All Forum Posts by: Caroline Gerardo
Caroline Gerardo has started 27 posts and replied 2818 times.
Post: Need help with a subject-to land trust or LLC
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Quote from @Justin Arnold:
Will you advise as his attorney when he files the interest deduction with the IRS and state in someone else's name and social security number as the 1099 will not be filed with his social or any entity he sets up?
Post: Is a min of 2% rent to price ratio needed for positive cashflow in today's market?
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
use 25% expense for your #3
Post: FHA Loan for Primary House - Full Time Real Estate Investor
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Depends. You filed two full year tax cycles and the numbers are similar (no greater variant than 1%) they maybe yes.
Generally depreciation is added back as income BUT only the 40% portion you own not all of it.
Post: Anyone Else Fed Up With Loan Servicing Companies?
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Without knowing your transaction history I stand by what I said. Your personal history with GSE's is notified across all GSE loans, they communicate. You have no control over the servicing transfers. SLS and Lakeview manage troubled loans.
Post: Fannie Mae / FHA 203k lenders for DFW?
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
You need the 5% down. You may borrow an additional $35000 for hard cost improvements. Your job is in Dallas, you are owner occupied?
Post: Seeking Guidance and Strategies
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Owning real estate is not passive. Managers will quit or worse. Start with one close to home where you can learn and build a team.
Post: Anyone Else Fed Up With Loan Servicing Companies?
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Are these GSE loans (Fannie or Freddie or USDA)? If was originated as owner occupied in the past and no longer is owner, if you have change of name on deed or insurance, if impound had a dispute, claims - are a couple reasons why the servicing changes. Some servicers label your loan as troubled and they sell it off ASAP. Servicers have merged and operate on thin margins.
Refinancing with a credit union or bank doesn't solve the problem. Most lenders do not service their own loans and reserve the right in the future to sell it- even credit unions and 99.9% of banks.
How to avoid BEFORE this happens: pay a day early, don't raise issues, get loans that aren't backed by US Government that the note states they don't sell the servicing.
How to avoid the late payment- pay all accounts from the same bank account on the same day of the month. Monitor the account that all x number of payments went out. Keep one mailing address and opt to receive digital notice to one same email account that you monitor. IF you made payment to old servicer new one cannot show you late they have to transfer the funds along- there is a 60 day grace period. Fix it before the next month.
Post: Anyone Else Fed Up With Loan Servicing Companies?
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Quote from @Don Konipol:
Quote from @Patrick Roberts:
Quote from @Steve K.:
Quote from @Patrick Roberts:
For the late payments, contact the servicer that reported them late and ask them to remove the late payments from their reporting (after explaining, etc). At the same time, dispute the late payments with the bureaus and provide the payment records showing the payments were made on time if asked. You should have 60 days from the transfer where a payment made to either servicer is still deemed to be a payment rendered. Do not let this slide, even if the score impact is negligible. Lates on a mortgage trade can impact your ability to get loans in the future.
This is a highly regulated activity by the CFPB. The servicers have to send notices 15 days prior to the transfer, but the new servicer is required by law to honor any payments made to the old servicer for 60 days. This is straight from the CFPB website:
"Additionally, for 60 days from the date your loan servicing transfers, your new servicer cannot charge you a late fee or treat the payment as late if you sent it to your previous servicer on time or within the applicable grace period."
If your new servicer wants to play games, file a complaint with the CFPB and dispute with the credit bureaus. Burn em. I have no mercy and no tolerance for poor ops when it comes to stuff like this. This is literally the entire reason these companies exists - to get this stuff right.
As for why, I have no idea why there has been an uptick. Could be that the funds that bought the loans are liquidating, or it could be repositioning in preparation for future business. Big lenders like Flagstar that have a servicing component are currently using their servicing business insight to go after refinance business internally. It would not surprise me if they were acquiring the paper and servicing rights to take an inside line on refi's for these customers if rates decline.
Correct. Investors don't have teeth, the loans that are GSE/FHA/USDA.. are supported by Federal funds intended to help owner occupants.
The likely reason why the servicing is selling/flipping so often is your account is flagged.
Post: Refi question FHA to Conventional
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
Get a Realtor to give you a free BPO. You need comparable sales and there are typically not a large number of 4 plex in close proximity. You need comps to get a value not improvements.
Second I would advise against a 15 year it will make it harder to qualify for future loans. It's fine to make a 15 year payment on a 30 year loan and start paying down then flex back to the 30 payment when you have to turn a unit.
Weigh the $300 verses over all cost to refinance
Post: Estoppel Agreement - Need some ADVICE!
- Lender
- Laguna Niguel, CA
- Posts 2,894
- Votes 2,336
You cannot redact anything or it is considered altered and not used. A screen shot with the URL and date at the bottom is necessary. The account holder name has to line up with all the other documentation.