Indymac Question

[Audley Humes]

We've submitted a complete package to Indymac. They are as slow as they come. We sent over a standard P&S agreement with the addendum attached. They said it looks like we are trying to assign the contract, and they clsoed the workstation (as they call it).

Then we sent a letter explaining buyer was an Investor and will be taking title using his own funds and will not be assigning the contract. We stated the addendum was to provide full disclosure on the intentions of the buyer. They want the addendum removed? This could be a really sweet deal, and this is causing a problem. Anyone encounterred this or have any sugguestions? Thanks in advance.

[Scott Hubbard]

Originally posted by Audley Humes:

We've submitted a complete package to Indymac. They are as slow as they come. We sent over a standard P&S agreement with the addendum attached. They said it looks like we are trying to assign the contract, and they clsoed the workstation (as they call it).

Then we sent a letter explaining buyer was an Investor and will be taking title using his own funds and will not be assigning the contract. We stated the addendum was to provide full disclosure on the intentions of the buyer. They want the addendum removed? This could be a really sweet deal, and this is causing a problem. Anyone encounterred this or have any sugguestions? Thanks in advance.

Got to: https://ww3.freddiemac.com/corporate/ and if they are not the investor, go to: http://www.fanniemae.com/loanlookup/

If it is a freddie mac or fannie mae loan, I would make sure IndyMac requests the removal of the verbiage in writing. By acknowledging this exception to the verbiage, you have disclosed your intentions and simply striking the language does not preclude from still doing the flip. IMO

Second, I would strikethrough the vebiage in the existing contract. Do not simply remove it from the contract, instead leave the language and only striking the verbiage and have the principals initial the change. You can also make the change through an addendum which will effectively show the changes were made at the request of the lender. This way, the requested changes will be tracked and part of the record.

However, they may be setting you up for an approval letter restriction. If they issue an approval and it has flip restrictions, then you are screwed. This is becuase you the written agreement will superscede the disclosure in the contract. If this happens, then you can try and contest the restriction, live with it, or walkaway.

Since this is an Indy Mac deal, one of the hardest to negotiate in my opinion, it is likely not a freddie mac or fannie mae deal. But, you still should pursue acknowledgment of the exception with the lender as the FDIC may still be involved and you definetly want to make sure all your ducks are in a row.

Good Luck!