FHA - $ 7,500.00 Tax Credits
There's never been a better time to buy. To encourage more Americans to enjoy the benefits of homeownership, a new law has just been enacted putting that dream even more squarely within reach.
Now, if you¹re a first-time homebuyer (or if you haven't owned a home within the past three years), you may be eligible for up to $7,500 in tax credits when you buy a new home.
What's more, the law also makes it easier to qualify for the affordable financing you need to buy your home.
Get the details at federalhousingtaxcredit.com.
Take advantage of this limited-time offer!Visit KB Home today and talk to a KB Home First-Time Homebuyer Specialist. They'll walk you through the steps you'll take, and give you a FREE custom homebuying analysis and credit report. To learn more, call 214-682-8888.
Friday, August 1, 2008
FHA loan programs www.ok8888.com
FHA loan programs
In a recent article, Carol Marshall reviews the latest FHA loan programs created to help homeowners stay in their houses with prevention measures against home loan defaults. HUD secretary Steve Preston has been on the job as the Secretary for HUD for a month. Preston made his announcement in Detroit, which he called “the epicenter of the foreclosure crisis,” for his 1st significant address as HUD secretary to announce an aggressive foreclosure prevention assistance program. Under the program, HUD would enter a joint venture partnership to buy bad loans from lenders, Preston said at a July 9 Detroit Economic Club meeting. The new loan program will begin in Detroit, one of the country’s hardest-hit foreclosure markets. “Traditionally, when all FHA loss mitigation measures have been exhausted, mortgage lenders foreclose and then submit a claim to FHA,” Preston said. “Under this program, we will create a means for lenders to sell their non-performing mortgages before foreclosure to HUD and a joint venture partner.” FHA is trying to prevent foreclosure losses and may assist the troubled housing market stabilize, he said, at a time when the market remains on the brink of future disaster.
Experts estimate as many as 2.5 million foreclosure filings this year, Preston said, compared to 1.5 million in 2007. The average is 650,000. Housing prices are down between 4 % and 17 % nationwide. At the same time, lenders have pulled back from originating loans, which are at their lowest levels since 2000-2001. In Oakland, Wayne, Macomb, Livingston and Washtenaw counties, there are some 40,000 houses on the market now, representing a 17-month supply, well above the national average of 9.6 months. A six-month supply is considered normal, Preston said. ‘This is tough on families, very tough,” Preston said. In some parts of the country, the market was impacted by the housing bubble. But in Michigan, fundamental economic challenges prevail.
“Sub-prime lending is not in and of itself a bad thing,” Preston said. “It has been the path to home ownership for very responsible people. But irresponsible behavior has led to a dangerous proliferation in the market.” There is $1.3 trillion in outstanding subprime loans - about 12% of the market, but more than half of the foreclosures. Non-prime avariable rate mortgage loans represent 6% of outstanding home loans, but more than 40% of foreclosures, with more than 1 in 4 of those home loans currently more than ninety days past due or in foreclosure.
Unfortunately, the worst may be yet to come. “We have another $150 billion in subprime ARMs resetting in the next 18 months,” Preston said. “We’re right in the middle of that reset period of time. We have to understand that we will continue to be flooded with a need to work out these loans.” That’s where the government has been at the center of the solution, Preston said. Government supported lending is essentially the only source for non-jumbo loans. FHA home loans, Fannie Mae, Freddie Mac and the Federal Home Loan Bank have absorbed the retreat of the private sector, he said. But HUD needs to protect itself as well, Preston said. So the department is pushing to institute risk-based pricing on FHA mortgage insurance. “FHA will price the insurance premiums for borrowers according to their credit risk,” he said. “Today the typical borrower pays 1.5 points …. Riskier borrowers will pay 2.25.” He disputed critics’ claims that risk-based pricing hurts low-income borrowers. “The facts show the opposite. Risk-based premium pricing will actually benefit lower-income borrowers. Contrary to conventional wisdom, FHA families with lower incomes actually have higher FICO (credit) scores. They are hard-working people who live within their means and pay their bills,” he said.
FHA has taken some measures already to try to stem the tide of the foreclosure crisis - temporarily eliminating the 90-day requirement for buyers to hold a property before selling; increasing FHA home loan limits to as high as $729,000 in some areas of the country. The recent alliance with HOPE NOW, an organization that offers aid and advice to distressed homeowners has proven to be a wise move. Hope connects these borrowers with mortgage lenders in an effort to revise their existing mortgages to allow homeowners to remain in their properties at an interest rate they can afford while establishing effective housing counseling programs.
Call (214) 682-8888 Peter Wu www.ok8888.com
777Realty@gmail.com
In a recent article, Carol Marshall reviews the latest FHA loan programs created to help homeowners stay in their houses with prevention measures against home loan defaults. HUD secretary Steve Preston has been on the job as the Secretary for HUD for a month. Preston made his announcement in Detroit, which he called “the epicenter of the foreclosure crisis,” for his 1st significant address as HUD secretary to announce an aggressive foreclosure prevention assistance program. Under the program, HUD would enter a joint venture partnership to buy bad loans from lenders, Preston said at a July 9 Detroit Economic Club meeting. The new loan program will begin in Detroit, one of the country’s hardest-hit foreclosure markets. “Traditionally, when all FHA loss mitigation measures have been exhausted, mortgage lenders foreclose and then submit a claim to FHA,” Preston said. “Under this program, we will create a means for lenders to sell their non-performing mortgages before foreclosure to HUD and a joint venture partner.” FHA is trying to prevent foreclosure losses and may assist the troubled housing market stabilize, he said, at a time when the market remains on the brink of future disaster.
Experts estimate as many as 2.5 million foreclosure filings this year, Preston said, compared to 1.5 million in 2007. The average is 650,000. Housing prices are down between 4 % and 17 % nationwide. At the same time, lenders have pulled back from originating loans, which are at their lowest levels since 2000-2001. In Oakland, Wayne, Macomb, Livingston and Washtenaw counties, there are some 40,000 houses on the market now, representing a 17-month supply, well above the national average of 9.6 months. A six-month supply is considered normal, Preston said. ‘This is tough on families, very tough,” Preston said. In some parts of the country, the market was impacted by the housing bubble. But in Michigan, fundamental economic challenges prevail.
“Sub-prime lending is not in and of itself a bad thing,” Preston said. “It has been the path to home ownership for very responsible people. But irresponsible behavior has led to a dangerous proliferation in the market.” There is $1.3 trillion in outstanding subprime loans - about 12% of the market, but more than half of the foreclosures. Non-prime avariable rate mortgage loans represent 6% of outstanding home loans, but more than 40% of foreclosures, with more than 1 in 4 of those home loans currently more than ninety days past due or in foreclosure.
Unfortunately, the worst may be yet to come. “We have another $150 billion in subprime ARMs resetting in the next 18 months,” Preston said. “We’re right in the middle of that reset period of time. We have to understand that we will continue to be flooded with a need to work out these loans.” That’s where the government has been at the center of the solution, Preston said. Government supported lending is essentially the only source for non-jumbo loans. FHA home loans, Fannie Mae, Freddie Mac and the Federal Home Loan Bank have absorbed the retreat of the private sector, he said. But HUD needs to protect itself as well, Preston said. So the department is pushing to institute risk-based pricing on FHA mortgage insurance. “FHA will price the insurance premiums for borrowers according to their credit risk,” he said. “Today the typical borrower pays 1.5 points …. Riskier borrowers will pay 2.25.” He disputed critics’ claims that risk-based pricing hurts low-income borrowers. “The facts show the opposite. Risk-based premium pricing will actually benefit lower-income borrowers. Contrary to conventional wisdom, FHA families with lower incomes actually have higher FICO (credit) scores. They are hard-working people who live within their means and pay their bills,” he said.
FHA has taken some measures already to try to stem the tide of the foreclosure crisis - temporarily eliminating the 90-day requirement for buyers to hold a property before selling; increasing FHA home loan limits to as high as $729,000 in some areas of the country. The recent alliance with HOPE NOW, an organization that offers aid and advice to distressed homeowners has proven to be a wise move. Hope connects these borrowers with mortgage lenders in an effort to revise their existing mortgages to allow homeowners to remain in their properties at an interest rate they can afford while establishing effective housing counseling programs.
Call (214) 682-8888 Peter Wu www.ok8888.com
777Realty@gmail.com
Tuesday, July 29, 2008
Truth in Lending Act & RESPA www.ok8888.com
Truth in Lending Act & RESPA
This service is a very specialized and imperative in identifying if a borrower is a victim of predatory lending. We review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.
Our #1 goal is to determine whether there were violations of federal law. If these violations are found, then the borrower may be eligible for complete relief of the predatory loan. This is know as a loan rescission. Meaning the lender takes back the "predatory loan" and awards or credits back to the borrower all interest made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney's fees.
NOW available in all states!
This can be done by means of a loan modification or a new affordable loan. This allows the borrower to get a new loan with a smaller principle, meaning that the mortgage can be affordable and non-predatory.
FORENSIC LOAN DOCUMENT AUDIT
Complete client interview and all applicable parties
Complete loan document and disclosure audit by 30 year underwriting and fraud and compliance mortgage professional
Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA)
Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations
Complete 10 page report with all violations and findings
CONSTRUCTIVE FRAUD
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?
FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicted the terms of the documents?
NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
BREACH OF CONTRACT
The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?
LOAN AUDIT REPORT
Results report of all factual findings of the forensic audit
Any and all applicable federal law violations
The real terms of your loan
Outline of hidden fees and/or commission earned by your broker or lender
A complete assessment so you can pursue possible legal claims against your broker and/or lender
Call Peter Wu (214) 682-8888 or 777Realty@gmail.com
http://www.ok8888.com/
This service is a very specialized and imperative in identifying if a borrower is a victim of predatory lending. We review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.
Our #1 goal is to determine whether there were violations of federal law. If these violations are found, then the borrower may be eligible for complete relief of the predatory loan. This is know as a loan rescission. Meaning the lender takes back the "predatory loan" and awards or credits back to the borrower all interest made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney's fees.
NOW available in all states!
This can be done by means of a loan modification or a new affordable loan. This allows the borrower to get a new loan with a smaller principle, meaning that the mortgage can be affordable and non-predatory.
FORENSIC LOAN DOCUMENT AUDIT
Complete client interview and all applicable parties
Complete loan document and disclosure audit by 30 year underwriting and fraud and compliance mortgage professional
Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA)
Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations
Complete 10 page report with all violations and findings
CONSTRUCTIVE FRAUD
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?
FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicted the terms of the documents?
NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
BREACH OF CONTRACT
The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?
LOAN AUDIT REPORT
Results report of all factual findings of the forensic audit
Any and all applicable federal law violations
The real terms of your loan
Outline of hidden fees and/or commission earned by your broker or lender
A complete assessment so you can pursue possible legal claims against your broker and/or lender
Call Peter Wu (214) 682-8888 or 777Realty@gmail.com
http://www.ok8888.com/
Dallas Texas Loans - Downpayment Assistance www.ok8888.com
Downpayment Assistance
Charitable Downpayment Assistance 1. Charitable downpayment assistance works .
HUD-approved charitable downpayment assistance (DPA) programs have been critical in enabling over one million low and moderate income families over the past decade to purchase their own homes, an estimated 80% for the first time.
The current FHA Commissioner who now opposes charitable DPA until recently praised the program, writing that “Borrowers who rely on seller-funded downpayment assistance are representative of the population that FHA was established to serve families who are otherwise underserved by the private sector. Because of this fact, FHA has determined that additional requirements or restrictions that would prevent these borrowers from obtaining FHA financing would not be beneficial, leaving this population with financing options that are more costly and riskier than FHA.”
HUD itself has utilized seller-funded DPA in the sale of HUD-owned properties. 2. Charitable downpayment assistance, including DPA funded in part by sellers, complies with applicable law and HUD guidelines.
Congress expressly provided for the use of charitable downpayment assistance to assist low and moderate income homebuyers to qualify for FHA insured loans; in doing so, Congress placed no limitation on the charities’ funding source.
HUD has developed clear guidelines which state how charitable downpayment assistance providers, including those funded in part by seller contributions, should be structured. Charitable DPA providers must, and do, adhere to HUD’s rules to operate. 3. Recent HUD claims regarding charitable downpayment assistance are flawed.
HUD recently has reversed its prior position on downpayment assistance and made unsubstantiated statements and released flawed data regarding seller-funded DPA. In 2008, two different federal courts took the extraordinary step of striking down implementation of a HUD regulation restricting seller-funded DPA, holding that HUD failed to provide an adequate policy rationale or reliable data in support of its position. 4. HUD should reform, not ban, charitable downpayment assistance programs.
In a June 2007 Congressional hearing on seller-funded downpayment assistance, HUD testified that it could “Absolutely” adopt underwriting reforms that would largely fix any policy concerns relating to DPA, but chose not to do so because it preferred to push legislation authorizing zero downpayment FHA loans.
Eliminating seller-funded DPA would force low and moderate income homebuyers to seek subprime or predatory loans, or not purchase homes at all. Reforms to reform, rather than eliminate, a highly successful program, would permit FHA to continue fulfilling its historic mission of service to families. 5. HUD’s mortgage insurance fund will not require taxpayer dollars.
HUD’s fund that supports the home mortgage program will realize over $1 billion annually and maintain a solvency ratio at three times the required amount as reported in the most recent congressionally mandated independent accounting report of HUD’s fund. No public documents support HUD’s claim that down payment assistance programs could cause the fund to be insolvent.6. A difference of 1% in the foreclosure rate exits between charitable downpayment assistance and government-funded down payment assistance homeowners.
Homeowners who used these charitable down payment assistance programs enjoy a 94% success rate as reported in a recent government study compared to a 95% success rate for government-funded down payment assisted homeowners. HUD’s loan program coupled with charitable down payment assistance programs has proven to be a safer alternative to subprime loans as echoed by HUD’s Assistant Secretary, Brian Montgomery.7. Dispelling the Myths of Downpayment Assistance Programs
Quick fact checker on charitable downpayment assistance programs... Read more
June 22, 2007 - HUD testifies that the agency could absolutely put standards in place for downpayment assistance programs during a U.S. House of Representatives Subcommittee on Housing hearing regarding the issue... Watch the hearing
February 2008 - Overview of charitable downpayment assistance issues in response to considerable and often conflicting commentary regarding these programs... Read full overview
March 2007 - George Mason University Center for Regional Analysis found the total economic impact of these downpayment assistance programs was $24.8 billion over a 5 year period... Read full report
Call Peter or Linda at (214) 682-8888 or (469) 567-0567 for your mortgage
application.
Charitable Downpayment Assistance 1. Charitable downpayment assistance works .
HUD-approved charitable downpayment assistance (DPA) programs have been critical in enabling over one million low and moderate income families over the past decade to purchase their own homes, an estimated 80% for the first time.
The current FHA Commissioner who now opposes charitable DPA until recently praised the program, writing that “Borrowers who rely on seller-funded downpayment assistance are representative of the population that FHA was established to serve families who are otherwise underserved by the private sector. Because of this fact, FHA has determined that additional requirements or restrictions that would prevent these borrowers from obtaining FHA financing would not be beneficial, leaving this population with financing options that are more costly and riskier than FHA.”
HUD itself has utilized seller-funded DPA in the sale of HUD-owned properties. 2. Charitable downpayment assistance, including DPA funded in part by sellers, complies with applicable law and HUD guidelines.
Congress expressly provided for the use of charitable downpayment assistance to assist low and moderate income homebuyers to qualify for FHA insured loans; in doing so, Congress placed no limitation on the charities’ funding source.
HUD has developed clear guidelines which state how charitable downpayment assistance providers, including those funded in part by seller contributions, should be structured. Charitable DPA providers must, and do, adhere to HUD’s rules to operate. 3. Recent HUD claims regarding charitable downpayment assistance are flawed.
HUD recently has reversed its prior position on downpayment assistance and made unsubstantiated statements and released flawed data regarding seller-funded DPA. In 2008, two different federal courts took the extraordinary step of striking down implementation of a HUD regulation restricting seller-funded DPA, holding that HUD failed to provide an adequate policy rationale or reliable data in support of its position. 4. HUD should reform, not ban, charitable downpayment assistance programs.
In a June 2007 Congressional hearing on seller-funded downpayment assistance, HUD testified that it could “Absolutely” adopt underwriting reforms that would largely fix any policy concerns relating to DPA, but chose not to do so because it preferred to push legislation authorizing zero downpayment FHA loans.
Eliminating seller-funded DPA would force low and moderate income homebuyers to seek subprime or predatory loans, or not purchase homes at all. Reforms to reform, rather than eliminate, a highly successful program, would permit FHA to continue fulfilling its historic mission of service to families. 5. HUD’s mortgage insurance fund will not require taxpayer dollars.
HUD’s fund that supports the home mortgage program will realize over $1 billion annually and maintain a solvency ratio at three times the required amount as reported in the most recent congressionally mandated independent accounting report of HUD’s fund. No public documents support HUD’s claim that down payment assistance programs could cause the fund to be insolvent.6. A difference of 1% in the foreclosure rate exits between charitable downpayment assistance and government-funded down payment assistance homeowners.
Homeowners who used these charitable down payment assistance programs enjoy a 94% success rate as reported in a recent government study compared to a 95% success rate for government-funded down payment assisted homeowners. HUD’s loan program coupled with charitable down payment assistance programs has proven to be a safer alternative to subprime loans as echoed by HUD’s Assistant Secretary, Brian Montgomery.7. Dispelling the Myths of Downpayment Assistance Programs
Quick fact checker on charitable downpayment assistance programs... Read more
June 22, 2007 - HUD testifies that the agency could absolutely put standards in place for downpayment assistance programs during a U.S. House of Representatives Subcommittee on Housing hearing regarding the issue... Watch the hearing
February 2008 - Overview of charitable downpayment assistance issues in response to considerable and often conflicting commentary regarding these programs... Read full overview
March 2007 - George Mason University Center for Regional Analysis found the total economic impact of these downpayment assistance programs was $24.8 billion over a 5 year period... Read full report
Call Peter or Linda at (214) 682-8888 or (469) 567-0567 for your mortgage
application.
Dallas, Texas Loans FHA www.ok8888.com
FHA
On July 11th, the Senate voted 63 to 5 to approve the legislation To modernize and update the FHA loans. HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure
This bill is critical to restoring confidence in the mortgage and housing markets and the nation's entire economy. But it isn't complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President's desk before the August recessWhat a positive step in the right direction. Thank you, Senators
Call Peter or Linda at (214) 682-8888 or (469) 569-0567 for your mortgage
application.
On July 11th, the Senate voted 63 to 5 to approve the legislation To modernize and update the FHA loans. HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure
This bill is critical to restoring confidence in the mortgage and housing markets and the nation's entire economy. But it isn't complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President's desk before the August recessWhat a positive step in the right direction. Thank you, Senators
Call Peter or Linda at (214) 682-8888 or (469) 569-0567 for your mortgage
application.
Wednesday, July 23, 2008
Number ONE : Plano, TX. Real Estate Service www.ok8888.com
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Office: 702-577-7112
Cell: 214-682-8888
Whether the merchandise is clothes, cars or homes, the sales price is obviously the primary indicator of the level of demand for the merchandise. While I'll make every effort to get top dollar for your property, the fact remains that many sellers find it difficult to list above market value, simply because there's a good chance that potential buyers will be scared off.
On the other hand, the last thing we want to do is sell your home for less than its real value. That's why I'm offering my services to you, so you can avoid any pricing mishaps during the sales process. Call or email me today so we can get started!
Regards,
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Cell: 214-682-8888
Office: 702-577-7112
AAA Realtors
777realty@gmail.com
www.ok8888.com
Office: 702-577-7112
Cell: 214-682-8888
Whether the merchandise is clothes, cars or homes, the sales price is obviously the primary indicator of the level of demand for the merchandise. While I'll make every effort to get top dollar for your property, the fact remains that many sellers find it difficult to list above market value, simply because there's a good chance that potential buyers will be scared off.
On the other hand, the last thing we want to do is sell your home for less than its real value. That's why I'm offering my services to you, so you can avoid any pricing mishaps during the sales process. Call or email me today so we can get started!
Regards,
Peter Wu
AAA Realtors
777realty@gmail.com
www.ok8888.com
Cell: 214-682-8888
Office: 702-577-7112
Commercial Loans # 1 Dallas, Texas www.ok8888.com
You may think that your work on a commercial loan is finished once you have completed an application and prepared a complete financing plan for your borrowers. But this is not the case. You are done with the pre-application phase, but you still have a role to play in the post- application stage.
Two critical steps that are paramount to a deal’s overall success take place post-application, and they require a considerable amount of detail work. You must work with your borrowers to complete any missing documentation, and you must take the lead in communication between the two parties. Only then is your role in the deal complete.
A deal cannot close without proper submission of required documentation. It seems simple enough, but this process still causes many problems. Borrower confusion and apprehension typically slow down this process. You can play a role in alleviating these issues.
Borrowers may be confused about the kinds of documentation the lender requests or why the lender is requesting them in the first place. Help them understand what has been requested and assist them in collecting the data.
It is wise to evaluate the lender’s list of requirements before providing it to the borrowers to ensure that everything is clear. That way, if it isn’t, you can easily call upon your lending partner for clarification.
Borrowers may be apprehensive about fulfilling some of the lender’s requests. For example, lenders sometimes require personal tax returns from the borrowers. If the borrowers balk at sharing this personal detail, explain that this personal information is a requirement especially when dealing with nonrecourse loans because the lender is placing its money in the hands of strangers who technically demonstrate no personal liability.
You can also help the borrowers understand that it is better to turn over questionable documentation and have a discussion with the lender about it than to not provide the document at all.
Once you’ve submitted your documentation to the lender, you should continue to act as a communication bridge between the lender and the borrowers. After reviewing the documentation, the lender will typically have questions for your clients. In many cases, its underwriters will scrutinize the business plan or even conduct their own research into rents, costs or the borrowers’ previous work history. Improve the chances of the deal by working with your borrowers to respond quickly to any questions that may arise.
For instance, the underwriters may notice that the borrowers’ rents on an apartment deal are 25-percent higher than those on competing apartments in the market. The lender might request that the borrowers explain in writing why people will live in this building despite the higher costs. Or the lender might ask the borrowers to explain why they believe they can build and lease a 75,000-square-foot shopping center when their largest previous property was 25,000 square feet.
Borrowers, especially those with minimal experience, may be easily intimidated by these types of questions. Work with them to take a step back and understand why a lender might ask such detailed questions. Then help the clients craft detailed, written responses that address the questions.
When you take a deal beyond the application phase, you can enhance the process with your smarts and communication skills. By paying attention to detail and acting as an ombudsman between the borrowers and the lender, you help ensure that a deal maintains its momentum and continues down the path toward funding.
Call Peter Wu (214) 682-8888 www.ok8888.com
or Linda Montaniel at (469) 569-0567 Dallas, Texas
or Judi Rock at (702) 577-7112
Two critical steps that are paramount to a deal’s overall success take place post-application, and they require a considerable amount of detail work. You must work with your borrowers to complete any missing documentation, and you must take the lead in communication between the two parties. Only then is your role in the deal complete.
A deal cannot close without proper submission of required documentation. It seems simple enough, but this process still causes many problems. Borrower confusion and apprehension typically slow down this process. You can play a role in alleviating these issues.
Borrowers may be confused about the kinds of documentation the lender requests or why the lender is requesting them in the first place. Help them understand what has been requested and assist them in collecting the data.
It is wise to evaluate the lender’s list of requirements before providing it to the borrowers to ensure that everything is clear. That way, if it isn’t, you can easily call upon your lending partner for clarification.
Borrowers may be apprehensive about fulfilling some of the lender’s requests. For example, lenders sometimes require personal tax returns from the borrowers. If the borrowers balk at sharing this personal detail, explain that this personal information is a requirement especially when dealing with nonrecourse loans because the lender is placing its money in the hands of strangers who technically demonstrate no personal liability.
You can also help the borrowers understand that it is better to turn over questionable documentation and have a discussion with the lender about it than to not provide the document at all.
Once you’ve submitted your documentation to the lender, you should continue to act as a communication bridge between the lender and the borrowers. After reviewing the documentation, the lender will typically have questions for your clients. In many cases, its underwriters will scrutinize the business plan or even conduct their own research into rents, costs or the borrowers’ previous work history. Improve the chances of the deal by working with your borrowers to respond quickly to any questions that may arise.
For instance, the underwriters may notice that the borrowers’ rents on an apartment deal are 25-percent higher than those on competing apartments in the market. The lender might request that the borrowers explain in writing why people will live in this building despite the higher costs. Or the lender might ask the borrowers to explain why they believe they can build and lease a 75,000-square-foot shopping center when their largest previous property was 25,000 square feet.
Borrowers, especially those with minimal experience, may be easily intimidated by these types of questions. Work with them to take a step back and understand why a lender might ask such detailed questions. Then help the clients craft detailed, written responses that address the questions.
When you take a deal beyond the application phase, you can enhance the process with your smarts and communication skills. By paying attention to detail and acting as an ombudsman between the borrowers and the lender, you help ensure that a deal maintains its momentum and continues down the path toward funding.
Call Peter Wu (214) 682-8888 www.ok8888.com
or Linda Montaniel at (469) 569-0567 Dallas, Texas
or Judi Rock at (702) 577-7112
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