Title Seasoning? Points?
I know these may be very very basic questions but I am not sure that I really understand these topics.
What is title seasoning and how does it apply to rehabbers?
What are the points that you get on loans? Are they good, bad?
Thanks!
I am sure if you contact a Mortgage Broker they will be able to give you a number of wholesale lenders that do not care about seasoning, like Decision One or I think even Chevy Chase - these are just examples - double check them. Also if you can provide receipts to show the work you did on the property that is validation that the value is there. Usually title seasoning is an issue because they want to make sure that the value is not increasing at a fast pace in a short period of time. That is the biggest concern - basically the bank will be financing a home with an overinflated value thus causing the end buyers to pay high monthly payments which will increase the chance of the home being foreclosed on and then not selling for the loan amount in the auction. It happens all the time and it is fraudulent. That is why a lot of banks are very strict on things like that. Delta Funding and Alliance Capital are two more that do not really look at things like that.