Possibly Loosing Deal Due To A Dilldally Mortgage Co.
Hello, all,
We've been working on a deal for the last two and one half months. Acutally I should have written that we've been providing a mortgage comanpy with tons of information so that we can close on a deal that we have undercontract.
Well, the seller is getting upset and is about to pull the plug on the deal if this mortgage company cannot close this week.
We use that mortgage company because when we initially tried them, they got everything done quickly. This one is taking much longer.
Yes, we've become attached to the property as we'll be living in the upper when we move to that state in June.
My wife, who loves the place, said, "well, if we loose it, it wasn't ment to be." That's the truth though. And I'm having a difficult time with that because we were going to get a chunk a change at the closing which we were going to use to begin an addition to another property.
We have the $.
They have all the paper work.
They've verified funds.
I'm getting tired of getting put off.
I don't want to loose this deal, but I've done all that I can.
We were given two names that quite a few investors in that area use for REI. We're using them next. I believe I'm done with that other mortgage co.
I gotta have dependability on my team. If not, business doesn't get done. No business, no $.
So, I prayed for acceptance, and I'm turning it over.
Anyone else experience this? If so, I'd like to hear about how you emotionally and professionally dealt with it.
The good news is that we have other deals in the works.
I guess it's true, if you loose one, another will come along.
Thanks,
OnTheWater 
This am I called the mort. co. The lady working on our deal says it's in the underwriter's hands at this point, and that she's told them that if they cannot close it this week, the deal's over.
The same underwriter is suppose to close on another property for us tomorrow.
Hopefully all will work out; if it doesn't, then it doesn't.
Here's my current perspective. I need to look at property as though I'm bidding a possibel job site, and eventhough I have an accepted offer, the deal's not done until it's done.
I did make an offer on a house yesterday, and now we're just writing up the offer.
Also, we're about to move on a quad. We've got the numbers worked out.
I gotta keep moving on and with a positive attitude.
Thanks,
OnTheWater
I am curious. What do you mean by getting some cash at the closing? Are you doing anything that you are not supposed to be doing? If so, that may be the reason that the closing has been delayed.
Aside from the delayed closing, your effort thus far is good news! Keep up your spirit!
Eric & Rosa
[addsig]
OnTheWater,
Rule number one: Do not become emotionally attached to the outcome (ok it may not be rule #1 but it's definitely in the top 5). I know this is hard to do but as investors, with a job to do, this is vital.
If you loose this deal take a step back and try to figure out factually, not emotionally, where things went wrong. If you do that you may be saving yourself from making this same mistake in the future. The cost in the future could be much higher than it will be to learn from it now. I'm not trying to imply that you specifically did anything wrong but there seems to be a part of this proccess that's been run off in the ditch. Make sure you make note of what caused that and respond accordingly in the future.
Have you thought about going HM to save this deal? Or I use a particular lender that for rehab projects has the best rate going. They charge 10% down 1 pt, only 1pt above prime for interest rates, you can roll your first 3 months worth of payments into the loan during rehab. They work with investors so they move quickly. about 2-3 weeks. But since you've all ready got your ducks in a row it could be even faster than that. Check my profile and send me an email if you'd like this guys phone number.
The good news is you're not short of other opportunities!! So if this one doesn't work out you have other irons in the fire. Best of luck to you. Keep us posted on the developments.
Sarah
Thanks, everyone, I do appreciate the support.
I must agree, I allowed myself to get emotionally attached to this one.
I've looked at it, and I've found a few choices that I'll not make again which should speed up the process by a week.
Also, we have the mort. co. closing on two of our props. Same person, same underwriter. May be too much for them.
Smilyface, I may be mistaken, but from what I've read, your posts seem to only question the legality of another's deal. I would much rather read about the deals that you've done and creativity that you used to obtain them.
Thanks,
OnTheWater
Ok, the deal seems to be saved!
Thank God.
Thanks, guys.
Also, I faxed over an offer that we signed on a single family. The place needs work, so I offered way low. If we get it, we get it. I'll flip it or lease option it to a T/B.
Thanks,
OTW
Being in the mortgage business myself (broker) I understand you frustration. Sometimes lenders will make me do things over and over again just because the are extremely busy. If you are using a Mortgage Company it might be that they are trying to clear out their warehouse line so they can close you. I know it sounds crazy, but it happens to me as a broker. They will never admit to it. I say hold on as long as you can.
Thanks very much for the encouragement.
What did you mean by "clearing out their warehouse?"
A foreclosure that we've been working to get just came through. We'll put the offer in tomorrow or Friday once we have the prof of funds letter or the preapproval letter.
Thanks,
OTW
[quote]
On 2003-11-18 10:19, SmileyFace wrote:
"I am curious. What do you mean by getting some cash at the closing? Are you doing anything that you are not supposed to be doing? If so, that may be the reason that the closing has been delayed."
>>Um, it could mean that he's getting more than the appraised value back at closing. Like 110% LTV, those are deals too. It doesn't sound like anything he 's doing something he's "not suppose to do."<<
- Dee
[ Edited by DeeLewis on Date 11/19/2003 ][ Edited by DeeLewis on Date 11/19/2003 ]
Dee, sorry, I don't understand what you are saying. 110% LTV of appraisal????
Mortgage lenders can loan over the appraised value of a home, that's one way homeowner/investors get cash back at closing. If a home is worth 100K, and the mortgage company lends up to 110% of the appraised value, the owner would get the full 100% purchase price, plus 10% extra cash. Usually A-1 credit is required here.
Dee, you're correct. There are such loans.
Ok, we got our proof of financing and offer letter sent over to the bank for a foreclosure.
We're closing on those two properties on Monday as they're overnighting the packets to us this evening.
This eve, I'm translating so my buddy can offer on a house. He just closed on his yesterday!
Next week, he and I close on a duplex.
Also, I should be hearing today about an offer I made yesterday on a house that needs work.
I love it!
Thanks,
OnTheWater:-D
*Success happens at the end of the foot work.*
Real estate investors who are out to do 10+ deals a month need to use hard money. Yes you pay more but in all actuality you are getting almost just as much and in reality more! Let's compair; hard money lender/private lender loans at 65%-70% loan to value on the after reapaird value, they loan money for repairs, there is no income verification, usually a 1-2 day turn around on a ballpark loan amount, no cost to apply, you don't need perfect credit, a quick and hassle free application process usually done via fax or e-mail and they can close 2-3 days after receiving a clear title commitment from the Title Company. You cannot lose. Yes, you pay more in % but not points! It's worth it! Just find a private lender that has been in business for a long time. Don't pay less to an unlicensed lender who can leave you sitting high and dry at closing day! Now in conventional lending they typically loan 80% of the as is value, they may not loan on properties in disrepair at all, you typically need a 640 credit score or above and the process can take up to or longer than 3 months! When you go hard equity you are borrowing money from your wealthy friend. You call them on the phone & get an answer the next day. More times then not are very well rounded in all aspects of real estate investing and asset protection. Good friend to have! Try e-mailing **Please See My Profile** for more free information on how hard money loans work. I hope this will help you for the future. It helped me "kick it up a notch!"<IMG SRC="images/forum/smilies/icon_frown.gif"> [ Edited by reifs1 on Date 11/20/2003 ]
For future reference, a realtor I worked with uses a contract that states that if a loan is in application when the financial contingency expires, that contingency is extended until the official resonse from the lender is in. So far noone has questioned it. Might have helped in this situation.
Hey, some great posts!
And that was a great contract idea. Let your realtor know that I said thanks!
Ok, I'm going to slow down a bit now 'cause I've been running at nearly full speed for some time.
After we close on all that are open, there's on more prop. that we'll write then I think it may be time for a week or so break.
What's a break? Relax, and just look at foreclosures.
Hey, did I tell you guys I gave my notice at work? Yep, I'm leaving corporated America 6/15/04; by 7/01/04 I'll be living in the great state of Virginia!
Does REI work? Yep.
Thanks,
OTW