All Forum Posts by: Lesley J.

Perhaps I should have given more detail but I did say in my text that the loan INCLUDES repairs.

APPRAISED (by lenders own appraiser) value WITH punch list = 170K,

Purchase price 65K
Rehab - Estimate made using three different rehab contractor quotes

As with all HML the repair $$ to be escrowed with proper draw schedule an final release of liens prior to final payment.

there is no walking away with any cash in my pocket except what I get when I resell.

no the seller is not doing the repairs.

Just as an update - Thank you! I did call and if it wasn't serious it would have been funny!! You go to look at a duplex and find an 8 unit building where the duplex should have been. sort of like a bunny rabbit warren, with front doors popping up allover the place.

My call revealed a history multiple complaints about "too many garbage cans" and "too many cars"
so on inquiry about fixing the problem and legalizing the existing building the response wasn't just "no" it was "H*LL NO!!!"

obviously I thought it might be best to leave well alone..:)

Lesley

I have not had any problems with HML's until I ran accross this.

The property has a formally appraised ARV of 170K, loan needed 55% of ARV (this includes all repairs). the HML's in the area will not fund because the property is being purchased from a wholesaler who will not be taking title.

HML's have demanded to see copies of the wholesalers contract.

Reasons given: our business model does not allow us to fund this type of deal.

This reason is given by multiple HML's not just one.

I'd appreciate any comments, solutions workarounds etc:..


Lesley

Suppose you go to see a property, and when you get there it's completely different than what was listed on the MLS.. you check the address, check the picture and then decide yep!! I am in the right place. It's really interesting but when you check public records the building is completely wrong for the Zoning.... so my question is. Is there a way to check public records to find out if there has been a special use permit issued, or a change allowed? would this not appear on the county tax website along with all the other info? if so I can't see any yet I can't see how it could be possible for someone to make all the apparent changes with no permits.. It's a bank owned REO, do you supposed that the bank knows?

Thanks for reading my naieve questions.

Lesley

I googled freddie mac deed restriciton and came up with this interesting thread..

http://www.biggerpockets.com/forums/88/topics/27267-deed-restriction-with-fannie-mae-foreclosure-

yep I have that... Thanks for being so helpful :)

Lesley

wow, that's a big pain.. how about refinancing at 50% LTV after you get the property fixed and rented?

Lesley..

Thanks!

The plan will be to fix and hold for cashflow but I just need to make sure that it doesn't cut me off from backup strategies if needed.

Thanks for your advice :)

Lesley

hope this hasn't been asked before but what are the problems (restrictions on the type of activities investors do) associated with buying an REO property that is owned by Freddie Mac, or maybe someone could just point me to the right place to find this information.

Thanks :)

Lesley