we were ready to go with a signed purchase agreement, rehab estimates, a lender on board at 65% loan to value at 6% interest rate. We walk into our title company and was told our lender to get a 1st position lienholder position he had to be a licensed mortage broker. Has anyone ever heard of this. I had put 2 years into researching and being mentored by a flipper who doesn't know because he uses his own money no private funds, I have been researching this no luck with that. My 30 day purchase agreement is almost up and my lender will not do an unsecured promissory note. HELP
That is not correct. We have private lenders who fund every loan we do.
Is this a home you are personally living in or one you are using to flip or for buy and hold?
I used a private lender to purchase one of my primary residences and as long as that lender does not make more then 6 private loans within 12 month they were fine, now this is what I was told.
We have never run into this issue ever!!!
it is a flip I was told that if he was not a family member or a licensed mortage broker that he can only be the owner of the the property not a lien holder which he doesn't want because that ties him personally to the property. I'm going to speak to an attorney this afternoon but thanks for the response. I don't t this is correct either.
thanks another title agency confirmed that you can do this with a trust deed and promissory note said other agency must not want our business
Curt is right, they can definitely put a lien on the property if they aren't licensed as long as they aren't the one's brokering it. I would use another title company next time, and a seller forces you to use that one, you can always close your side with another title company even if it costs a bit more.
thanks for the response we got this done with another title agency with not issues at all
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