Huntington Beach, CA · Member since 2015 · 6 posts · 0 votes
I currently have a Wells Fargo mortgage on a fourplex (built around 1970s), which is located in Orange County, CA.
Originally in 1970's, an apartment complex subdivided its 36 buildings and sold off each building one by one. Each building has 4 units, townhouse style. Buyers of each building have one title. However, title describes the building as "condos." The building is part of an association and the common areas is only outside the building such as sidewalk and grass.
So currently, I'm attempting to refinance it through HARP. It's going through underwriting and an appraisal report has been done. Wells Fargo rejected the refi because the fourplex is zoned as a condo. They say it is considered a "Multi-dwelling unit condominiums," which is ineligible for financing, regardless for a new conventional loan or HARP refi.
Can anyone shed some light on this? Was it titled incorrectly? How do people re-finance these properties than? Is this a new policy? because it was approved for a refinance 10 years ago with Wells Fargo.
Costa Mesa, CA · Member since 2012 · 146 posts · 55 votes
11y
Someone will likely be able to give a better answer than I can, but I have seen Wells Fargo behaving odd lately in regards to financing multifamily properties in Orange County. I have a client who has been purchasing 4-plexes in Orange County over the past year. Our most recent escrows, with Wells Fargo as the lender, have been very challenging. They seem to be looking for any reason not to lend the money, and wasting time requesting docs that have no bearing on the borrower's loan. So, I would consider checking with another lender.
Someone will likely be able to give a better answer than I can, but I have seen Wells Fargo behaving odd lately in regards to financing multifamily properties in Orange County. I have a client who has been purchasing 4-plexes in Orange County over the past year. Our most recent escrows, with Wells Fargo as the lender, have been very challenging. They seem to be looking for any reason not to lend the money, and wasting time requesting docs that have no bearing on the borrower's loan. So, I would consider checking with another lender.
Any banks you recommend for HARP refi? I'm not underwater on the mortgage, just want to bring down the fix rate. Any banks in Costa Mesa?
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
11y
@Jimmy Bradford I think the issue may be the interpretation of the "legal description," on the title report that is attached to the property.
If it was financed before it may be that the legal description changed or was looked over to go ahead with loan docs and funded.
If I can pull a preliminary title report from your address I can review and let you know if its possible to refinance as is, what your options are, or other options.