Monday, December 28, 2015

Common Property Red Flags for Mortgage Financing- From Pacific Residential Mortgage Group

Common Property Red Flags for Mortgage Financing
From Our friends at Pacific Residential Mortgage Group 
While infrequent situations arise that can make your client's mortgage loans un-financeable, being vigilant about these issues beforehand can save your client a lot time and heartache.
Here are some common issues to watch for before your clients write an offer, or before you accept a listing:

Property Conditions
  • Bad roofs, structural problems, missing railings or peeling paint can be instant deal breakers
  • Loan programs like VA and FHA have stricter requirements; ask what type of loan your client is planning to use
  • The property may be uninsurable for reasons such as unpermitted living spaces, dangerous living conditions or being out of building code
Condos & HOA Boards
  • Investors will not fund loans if the property's HOA is in the middle of litigation
  • The condo building must meet requirements of owner occupancy rules to be eligible
Legal Issues
  • Make sure the seller has the legal right to sell the property; any trust or probate issues may not be finalized
  • Financing cannot be garnered for any property that has a lien against it, and will show up on a title search
I am always happy to help find any information needed on a property before an offer is made or before you decide to list a property. Call today. I am here to answer your questions.