All Forum Posts by: Mark C.

 The question was for those who have experience with a a homestyle renovation loan.  I am talking to my lender, I just wanted to learn more before I make the phone call is all.

 The down payment is 20% of the sum of the sale price + the reno cost. 

 No, I don't. I actually don't see any reference to the renovation cost in the paperwork except that it's included in the "down payment", which is 20% of the sale price + reno cost.

 Hey Chris, I was just sending you a PM.  Thank you for the quick input.  The reno budget is $14,000 + 10% contingency, so I'm a bit confused.  The $10,000 in question is being added to my "estimated cash to close" total.  I will be calling my lender shortly, I just wanted to be armed with as much information as possible for the conversation.

Attached is a quick photo of the Closing Cost Details.  Highlighted in blue is the $10,000 I'm referring to.

Edit: I uploaded an image, however I don't see it here.  If you don't see it as well, please ignore this comment.

 Yes, ~$7,000 in foundation repair and ~$7,000 for the new well.  $14,000 total + 10% contingency on top of $226,000 sale price.

 It's written on the closing cost details as "Adjustments and other credits" but it's being charged to me.  It's adding $10,000 to my total "cash to close".

So long story short, my fiance and I are buying a foreclosure. We're working with a lender called "Prospect Mortgage" who has a local office in our area. The name recently changed to "Homebridge Financial" I believe. The house has some structural work and needs a new well, so the loan were using is a conventional renovation loan by Fannie Mae called "homestyle". It's essentially the conventional equivalent of the 203k. House price is 226k, renovation cost for the repairs I mentioned is 14k for a total of 240k.  We have been under contract for probably 6 weeks now on the property.

We've been working on this loan for over a month now, closing date is supposed to be at the end of March, and they just sent us the final application to sign, after we've spent weeks of collecting paperwork and signing dozens upon dozens of documents, and providing everything that everyone that's ever gotten a mortgage is aware of; as well as coordinating everything with the contractors involved. I'm looking at the final document and they added a line at the bottom of the closing cost details page which says "Adjustments and Other Credits: $10,000". 

This is on top of the $4,672 in closing costs a d $5,861 in "prepaids and initial escrow payments". What is this? Are they really trying to add $10,000 on top of my already $10,000 in closing costs for no apparent reason? We're at the point that without significantly extending the closing date, we don't have time to go to another lender and we've already put so much time into this loan. I wanted to get the opinion of some others who may be familiar with this before I call these people and lose my temper. We simply can't afford another $10,000 cash tacked on for no apparent reason. Has anybody ever heard of this? Is this common?

Hey Wayne, that is what I assumed.  The property is maintained weekly, and the status on homepath is "not available".  The same broker still has his sign out front.  He doesn't respond to calls or emails so I can't get any information out of him. I was told it will probably come back, but no telling how long or what the problem is.  I have also been told I can submit a request for the foreclosure documents, however I don't know if that's even worth the time. 

How common is it for title problems to arise on an REO property such as this? I realize that it will widely vary, but is there an approximate amount of time, or an average, as to how long it can take to resolve a title issue? Thank you.

Specifically in Trend MLS, how long can a property remain "temporarily off market"?

I'm trying to buy foreclosed property, owned by Fannie Mae, that was changed from "active" to "Temporarily off market" about 6 weeks ago.  Is there a particular period of time that is designated for that particular status?  I assume it will become active again at some point, otherwise they would have cancelled the listing or withdrawn it, correct?

Any advice would be much appreciated.