All Forum Posts by: Account Closed

Hi Diane, 

I'm sorry you're going through the situation with your bank but don't feel offended. It's nothing personal - the bank is trying to protect themselves as well ensure the tightest underwriting process especially if you're in a community state and the property is in a community state. 

 If BNC pulled your credit report and your previous rental property is listed as a debt, but you're explaining to them that your ex is going to remove you as a co-borrower or guarantor, then BNC will change their underwriting analysis to reflect your current situation. However, the lender needs to verify that you are not held as a guarantor or liable for your ex's loan in case it becomes default because California is a community property state. If you are still on the loan, then the lender needs to verify that you are able to service all debt including the property with your ex and your new refinanced loan. 

I think the bank chose to request the settlement statement because it's the easiest way for them to ensure you're not on your ex's loan and the loan actually closing. If you wanted to wait until the loan is off your credit report, you can wait an additional 30+ days for it to be removed and another credit report fee charged by the bank (usually about $30-$60)  but your refinance closing could be delayed also. 

You could also provide other documents like a Deed of Trust however this might take a while to retrieve and also delay your closing date. 

If you are in a community state and/or have property in a community state with a spouse, it makes loan underwriting a little more difficult because there are situations where spouses and ex-spouses will become responsible for debt when the partner is in a bad financial situation.   

Again, don't feel offended. Banks are required to adhere to government regulations, guidance, loan policies, and blah blah to ensure they're underwriting the loan properly and ensuring a borrower's ability to repay to protect their capital (which is standard). If you still feel uncomfortable about the bank underwriting process, ask your lender to thoroughly explain the process to help ease any concerns. You also have the options to procure hard money (probably not the cheapest option but they don't have as many regulations and requirements) and non-traditional funds. 

Hope this helps & best and luck,
-Your friendly bank analyst Kysha ^_^

1. Good afternoon BiggerPockets SoLA (South LA) members,
   Thank you all to those who attended the meeting this morning or sent blessings from afar. This morning's discussion, questions, comments, feedback & Spam Musabi (thanks Sara!) were great! To follow up on topics discussed, I've included some articles pertaining to the rebranding of South LA (SoLA), Los Angeles Zoning, New Developments in LA and the LA Rent Control site.
   We agreed to have the meeting on the 4th Saturday of every month at 10 AM so please pencil the time and date in your calendars.
   The next meeting with be held on:
   September 23rd at 10 AM at Vermont Square Library (Outdoors - West of the Library)
   1201 W 48th St, Los Angeles, CA 90037
   Please bring a lawn chair or beach towel ^_^
   
   https://planning.lacity.org/zone_code/Appendices/sum_of_zone.pdf
   Zoning explanations
   
   http://zimas.lacity.org/ This is used to find building zoning, permits, environmental, rent control, and additional historical information about a property. Search by property address > select correct address > use the drop-down option on the left to select desired information.
   
   https://urbanize.la/ https://www.curbed.com/ Both sites have a neighborhood section which allows you to see future/current projects in those areas.
   
   https://www.google.com/amp/www.latimes.com/local/lanow/la-me-ln-south-la-could-be-renamed-sola-by-city-in-image-makeover-20150421-story,amp.html South LA could be getting a facelift
   
   http://hcidla.lacity.org/RSO-Overview
   This is the Los Angeles Rent Control website with guidance and the Rent Control handbook.
   
   I sent out a new email today (8/26/17 before 5:09pm) so if you sent me your email address but didn't receive the email, please check your junk mail box and/or PM me your email address. 
   
   Have a great weekend and please let me know if you have any comments/suggestions/questions for future meetings.

-Kysha 

Dang @Joe Villeneuve it's like you got a Happy Meal with a few extra free toys; I'm a little jealous of your piano! Haha 

@Brandon Foster This is such a fun, creative question!

FHA is the best option with the low down payment requirement of 3.5% but keep in mind they also require you to pay monthly mortgage insurance (calculated based on your credit score, property price & additional factors) until you're at an 80% LTV.

You'll also be required to pay multiple months of taxes, property insurance and mortgage insurance upfront for the property reserves - this is covered during the closing period. 

Lenders will also charge you for closing costs which includes title fees, appraisal fees, wire fees, notary fees, doc fees, credit reports, and etc which can total a few thousand dollars depending on the type of property, the bank, and where you're purchasing property (looks like you're in LA).  Bank of America has a free closing cost calculator that I'll use to get estimates. 

So if you're purchasing an $100K property, yes your down payment might be $3,500 but you'll also need cash for the upfront tax + insurance reserves and closing costs. 

Also ask the lender how much liquidity you need to have on hand for the underwriting process. My lender required that I had enough extra cash to cover the monthly P&I + taxes & insurance for 6+ months. 

Let me know if you'd like me to refer you to my mortgage broker, they did an excellent job with my FHA loan.

@Sara Qu Got it! Thank you Sara!

your*******  

-_- 

Good evening ladies and gents, if you sent me your email address you should have received an email from me about the BP meeting and supporting web articles about the South Los Angeles area. If you sent me your email address prior to 9:54 PM on 8/21/2017 but did not receive an email please:

1. Check you junk mail box
2. Send me a PM and I'll double check to make sure I have your correct email address =] 

See you this Saturday! 

Hi @Summer Brighton You're welcome to join us. This BP meeting is open to everyone. I just ask that if you're interested in the South LA area and the meet up, please send me your email address so I can email updates and relevant information about the South Los Angeles area. I hope to see you at the meeting this Saturday! 

@Sara Qu Please PM me your email address and I look forward to seeing you this Saturday! 

Sounds good @Manolo D. and I'll see you Saturday @Benjamin Lin!