Lenders Authorization Release At Closing!
Walked into a closing today, and it seemed like everything was going well till the closer pulled out a document stating that "I authorized them to "reverify" all my information by pulling my credit report, verifying employment and all my personal information if my file was randomly selected".
I have never seen this form or anything like it in my life and I refused to sign it so we were not able to close.
Has anyone heard of this before? I have heard of audits where they want your tax returns(4506) .. etc on that were submitted at the time the loan was made, but this form authorizes them to dig into my personal info long after my loan has been approved and even funded.
Was I being paranoid here or is it truly a bad idea to sign?
Thoughts?
JS.
They usually pull credit the day before closing. I would imagine they are trying to cut down on fraud, and may want authorization to verify info down the road to make sure they are not part of any fraud. I probably would have signed it, because they already have all your info, and can probably pull your credit at anytime with the current info they have. They will most likely never look at your info again if you pay on time, which you will do anyway.
If my memory serves me correctly, I believe that they are including these "docs" in some mortgages now a days. The last closing I went to my clients never signed anything like that, but the bank and my client had a 30yr+ relationship. MY previous client I believe did sign some sort of release.
if it went up 30%, 8% is limited.
But he signed the operation agreement w/ eyes open.
Do you have an arbitration clause?
jsstvestin,
Glad to meet you.
I see things have not changed in North Town.
Here is one way to get her out, add up what the attorney fees will be, plus lost revenue for the months it will take you to evict.
Now offer her U-Haul money to leave based on what your cost would be if you went through the entire process.
Normally a person like this will take x amount of dollars to pack up and go, which is a percentage of your overall costs. Make sure you have her sign saying she has agreed to the terms your offer her.
Look in to a Contract for Deed next time you sell in the State of Nevada it will save you problems that you are having now.
John $Cash$ Locke
[addsig]
I believe what the poster ran into here is an Equitable Interest issue, which I have personally seen happen to others in the Nevada courts and using a Judicial Foreclosure is required, once the Judge rules this way John Merchant mentioned another way that should be looked into, also.
My Contract for Deed has held up in the North Las Vegas Court and Las Vegas Courts, and I was allowed to use the eviction method rather than having to do a Judicial Foreclosure on the few occasions I needed to do this.
This is why I suggested to the poster they look into a Contract for Deed, next time, which when worded properly, allows for a simple eviction.
John $Cash$ Locke
[addsig]
Since you want the dirt get them to send you a letter saying if you demolish in 180 days they will void the compliance case. If a lien was filed you need a letter from the attorney. If it is only a violation at this point you a letter from code enforcement is normally sufficient.
I say 180 days on the demo because if California is anything like Florida you will need the time. IThey generally want all the utilities - water, gas, power - to sign off. Then there migh be historical and if an old building, environmental for asbestos. Then capping sewers, etc.
Am I correct to assume that he is going to get the gain of the fed liens paid off, or is that part of you question?
How valuable does "good and valuable consideration" have to be?
If the property goes to the tax sale a lot of times the IRS will remove the lien and leave it with the person who got the violation.
If the property is sold via a regular process they will want to be paid even if the person is not making anything. There is actually a cloud on the title and no reputable title agent should make the transfer
unless you are buying it sub-to the tax lien, meaning I would pay the IRS.
How much is the IRS lien for? Is the deal still good enough even if you have to pay it off?
I will not purchase them subject to, as the liens are in the $80,000.00 range. Yes, Even if i paid the liens off on subject properties it could be very profitable. Current Tax assesed values are $132,142.00 Shawn
an you have negotiated for the owner to pay of the tax lien?
Otherwise, how do you plan on dealing with it.
The properties are assessed at $132,142. So they are appraised at a higher amount – correct??? Here, Southwest Missouri, Agriculture land is assessed at 12%, residential at 19%, and commercial 32% (Numbers close) of the appraised value of the property. So assuming it is residential land assessed at 19% (about 1/5) its appraised value that makes the property worth about $660,700 and you only have to pay $80,000. I must be missing something. About four years ago I purchased a property that had been sold at tax sale, I purchased it directly from the owner before the redemption period was up, and it had a $ 16,000 IRS lien against it. The property was worth about $ 45,000. I gave $3,800 for the property. Well to make a long story short. I have rented the property for these 4 years and have never heard a word from the IRS as of yet. But even if the IRS does come and want me to pay the back taxes the rent would have given me the money. And the property has increased in value to $ 56,000 – 58,000 range. I look at mine as, if needed, pay the taxes, sell the property and still come out ahead. To each their own. AS linlin says in her post there may be a cloud on the title. Ok - so when I’m ready to sell the property I either pay the IRS if they still want their money or reduce the price enough my buyers save enough to pay the IRS. Not sure of all the legal stuff. If I owner sell the property, with full disclosure about the IRS and give the new owners the discount then it will be their choice to pay the IRS now or sometime in the future. If anyone sees a problem with this please let me know. Jail isn’t good. Haven’t been their yet but no need to start.
Assesed values are are set at 85% of what they would bring on the market , so making them worth about $151,000.00. I have decided to take the risk and acquire the properties! I have met with the sellers and have them under contract we are closing tommorrow 9/4/07. I intend on contacting the IRS for the lien releases in the future. I do agree that these would be great rentals. My total cost for all four parcels is $16,500.00. Thanks to all who have posted replies, Shawn