All Forum Posts by: Ade O.

Welcome to bp lakeisha, great site, great members!!! wish you luck and success in your real estate investing journey. I am also based and invest in the DMV area.

K.marie@ No, I do not have enough funds to buy the house, I had almost 40% of the purchase price, I asked the hud employee if this was a common issue, she told me that some hard money lenders did not have a problem getting hud the information, actually what they were asking for was not unreasonable they will take a letter on a bank letter head stating that there was enough funds to close the deal, it does not have to be a bank statement.

I am not upset with hud, i just wanted to put this out there to warn other investors about the rule change

I do understand what you mean Wayne, but with this deal the pre approval stated that they had reviewed my credit( part of huds reqirement) and I sent hud my bank statements showing that there was more that enough funds to close the deal which hud also requested, so everything was there except the bank statements that hud requested, I tend to agree with what bill said earlier on, when i spoke to the lender they stated to me that they are a "lender" and do not provide bank statements, but is that statement accurate? are they a lender as defined by the goverment? and to answer jeffs question these guys have done loans before so their ability to perform is good. Also the property was an uninsured hud property.

The offer was made as been financed and a preapproval letter was sent with the offer, according to the employee I spoke to at hud this was a new regulation they just put into effect, that was why they gave me back my emd, once they know it is a hard money lender they will be requiring the xyz hard money lender to provide a bank statement showing that there is enough fund to close the said deal or a letter on the banks letter head stating that xyz hard money lender has enough fund to close the said deal, so before any body makes an offer on a hud property be sure to be able to provide these docs.

I just had a deal fall apart because hud requested the hard money lender show a bank statement or letter from their bank showing they have enough funds to close the deal, when I told the lender about this they were dumbfounded, they told me that the funds was available but it would not be in the lenders account, since they pulling these fund from a pool of investors, and I spoke to more than one hard money lender and they told me the same thing(they were both willing to issue a strong letter of intent, hud said this was a new policy) I am wondering if anybody else has had this experience

Thanks guys, I actually walked on this deal, I could not make it work at the numbers the bank wanted, I agree with most the comments expressed, I just think the process could be streamlined, and I have actually seen some short sale listed as "approved short sale" on the mls so at least you know were the bank is in terms of the price, so I guess every situation is different and it also depends on the bank, but I appreciate the comments and suggestions.

jscott, you are right I did not have contract with the bank, I had the contract with the seller pending the bank approval(which they did not approve). as per the comps we sent them the comps, the house was on the market for close to 2 months and after several price drops I put in my offer based on the comps,the listing agent sent the bank an email detailing the process and the fact that this was the best offer he had received on the property at the end of the day I am not here to bash any bank, they can ask for what ever they want for the property, I just think there should be a more easier process to buy or sell these short sales,you cannot have a negotiator or asset manager sit on a deal just because he or she thinks that the value should be x or y which is not based on fact or reality and I have actually heard of situations in which real estate agents have threaten to sue banks for their compensation after they have brought a willing and able buyer at a fair a price for the listed property and the banks did not want to approve the sale, at the end of the day nobody wants to waste their time, if the bank wants a specific amount for the property, it should not take them several months to communicate that to all the parties involve in the transcation, like they say Time is of the essence

jscott, I am an agent and I was the buyers agent on this deal, and i ran the comps on this deal before I made the offer, also remember that I had to go through the highest and best situation earlier on in the process, so I felt it was a pretty strong offer to begin with and in reference to the vanderlism, I was not even trying to get a discount I just wanted them to honor the contract that we had before the vanderlism and they would not even do that.I think you are right on the point that the listing agent should have had the bpo done before listing the house, I think this is just a reflection of the current market, lack of inventory and unrealistic expectation on the part of the bank, in this case the sellers were willing to contribute their relocation fund towards the deal and I even went up 2k just to try and make the deal work, I eventually walked on this deal.

Micheal, yes I walked on this deal, not worth to me, also been an agent what I am noticing on these flips in my area is, they are starting to sit and taking longer to sell after rehabs because the prices are starting to creep really close to the new construction prices and that is a reflection of what they are paying for this properties when they buy them, I think some investors are starting to think are about the good old days of 4 to 5 years ago before the crash and that is really scary if you know what Imean

I just had a not to plesant experience with a short sale deal I had on under contract in november, so I found the deal on the mls, I put in an offer for 115k a few days later the agent calls me to say that there are multiple offers on the property and that I need to come up with my highest and best offer, so i went up to 118k and he called and said we had a deal, so fast foward to january, after several calls to him, he sends me an email telling me that the bank(bayview) now wants 135k for the property, so I write a detail email explaining to him and the bank how we came up with the offer and that it is a fair and strong offer we also detail the work that needs to be done on this property and also the recent vanderlism(which occured in Dec) to the property and offered to go up to 120k, at the end of the day the bank did not move off their 135k number, I do not know if you guys are experiencing this kind of situation in your market, but for you to have a house under contract for several months only for the bank to comeback with several thousand dollar counter leaves me with a really sour experience with short sales,to me it makes more sense for the bank to do there bpo and due deligence before putting the property on the market with a price that they will accept.