All Forum Posts by: Paul Cordero

You will want to consult with a CA attorney to be sure. I am not an attorney, but I did work in default servicing for a while. Its been a while but last I checked, CA is a non-deficiency state meaning that lenders cannot pursue deficiency past the foreclosure.

This might help a little more http://www.foreclosure.com/statelaw_CA.html

Sounds right, 12 month policy paid at closing and 3 months reserves for the escrow account.

Wait until you have closed the loan for your new home. Having reserves will make you a stronger candidate for loan qualification. Pay the student loans down after you close.

Callum K.

Great advice.

It also boils down to experience. You may find a banker or loan officer willing to go to bat for you with their underwriters because they have received approval for a similar scenario. All underwriters are different. We were trained to not treat the guidelines as gospel truth because they are just here to guide in a general sense. Every now and then we have to go outside of the guidelines if a deal makes sense. It will take a lot of work and time to get this done, so I wouldn't expect it to be easy, but keep looking. You will find someone willing to take this on for you.

It will really depend on the situation that caused the default, extenuating circumstances or financial mismanagement?

100% commission = low barriers to entry, and even quicker exit for the ones who don't deliver.

Most lenders are going to require your complete personal tax returns for the past two years with all schedules to determine what property the rental income is being generated from.

As far as I know, conforming loan guidelines won't let you use rental income for your primary residence from roommates.

You may be able to find a portfolio lender who will allow this. Sorry I don't have any suggestions.

So based on the info on your new deal, you wouldn't have two years of rental from the investment property until 2015.

Hope this helps.

J - Not sure where you got my argument as "People should be forced to accept a lender, otherwise the lenders with bad reputations wouldn't get their fair share of the business"? I never said that.

Also, I am focused on fixing any misconceptions my company has. I don't believe we have a "bad reputation". I do this everyday with agents that I build relationships, educate, get business from, and deliver for. Also, my company wasn't singled out as the only lender the selling agent wouldn't accept offers from - they said any "Big Bank". So to me, there is a misconception about Big Banks not able to get this type of transaction financed which is not necessarily based on experience.

I also never said that sellers don't have the right to reject a bad lender because I think its unfair. I think its unfair to say that all big banks can't get this deal done, especially when the seller is trying to get the deal approved through their preferred lender.

Here is the other thing that bothers me. The seller is willing to take a financed offer from a mortgage broker, but what they might not ever know is that the broker may be going through one of the big banks to get the deal done. Ignorance is bliss.

Thanks Bill and K. Marie.

I appreciate all of the responses, and encouragement.