Mike Young

Wow. What do you do when a 203k borrower ignors your work write up and thinks they have all that money to do whatever they want to do. That is the call I had today. What a nightmare. Contractors were given different instructions by the borrower that contridicted the job specs which clearly describes the 'scope of work'. You have to go back to the contracts that were signed by the borrower and contractor that specifically forbid that action. The draw inspection can only be for the items on the draw request. Those additional items must be paid for by the borrower out of their pocket or.... the big OR. What happens from this point? Any suggestions. I'm going to hold off telling you the solution until I hear from some of you.... What could be done to pay for the work that wasn't authorized? Anyone out there?

Eric, your new site is looking good. How did you get to the top of your search listings right out of the box. That is amazing. Good job. I searched 203k loan charlotte and there you were... Good job. Nice site as well. You are one of the most knowledgeable lenders on the 203k in the Charlotte area. Keep up the good work and let us know if we can assit you in any way. M

Sat in on the FHA update telephone conference today. Very good presentation by the way. Anyone who missed it should go to http://www.fhaoutreach.gov/FHAHandbook/prod/index.asp and check out the new handbooks 4155.1 and 4155.2. they are searchable in their format and have hyperlinks throughout. If you have any problems or issues please contact me and I'll walk you through it. I have the power point presentation and know where you can get it on line.

Sorry no appraiser revelations to report they are working on this one. No 203k revelations either... possibly in about two months.

FHA appraisals DO NOT have to go through management companies at this time... The lenders who have built up a trust for an appraiser over many years of working together can still place their orders with those appraisers. ONLY FannieMae and FreddieMac appraisals must go through an appraisal management company.

Attention to all realtors and agents... if your listing has need of any repairs no matter how little, I'd like to see you put in the listing that this is a 203k candidate, or contractor/handyman special. Something to identify that work is needed. There is no minimum for a 203k streamline so if all you need is carpet and paint you are good to go. The great thing is that nearly every foreclosure needs work and the upper limit of rehab is the loan limit must not exceed the FHA maximum loan limit for the property and rehab... If it does exceed just a little call me and I'll give you some ideas of how to get it to close for more than the maximum mortgage limits... yes you can.

A friend and i were just talking when she started talking about the issues in the banking system today... Follow the money. Who made money with the real estate values were going up uncontrolably? The banks. When the $%@ hit the fan who gets the bail out money? The Banks. Gee whiz... let's control the appraisers now by making them sign up with appraisal management companies to insulate them from the banks and lending institutions. Twenty year relationships with lenders is out the door with FannieMae and Freddie Mac in favor of appraisal managment companies who now will take a piece of the appraiser's fee... totally illigal with RESPA till it passed into law. Wow.