All Forum Posts by: Shari Posey

In the situation I originally posted about, it is an owner-occupied loan of a first-time buyer and it will be carried for 5 years, so there is plenty that can go wrong like K.M. Poe describes. If it were a flip where the exposure is only a few months and it's with an experienced investor I think a judge (in a potential lawsuit) would be less sympathetic to the buyer whereas with a first-time buyer owner-occupied I think the seller better have everything in perfect order if they did the deal themselves. As a Realtor, I'm not even sure my E&O would cover me for lending practices but I don't want to have to rely on that.

I found an escrow officer that has been doing lots of notes (she says hundreds) and she's not afraid. I still need to call a few more mortgage brokers to check if they would do it. I'm sure it would be for a fee but it's better than a lawsuit.

"If the activities include taking an application and negotiating the terms of a residential mortgage loan, and the licensee is compensated for the mortgage loan activity, then aMortgage Loan Originator License Endorsement will be required."

That's very gray! Does it mean as long as I don't do any of the above or all of the above? Of course I have to take an application or the other agent has to take an application, and someone has to negotiate the terms. Maybe the law means the seller should be in direct contact with the buyer over these two issues. I would not be compensated for any mortgage related services but I would get a commission on the sale.

I'm a listing agent and the seller will offer seller financing. There is a buyer who is also interested in seller financing. I've been advised by several people to find a mortgage broker who will help with this because of the SAFE Act regulations. My favorite lender said "he wouldn't touch it with a 10 foot pole" because of SAFE.

Have you ever used a mortgage broker to structure the deal and if so, how did you find one that would do it? FYI--it's going to be owner occupied, it's a condo and the seller wants to impound prop. tax, HOA dues and parking fees to guarantee the payments are made. We're looking at a 5 year note with no balloon.

There are a lot of bad Realtors and there are great ones, too. If your Realtor seems like a great one you should keep him/her but maybe he/she isn't since you are asking the question.

I'm a Realtor like Kim; I really dedicate myself to clients and I would not work with a client who was working with other agents. As a courtesy, if you do decide to work with other agents, I would let your current agent know and he/she can step up the game or cut you loose.

By the way, I only work with one agent when I'm looking to buy in another area. The one time I went to a listing agent to get leverage to get my offer accepted, she was a total flake and besides several other investors went to her with the same idea so I really had very little advantage.

You've got the money, the seller is losing his home. I always advise clients that the sale is "as is" and to make sure they have some extra money to do repairs. In our state, if the home inspection reveals too many problems, the buyer can walk away. Honestly, a new disposal is very minor. And maybe the water heater has a few years left on it. If you decide to buy the house, I suggest you buy a home warranty because it sounds like repairs down the line may be a problem.

Hopefully a CA mortgage broker will chime in who has done some of these deals. The seller wants to impound HOA dues, prop. taxes and parking fees to guarantee they get paid, so it's not exactly just a straight principle and interest deal.

I was the buyer's agent on a deal a few years ago when the company operating under the name OCWEN. I'm sure it's the same outfit because the listing agent's name is always the same. It was extremely long and communication with the company was terrible--everything was in India. It took months to close and all the delays were on their side. However, my clients were FHA and we had put in $2k for repairs, which were primarily for a gas wall heater since the house didn't have a heater. OCWEN actually put in a forced-air system which was awesome plus did a bunch of other repairs--much more than $2k worth of work.

I'm a real estate agent who has a seller offering financing on a single unit. We also have a buyer who wants to buy with seller financing. This is an area that neither I nor the seller have experience with. Because of the SAFE Act I'm nervous about proceeding too far into the deal. Is there a 3rd party type of company that can assist with this? Or is the best option a real estate attorney? I talked to a mortgage broker and he said he wouldn't touch it with a 10-ft. pole because of the new regulations.

Yes, that's what I'm saying. If the house doesn't appear to have too much damage (a little damage is ok), no termite report and no clearance is necessary. Again, buyer can not check the box for a termite report and there can be no wood-distroying pest addendum. If the appraiser notices fairly significant damage, then repairs and clearance will be required for FHA. I have not seen it required for conventional. I promise--this is typical in SoCal.

@Poe--I haven't had a termite clearance on a deal in about 1 year. Lots of lenders accept both FHA and conventional without clearance. HERE'S THE CATCH--the buyer can not write in the offer that they want a termite report. If that box is checked, then all banks will require it. If the box is not checked, and the termite work doesn't look too bad, then you don't need it. With FHA, if the prop. clearly has a lot of termite work to be done, even if the box is not checked, the appraiser will require it.