Question: "flips"

QUESTION:
I have a question on flips, I purchased a new condo at a bank auction last week where the developer lost several new construction homes. I would like to flip it ASAP and list it for 28,000.00 below current appraisal and 23,000.00 below tax appraisal. The home inspection report came back good with just a couple of minor fixes. I'm sure the rule still applies here but I still have to ask your opinion. Also would a FHA loan be the quickest route to a faster sale? I know there are different rules and different time frames for different lenders.


ANSWER:
For FHA, the contract has to be dated on the 91st day after you, the seller, purchased it. If the sales price is much higher than purchase price, two appraisals may be required.

Conventional has no limitations as to when it can be sold. However, the UW will want to review the title prior to approval to make sure it is clear.

Hope this helps!

Thanks!
Kristin

Mortgage Question: Can we be sure we will be approved?

Hi

I have a questions, we ( hubby and I) due to past problems and the very large rent we pay, have low scores. We want to purchase a home and get out of the rental deal (2700 per month). We have been gifted a good down payment of 20-25 percent. Can we be sure we will be approved?? I dont want to put money down to find out we cannot get a commitment.

Also, what are the most important items to pay off, old charge off? what would the cut of time be for those?

Thank You
Bonnie
=========
=========

Hi, Bonnie. How low are your credit scores? You can go FHA with a minimum of 560 credit scores. Old charge offs should be paid, however, if it is up to the UW's discretion. Medical debts are forgiven.

You could become pre-qualified with a manual underwrite. This means you would provide evidence of three non-traditional trade lines that you have paid on time for the last twelve months. For instance, KUB, Comcast, Verizon...anything that doesn't typically show up on a credit report. You have to provide a 12 months statement from the creditor or actual cancelled checks. Cancelled rent checks or auto insurance payments are other examples of non-traditional lines of credit.


Good luck!
Kristin

Mortgage Question: Changing Escrow

I have a question or two for you. I have my house note through ------.

I would like to find out if I can stop paying into my escrow account and
take on the financial responsibilities of paying my insurance, taxes,
etc.

Is this possible and can I do it without having to refinance?

Betty

------------
------------

Hi, Betty. This situation is totally up to your servicer (------, I am
assuming still accepts payments?). If taxes, in particular, go unpaid,
the tax lien would be paid prior to the mortgage lien (in the event of
default).

Normally on the secondary market, there is a .25 charge in price to
waive escrow. Your servicer may choose to charge you a fee for allowing
you to pay your own escrow. I would assume much would depend on your
mortgage history and perhaps, credit score.

In the past, I know that servicers have been amenable to dropping escrow
servicing. However, in today's climate, it just depends on the grantor.
So, give them a call!

Good luck!
-Kristin