All Forum Posts by: Caroline Gerardo

If the person wants to play stupid games: two years.

Most mortgage brokers offer NonQM you can't go direct. They treat 5-7 units same as 1-4 

A local bank is not the best lender partner. Lenders are licensed by state- where is this?

The best rates will be NonQM and lowest cost as they don't force a commercial appraisal for example. (difference is $7000 vs $900. Also avoids a pre-pay which by the way when does yours end? No one is offering 30 year rate of 5% for 5 units non owner today. If they are share and see what others say about if they are real

NonQM is where you start. Wait until next year and see what happens. You cannot get 5% non owner DSCR 5 units today

@Kyle Smith glad you ran an advertisement for them. 

Assumptions take months. The company cannot guarantee it will ever close, and they put the seller at risk when the seller moves out praying it will close.

So they just do it for free according to you. 

They show on your tax returns, and bank statements.

There are many underwriting tools to expose private money ones that claim they don't report to the bureaus- they also sell and securitize the loans so what they told you on the phone is of no value, they get reported.

All NonQM standard DSCR loans show on your credit report.

DSCR gone bad shows online, in court records and in the curbside view (property appears distressed and attracts code violations/fire inspections and investigations...

Fools investment

There's a fire- cannot rebuild and investor loses everything; owner ruins his credit; injured tenant sues everyone; everyone broke.

Lender calls the loan- everyone loses

Paying down a loan does not reduce a payment, this is not a HELOC so that part is not math.

There is zero equity to loan on, no one will loan on this.

What would buyer have to do to convince a poor elderly person to take this risk- scare them, threaten, lie? The consequences are: family member comes along and sues or seller sues and gets the house back in court.

Exactly how is title held, when did Dad close a transaction with title insurance, until today?  GF or Dad DIY title changes? First question is who owns the house and before Dad passed how did they set up or record the Life Estate. That's a legal issue which you need a title report and an a attorney to answer. With every deed recorded and date last used title my GUESS is this: Dad intended for Mom to stay until she died but did not intend for Mom to get a loan on the house. You need an attorney.

HELOCs are mostly an online application but because you state is a small local bank I GUESS Mom went in person and applied with a teller or the manager. Go there in person and find out who is on first. Then notice the bank President in writing. GF can stop this attempt BUT if Mom committed fraud to save herself, she will repeat the actions. Credit locks are pretty worthless, do it to slow down future problems. GF puts a written notice in all three bureaus that she is a victim of fraud. Make a police report, and keep a copy, generally the police do nothing.

Talk to Mom in a calm manner without GF, and get her story, listen and don't tell her you went to the bank or know the truth. 

If Mom committed fraud, GF doesn't want her in jail. Mom has other non financial issues. 

Do not have any mail delivered to house with GF name. USPS forward and pay for the permanent forward service. Don't tell Mom.

Next steps: GF talks to Mom about bankruptcy or counseling or both or where is Mom going when she cannot walk? Kindness with boundaries. 

GF could record a big second trust deed to her own Living Trust which would stop any future second or HELOC as they have to order a payoff, licensee needs to help with this. Virginia requires a professional license, not necessarily an attorney- a title insurance company, RE Broker, or financial institution might help you.

As to your in progress HELOC you have another problem- if the lender does any physical or interior inspection they won't lend to you. HELOC's are low cost, digital, cookie cutter no exception type processing- you fit in the box or not. Your FICO is 720, you have w-2 income enough, the property has equity and is in great condition. If you demolished inside and they see it you cannot get a standard HELOC you will need to go hard money as most lenders are going to tell you that any worker who stepped on the site can lien the property and HELOC's do not use a new full title report, they rely on the title report of the last sale (again like I started with if people DIY record after closing it's a problem).

Anyone with enough income, credit and assets who has a purchase contract marked owner occupied can apply to assume a va loan. If they meet the requirements they will pay a .5% funding fee, title/ escrow/ new impounds and the DOWN PAYMENT. Since you said the sales price is $180000 and loan around $165000 so Mom needs a down payment plus the costs.

The seller may lose a portion of their entitlement, not knowing their situation, cannot speculate but the loan is small, so perhaps a percentage of the entitlement.

The seller doesn't have to stay one year, seller can move and ask for exception, seller cannot rent the property in the first 12 months. 

The new buyer needs to say this is owner occupied and the new buyer's profile MUST follow to make sense is owner occupied. IF Mom has no intention of moving in do not tell something untrue to the VA. New buyer does not need to be a veteran.

The only place to get accurate information is from the veterans administration. Call them, email them, read from the VA website only.

No the one year occupancy is not just ignored for the seller.

No idea what Mom's income, credit and assets are so cannot tell you if she helps your profile or not. Does Mom own a primary residence, is she working in the location where this house exists?

What are the market rents for the property and do you have $15000 for the down and $8000 for all the closing/title/settlement/new impounds? $23000 plus you or Mom need a cushion for reserves as you won't rent it day one. My guess is PITI is around $1017 so you hope rents are 1300. Is this location improving?