Wednesday, August 29, 2007

Florida Commercial Mortgage | Anthology of Posts

For those of you interested in, practicing, or investing in Commercial Real Estate in Florida or the rest of the United States, here are some posts that might help you understand more about the industry and how it affects both the owner occupant and the investor as well as the Realtors and the Mortgage Brokers that work in the industry.


Florida Commercial Mortgage | Investment Formula - Debt Service Coverage Ratio

August 28th, 2007


What is it?
Who came up with this?
Why do we need to know another math equation?
How can it save a deal? or a client?

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Florida Commercial Mortgage | Loans for Small Business ~ Underwriting Methodology

August 25th, 2007 

Commercial Mortgages for Small Businesses are a notably animal than Residential Mortgages.  Commercial Mortgages are based on three main criteria but there are many variables that can make those criteria flex based on the lender and their goals.  Yes… the Lender’s goals.
In Residential Finance, my goal is to take the borrower’s unique needs and match […]

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Florida Commercial Mortgage | Just 3% Down - Small Balance Commercial Loans

July 1st, 2007 

So I was driving to a client and heard on the radio a commercial that played out like a skit

One guy was telling the other that he was expanding his business and needed a commercial loan.
The second one told him he just refinanced his commercial office condo and it was great.
Come to find out you […]

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Florida Mortgage | Land Surveying Primer ~ Why you should order a survey every time!

July 29th, 2007 

A Land Surveying Primer
Ok… I am a little biased right now. I grew up in a Real Estate Industry Family…specifically my parents own a Land Surveying Company.

I remember at 11-12 years old going in and doing tax book research and answering phones…yes I was a master of microfiche […]

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Florida Commercial Real Estate: Redevelopment of Industrial Zoned Land in South Florida

May 23rd, 2007 

Who loses most when city planners rezone commercial land in order to make room for more housing? Is it the right of a citizen who moves into an area rich in industrial zoning to complain about trucks and businesses or is this a buyer beware issue?
In Boynton Beach, Florida there is a controversy brewing about […]

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Florida Mortgage | Advice ~ Your Mortgage Advisor is WHO???

April 21st, 2007

Today’s Mortgage Industry is a vast, complicated landscape of amortization, interest calculations, equity lines and bond prices.
People are clamoring to get in on the profession but soon find that it is far more education intensive than they ever would imagine.
Just keeping up with the ever changing progams offered by the major lenders is a […]

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More Florida Mortgage and Real Estate News you can use from David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment, and Relocation Mortgages in Florida  

Florida Mortgage| Real Estate Industry Commentary

When I first moved to the State of Florida, I was very surprised to find Realtors and Mortgage Brokers that were so busy and so successful that they would limit their businesses to loans, listings and buyers of over a certain dollar value.  The reason it was so surprising was that the dollar amounts that were mentioned were enormous to me. 

One listing agent I know would not work on listings under $650,000.   One Mortgage Broker said "No first time homebuyers".  I even knew of some agents that would not take anything but multimillion dollar listings or superstar, VIP buyers.

In this current market, changes are creating a new paradigm for Real Estate Agents and Mortgage Brokers everywhere.  There are many who are just leaving the field. They are just absolutely sure that there is no way to survive this market downturn.

Read the rest of this piece at: Florida Mortgage | Real Estate Market Commentary

More Florida Mortgage and Real Estate News you can use from

David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment, and Relocation Mortgages in Florida  

Sunday, August 12, 2007

Florida Mortgage | Blogging - New and Improved Style

Trulia LogoSometimes, change is good... and freshening things up is always a great idea. I have tried to manage this site on the Blogger platform but alas a higher calling has led me down another path.

The other day a journalist found my "answer" on Trulia Voices and wanted to use some quotes from my answer and my blog to help substantiate her position in an article....

Wednesday, August 8, 2007

Florida Mortgage | Loan Servicing ~ What Consumers Need to Know in this Market...

Bad economic news tops every news broadcast with big lenders like American Home Mortgage, Geneva Mortgage, Homebanc and many more completely cease all operations.  This change in the game is leaving many homeowners worried about what is going to happen to them now that their lender is KAPUT!

 Do not fret... don't worry at all... in fact, get ready to make your September payment as scheduled.  Just keep your eyes open for your letter regarding who will be servicing your loan from now on.

You see, many of the lenders that you are paying your monthly payments to are in fact only servicing your loan.  They are not holding the note, but instead they are collecting and distributing funds for the actual mortgagee - typically an institutional investor.

A lender that holds loans is called a Portfolio Lender.  Meaning that the loan is part of their investment portfolio much like we would keep stocks, bonds or a mutual fund in our retirement portfolio.  Most lenders do not portfolio loans, they sell them on the secondary market instead.

 The Secondary Market is made up of investors like Pension Funds, Insurance Companies, FNMA (Fannie Mae), and FHLMC (Freddie Mac).  These investors have contracts with lenders to service loans on their behalf.

A lender that services loans performs certain tasks for a Portfolio Lender or Institutional Investor.  These tasks are:

  • Collecting Payments - the most visible function
  • Collecting Escrow payments
  • Maintaining appropriate Hazard Insurance - including fire, hazard, windstorm and flood
  • Paying Real Estate taxes
  • Collecting Private Mortgage Insurance (PMI) payments
  • Paying Net Proceeds to the Investor/Lender

Other tasks that these service lenders provide that are not as evident are:

  • Sending out compliance documents - like the escrow analysis forms
  • Preparing Mortgage Interest Tax Deduction forms for your taxes
  • Disclosing the principle and interest due and paid monthly and annually
  • Dropping the Mortgage Insurance when it reaches appropriate levels
  • Calculating payoff amounts upon sale

and finally... (what we're seeing so much in this market)

  • Accelerating the note and foreclosing on the borrower in the event of default
  • Taking title to the property and liquidating the collateral on behalf of the Investor.

So in this market when we see some big name "lenders" going under, many times they are not the ultimate mortgagee... but instead the servicing entity.  Despite the servicing entity's demise, the investor will have another lender contracted out very quickly so they do not lose the revenues.

Unfortunately, there is little or no transparency in this area of the lending industry to show you who you ultimately owe your money to...

So... as I mentioned before... be ready for your next month's payment.  It will be due to someone even if your "lender" shut its doors. 

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida