Posted: Tue Jul 29, 2008 9:59 pm Post subject: New Mortgage Laws Passed Today?
To avoid foreclosure on my home, I agreed with the mortgage company to do a short sale. We were going to close the deal on the home today when we learned that the buyer will not have enough money to put down as a down payment towards my home. I asked how he could not have known that from before and was told that today a new mortgage law was passed stating that new buyers need 10 percent down. The new buyer was originally told he would need 7 percent which he had but that today a new law was passed saying it increased to 10. I am so confused and baffled by this. I have searched the internet looking for new mortgage laws and have found nothing. What is really going on>?
Posted: Thu Jul 31, 2008 4:15 am Post subject: RE: first time buyer down payment
Hi Lb,
Welcome to our forums.
Even I haven't heard of any such laws except that the Bush administration will not allow first time buyers get seller funded down payment assistance. By the way, did your mortgage arrange for the buyer or is it you who found out one? Make sure that the buyer will be able to pay off the short sale price or else how would you pay the company.
Posted: Sun Aug 17, 2008 8:11 am Post subject: Mortgage Laws
It is not a mortgage law but a change in all lenders guidelines. The fiends that have caused this mortgage mess has litrally turned the industry upside down even worse than nessesary. Mortgage brokers and lenders, loan officers have been baffled at the rate of change the industry now calls for. One minute you have a good loan for your borrower and the next it is not business as usual and without warning.
Good luck with your buyer and maybe you should consdier doing a small 2nd mortgage to the buyer. Or recommend they take an FHA loan as FHA only requires 3 % down. Good Luck!
The Loan Lady
I would insist that they show it to you before you release their earnest money _________________ Licensed Broker 50 states http://www.aimwithfocus.com
Need quick advise email or PM Glad to help
Posted: Wed Sep 10, 2008 1:17 pm Post subject: New underwriter guidelines
I am in the process of selling, or practically giving away, my home
in Michigan right now and have a well qualified buyer. We were supposed to close the deal on the 12th but, because his mortgage underwriters all had to go to the seminar on new mortgage guidelines in Michigan, the closing has been delayed until the 19th at an additional cost to me of around $200.00 in interest from my mortgage company. I consider that to be negligence on their part for simply walking away from a pending transaction and incurring more costs to me. Anyone with legal experience on an issue like this, I'd really like to hear from.
Thank you
Most important is your going to spend more than the $200 to get any advice worth a darn, so unfortunately either pay the extra interest or find a new buyer.
I know it sounds harsh, but we like to say it how it is. _________________ http://www.mortgagebreakdown.com
Information given is an opinion, for true legal advice please consult an attorney.
No there was no law passed. I think it was a line of BS that the loan officer gave when they realized that the buyer was not getting the loan. The problem that has been in effect for about the last year is that lenders will allow 5% down but the PMI companies will only insure at 10% down. This is the catch 22 that will bite a loan officer if they are inexperienced and they won't realize it until the end of the loan. It sounds like this may have happened here. One option may be to split the loans into a first and second. That way there is no PMI. Another idea is for the buyer to look at FHA. They only require 3% down. _________________ Lisa Scherzer
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