All Forum Posts by: Roger Matthews
Roger Matthews has started 1 posts and replied 17 times.
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Hi Maurice,
I am locked into a rental contract until next summer and can't sell now. I think interest rates are not going up any time soon and economy is also picking up. I think housing will do fine.
I do love your idea of buying a cheap house as new homestead.
Thank you
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Friends,
just to close this threat, the second title company also refused to close this loan. At this time, we have given up and will sell this property next year. Here is the response from the underwriter of the title company. I hope this will be helpful for others in the same situation.
"Thanks for the additional info! We are not going to be able to insure this transaction because of homestead concerns. Since they live out of state and this is the only property they own in Texas, this property is their Texas homestead for insuring purposes although they do not live there. This is the case because they do not have any other property in TX to claim as their homestead. Because of this, even though they’ve removed the exemption, we look at the property as homestead and thus, the only way they would be able to do this transaction would be as a Home Equity and cash out of it.
Let me know if you have any questions. Have a great week!"
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Guys,
We might be getting closer with the new title company. I just heard back from my agent that she has the complete title work and she is waiting for the title company to answer few follow up questions from the lender after which they can prepare closing documents. Don't know what other questions lender has for the title company but I hope it get going soon.
Any ideas what could be happening behind the scenes?
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @T. Alan Ceshker:
Thank you Alan,
I have started with a new title company. So far they do not have an issue with homestead or remote closing. If I run into issues I will definitely reach out to you. I appreciate the help and the offer.
Kind regards
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @James Mc Ree:
You should ask your title company how they insure any out of state investor buying their first investment property in Texas. The answer to that question is probably your answer since it would solve the homestead dilemma.
James,
No restrictions on buying the first property as an out of state buyer but if you try to cash out on that property then this title company will not do it I guess.
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @Greg H.:
Originally posted by @Roger Matthews:
Originally posted by @Ganessan P.:
@Roger Matthews Sorry to hear that you are going through this.. Does the county record still says that its a homestead ? May be that's the reason the "Title Company" is over reacting it.
County takes about a week to update the record. I provided the title company the evidence and an approval from the county that shows the request is in progress. But, I was told that was not enough. Their response was " even if I you remove homestead from county records, since this is the only property you own in Texas, it is considered your homestead and cannot qualify as an investment property." Absurd? Yes. :)
As I said before, our Homestead protections and the Homestead Exemption for property tax purposes have nothing to do with each other. A property can be your Homestead without ever filing for the property tax exemption and although one is not supposed to you can have a homestead exemption and the not have the homestead protections
Understood. I am just trying to find a rational for the first title company's refusal to insure the transaction as an investment while all the evidence of not being an owner occupied property had been provided to them.
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @Ganessan P.:
@Roger Matthews Sorry to hear that you are going through this.. Does the county record still says that its a homestead ? May be that's the reason the "Title Company" is over reacting it.
County takes about a week to update the record. I provided the title company the evidence and an approval from the county that shows the request is in progress. But, I was told that was not enough. Their response was " even if I you remove homestead from county records, since this is the only property you own in Texas, it is considered your homestead and cannot qualify as an investment property." Absurd? Yes. :)
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @Guy Gimenez:
Non-homestead affidavits are used all the time but title underwriters do have the authority to determine if they wish to insure or not insure title...it's their option. You can own 20 properties and still not have to claim one as a homestead, there is no Texas law requiring one to have a homestead. The requirements they gave you are strictly underwriter driven. I would really like to know the name of the current title company.
Priority Settlement Group of Texas is the name of title company. I was avoiding to name them but I think it is appropriate so no one else gets blind sided by them.
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Greg
thank you Sir for the kind offer. I have meeting on Tuesday with my mortgage broker to discuss the plan. She may be bringing another title company in the picture. Else, I will definitely reach out.
Ryan,
The manager at the title company promised to reimburse us for the flights but as expected, I never heard back from her. :)
Post: Title company will not insure investment property cash out refi
- Posts 17
- Votes 2
Originally posted by @Greg H.:
Originally posted by @Darius Ogloza:
And all you guys saying California is weird just need to stop. I have never encountered this kind of regulatory state overthink in my 25 years here. Damn it, sign an affidavit affirming that you disclaim any and all homestead rights in the property and be done with it.
While the answer lies somewhere within a refi from an owner occupant loan to an investor loan and our homestead laws, the law is hardly regulatory overthink(Maybe an underwriter overthink)
Homestead laws provide a great protection for us in protection from seizures from a lawsuit. A Texan can literally own a million dollar home and it cannot be touched from virtually anyone this side of the mortgage company and the IRS. Of course our 2 Cows, several chickens and guns are protected as well
Totally agree with Greg on an over thinking underwriter. Funny thing was the manager at the title company said and I quote "No underwriter in Texas will close and insure an investment cash out transaction if this is the only property you have in Texas. It will be treated as homestead thus not qualified for an investment cash out."
I was like why did you schedule this closing then and had us fly here? Her anseer was I am really sorry but the scheduler person didn't know.
Unbelievable?....yes.