Gem Presentation Pdf


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  • Currently we have 3 million Foreclosed/REO Properties that need to be sold. Let’s say only 10% of these homes would be GEM’s that is 300,000. NEW home owners’ 300,000 neighborhoods had one less vacant property and property tax base were helped to be stabilized. The extra $10,000.00 for each of the 300,000 GEM homes kept $3,000,000,000.00 from having to be given to the Banks/REO owners from the tax payer in the form of BAILOUT. I need help in getting this program approved with the GSE's (Fannie, Freddie and Ginni Mae) If you would please send this to your Congressmen or Senators. I will be in DC meeting with two Congressmen on Tuesday. I am hoping to meet with as many as possible. Thank you for any help you can give.
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Gem Presentation Pdf

  1. 1. The Gift Equity Mortgage
  2. 2.   nly available for buyers purchasing owner O occupied properties that qualify as GEM REOs   llows equity in the home being purchased to be A gifted to the buyer from the seller/REO owners   llows the market value/appraised value to become A the basis or purchase price in establishing the Loan to Value   eduction or elimination of private mortgage R insurance
  3. 3. Based on $150,000 property  Example:  Purchase agreement is written and accepted between seller/REO owner and purchaser for $150,000  Appraised value comes in at $150,000  Seller’s “security position ” is $125,000 (security position is the pre-determined amount of cash funds to the REO owner from the new mortgage of the owner occupant borrower. Balance in forgivable soft second)
  4. 4. security position from the purchase  Subtract price/appraised value to determine the “Gift Equity”  Security position becomes the mortgage amount $150,000 Appraised Value/Sales Price $125,000 Security Position/Mortgage Amount $25,000 Gift Equity
  5. 5. monthly payment will broaden purchasing  Lower opportunity  Purchase price reflects actual property value which will Result in true property tax value I.  Lower tax rate to the value of the property II.  III.  Maintain value of neighborhood IV.  Rid neighborhood of vacant housing Allow the owner occupant to obtain immediate V.  equity VI.  Smaller loss to the REO owner VII.  Smaller bailout to REO owners from government
  6. 6. Sample Monthly Payments With GEM Without GEM Example #1 83% LTV Example #2 100%LTV $85.25 Sales Price $125,000 Sales Price $150,000 GEM $25,000 Mo. Savings GEM $0.00 Loan Amt $125,000 Loan Amt $125,000 P&I $779.84 (6.375%) P&I $842.15 (7.125%) MI $38.54 (.37%) MI $61.46 (.59%) TX $125.00 TX $125.00 Haz. Ins. $50.00 Haz. Ins. $50.00 Payment $993.38 Payment $1,078.62 Interest Rate with the GEM is reduced due to the down payment MI is lower due to LTV Property value is maintained
  7. 7. Borrower:   Lower payments and/or more home I.  No out of pocket down payment II.  Instant equity III.  Tax incentive IV.  Neighborhood:   Accurate property value keeps up I.  neighborhood value Crime rates drop with reduction of vacancies II.  Occupied homes are maintained for III.  neighborhood aesthetics
  8. 8. payers: Lower tax rate  Tax  Financial Institutions: Quicker turnover and lower inventories on REOs  Government: Taxes based on actual market value I.  Taxes paid through escrows II.  Keeps active housing market for economical III.  growth No government stimulus needed IV. 
  9. 9. REO properties in all 50 states  Targeting  Target customer base: Fannie Mae, Freddie Mac, Ginnie Mae, Mortgage insurance companies, government owned, credit unions and banks.
  10. 10. MLS, sales presentations,  Advertising: networking, TV, radio, mailings and web presence, GEM on all REO owner websites (Fannie Mae, Freddie Mac, Ginnie Mae, AIG and Genworth)  Every listing must have interior/exterior photos, GEM signage, home warranties (paid by REO owners for borrowers)  Regulated guidelines on all GEM property advertising