Re: All of a sudden, I can?t sell my Rehabs. - Posted by Natalie-VA
Posted by Natalie-VA on July 09, 2005 at 08:55:25:
Don,
Since you have experience in this field, I would like your opinion…
I have only had problems with the title seasoning issue on brokered loans. Especially non-conforming loans. Once I started using local lenders with local underwriters, I no longer had issues.
Don’t you think the poster could fix his problems by using a local lender?
–Natalie
Re: Get back in control - Posted by PH
Posted by PH on July 08, 2005 at 22:30:30:
I am fortunate to have a lender I work with and send my buyers to. I went through about 30 to finally find one that communicates quickly with me, the underwriter, closing attorney and the buyer to resolve issues that come up. By guiding sellers to my lender, I am privy to my brokers opinion of my buyers chances of getting approved. He coordinates everything well and has never been the problem.
The issue I posted about is to do with rule changes at the underwriting level, nothing to do with being in control of buyers, appraisers,lawyers and mortgage brokers or solved by paying closing costs. These are underwriters, Underwriters Supervisors and Underwriters Supervisors bosses changing guidelines. These are very very recent changes, that based on my experiences and others I have talked to seem to be quickly occuring and it seems to be with a lot of different lenders. (to what extent and I am still trying to figure out)
Re: Get back in control - Posted by Rob
Posted by Rob on July 08, 2005 at 17:18:46:
Dave –
This is an excellent post. Just printed it for my daily affirmation.
Rob
Re: One possible answer - Posted by PH
Posted by PH on July 08, 2005 at 21:59:51:
Wow, that’s funny. On my way home I just drove through a neighborhood exactly as you describe (before seeing your post). It’s an older (1930+) area but very desirable and homes sell for 150 all the way up to at least 700k.
I had not considered that lenders would not scrutinize so much on the difference in transfer prices. It make sense though.
Fortunatly my private lender has been trying to convince me to go into those areas. There is no reason to stop me from making that change if it solves this little issue. The bidding on any decent deal over there is fierce, but the advantage is that any rehabbed house would sell the first week.
Thanks!
Re: All of a sudden, I can?t sell my Rehabs. - Posted by PH
Posted by PH on July 08, 2005 at 21:47:54:
Actually, it is a possibility for me to go with an 80% loan and it’s something I will consider.
BUT
The biggest issue is that I could still have the exact same problem. An 80% loan would need to be 80% of my full appraisal which is what I am having trouble with. They just don’t like the amount of equity created (which is odd because it has less spread than my average deal).
I absolutly realize that I may find a lender that won’t care, but I would hate to lose another 30 days to find out!
Thanks, good suggestion. I am open to appreciate ANY ideas.
Re: All of a sudden, I can?t sell my Rehabs. - Posted by PH
Posted by PH on July 08, 2005 at 21:37:05:
Thanks for that info! It is very helpful to hear from others (in other states)experiencing the same trend. Sounds like you heard from a broker who deals with investors. I would think if anyone would have their finger on the pulse of the latest issues I spoke of, it would be him. Thanks again.
Re: All of a sudden, I can?t sell my Rehabs. - Posted by Pookie Wookie
Posted by Pookie Wookie on July 08, 2005 at 12:37:31:
T.G.I.F.!!!
=)
Re: Loan Prospector underwriting system - Posted by Chuck Rosenberg
Posted by Chuck Rosenberg on September 05, 2005 at 08:41:02:
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Re: All of a sudden, I can?t sell my Rehabs. - Posted by Don Dion
Posted by Don Dion on July 09, 2005 at 09:39:27:
From what I have been reading in the FHA and Fannie Mae posts, I would say NO. Both agencies are trying to stop the quick flips from happening. You always see the changes first in the broker loans because a huge percentage of loans (80%) or more go thru that system. When the local lenders / banks renew their contracts with either agency they will include the new directives.
nikki cox - Posted by nikki cox
Posted by nikki cox on October 31, 2005 at 16:45:30:
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please clarify - Posted by Natalie-VA
Posted by Natalie-VA on July 09, 2005 at 09:00:26:
PH,
Are you working with a mortgage broker or a lender?
Just trying to help sort this out.
–Natalie
All of a sudden, I can?t smell my Rehabs. - Posted by Cletus
Posted by Cletus on July 08, 2005 at 16:39:07:
I must have caught a head cold…
;o)
Re: All of a sudden, I can?t sell my Rehabs. - Posted by John
Posted by John on July 09, 2005 at 12:09:02:
can you confirm that a 90 day holding period is sufficient to overcome this kind of problem or does one have to hold on to the property longer?
Re: please clarify - Posted by PH
Posted by PH on July 09, 2005 at 10:18:23:
I work with a (local) independent mortgage broker who shops the loan to whatever national lender will take it. (The loans went smoothly until just the last few months.)
In the past I tried working with a local bank branch and also the local Countrywide office but that never worked out. For example, buyers they turned down were eventually approved by a lender my broker found. That is what drove me to deal with a broker.
Please tell me more about the lender you use or give me an example of a local lender. I am guessing it’s a national lender with a local office (small bank?) who has a local underwriter, processor etc. and does not sell the paper? (like CW?)
Thanks.
Re: All of a sudden, I can?t sell my Rehabs. - Posted by Don Dion
Posted by Don Dion on July 09, 2005 at 12:59:17:
90 days might work if you going to turn over all your receipts and waivers for review and you are only adding in a 10% to 20% mark up for a contractor fee.
But if you want full market value for your sale 366 days.
also… - Posted by Natalie-VA
Posted by Natalie-VA on July 09, 2005 at 14:57:13:
and yes, these loans are sold on the secondary market…they are not portfolio products.
Re: please clarify - Posted by Natalie-VA
Posted by Natalie-VA on July 09, 2005 at 14:55:49:
No, I’m not talking about lenders with local branches…I’m referring to truly local lenders.
I am in Virginia Beach and have closed successful transactions with TowneBank (out of Portsmouth, VA), Resource Bank (out of Virginia Beach), and SunTrust Mortgage. SunTrust is not truly local. They are out of Atlanta, but their underwriters are local.
As a sidenote, my experience with CW is that their underwriters always ask for stuff at the last minute and the closings get delayed. Many times it’s something that has nothing to do with title seasoning. For the record, the transactions that I have done with CW have all closed…they’ve just been hassles.
I think it’s great that you have a mortgage broker that give excellent service. Unfortunately, I still think that brokered loans are part of the problem. Don’s post above contradicts my experience, but Don certainly has the knowledge and experience to back up his opinion. We’ll see what happens over the next year or so. I also have a valued local broker that I send my buyers to (I am also a RE Broker). Unfortunately, I can’t send the buyers of my rehabs to her.
As a further sidenote, you shouldn’t be losing 30 days everytime one of these transactions gets fouled up. If title seasoning is an issue, all it should take is a phone call to the underwriter to find out how it will be handled. With a local lender, the underwriter many times is in the same building and you can get an answer the same day.
–Natalie
Re: All of a sudden, I can?t sell my Rehabs. - Posted by John
Posted by John on July 09, 2005 at 13:06:24:
!!!..have you encountered the same problem lately?
Re: All of a sudden, I can?t sell my Rehabs. - Posted by John
Posted by John on July 09, 2005 at 13:05:17:
thanks…not exactly what I wanted to hear…have you encountered the same issue?
Re: All of a sudden, I can?t sell my Rehabs. - Posted by John
Posted by John on July 09, 2005 at 13:16:29:
sorry for the double post…thought this one hadn’t gone thru.