Mike Young

Contractors who are involved with the 203k will be relieved to know tht the slow pay from our best lenders is coming under control. I'm happy to report that while the sudden burst of 203k business put everyone behind the eight ball with regards to paying out draws it seems to be coming under control. I know they all have been working to ease the situation but hang in there I'm already seeing a marked improvement.

The major lenders in this program have made recent changes in the way they handle draw request that is clearly making a difference. Just relalize that if you have had some delays in the past they are getting better and they should be totally back to normal in a few more weeks.

If you are new to the 203k you likely will not see a problem. Remember that while the Streamlined k does provide money up front to help you with material expenses the big box stores like Lowes and Home Depot do have programs in place that can save you money and carry you between draws. My web site will have more information on these programs but if you need more info before that happens just ask. They both will take your bid request and provide you with costs and if you take them the entire bid request so they can price it for you and it is greater than $2500 they both will offer you greater discounts for buying from them. These additional discounts could be as much as 25-30% on material costs so it is worth it to look into it. Home buyers can take that list in for quote as well to save money on the materials.

Attention Contractors. If you are looking for more remodel work look no farther. Find 203k consultants in your area and contact them with your info and let them know you would like to bid on their projects. It is the lender's responsibility to check you out so prepare a list of references, your license number, insurance certificate, proof of worker's comp if you need it, etc and have it ready for them.

How many of you realtors are working with your local county governments? HUDs "dollar house" program lets municipalities buy HUD homes that have not been purchased in six months for a dollar to help them provide "low cost" housing. These homes are quite often in CRA designated areas and need some work. Help your community provide low cost housing by letting your counties know about the program, fix the homes up and get the listing. Ball is in your court. M

I don't think a lot of people are taking advantage of a unique aspect of the 203k that will allow an owner to fix up a 1-4 unit property under the 203k making it ready to sell. Seller's you will get more for your property in many cases if it is "ready to live in" so think about making the repairs using the 203k then all you have to do is find a borrower with his 3.5% down and they can assume your loan without another appraisal in many cases.

Agents that cater to sellers may want to put this in their handibag as well.

Sorry it has been a while but I've been working in the background. All indications are that by the middle of December Wells Fargo and BofA will have their draw disbursement centers back on track. In all fairness to them the problem wasn't all theirs. Hang in there guys and gals. The 203k is still the best solution to moving damaged property. I have found that the smaller DE lenders can get them closed in 30 days still. Give them a try.