Real Estate: A shakeup in the mortgage lending is quickly coming down. |
- A shakeup in the mortgage lending is quickly coming down.
- Help identifying States that deemed mortgage lending non essential.
- Need Advice
- Closing troubles in California
- Can a foreclosed house still be auctioned off right now?
- [MI] Downgrade Realtor to Transaction Coordinator?
- Supposed to close on a house on 4-3. Can I renegotiate?
- [MN] I Lost Money But Didn't Lose My Shirt
- RealEstate Agents/Landlords... How are you?
- Did the house not appraise and they didn't tell us?
- How am I supposed to plan a move in the middle of all this?
- Is it a good idea to purchase a rental property to rent out in these market conditions
- Appraisal question-Checked box that said "infestation"
- Closing Tuesday in chicago
- Locked Refi Rate at Best Time; Lender Ordered Appraisal and It Came In Below Value
- Refinancing from FHA to conventional advice.
- Earnest money
- Home Warranty Company Shut Down
- $195 Flat listing fee?
- [Landlord US - MA] First Time Homebuyer Retention Fund for Renters
- Can I negotiate my lease renewal?
- Landlord is double charging me
- Day after closing, many condo issues
- Our DREAM HOME, revisited
| A shakeup in the mortgage lending is quickly coming down. Posted: 27 Mar 2020 08:24 AM PDT EDIT: For everyone asking for the source, this is not public information, available on the net. These are internal guidelines sent from investors to lenders. Best thing to back it up is any other lenders in the subreddit, willing to confirm they have received similar notices. There will be plenty of public info in the coming weeks. As probably expected, although probably a lot more restrictive, a new set of measures are being implemented by second market investors. It is important to note these are not from the agencies but by the investors themselves which means that there may still be some lenders that will be easier to qualify with but for the most part moving forward getting a mortgage will be much harder. Some of these new qualifying restrictions are even stricter than post 2008 ones. It is expected that further rules will be implemented which will make getting a mortgage extremely difficult for most people. Few examples: - Final Verification of Employment is done 24 hours prior to closing (used to be 10 days). This has already killed a ton of loans right at the closing table as multiple borrowers are either laid off or not working full time. - Debt to income restricted at 50% for all FHA loans. First investor (and others expected to follow suit) has maxed out the DTI at 50% unless borrowers have a 700+ score (uncommon combination for FHA buyers). Max DTI 45% for borrowers with 660 credit score unless they show 6 months reserves. - Minimum FICO for all borrowers increased from 600 to 640. - Use of gift funds requires 6 months reserves - Self employment income reduced by 25%. Verification by 2 additional sources that the self employment is still continuing (not even sure how we accomplish this) - Multiple restrictions on Brokerage and 401K accounts used as reserves (this is understandable). At the moment it is a complete pandemonium on the back end as all investors struggle to implement new guidelines and simultaneously refusing to purchase existing commitments or loans with less restrictive guidelines. Lenders getting hammered with unusual post purchase conditions and loans unexpectedly becoming non purchasable. This is about to take down plenty of small lenders and some big ones and everyone is scrambling to implement survival mode guidelines. It is only a matter of time before the agencies jump in and change all the rules so there is some uniformity in the guidelines but one thing is for certain: It will be a lot harder qualifying for a mortgage going forward. EDIT: Further restrictions rumored Warehouse banks refusing to lend on Jumbo loans so that market will pull back significantly. Warehouse banks looking at not allowing FHA loans any more as being too risky. Investors not purchasing these as high risk which means that loans will get stuck in Warehouse line. You cant foreclose right now, FHA borrowers have minimal investment in the deal, which means defaults are coming here first. On the plus side most lenders (thanks to FNMA) will allow exterior only appraisals on purchases and Rate and term refinances only. UPDATE: Similar restrictions being implemented by at least 3 other investors, so this will soon be across the board. [link] [comments] |
| Help identifying States that deemed mortgage lending non essential. Posted: 27 Mar 2020 07:20 AM PDT First post. Thanks for reading. It seems mortgage lending is determined essential by each state. Has anyone compiled a list of states that have deemed mortgage lending to NOT be essential. I was told that Michigan and Louisiana recently made this decision. Thanks for assisting me on locating this information. I came across this: https://www.alta.org/business-tools/county-status-all.cfm edit added link [link] [comments] |
| Posted: 27 Mar 2020 11:03 AM PDT My girlfriend wants to become a realtor, but is a self-proclaimed introvert who feels "exhausted" from person-to-person contact. She can't stand even the idea of calling an established real estate agent who she's family friends with to pick their brain about what it's really like. We're both fresh out of college, graduated in May of 2019. I'm in tech sales and know how tough a selling environment can be. She still hasn't been hired and I'm worried she's setting herself up for failure down the line. Is there a sector of real estate that introverts can thrive in? I want to help her, I just can't seem to give her any good advice. It just seems like she's been applying for the wrong positions. HELP!! [link] [comments] |
| Closing troubles in California Posted: 27 Mar 2020 12:35 PM PDT Im new to the market so forgive me if get some of these terms wrong. So 1 week before all hell broke loose, I formally agreed to all terms on home. It was inspected and appraised and everything passed with flying colors. Our agent was able to talk it down 10k from asking price. Right after i agreed on the terms, my job was deemed non essential and I have been off work for the past week. I'll be off work for another week, fully paid. My agent is seemingly trying to rush me to close asap. At this point I dont even know if I'm going to have a job in 2 weeks time. If I lose my job then obviously I won't be buying this house. Will I lose my deposit if I lost my job? [link] [comments] |
| Can a foreclosed house still be auctioned off right now? Posted: 27 Mar 2020 08:50 AM PDT A family member's home is in foreclosure and the auction is supposed to happen in 2 weeks. North Carolina. Can they still auction the house off at the courthouse with the government buildings being shut down? I don't know how the foreclosure sector has been affected by recent events. And the county just enacted a stay at home orders in place so I'm wondering if that has any effect. The home is still occupied currently. I don't know how quickly they can find another place or even within what timeframe they would need to be out of there, especially now that evictions aren't being carried out in the county and we have all this virus craziness happening. [link] [comments] |
| [MI] Downgrade Realtor to Transaction Coordinator? Posted: 27 Mar 2020 06:08 AM PDT Is it possible to downgrade your realtor to a transaction coordinator and just pay them a flat fee upon closing? My listing agent has done absolutely nothing for me. Used my pictures and description for the advertisement, had the listing for 10 days before listing it on the local MLS, slow communication, only got me 3 showings in 2 weeks, had 0 people show up to my open house. The offer that I have on the table now is an offer from a couple I worked with a month ago before my realtor even came into the picture. I showed them the house, worked with their realtor, answered questions, etc. I didn't choose their offer before as it was too low and had accepted a better offer; that deal fell through and this couple came in with another, better offer. I was a "For Sale By Owner" before and chose this particular realtor to work with because I was promised the world.... Anyway, I'm super displeased with my agent and don't find them deserving of 3% whatsoever. I'll value the time/effort they did put in, but it's certainly not worth 3%. Thank you. [link] [comments] |
| Supposed to close on a house on 4-3. Can I renegotiate? Posted: 27 Mar 2020 01:35 PM PDT So I started the process before this coronavirus blow up. Been delayed a few times due to everything going on and paperwork issues. Now that everything is set I am wondering if I should back out or could I negotiate a lower price because of these circumstances? [link] [comments] |
| [MN] I Lost Money But Didn't Lose My Shirt Posted: 27 Mar 2020 12:50 PM PDT I backed out of a home that fit all of my housing requirements (good neighborhood, close to my work, walk-out, correct bed/bath count, etc.). The only reason I didn't buy the home is that it failed the home inspection. It required repairs that I overlooked and simply refused to see. Anyways, I lost money on the inspection/other fees but I didn't lose my shirt on the required home repairs. I very much appreciate getting a good home inspector. Still feels bad, man. I'll go back to passively looking for another home. [link] [comments] |
| RealEstate Agents/Landlords... How are you? Posted: 27 Mar 2020 05:01 AM PDT My buddy is dealing with a lot of issues, he is a landlord as well and his tenants are refusing to pay rent. Barely getting any clients as well. How are you fairing in this crisis? Are you new to real estate? Experienced this before? What did you do to prepare for the issues you are dealing with(if any)? hope you are well. [link] [comments] |
| Did the house not appraise and they didn't tell us? Posted: 27 Mar 2020 02:43 PM PDT We are selling the house. Seller pays $5000 in closing costs. A week after the appraisal, the buyer's agent says that their lender is limiting this figure to $4000, and they're reducing the final sale price by $1000 (so that the seller doesn't see a change in what they receive). I'm wondering if this means the house didn't actually appraise to the original sale price. [link] [comments] |
| How am I supposed to plan a move in the middle of all this? Posted: 27 Mar 2020 10:56 AM PDT I got a new role that will take me from NC to UT and I'm super excited about it! Though the position starts Monday, my contract doesn't actually have me moving out until June 1st. My new manager says that the date is a placeholder and he doesn't expect me to move until we're both comfortable that it's safe to do so. Nobody in my business is meeting face-to-face right now so it's not essential that I'm in the area until things clear up a bit. But that sort of means that I have no idea when I might be moving or what steps I should be taking to find a place right now. My current lease goes through May and then ends up month-to-month. I told my landlord I'll be moving but that things are really up-in-the-air right now. He said he wanted to know when I'll be leaving by this week but I don't really know what to say. My state is on stay-at-home orders and moving across the country involves interacting with so many people! I'm really looking for advice or a plan of action here. Anything to reduce stress levels a little bit would be nice, honestly. [link] [comments] |
| Is it a good idea to purchase a rental property to rent out in these market conditions Posted: 27 Mar 2020 10:39 AM PDT I have been wanting to refinance for a while before this Coronavirus. I finally got around to it and took out 80k at 3.3% rate. Is it a good idea to search the markets to buy a property and quickly get it rented out to not lose money due to vacancy. I assume there isn't a lot of completion in the markets so I could get a better deal than other times on a home? [link] [comments] |
| Appraisal question-Checked box that said "infestation" Posted: 27 Mar 2020 01:36 PM PDT I got my appraisal for my house i'm closing on in, it appraised above what we're paying for it and we noticed a box under the foundation section, titled "evidence of: infestation" was checked, but no other mention of it in the entire appraisal. What could it be? I would think that if it was termites they would have mentioned it or it would have effected the appraisal [link] [comments] |
| Posted: 27 Mar 2020 12:32 PM PDT So we're closing Tuesday in Chicago Illinois. I'm putting down $20k for the down payment at close. Already put only $1000 in the escrow. How are these numbers correct that all I'm gonna have to put down is $23,200 if there's $8000 in closing costs. Thanks! [link] [comments] |
| Locked Refi Rate at Best Time; Lender Ordered Appraisal and It Came In Below Value Posted: 27 Mar 2020 08:18 AM PDT Continuing from the title. My home is a townhome and part of a new development, built 1.5 years ago. My community is in an up-and-coming neighborhood, and most recent sales have been at appreciated values. The appraisal that was ordered came in at $455K, which is $10K less than my purchase price 1.5 years ago. Other townhomes in my community (including my next door neighbor) have recently sold for $480K. For some reason, the original owner's sales transaction from the developer is not reflected in the public record, but that owner's sale to the new neighbor occurred on 2/20/20 at $480K, which appears on the record. Another home happened to have sold ~2 days after the appraisal at $483.5K. Another home is in escrow at $479K. For some reason, the appraiser did not include the $480K in his appraisal report. He included the $479K only as "confirmation" of his appraised value bc it was in escrow, but did not afford much weight to the value. Instead the heaviest weighted value home was a transaction from late last year of a home that sold for $450K in my community. I disputed this appraisal report with my mortgage broker who tried to appeal with the lender's mortgage appraisal company, who hired this appraiser. I provided new information pertinent to these transactions (i.e., title reports, appraisal on the $479K, recent property reports on the $480K and $483.5K). Apparently, the MAC stonewalled my mortgage broker. Broker advised that I contact them directly. I did so last night and after a few email exhanges, I was assigned a QC manager, who I'm scheduled to talk to this afternoon. According to my broker, if the appraised value isn't close to the previous appraised value of $488K (I did another refi previously where Fannie Mae gave a property value waiver at this amount), then the Lender can reassess my locked rate and not honor it. Additionally, the appraisal at $455K would put me over 80% loan to value and add mortgage insurance, which I've never had. Does this sound normal to you? To me, it feels like the lender is somehow trying to get out of honoring my locked rate (0.6% difference), but I may be reacting out of frustration. It seemed odd that the lender (same lender as my first refi) is now ordering an appraisal, which came in at a depreciated value from my purchase price last year and did not use available comps. TIA for any insight. [link] [comments] |
| Refinancing from FHA to conventional advice. Posted: 27 Mar 2020 12:03 PM PDT I've recently had a home appraisal done that allows me to refinance out of an FHA mortgage with an additional down payment assistance mortgage of $10,000 dollars that had %1 interest. My current mortgage rate is %4.75. I'm locked in at %3.5 percent and it would also eliminate the second down payment mortgage I have. Lowering my total payment about $200 a month. Total closing costs to be around $1000 dollars. With rates falling would it be worth backing out and trying to time the market for a lower rate? [link] [comments] |
| Posted: 27 Mar 2020 08:09 AM PDT Looking to buy a new build house and builder is asking for 5% earnest money as well as 50% down in cash for design options. Does this seem high? My previous new build home was 3%. Is there any room for negotiation on the earnest money % with builders in your experience? thanks [link] [comments] |
| Home Warranty Company Shut Down Posted: 27 Mar 2020 11:25 AM PDT I bought a house and closed on it just last week. Just today I found out the home warranty company that I had a contract with completely shut down. I have contacted my real estate agent, but it appears that no one knows what to do at this point. I have tried contacting the warranty provider, but I doubt anything will come from it. I would prefer just getting a refund and transferring to another warranty provider. The company that I used is https://www.freedomhw.com/ and at this point Im at a loss on how to proceed. I hope this is the right sub for this question. Any advice appreciated. Thanks [link] [comments] |
| Posted: 27 Mar 2020 11:10 AM PDT Has anyone done research on companies that offer flat rates for listing? I found this [company] (https://www.195realtor.com/?gclid=EAIaIQobChMIh9qv3bK26AIVBaSzCh2ohQjzEAAYASAAEgKpAvD_BwE) Seems too good to be true? [link] [comments] |
| [Landlord US - MA] First Time Homebuyer Retention Fund for Renters Posted: 27 Mar 2020 10:18 AM PDT Hello r/RealEstate Hope everyone and their friends and family are safe and healthy during these strange times. I own a 3-bedroom property in Boston that I rent out on 3 individual leases and am trying to think of a way I could give back to the people that rent from me. Wealth inequality is America is upsetting and being a landlord makes me feel like I'm part of the problem. I want to help close the wealth gap but I'm only one person so there's little I can do in the grand scheme of things. What I can do though is try to close the gap for the people that rent from me. My initial brainstorming came up with this idea that would hopefully help my renters get into a home of their own sooner but I'm concerned that there are some legal ramifications that I'm not considering. In the terms of the lease I would like to include some retention incentive that states if a tenant rents one of my 3 rooms for say 2+ years, once they move out I will put 10% of their cumulative rent paid (length and percent might change after I run some numbers) into an escrow account that will be paid directly to their lender at the closing of their first home as part of the down payment. First response might be why don't I just reduce rent. The rent is already below the average for the area so I don't make too much off the property and being only 30, I would like to build somewhat of a reserve with my small profits so I'm trying to make this benefit only available to tenants that stick around for a decent amount of time. My partner asked what would I do if someone hit the 2 year mark but had no intentions of ever buying a home. I didn't have any answer for that yet (like I said, still in the initial brainstorming phase). Anyways, this is obviously a work in progress but I wanted to check with a community that might point out some glaring legal issue I was missing. Thanks! SuckinOnPickleDogs [link] [comments] |
| Can I negotiate my lease renewal? Posted: 27 Mar 2020 09:39 AM PDT Hi everyone! I live in the Bay Area, CA and because of COVID-19, everything has been shut down. My fiance (25M) and I(26F) have been fortunate enough that both of our places of employment were deemed essential. We have not lost our jobs but my hours have been reduced to part time. The lease for our apartment is up on April 30th and our rent will go up by almost $300, not including $50 pet rent. We have lived here for 1 year and we have been great tenants. We pay our rent early every month. We have also seen units that have been empty since we got here. We have not made any complaints nor has any complaint been made against us. We did not complain when our water heater burst (suddenly at 9AM on a Saturday morning) and we woke up to a flooded kitchen. We had to be evacuated for the weekend because there were hot currents in the kitchen and it was deemed a "state of emergency". We did not complain when we caught the maintenance team in our unit on 4 different occasions without prior notice or permission. We did inform management and asked why they were here but we never made a formal complaint or sued. We also take very good care of the unit. I deep clean the unit every Sunday morning. We both do not smoke or drink and we're usually in bed by 10pm so we are very quiet. We also have a special needs dog (deaf and partially blind). She is fully potty trained and she does not bark because she cannot see or hear other dogs barking, the mailmen, people walking by...etc. They have sent out a notice to all the tenants that during this time, they will be providing financial support to those affected by COVID-19 by offering discounts or payment plans. Because we have not been greatly affected by the virus, we will be paying our rent in full. However, we are not sure if we will be renewing the lease because the rent will be significantly higher and my paychecks have been cut in half. Do you think I would be able to negotiate a lower rent increase? [link] [comments] |
| Landlord is double charging me Posted: 26 Mar 2020 03:49 PM PDT Signed year long lease Lease ENDS March 19th Payed rent on March 1st, FULL AMOUNT, 1st - 31st Renewing lease, landlord wants to charge me at the new rate, on the new lease a pro-rated amount, for the days -- 20th - 31st I already paid rent this month Why are they making me pay TWICE? Why can't my lease agreement start on April 1st (landlord/leasing agent claims they don't want leases all ending on the same day of the month) I get that. Why the double charging? Are they trying to rip me off? Is this legal? Thanks for all of your help Update: Credit has been given for amount already paid! Balance in the universe has been restored. [link] [comments] |
| Day after closing, many condo issues Posted: 26 Mar 2020 08:58 PM PDT Day after closing, many condo issues I closed on this condo yesterday, and today was my first day spending time in it. The floor is incredibly sloped which is something I didn't notice the extent of and I could probably live with it. The brand new appliances have issues, pulled the oven open and one side came off... ok. I can probably fix this. There was no washer and dryer in the unit when I did my walkthrough and had adding them as part of the contract. They added them, not the brand that was in the contract, but they added them. Fast forward to tonight, first night in the place. The drain in the washer and dryer room overflowed pointing some water on the floor, but it was not a lot of standing water before we noticed this. The drain seems to be backed up and can only handle so much. The dishwasher also is not draining for some reason. I have not yet checked to see if they did not remove the plug in a new garbage disposal. This unit is a complete renovation, maybe I should have started with that. I got a knock on my door a few minutes ago and apparently the two units down from me got water from above. First day after closing... This was a VA loan and as such I had an inspection performed, and it also appraised above the purchase price (I'm sure they game this part). I understand I should have done more due diligence but I've been commuting an hour and a half or so each way for this new job, and I am just wondering what options I might have if any? Good luck wishes are better than nothing but can do without the "you should have combed every cm with a fine tooth comb" type comments. [link] [comments] |
| Posted: 26 Mar 2020 07:24 PM PDT Hi All. Last week I posted about the seller trying to back out of a house we were buying two weeks prior to closing, our "dream house". We were pursuing enforcing the contract first, then damages second. There were a few things that we asked to have repaired/replaced, those were agreed to by the seller. We heard from the seller's lawyer today, finally. According to him, she felt like she was not represented well enough by her realtor and was given bad advice at the start. The lawyer has presented us with a revised seller's disclosure noting that everything is either "defective", or "not incluced", down to the garbage disposal. We realize this is a tactic to absolve her of any responsibility, should anything wind up being actually defective. The contractor hired to review and perform the repairs noted many of the same things we found out during the inspection, things we knew we were going to be handling on our own. He also inflated the importance of some of those things as a way to influence us to now terminate the purchase agreement with only the earnest money being handed over, no damages. I understand that this is fully lawful in Indiana. So now, we're faced with continuing the house purchase "as is", or get a fraction of the money we could have sued for. We want to continue the purchase. My question is, by marking so many things as "not included" on the disclosure, do we run the risk of doing the final walkthrough to discover that every single appliance, water heater, furnace, and heat pump has actually been removed? Can we put language somewhere with assurances that everything present in the house during our inspection, remain? [link] [comments] |
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