All Forum Posts by: Ian Crane

Bumpity bump!

Bump!

I'm getting my rental agreement put together and want to run it by a lawyer to make sure I'm meeting local requirements and controlling other risk factors. I'm willing to pay more, if necessary, for the best advice. I especially like a lawyer who can triage and focus on the most important issues first without needing to fix every detail (on the clock).

Any recommendations?

The good news is that today they waived the higher cost and are honoring my original GFE. I sign on Monday morning :)

Dawn A. - I’m working with LoanDepot.com. I refinanced my home with them in December and got a fantastic deal that closed quickly, cheaply and painlessly. I don't know about any guarantees on customer service, but it's good to know that squeaky wheel might still be an option.

Wayne Brooks - They're not local. They're currently trying to get a finance exception internally.

Joel Owens - This is an owner-occupied property in good standing, and the original idea was to do a conventional loan. I went back to the same guy for this deal and things seemed like before. But there were a variety of delays once the loan was submitted for processing. Each interaction took much longer than expected and there was a lot of back and forth.

My offer was for $105K and the appraisal came in at $98K. I said I'd pay the difference, but then some "cost of lending flags" came up because I wouldn't be borrowing enough to justify them processing the loan. So then we added PMI in order to borrow at least $80K; I figured this was fine since it's only $6 a month and I can turn right around and pay it back down if I want.

The next issue arose because it's an 8-unit condo and one non-resident person owns two units. That triggered underwriting to take a deeper look into the HOA's finances and to request the appraiser to evaluate how that rental percentage affects the market value for the unit I'm buying.

I agree they should have mentioned something before my rate lock expired on June 17th. The processor’s manager told me that’s what they’re working on now – getting an exception from higher up; otherwise my rate becomes invalid, I think the he said that was due to the current cost of points.

I paid $495 up front for the appraisal and rate lock. The $495 applies toward closing costs or may be refundable in some cases, but not if I choose to decline the loan.

I think they're honest, but their performance on this particular loan has been disappointing.

I put an offer in on my first deal on May 1st this year. My rate lock at 4.25% in the GFE expired on June 17th. After months of poor communication and performance on their end, I finally got final approval to close on Friday, July 19th. Then, as per usual I heard nothing. I followed up on the 22nd and am told that Title will have the documents that day or by the 23rd at the latest. That was yesterday. Today I followed up again and was told that they were trying to get the documents, but since the market has shifted they are working on pricing and that the processor’s manager was supposed to have gotten back to me. I called him and left a voice mail.

Then I sent an email expressing how disturbing it is to be possibly charged extra for their poor performance. Intellectually I know it’s a bad idea to send such emails while emotionally charged, but I did it anyway. I’m so upset. Does anyone have any advice how to steer this so they just go with the original good faith estimate?

Welcome, Chad!

I have been working on closing on my first deal here in Vancouver, WA since May first. I can echo what Lynn said with respect to the associations.

You have to read the CCRs and bylaws yourself. Volunteer associations are common and with constant breaks in continuity, the board members don't always know exactly what's going on. Your purchase agreement lists outstanding dues and current HOA balance, but if the association doesn't have an appropriate reserve, the bank is going to look at you as a flight risk. Take a look at what's happening to Burnt Bridge Crest condominiums in Hazel Dell.

In my case, there are no HOA restrictions, but there are FHA and conventional (Fannie/Freddie) restrictions on units that are over 10% non-resident owned. I'm trying to get a condo in an 8-unit complex, and one landlord already owns two units, which makes things worse from the bank's perspective. Their budget is in order, though, so I'm hopeful I'll get an exception.

Thanks for the replies!

Ryan M. - the problem with removing them is that I don't think I could get much for them if I tried to sell them, I don't want them in my house, and removing them would require me to fix the walls, which are otherwise in perfect shape right now. They also make the place look great because it's only got 980 square feet, but the flat screens and vaulted ceilings make the space seem really reasonably-sized.

Wayne Brooks - that's actually an interesting idea. For what I could sell them for, just a single month of rent would offset the cost of losing the TVs. If it helps me get top dollar for every month after that, it's a win. Still, I'd rather tie the enticement to the property so they lose the TVs if they move out (and elect NOT to steal them).

Kyle J. - That's the kind of thing I was hoping for. Refrigerators? What all can you legally include in that list of items?

I've been working on my first deal for a while now, hoping it will close any day. I negotiated 3 existing attached flat screen TVs to be included in the deal. My hope is to use them as enticement for new renters, but I don't want to unintentionally obligate myself to replace them any time a renter breaks one.

I assume the correct place to set this up is in the rental agreement, but how?

Do you think this course of action is a wise one?

It's on my calendar! Getting clearance from scheduling department (i.e. the wife and her paper calendar)...