All Forum Posts by: Stephen D.

In Florida, as of January 1 2010 you must hold a current Mortgage Broker's license or be a licensed Atty in Florida to negotiate on behalf of someone else with a mortgage holder. The B investor can negotiate given the proper authority but NOT for someone else.

The 72 hour issue makes no sense - there is no 3 day recision on a purchase/sale in Florida.

As to FA and STG, make sure you explain what you are doing. Divisional Legal Counsel on the east coast has specially stated internally that FA will NOT UW these deals unless specific protocol is followed. Same w/STG and ORT. Given that, they will UW them (we have closed with each one of them) if the title company understands to process and provides required documentation to the satisfaction of the UW. Interestingly enough we have had Directs (direct operations) from each of the aforementioned UW refuse to write polices for ABC's. I have yet to here of the DFR going direct to title agencies re: short sales or ABC tranx, but loan mods - absolutely.

Feel free to call me or email anytime. I can help walk you thru the quagmire - we do this every day.

Another case of the title company not understanding the transaction or their own industry. I can assure you FA in CA did not say it is illegal. Full disclosure is the key and it would appear as though you have done that. Additionally the bank has ample time for due diligence on pricing, since it is a short sale they KNOW they are selling at a discount. Some underwriter will require their Agents to get that statement as mentioned.

Give me a call, I can assist. If you are "calling" make sure you ask if they have closed any ABC transactions and does the Underwriter approve of them. I will guarantee you 90% do not know if their Underwriter can write these policies or not, or maybe they are not disclosing fully the tranx to them?

Good luck. The underwriter will not accept the policy on a dry closing where C's $ are used to close A-B. You must have the A-B CLOSE and FUND then B-C. That is why transactional funders are worth the $.

Steven, we close nationwide pretty much every day. Your contracts are state specific and generally that is up to the RE Agent or investor, not the title company.

Closing ABC's everyday - nationwide. Interestingly enough with C lenders as well.

James, Harrison and Tracy are right. Title company does matter in these transactions. We are referred to investors and agents every day due to lack of knowledge by the title company and/or attorneys. Make sure they have closed these transactions previous and that the Underwriter is fully aware of the transaction prior to closing.

Not only FHA, but other lenders as well. Most buyers are cash, but we are working with a very large national bank (not BoA) establishing the protocol and procedures needed to finance C buyers. Currently we have several in underwriting awaiting approval and have rolled out a national platform for closing/transactional funding and C lending with our partners.

IMHO we will see other large lenders fall in place very soon given that this is a part of the market they have no choice but to enter with the default overhang beginning to hit again.

Dan - great advise. And if they do not know any then be wary of attempting to close a "flip" with that title company. We get referrals on a daily basis simply because the UW will not insure and/or the title co cannot get it done timely. Make sure they can actually close and insure both transactions.