All Forum Posts by: Lisa Hall

MAHALO!!!

Should I call the underwriter?

We were supposed to be closed weeks ago!

I have PERFECT payment history on this property (and EVERY OTHER DEBT) and pay the taxes, insurance and $2,000 a month HOA Fees - this is ALL prima facia evidence that I am paying this debt too - she is just not cashing the checks.

I just need to figure out how to get this message across to the underwriter. 

ANY advice would be VERY appreciated! 2 Issues:

I am in UNDERWRITING and now they are asking for CLEARED CHECKS from a private mortgage - Years of History of the Owner Cashing Multiple Checks at One Time - AND the Loan Officer did not disclose a debt before underwriting and now I think my file might be flagged.

We have been in underwriting since June with a broker - Freddie Mac Conventional Loan - can be switched to Fannie Mae if needed.
We were Expecting a Clear to Close but received a return of the file last week because they were asking about an "undisclosed debt" - WHICH I DISCLOSED on June 23rd to the Loan Officer - that was not calculated in the Debt to Income that got us an automatic approval. So my Loan Officer did not include this disclosed debt!
So - now I think that my file has been flagged for not disclosing a debt - which can result in an automatic loan denial or extreme scrutiny - and now - they are requesting CLEARED CHECKS for this private mortgage note, and will not accept the history or carbon copies.

The problem is that the person we pay monthly is elderly (80's) and she requested that we mail a paper check every month on the 5th and she has always deposited the checks several at a time - as shown below. The last check she CASHED was in May - when she cashed March, April and May together. This has been her pattern for the last several years. We ALWAYS have the money in the account waiting for her whenever she cashes the check.
We have sent the carbon copies to the lender - as we thought our obligation ended when we mailed the check - not when she gets around to cashing them!

They are now asking for a "Mortgage Rating" and asking for a Verification Letter from the seller and I cannot get in touch with her - I have not had any communication with her since 2020. She is elderly and I don't know if she is alive, in a nursing home or has dementia - I don't have a clue - but if she takes MONTHS to cash a check - she will never fill out a Mortgage Verification Letter. She is not returning my calls or texts.

So - my question is 1: - IS THERE ANY WAY AROUND THIS with Fannie or Freddie considering:

1. This is a long established pattern over years of her cashing the checks in groups for years every 60-120 days.
2. Not a single check has ever bounced .
3. Every penny of her mortgage checks has been in the bank every day since writing them - waiting for HER to cash them. She has NEVER communicated with me that she is not receiving payments or that our payments are late.
4. Our credit report shows ZERO LATE PAYMENTS - EVER - Not a single one for decades.
   AND
   2 - Since I am pretty sure that my file is now flagged as an undisclosed debt because the Loan Officer did not include this in the original approval - how can I get this flag removed? (I am SURE the Loan Officer will deny any wrongdoing - of not originally disclosing it - but because of THEIR mistake - I believe I am now flagged - Fannie Mae Guidelines Below)

I have the email underwriters email - Should I send a group email explaining that this was disclosed months ago - and give a more detailed explanation of the situation with the checks?

According to the Fannie Mae website: "How Undisclosed Debt on a Mortgage Application can cause loan denial .... Undisclosed Private Mortgages on Real Estate - your approval could turn into loan denial or fraud"!

I am 100% certain that my loan officer did not include this debt that I disclosed to him in June - in the file - because late last week - he asked me if the private note was paid off AGAIN - and then said we had to lower the loan amount because of our new DTI AND we now have to prove these payments were received on time and they are considering this "mortgage delinquent"
January 2022 CLEARED March 3 2022
February 2022 CLEARED March 8 2023
March 2022 CLEARED April 19 2022
April 2022 CLEARED May 19 2022
May 2022 CLEARED May 19 2023
June 2022 CLEARED June 28 2023
July 2022 CLEARED August 9 2022
August 2022 CLEARED September 15 2022
September 2022 CLEARED September 14 2022
October 2022 CLEARED November 7 2022
November 2022 CLEARED December 19 2022
December 2022 CLEARED December 19 2022
January 2023 CLEARED January 30 2023
February 2023 CLEARED March 16 2023
March 2023 CLEARED May 15 2023
April 2023 CLEARED May 15 2023
May 2023 CLEARED May 22 2023
** June 2023 Not Cashed Yet
** July 2023 Not Cashed Yet
** August 2023 Not Cashed Yet
** September 2023 Not Cashed Yet

Can you please post a direct link? It is linking to your 27,000 replies over the years :) 

Mahalo!

Hi-

I have properties in several states, and I am looking for a new accountant that specializes in Real Estate Investing and can make sure that I am receiving all of my deductions.

Do you have anyone you can recommend? My understanding is that most Accountants can work in any state. My current properties are in Hawaii, Utah, Nevada and Ohio.

We have been paying our current accountant $200 per year for over 20 years now, but we have definitely outgrown him.

Any recommendations with contact information would be GREATLY appreciated!

Thank You!

Kai Lisa

 Aloha Eric-

I have someone that is calling me daily to let him partner with me on this deal. 

I REALLY want to try to figure this out on my own. He wants a % of ownership, and a % of the monthly income.

Considering that this is already Cash-Flowing with Equity before I even buy it - I know that once I figure this (short-term) piece of the puzzle out- it will be my most lucrative cash-flowing property that I own.

I honestly feel like there is an answer out there - I just need someone that can look at this from a different angle - and help me find the out of the box answer.

In any other scenario, you are right, a partner would be the way to go. I just don't want to give up so much long term, for a short term situation.

:)

Kai

Thank You Stephen!

If I need to, I can make this in to an Investment Property from the beginning. My husband owns the condo next door, as his primary residence. I was going to move in to one of the 4 bedrooms in this one - and run it as an Airbnb and be on property. I could, just stay in his condo if I needed to, and then Airbnb all 4 bedrooms. 

I am very flexible - I am just trying to figure out this rubik's cube in my best interest. 

If I did it as a complete investment property - what additional options would I have.

By the way... The current owner is only Airbnb'ing 2 of the 4 bedrooms and she is Cash Flowing the property!

 Aloha Wayne-

All of my money is tied up in other rental properties. - so I would need to 

cash-out refinance 2 other properties to come up with the $150k.

I have looked in to that... it just seems expensive and cumbersome. If at all possible - I would love to use the 100k equity in this property as part of the equation.

I feel like I have all of the puzzle pieces in front of me, I just don't know how to put them together yet....

I would LOVE any other thoughts that you might have?

:))

Kai

 Great Idea Craig!

I think I could get the money with a short term Hard Money Loan - but how would I go about re-financing it in 6 months. 

Again, if I only wanted to re-finance the $150k and not the entire loan?

I think you might be on to something!!

:)))))

...I could access the money from a couple of other properties if I had to - it just seems so cumbersome - especially, since this property has so much equity in it to begin with.

And if at all possible, I would like to keep this property separate - and on it's own.

What kind of re-finance would I be looking at in 6 months?

:))))))

Kai