FHA financing and short sales can be "tricky", thus possibly causing delays. The bank holding the title will probably NOT wish to do any repairs as required by FHA. The appraiser will note what the home is lacking in order for FHA to approve lending on the property. These items can include:
•1) Peeling paint
•2) Roof repair
•3) Asbestos on pipes and/or boilers
•4) Outbuildings that may require repair
The borrower will need to use their own funds to establish an escrow at the closing table to accommodate any of these items. Typically, one and half times a contractor's estimate is required to be escrowed. The repairs need to be made within a reasonable timeframe, typically 30 days, as weather permits.
Knowledge is POWER!
Ann Sabbagh
Vice-President
Seacoast Mortgage Corporation
508-243-1190
Please click on the link below to write to our lawmakers:
http://capwiz.com/ahaa/utr/2/?a=11521436&i=89498865&c=
The link will enable you to send an email immediately to the "powers to be". Please let them know what you know the advantages are with the down payment programs. I wrote about the importance of maintaining savings for a first time homebuyer in case of an unforeseen expense after purchasing the home. By using the down payment assistance programs, the home buyer can keep their money safely in the bank.
In this market, we need to ensure we do not decrease the number of buyers and at the same time we want to make sure the buyers have a "cushion" in case of any problems while they own the home.
PLEASE click on the link and HELP the first time home buyer while at the same time helping the marketplace.
Thank you!
Ann Sabbagh
Vice-President
Seacoast Mortgage Corporation
508-243-1190
Many states allow the borrowers to use their own attorney. Other states, the lender chooses the attorney. In my experience, it is BETTER to use the lender's attorney for the following reasons:
1) The lender's attorney has access to many several title insurance carriers; a borrower's attorney may only have one title insurance carrier, thus delaying the cloing or possibly not being able to insure title;
2) The lender's attorney usually costs less: COMPARE!;
3) The lender's attorney focuses on the lenders business, thus the close date will have a greater chance of being met;
4)The lender's attorney has the MOST incentive to clear title and ensure all is well with the closing and the documentation.
What are your thoughts?
Ann Sabbagh
Vice-President
Seacoast Mortgage
508-243-1190
Lenders are NERVOUS! I had an appraisal on a single family residence with an "outbuilding" in the backyard. This building is 23 by 16 with a fireplace, bathroom and living room.
The appraiser gave it a $4000 value. Very conservative. The lender wanted comparables that also had an outbuilding. There are none to be found in the town or anywhere around the town. So, the lender rejected the loan.
Of course, the borrowers are first time homebuyers (is anything easy?) and they are now nervous. I explained the mortgage crisis and how each underwriter has their own "nervous button" and this one went off LOUD!
Off to another lender who is not so nervous and is now only asking to ensure it was built legally and it is within code. This underwriter realizes it is unique, but someone has to be the first to bless a property such as this. The next property will now have comparables for that first underwriter.
Moral of this story? If you have a unique property, please allow sufficient time to process the loan. Thankfully, I had a GREAT realtor who realized this and gave me the time!
Working together, the client wins in the end.
Ann Sabbagh
Vice-President
Seacoast Mortgage
508-243-1190
"When you choose me as your mortgage consultant, you also choose a financial planner who has YOUR financial strength as the PRIMARY concern"
Eleven banks have failed so far in 2008. Many people are LOSING their hard earned savings because of not taking proper precautions. DON"T BECOME A VICTIM OF THE BANKING CRISIS !!!!!!!!!
FDIC insures $100,000 per account in each bank. An account is defined by who holds title to that account and who the beneficiary is on the account. SO, I can have the following accounts and be insured $100,000 on each account:
•1) In my name only with my spouse as beneficiary
•2) In my name only with one of my child's as beneficiary
•3) Another one in my name only with each of all my other children as a beneficiary
•4) In my name and my spouse's name
•5) In my name and my spouse's name with one our children as beneficiary
•6) In my name and my spouse's name with each of all our other children as beneficiary
•7) ETC......
Be prepared....be SAFE!
Ann Sabbagh
Vice-President
Seacoast Mortgage
508-243-1190
"When you choose me as your mortgage consultant, you also choose a financial planner who has YOUR financial strength as the PRIMARY concern"
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As owner of Seacoast Mortgage & a financial planner, I will offer you the BEST rates in the marketplace and assist you in attaining all your financial goals. Let's make it happen ! 508-243-1190
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