Mortgage lending applications?

KUCH

May be time for friend to call an attorney:

Just yesterday, a friend showed me his mortgage application, he is purchasing 2 connected townhomes, in foreclosure from a local bankster. Even though the properties are physically connected they are making him sign 2 separate mortgages, increases theirs fees etc., ok he'll give the bankster that one.

However in the documents, one of the units actually has 2 (two) separate loan applications, with slightly different figures. It's like the bankster drew up one and then said, oops, we could charge more and they forgot to pull the original "cheaper" application. I told him to go to the bank and say, I'll take the less expensive offer, sign it and wait.

He is buying these units with PM profits.

Got Gold

tneig

Sounds like he needs representation, and a title search. We are so used to the finding of a home, but no little about the paperwork. That is their advantage.
An attorney. -It would be nice to have one you know personally, for the same reasons above. They say the real estate agent, home inspector, and attorney, on Your side, is supposed to work for you, but remember they work for themselves and go along with the system. You have to be wise to get them directed to think of your
best interests.

NICE, on the pm profits!

Not enough..

jmski52

He needs representation, regardless of whether or not he thinks that he knows what he's doing.

mhammerman

"...and a title search."

Yes, yes, and yes.

bronco2078

if anything seems funny about the documents on a previously foreclosed property chances are the there are issues with the property , the previous loan , the title any of it could all be suspect. They could be selling him a piece of property they never even owned and had no right to foreclose on in the first place.


clouded titles

streeter

I hope 'your friend' is well versed in the ART of taking title after a TRUSTOR loses a property. The switch of a lending app is peanuts compared to what can happen down the line.

Is the BANK the actual owner and are they offering a GRANT DEED? Does TITLE INSURANCE exclude 'NORMAL' clauses when they are participating in a distress sale? Is this in fact a distress sale? In California the trustor can return to the property for up to two years in some cases and reassert ownership, depending on the circumstances under which they lost the property.

Before one takes title the prospective purchaser has leverage, after the new owner takes title....TOO LATE.

There are a hundred questions that need to be asked and answered IN WRITING before one drops a penny of earnest money into this deal.


The bank is careless. The prospective purchaser should not be.

derryb

Best to get a real estate attorney that works directly for buyer and no one else involved in the deal, expecially the loaning bank. The two properties probably require separate mortgages because they deeds are recorded separately.

piecesofme

What's this? A bankster trying to pull one out from behind the curtain?
You must be new to filing for a loan (sarcasm)

KUCH

Story continues:

Friend has 4 pm appointment with mortgage company, to discuss why one unit has 2 sets of loan applications with different fiqures. He's got a few hours to spare during the day, calls up a relative negotiates a personal loan for X amount, 36 months at 3%. This amount will pay for both units cash.

4 o'clock rolls around, sitting in front of the mortgage lender (assistant gone for the night) and questions why there are three different loan applications 2 for one unit, and one on the other unit? Lender studies each application and says they are all wrong. His first verbal quote was 4% and the true APR was 4.45%, and quess there were descrepencies in closing costs too.

Friend said they should talk in the morning, He'll stop the deal, and walk quickly away from the bankster. I had the chance to explain some of the good advice posted and forward to him. He'll go direct to the bank "who owns the property" and buy in cash.

Got Gold?/Got Title Insurance?

derryb

I would sitll have titles searched by someone who was being paid directly by me that has no affiliation with the selling bank including other properties. At a minimum I would not allow the banks choice of title search company be involved in the transaction. The buyer needs players that are working for him and only those that are independent of the seller. There's still a lot of rubber stamps out there in the real estate transaction world.

streeter

Kuch,
May I make a suggestion if you are trying to help 'your friend'

When discussing something like this, try to leave the slang references to people back at the gym. They are great for belittling industies but on a personal level, it doesn't work.

There are a lot of unknowns in your story. "Your friend" might just walk away however it really sounds like he is in WAY OVER HIS HEAD. You can bet if the bank is the owner and 'your friend' bypasses the mortgage originating company, the bank is going to get a call from the mortgage co. And it won't be a pleasant call either.

Somebody is responsible for introducing these properties to 'your friend'. That person probably expects to get paid if 'your friend' buys them. Is this person a lic prof. RE agent? If your friend has earnest money tied up...walking can be expensive. A train wreck is what I see.

You stated...your friend is buying these 'in foreclosure' from a bank. A bank cannot pass a deed on a property in foreclosure.

The 'mortgage co.' & the bank are two different entities normally. I don't know who a 'bankster' is in this case ...is that the person your friend is going to in order to deal directly? Why would 'your friend' deal with a bankster directly? A 'bankster' is that a fraudster/banker name? Did the bank not make the payments or did the borrower not make the payments?

KUCH

Point taken bout the slang, no offensive directed to those honest in the industry. Those that are not honest have forgotten their moral duty to humanity. PM manipulation comes to mind. But yet, that is all speculation, right?

Yes, it is a friend and we try to assist. Thanks for the info, which is being passed along. He's got an attorney with just a phone call, and he's got the cash.

Got Gold?

jmski52

A title search by an independent title insurance company does seem like a good idea.

UNLVino

Step 1. Sales price and down payment establish loan amount.

Step 2. If both units have separate sales contracts, then they are separate loans, just because they are attached has no bearing, no different then buying two houses next door to each other. Two properties, two applications for a mortgage.

Step 3. There are three separate groups of fees involved with a mortgage. Lender fees ( typically called things like: discount, origination application, etc), closing costs are 3rd party fees appraisal, title, etc, finally pre-paid items like taxes, insurance HOA. Two properties two sets of the above. Lender only controlls teir fees.

Step4. Until someone signs a note and deed of trust, they are not obligated to close, they may lose EMD.

Step 5. Recent legislation protects the customer from under estimating fees, there are tolerance levels that force lender to now eat mistakes.

Step 6. Unless you are an expert, it is best not to advise friends other than to seek the advise of an expert.

Just my 2 cents