All Forum Posts by: Patrick Roberts

Fannie mae publishes a schedule of allowable attorney fees by state for foreclosure services. This will give you a ballpark on the cost of the attorney services only. This does not include all the other stuff that the attorney has to order/do on your behalf. 

When I had similar questions, I found a reputable creditor's rights attorney in the area I operate in and paid for an hour of their time to get the baseline info I needed. That was the simplest solution, but not the cheapest.

I would have financing worked out prior to going under contract on something. Dont want to lose your EMD

I wouldnt draw on the credit cards. I see this quite a bit - draw on the credit cards for the rehab, then CC ulitization crushes your credit score, then you get horrible terms or declined for a refi because of credit. 

If youre wanting to run both projects simultaneously, go get property financing for the rehab now. If not, just wait until the first project is completed. Dont get into a situation where you no have no liquidity - when youre out of cash, youre out of business. 

It's a great tactic. Pricing is usually similar to or below hard money. It's not super common because not everyone has the portfolio to afford this and not all brokerages allow cash loans. I know Interactive Brokers used to have a great product for this. 

The biggest risk is a margin call. As long as youre keeping your leverage low enough and not using highly volatile/high beta positions, you should be fine. Your advisor should be able to provide a lot of guidance here. 

As far as the refi goes, there shouldnt be any issues. Depending on the seasoning on title, your lender may or may not source the downpayment using the purchase settlement statement and a transaction history from the securities account. Im not aware of any lender who disallows this source for a downpayment. 

I can refer an agent who does a lot of VA purchases, but not necessarily VA mulitfamily. There isnt a huge amount of difference between the two - the process is largely the same.

 What? You can absolutely complete a rate and term refi without buying down the rate with points.

Sounds like a security to me. This screams of fraud. Seems like the seller is trying to use this as a workaround to foreclosing through the normal process. 

Occupancy fraud definitely occurs, but it's not as widespread as people think. For one, a lot of MLOs like me are not going to play that game. A few deals are not worth my integrity or license. And while it does happen, it's not as simple as just claiming that youre going to live in a property when you get a new loan. Underwriters are watching for this sort of thing and will decline or stip for more info/proof if a situation is questionable. 

The new FHFA director is taking on mortgage fraud as one of the pillars of his tenure, and honestly, this should be beneficial to market overall in the long run. 

I will say this - a lot of investors have bought into deals in the past few years that dont make sense, and we're probably about to see some of that unwind. It wouldnt surprise me if the low downpayment segment of that group, including those using occupancy fraud, is hardest hit. I dont think that alone will be enough to move the market significantly, though. My guess is the only thing that will bring a significant downtown in the real estate market as a whole is high and prolonged unemployment. I guess time will tell. 

 This is the 2nd time this week Ive heard about carnage in FL

DSCR 2nd positions are avaiable but expensive. We offer one but do not lend in NY. There is likely a broker on here who can help with this. A&D Mortgage, Deephaven, and a few others will fund these.