Lender Issues With Buying And Selling
I am a newbie too, no deals yet, placed no offers yet. I am still studying and researching...
I have talked to three mortgage brokers in 2 weeks and each have said you basically cannot find a lender who will fund a person buying a home from the owner if the owner has not had his name on the title at least 6 months. How do you get around this when it comes to buying and selling quickly? If there isn't a lender who will qualify Joe Consumer for a loan just because I haven't had the title for 180 days... I don't want to be stuck with the house that long. I understand you can lease/rent but now I am affraid to buy, rehab, and put something on the market to sell.
Any advice?
This is called title seasoning. There ARE lenders out there that will loan without any title seasoning requirements...you just have to look REALLY hard. Try out some small, local banks first. I found a couple in my neck of the woods by going through the phone book and calling every stinkin' bank I came across. I think the trick after finding a lender is getting your buyer to use that lender.
Thank you!
What is the best way to word your questions? Do I just ask if they require a seasoned title or title chain?
Do you need the cash that badly? You already mentioned you don't like lease options (or, presumably, selling on a CD), but if you marketed it this way, you could have a decent cash flow, maybe have more time to make the needed repairs--possibly enlisting a handyman tenant to help for in-kind rent credit--all while seasoning/quieting the title and availing yourself of, hopefully, a little extra appreciation in the process. Even if you really really need to sell, to do so conventionally it could take months anyway before you finally see the $$.
Do you have any title seasoning requirements. But I always like to have an example when I ask a question. Can I buy a house from a person who has only owned it for 3 monthes. If they say no then ask what is the period of time that I can buy from that person. Get that person's name, then hang up the phone and call back and ask someone else the exact same question. It is like adding on a calculator, I always do it twice and make sure I end up with the same answer.
Brenda
I suggest you shop around some more.
Team up with a mortgage broker who caters to B, C and D clients.
They usually have the largest assortment of loans, and are able to accomodate just about any type of buyer.
Title seasoning is a major problem if your buyer opts for FHA financing.
You should therefor tell potential buyers that you are not able to sell the house to them if they go FHA, but that there are (indeed many) other lenders out there who are willing and able to finance them.
If they don't know how to proceed, you refer them to "your" mortgage broker.
Hope this helps.
[addsig]