by making yourself a better person."
-- Scott Sorrell
"The greater the obstacle, the more glory in overcoming it."
-- Moliere, Playwright
"Don't bother just to be better than your contemporaries or
predecessors. Try to be better than yourself."
-- William Faulkner, Author
"Whenever you do a thing, act as if all the world were watching."
-- Thomas Jefferson, Third U.S. President
"Avoiding danger is no safer in the long run than outright exposure. The
fearful are caught as often as the bold."
-- Helen Adams Keller, American Author and Lecturer
"The great use of life is to spend it doing something that will outlast it."
-- William James, Psychologist
"If you can give your son or daughter only one gift, let it be
enthusiasm."
-- Bruce Barton, Executive
"I rate enthusiasm even above professional skill."
-- Edward Appleton , Physicist
"Confidence and enthusiasm are the greatest sales producers in any kind
of economy."
-- O. B. Smith
"Nothing in the world can take the place of persistence. Talent will
not; nothing is more common than unsuccessful men with talent. Genius
will not; unrewarded genius is almost a proverb. Education will not; the
world is full of educated failures. Persistence and determination alone
are omnipotent."
-- Calvin Coolidge, 30th President of the United States
"Success is not to be pursued; it is to be attracted by the person you become."
-- Jim Rohn, Author
"Either write something worth reading or do something worth writing."
-- Benjamin Franklin, Inventor
"Thought is the original source of all wealth, all success, all material
gain, all great discoveries and inventions, and of all achievement."
-- Claude M. Bristol, Author
"People die of fright and live of confidence."
-- Henry David Thoreau, Author, Philosopher
"As you simplify your life, the laws of the universe will be simpler;
solitude will not be solitude, poverty will not be poverty, nor weakness
weakness."
-- Henry David Thoreau, Author, Philosopher
"Pretend that every single person you meet has a sign around his or her
neck that says, "Make me feel important." Not only will you succeed in
sales, you will succeed in life."
-- Mary Kay Ash, Entrepreneur
"The bad news is time flies. The good news is you're the pilot."
-- Michael Altshuler
Friday, September 4, 2009
More Info on Loan Mods!
Loan mod 'boiler room' alleged
Lawsuit reveals details of California company's operations
BY MATT CARTER
Inman News
A loan-modification company based in Southern California allegedly spent $70,000 a week on radio and television advertising for its sales force to generate 500 calls a day from desperate homeowners facing foreclosure around the country.
Employees reportedly manned 44 office cubicles, working staggered shifts in "a well-appointed telephone boiler room" to generate about $6.2 million in revenue for Anaheim, Calif.-based H.E. Servicing Inc. and related businesses, but helping only about one in 10 of the nearly 3,000 borrowers who paid up-front fees of $1,000 or more.
Those are among the preliminary findings in a report by a court-appointed receiver assigned to take over H.E. Servicing on July 9, after the company and dozens of others were shut down by state and federal officials this month.
The U.S. Federal Trade Commission said its coordinated effort with 23 state attorneys general targeting mortgage-rescue scams resulted in lawsuits against 178 companies accused of deceptive marketing of foreclosure-rescue and loan-modification services (see story).
H.E. Servicing Inc. was one of the aliases used by US Foreclosure Relief Corp., according to a lawsuit filed against the company by the FTC and the states of California and Missouri.
The case against H.E. Servicing sheds light on how one company's attempt to avoid California's restrictions on charging up-front fees for providing loan-modification services led to charges that it employed deceptive marketing practices.
'Consumer deception'
Thomas McNamara, the receiver appointed to examine the operations and finances of H.E. Servicing and other businesses connected to US Foreclosure Relief Corp., said he found "multiple examples of zealous sales techniques, which, by any standard, crossed the line into express consumer deception."
California has imposed restrictions on the collection of advance fees for providing loan-modification services -- only licensed real estate brokers with preapproval letters may engage in the practice -- but those restrictions do not apply to lawyers or law firms (see story).
In his report, McNamara said defendant George Escalante had dissolved the operations of a previous loan-modification company after being contacted by the Orange County District Attorney's Office in October 2008.
After locating a recent law-school graduate to partner with through an ad he placed on Craigslist.org, Escalante again began providing loan-modification services through H.E. Servicing, the report said.
The lawyer -- and another who replaced him when Escalante's original partner "expressed a desire to withdraw from the business as he saw it as high risk" -- were paid a share of the fees collected from each client, totalling about $620,000, the report said. But McNamara found little evidence they performed any work.
"Despite defendants' limited efforts to create the illusion, this was not a law firm ... (but) Escalante's business," McNamara's report said. "He paid the rent, hired the employees, outfitted the offices, ran the finances, and ultimately controlled the operations."
The sales staff manning the phones at H.E. Servicing were instructed to claim that the company was "attorney based," and staffed by more than 100 workers who had achieved a 90 percent success rate in negotiating more than 10,000 loan modifications, the report said. In fact, the company had just eight loan negotiators working with lenders when it was shut down, and completed only 311 loan modifications on behalf of clients from November 2008 through July 8, the report said.
Of the the 2,960 applications for which the company collected fees of $1,000 to $2,500, only 11 percent had resulted in closed modifications by the time the company was closed down, the receiver said.
The company employed a sales force of 31 at the time it was shut down, McNamara found, and less than half as many employees engaged in negotiating loan modifications with lenders or processing related documents.
Employees in sales were typically paid a $450 commission when a client paid the full $2,500 fee up front, regardless of the outcome of the case. By contrast, eight staff negotiators earned $500 a week plus $75 for every loan modification they were able to negotiate.
Aftermath
Although H.E. Servicing had completed only 311 loan modifications, it had submitted another 791 applications to lenders and had another 1,051 "in various stages of preparation" for submission, the report said. More than 400 clients had received refunds after canceling their service.
On taking possession of H.E. Servicing's Anaheim office under power of a temporary restraining order, McNamara said he sent the sales force home and placed a voicemail on the phone alerting callers that the company's operations had been suspended. The message advises callers to contact their lender directly or contact the HOPE NOW coalition of loan servicers working with the Department of Housing and Urban Development.
After a hearing on July 17, the U.S. District Court for the Central District of California issued a preliminary injunction keeping the terms of the temporary restraining order in place. A hearing has been set for July 28 to consider options for assisting homeowners who contracted with the company, the California Attorney General's office said in a press release.
About 80 percent of the company's clients live outside of California, an obstacle to allowing H.E. Servicing to attempt to resume business in a lawful manner, McNamara said. Ohio, North Carolina, Indiana and Georgia have all subjected the company to cease-and-desist letters.
Although H.E. Servicing's alleged practice of misleading consumers could in theory be corrected, McNamara said, the company's business structure "has systemic flaws" related to its collection of advance fees. Lawyers are not allowed to split fees with non-lawyers, McNamara said.
Other than lawyers, only licensed real estate brokers with letters of approval from the California Department of Real Estate are allowed to collect fees in advance for providing loan modification services, the report noted.
McNamara called it "a challenge to precisely categorize" H.E. Servicing's business model.
"It is not a law practice. It is not a licensed mortgage or real estate company," McNamara wrote. "Rather, I see this business as a high-pressure, cash-up-front telephone sales business targeting distressed homeowners."
Lawsuit reveals details of California company's operations
BY MATT CARTER
Inman News
A loan-modification company based in Southern California allegedly spent $70,000 a week on radio and television advertising for its sales force to generate 500 calls a day from desperate homeowners facing foreclosure around the country.
Employees reportedly manned 44 office cubicles, working staggered shifts in "a well-appointed telephone boiler room" to generate about $6.2 million in revenue for Anaheim, Calif.-based H.E. Servicing Inc. and related businesses, but helping only about one in 10 of the nearly 3,000 borrowers who paid up-front fees of $1,000 or more.
Those are among the preliminary findings in a report by a court-appointed receiver assigned to take over H.E. Servicing on July 9, after the company and dozens of others were shut down by state and federal officials this month.
The U.S. Federal Trade Commission said its coordinated effort with 23 state attorneys general targeting mortgage-rescue scams resulted in lawsuits against 178 companies accused of deceptive marketing of foreclosure-rescue and loan-modification services (see story).
H.E. Servicing Inc. was one of the aliases used by US Foreclosure Relief Corp., according to a lawsuit filed against the company by the FTC and the states of California and Missouri.
The case against H.E. Servicing sheds light on how one company's attempt to avoid California's restrictions on charging up-front fees for providing loan-modification services led to charges that it employed deceptive marketing practices.
'Consumer deception'
Thomas McNamara, the receiver appointed to examine the operations and finances of H.E. Servicing and other businesses connected to US Foreclosure Relief Corp., said he found "multiple examples of zealous sales techniques, which, by any standard, crossed the line into express consumer deception."
California has imposed restrictions on the collection of advance fees for providing loan-modification services -- only licensed real estate brokers with preapproval letters may engage in the practice -- but those restrictions do not apply to lawyers or law firms (see story).
In his report, McNamara said defendant George Escalante had dissolved the operations of a previous loan-modification company after being contacted by the Orange County District Attorney's Office in October 2008.
After locating a recent law-school graduate to partner with through an ad he placed on Craigslist.org, Escalante again began providing loan-modification services through H.E. Servicing, the report said.
The lawyer -- and another who replaced him when Escalante's original partner "expressed a desire to withdraw from the business as he saw it as high risk" -- were paid a share of the fees collected from each client, totalling about $620,000, the report said. But McNamara found little evidence they performed any work.
"Despite defendants' limited efforts to create the illusion, this was not a law firm ... (but) Escalante's business," McNamara's report said. "He paid the rent, hired the employees, outfitted the offices, ran the finances, and ultimately controlled the operations."
The sales staff manning the phones at H.E. Servicing were instructed to claim that the company was "attorney based," and staffed by more than 100 workers who had achieved a 90 percent success rate in negotiating more than 10,000 loan modifications, the report said. In fact, the company had just eight loan negotiators working with lenders when it was shut down, and completed only 311 loan modifications on behalf of clients from November 2008 through July 8, the report said.
Of the the 2,960 applications for which the company collected fees of $1,000 to $2,500, only 11 percent had resulted in closed modifications by the time the company was closed down, the receiver said.
The company employed a sales force of 31 at the time it was shut down, McNamara found, and less than half as many employees engaged in negotiating loan modifications with lenders or processing related documents.
Employees in sales were typically paid a $450 commission when a client paid the full $2,500 fee up front, regardless of the outcome of the case. By contrast, eight staff negotiators earned $500 a week plus $75 for every loan modification they were able to negotiate.
Aftermath
Although H.E. Servicing had completed only 311 loan modifications, it had submitted another 791 applications to lenders and had another 1,051 "in various stages of preparation" for submission, the report said. More than 400 clients had received refunds after canceling their service.
On taking possession of H.E. Servicing's Anaheim office under power of a temporary restraining order, McNamara said he sent the sales force home and placed a voicemail on the phone alerting callers that the company's operations had been suspended. The message advises callers to contact their lender directly or contact the HOPE NOW coalition of loan servicers working with the Department of Housing and Urban Development.
After a hearing on July 17, the U.S. District Court for the Central District of California issued a preliminary injunction keeping the terms of the temporary restraining order in place. A hearing has been set for July 28 to consider options for assisting homeowners who contracted with the company, the California Attorney General's office said in a press release.
About 80 percent of the company's clients live outside of California, an obstacle to allowing H.E. Servicing to attempt to resume business in a lawful manner, McNamara said. Ohio, North Carolina, Indiana and Georgia have all subjected the company to cease-and-desist letters.
Although H.E. Servicing's alleged practice of misleading consumers could in theory be corrected, McNamara said, the company's business structure "has systemic flaws" related to its collection of advance fees. Lawyers are not allowed to split fees with non-lawyers, McNamara said.
Other than lawyers, only licensed real estate brokers with letters of approval from the California Department of Real Estate are allowed to collect fees in advance for providing loan modification services, the report noted.
McNamara called it "a challenge to precisely categorize" H.E. Servicing's business model.
"It is not a law practice. It is not a licensed mortgage or real estate company," McNamara wrote. "Rather, I see this business as a high-pressure, cash-up-front telephone sales business targeting distressed homeowners."
For the week of August 31, 2009-Brian E. Betts Realty Report!
Home Base
INFO THAT HITS US WHERE WE LIVE We continue to see signs of improvement in the housing market and last week showed us a surprising 9.6% increase in new single-family home sales for July. This was their steepest percent rise since 2005. New home sales are now at a 433,000 annual rate, up 31.6% from their January low. Even more significantly, inventory of unsold new homes plummeted to a 7.5 month supply from their 8.5 month level in June. This put inventories at 271,000, down over 52% from their mid-2006 peak, and at their lowest level since 1993. New home sales have now been up 4 months in a row, increasing since March at an annualized rate of more than 121%!
Prior to this good news, the Case-Shiller home price index reported a quarterly rise in prices for the first time in three years. The index also posted its second straight monthly increase, up 1.4% for the 20 metro areas it tracks. The Federal Housing Finance Agency's purchase-only index had home prices up 0.5% in June following a 0.6% rise in May. The FHFA index is up 0.5% for the first six months this year. Agency chief Edward J. DeMarco said: "This is further evidence that prices may be stabilizing for the nation as a whole."
Finally, the Mortgage Bankers Association reported mortgage applications for home purchases were up 1.0% last week over the week before. This was the fourth consecutive weekly gain for home-purchase applications.
>> Review of Last Week
UP A LITTLE MORE... The Dow went up eight days in a row before it slipped just 36 points on Friday. This was the venerable index's longest uninterrupted advance in over two years and, despite the small drop on Friday, it was still UP 0.4% for the week!
Tuesday saw consumer confidence come in at 54.1, way higher than the previous 47.4 reading. And Friday, the University of Michigan consumer sentiment for August hit 65.7, up nicely sfrom last month's 63.2. We also had durable goods orders up a healthy 4.9% for July. For the past three months there have been gains in these orders that are now showing up as increased shipments, which will boost Q3 GDP. As far as Q2 GDP is concerned, last week's preliminary reading was unchanged from the advanced reading of –1.0% and better than the expected –1.5%. This was helped by a consumer spending decline that was smaller than anticipated. Yay!
Please note that corporate profits in Q2 grew at an annual rate of 24.9%, following their 22.8% growth rate in Q1. And all the Q2 profit growth came from US operations, not revenues earned overseas. Some analysts feel it won't be long before these profits go into more US business investment and hiring. New claims for unemployment insurance dropped by 10,000 and continuing claims fell by 119,000. Finally, President Obama nominated Ben Bernanke for a second term as Fed Chairman, a move investors expected.
For the week, the Dow was UP 0.4%, to 9544.20; the S&P 500 inched UP 0.3%, to 1028.93; while the Nasdaq ended UP 0.4%, to 2028.77.
Bond prices did pretty well for the week, in spite of the big auction offerings that could have depressed prices but didn't. In fact, the price of the FNMA 30-year 4.5% bond we follow edged up from the previous week's $99.69 close, ending at $100.19. Mortgage interest rates were up slightly for the week, but still well within the historically low levels they've been at all year.
>> This Week’s Forecast
THE FACTORIES, THE FED, THE JOBS... Well, the start of the week features two good looks at the state of manufacturing, with the Chicago PMI and the ISM Index. Midweek, the FOMC Minutes should shed some light on the Fed's view of the economy at their last meeting. Then the week ends big with the August employment report. Many economic indicators are now picking up, but the jobs picture is always the last to brighten. Will we see some glimmers in the data?
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
INFO THAT HITS US WHERE WE LIVE We continue to see signs of improvement in the housing market and last week showed us a surprising 9.6% increase in new single-family home sales for July. This was their steepest percent rise since 2005. New home sales are now at a 433,000 annual rate, up 31.6% from their January low. Even more significantly, inventory of unsold new homes plummeted to a 7.5 month supply from their 8.5 month level in June. This put inventories at 271,000, down over 52% from their mid-2006 peak, and at their lowest level since 1993. New home sales have now been up 4 months in a row, increasing since March at an annualized rate of more than 121%!
Prior to this good news, the Case-Shiller home price index reported a quarterly rise in prices for the first time in three years. The index also posted its second straight monthly increase, up 1.4% for the 20 metro areas it tracks. The Federal Housing Finance Agency's purchase-only index had home prices up 0.5% in June following a 0.6% rise in May. The FHFA index is up 0.5% for the first six months this year. Agency chief Edward J. DeMarco said: "This is further evidence that prices may be stabilizing for the nation as a whole."
Finally, the Mortgage Bankers Association reported mortgage applications for home purchases were up 1.0% last week over the week before. This was the fourth consecutive weekly gain for home-purchase applications.
>> Review of Last Week
UP A LITTLE MORE... The Dow went up eight days in a row before it slipped just 36 points on Friday. This was the venerable index's longest uninterrupted advance in over two years and, despite the small drop on Friday, it was still UP 0.4% for the week!
Tuesday saw consumer confidence come in at 54.1, way higher than the previous 47.4 reading. And Friday, the University of Michigan consumer sentiment for August hit 65.7, up nicely sfrom last month's 63.2. We also had durable goods orders up a healthy 4.9% for July. For the past three months there have been gains in these orders that are now showing up as increased shipments, which will boost Q3 GDP. As far as Q2 GDP is concerned, last week's preliminary reading was unchanged from the advanced reading of –1.0% and better than the expected –1.5%. This was helped by a consumer spending decline that was smaller than anticipated. Yay!
Please note that corporate profits in Q2 grew at an annual rate of 24.9%, following their 22.8% growth rate in Q1. And all the Q2 profit growth came from US operations, not revenues earned overseas. Some analysts feel it won't be long before these profits go into more US business investment and hiring. New claims for unemployment insurance dropped by 10,000 and continuing claims fell by 119,000. Finally, President Obama nominated Ben Bernanke for a second term as Fed Chairman, a move investors expected.
For the week, the Dow was UP 0.4%, to 9544.20; the S&P 500 inched UP 0.3%, to 1028.93; while the Nasdaq ended UP 0.4%, to 2028.77.
Bond prices did pretty well for the week, in spite of the big auction offerings that could have depressed prices but didn't. In fact, the price of the FNMA 30-year 4.5% bond we follow edged up from the previous week's $99.69 close, ending at $100.19. Mortgage interest rates were up slightly for the week, but still well within the historically low levels they've been at all year.
>> This Week’s Forecast
THE FACTORIES, THE FED, THE JOBS... Well, the start of the week features two good looks at the state of manufacturing, with the Chicago PMI and the ISM Index. Midweek, the FOMC Minutes should shed some light on the Fed's view of the economy at their last meeting. Then the week ends big with the August employment report. Many economic indicators are now picking up, but the jobs picture is always the last to brighten. Will we see some glimmers in the data?
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
JD Power has Ranked Keller Williams #1 in Client Satisfaction two years in a row!
News Release
FOR IMMEDIATE RELEASE
CONTACT: Brian E. Betts
801/858-3080
betts@kw.com
Keller Williams Realty Receives Nod as the
Highest Ranked in Customer Satisfaction
J.D. Power and Associates names company highest in customer satisfaction
for second year in a row
AUSTIN, TEXAS (September 2, 2009) —According to the J.D. Power and Associates 2009 Home Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in North America, received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms for the second year in a row. The company also ranked second-highest among home sellers in the study.
“We couldn’t be prouder. This is an achievement our associates have truly earned. It is the face-to-face interaction and the relationships they build daily that has impacted this study and elevated Keller Williams Realty to another level in customer service,” said Mark Willis, CEO of Keller Williams Realty. “Knowing that this study was conducted during the toughest times the market has seen shows that spirit and dedication can make an impact.”
The study was produced by J.D. Power and Associates to measure home buyers’ and sellers’ customer satisfaction. The results of the home-buying experience were determined by three factors including the agent, office and the package of additional services.
“I am absolutely beaming with pride that our agents have been honored in such a fantastic way,” said Mary Tennant, president and COO of Keller Williams Realty. “We are lucky to be in business with such incredible business people, who have shown incredible resolve over the past two years. If there was a time to build their business, it is now.”
###
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).
New Home Run 2! $4000 for a new home!
FREQUENTLY ASKED QUESTIONS ABOUT HOME RUN 2 GRANTS
What is the $4,000 Home Run 2 Grant?
The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
How is Home Run 2 different from the first Home Run program?
The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
All other aspects of the program are materially the same as the first Home Run program, as summarized below.
Who is eligible to receive a $4,000 Home Run 2 Grant?
• Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program.
• Home buyers (any person taking title) must meet the following income restrictions:
Single person, maximum income, $75,000
Married couple, maximum income, $150,000
If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.
• Home buyers must occupy the purchased home as a primary, permanent residence.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
• The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
Can Cash Buyers qualify to get the Home Run 2 Grant?
Yes. Cash Buyers must contact Utah Housing directly. Cash Buyers, like all other Buyers, must obtain a written Home Run 2 Grant Commitment prior to closing.
What property types can be purchased with a $4,000 Home Run 2 Grant?
Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.
What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
Conventional loans
FHA, VA, or Rural Housing loans
Utah Housing Corporation loans
Cash Buyers should contact Utah Housing directly for assistance in qualifying.
How does a home buyer apply for a $4,000 Home Run 2 Grant?
Apply for a grant through an Approved Lender, defined below. Approved Lenders are the key link between a home buyer and the Home Run 2 Grant. Approved Lenders are listed on this website. The Approved Lender assists a home buyer to provide necessary information to secure the grant commitment from Utah Housing Corporation. A home buyer does not work directly with Utah Housing Corporation (unless the home is being purchased for cash).
How do I find a lender to help me obtain a Home Run 2 Grant?
Look on the list of Approved Lenders for the Home Run 2 Grant Program on this Website.
How Does a Mortgage Lender Become an “Approved Lender” for the Home Run 2 Grant Program?
Any mortgage lender authorized to originate mortgage loans in Utah may click on Program Forms on this Website, access the document there titled “Home Run 2 Grant Funding Agreement” and review the contractual agreements contained in it. If the Agreement is acceptable, the mortgage lender must have the Agreement executed by someone from their organization with authority to sign legal contracts and forward the original, executed document to Utah Housing. Once Utah Housing completes its review of the dated, signed Agreement, the lender is added to the list of Approved Lenders on the Utah Housing Website.
Do I have to be a first-time home buyer to get a Home Run 2 Grant?
No. Home Run 2 Grants are available to all home buyers (all persons who take title) whose maximum income is $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.
Can the $4,000 Home Run 2 Grant be combined with the new $8,000 federal tax credit?
Yes, if home buyers meet the independent criteria of both the federal government and the Home Run 2 Grant programs, they may take advantage of both. The $4,000 Home Run 2 Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.
How many Home Run 2 Grants are available to home buyers?
A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at www.utahhousingcorp.org.
Is the Home Run 2 Grant taxable?
The Home Run 2 Grant will probably be taxable as income under federal and state tax laws. Utah Housing does not provide any tax advice regarding the taxability of the Home Run 2 Grant. If Utah Housing receives a favorable ruling from the Internal Revenue Service that a Home Run Grant is not taxable, Utah Housing will post the ruling on its Website (www.utahhousingcorp.org) and a home buyer should review the ruling in connection with the preparation of their tax return(s).
If I have additional questions, who do I contact?
Contact an Approved Lender.
Important Note: Buyers should make sure that they work closely with an Approved Lender for the Home Run 2 Grant Program to ensure that required materials are submitted in a timely manner, but not prematurely.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
Steps to obtain a Home Run 2 Grant.
1. Buyer signs a contract to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
2. Buyer applies for mortgage loan through an Approved Lender and Approved Lender obtains all required Home Run 2 documentation and written loan underwriting approval.
3. When all required Application materials have been obtained, Approved Lender submits a Home Run 2 Grant Request to Utah Housing and receives from Utah Housing a Home Run 2 Grant Commitment authorizing the Grant for the Buyer.
4. The purchase closing is scheduled at a title company. As soon as closing documents have been signed, the title company faxes required documents to Utah Housing so that it can request that the Escrow Agent send a wire of $4,000 to the closing.
5. The Home Run 2 Grant Commitment must be dated on or prior to the date shown on closing documents.
Click Here for More Info!
What is the $4,000 Home Run 2 Grant?
The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
How is Home Run 2 different from the first Home Run program?
The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
All other aspects of the program are materially the same as the first Home Run program, as summarized below.
Who is eligible to receive a $4,000 Home Run 2 Grant?
• Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program.
• Home buyers (any person taking title) must meet the following income restrictions:
Single person, maximum income, $75,000
Married couple, maximum income, $150,000
If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.
• Home buyers must occupy the purchased home as a primary, permanent residence.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
• The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
Can Cash Buyers qualify to get the Home Run 2 Grant?
Yes. Cash Buyers must contact Utah Housing directly. Cash Buyers, like all other Buyers, must obtain a written Home Run 2 Grant Commitment prior to closing.
What property types can be purchased with a $4,000 Home Run 2 Grant?
Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.
What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
Conventional loans
FHA, VA, or Rural Housing loans
Utah Housing Corporation loans
Cash Buyers should contact Utah Housing directly for assistance in qualifying.
How does a home buyer apply for a $4,000 Home Run 2 Grant?
Apply for a grant through an Approved Lender, defined below. Approved Lenders are the key link between a home buyer and the Home Run 2 Grant. Approved Lenders are listed on this website. The Approved Lender assists a home buyer to provide necessary information to secure the grant commitment from Utah Housing Corporation. A home buyer does not work directly with Utah Housing Corporation (unless the home is being purchased for cash).
How do I find a lender to help me obtain a Home Run 2 Grant?
Look on the list of Approved Lenders for the Home Run 2 Grant Program on this Website.
How Does a Mortgage Lender Become an “Approved Lender” for the Home Run 2 Grant Program?
Any mortgage lender authorized to originate mortgage loans in Utah may click on Program Forms on this Website, access the document there titled “Home Run 2 Grant Funding Agreement” and review the contractual agreements contained in it. If the Agreement is acceptable, the mortgage lender must have the Agreement executed by someone from their organization with authority to sign legal contracts and forward the original, executed document to Utah Housing. Once Utah Housing completes its review of the dated, signed Agreement, the lender is added to the list of Approved Lenders on the Utah Housing Website.
Do I have to be a first-time home buyer to get a Home Run 2 Grant?
No. Home Run 2 Grants are available to all home buyers (all persons who take title) whose maximum income is $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.
Can the $4,000 Home Run 2 Grant be combined with the new $8,000 federal tax credit?
Yes, if home buyers meet the independent criteria of both the federal government and the Home Run 2 Grant programs, they may take advantage of both. The $4,000 Home Run 2 Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.
How many Home Run 2 Grants are available to home buyers?
A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at www.utahhousingcorp.org.
Is the Home Run 2 Grant taxable?
The Home Run 2 Grant will probably be taxable as income under federal and state tax laws. Utah Housing does not provide any tax advice regarding the taxability of the Home Run 2 Grant. If Utah Housing receives a favorable ruling from the Internal Revenue Service that a Home Run Grant is not taxable, Utah Housing will post the ruling on its Website (www.utahhousingcorp.org) and a home buyer should review the ruling in connection with the preparation of their tax return(s).
If I have additional questions, who do I contact?
Contact an Approved Lender.
Important Note: Buyers should make sure that they work closely with an Approved Lender for the Home Run 2 Grant Program to ensure that required materials are submitted in a timely manner, but not prematurely.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
Steps to obtain a Home Run 2 Grant.
1. Buyer signs a contract to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
2. Buyer applies for mortgage loan through an Approved Lender and Approved Lender obtains all required Home Run 2 documentation and written loan underwriting approval.
3. When all required Application materials have been obtained, Approved Lender submits a Home Run 2 Grant Request to Utah Housing and receives from Utah Housing a Home Run 2 Grant Commitment authorizing the Grant for the Buyer.
4. The purchase closing is scheduled at a title company. As soon as closing documents have been signed, the title company faxes required documents to Utah Housing so that it can request that the Escrow Agent send a wire of $4,000 to the closing.
5. The Home Run 2 Grant Commitment must be dated on or prior to the date shown on closing documents.
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