All Forum Posts by: Ted Akers

Welcome to BP, from one of those other Denverites. You have found a great site.

Many of the larger title companies like Attorney's, Security Title, etc. will not work with flips or at a minimum require recording of the first Deed. I have not closed with them, but in Florida Old School Title is familiar with using transactional funding and back-to-back transactions.

Ditto here on the warnings regarding Craigslist. It is a good place to advertise because of the volume of participants, and the price is right. I have noticed anytime I use words like investor or investment I get flooded with scams and income "opportunities". If the response looks suspicious I never respond, as I have had friends innundated from similiar links.

Jawsette,
Even though they are spinning the Loan Mod program as a success, I think they are realizing it is not the cure-all they had hoped. There seem to be many complaints including serious delays in processing and borrowers being routed into foreclosure after being approved and paying on their temporary "approved" modification. The most telling number is that only 1,700 homeowners have completed the temporary modification and moved into a permanent modification status.

I agree that it sounds as if the Loan Officer is mis-stating the reason for the timeline. Eight days is actually a fast closing. They are required to send disclosures within three days of the application, but that is not a timeline to close limitation, as those disclosures can be provided at the time of application. Whether they are or not is dependent on their process. There is a new law requiring a 3 day borrower review of the appraisal and requiring their signature that they have recieved a copy of the appraisal. Some lenders, but not all, allow for a signature on that appraisal acknowledgement waiving the borrowers 3 day right to review.

Many lenders are afraid you are shopping the loan and do not want to provide you assistance in doing so. They are not supposed to provide their report to you. However, with most credit service providers there is a "Consumer" form that they can request and provide to you. As to your scores, they do not have to provide the actual report showing the scores; but they are required under federal law to disclose your scores, not just at denial but now at loan application or within three days of pulling your credit.

BofA just required us to change both sides of the contracts on an investor deal from an LLC to an individuals name. Anyone with experience or comments on this?

Dustin,
Welcome to Bigger Pockets.

Lucia,
My read from several articles did raise the same question, in that most articles do describe Treasuries actions as "Guidance". However, these are reported as rules to become effective 4/5/2010. Beginning next week Treasury has stated they will publish results of banks not following the program guidance. I know that few of us think that "shaming" banks into action is likely to have material impact. While none of the articles discussed penalties, I presume that at a minimum the financial incentives from Treasury would be withheld. Some high paid official somewhere figured out that short sales actually cost less than proceeding through foreclosure with legal fees and another 4-12 months of holding the property without recieving payments. While not a cure-all, and like many government programs without real teeth, it is at least a public move to encourage short sales. As to banks cooperation for now, or compliance after 4/2/2010, or Treasury Dept. enforcement we will have to see.

Kathleen,
Changes last week by the US Treasury Department should preclude them from charging ANY fees to the homeowner. You can see details of several positive changes I posted at: http://www.biggerpockets.com/forums/103/topics/42310-short-sales-encouraged-by-treasury