Do you have a GFE that shows this offer? If not, complete the application and ask for one. Without a GFE this is all a lot of hot air and once you make the decision to move forward, you will get the standard line: "rates have changed and it will cost you a little more today, you should have acted on _______"There is no way 5.25% on 260K pays back enough to do a "no cost" refi on an investment property in California. It's just not going to happen.
"Anyone telling you "write a good explanation letter" either doesn't know Fannie/Freddie/FHA underwriting guidelines, or is going to do the loan through a true portfolio lender who can make their own "this makes sense" decisions irrespective of the aforementioned guidelines. "Mr Nolan,Before you speak of competency regarding another loan officer, you might want to read what it is they said. Ms Garvin did not say that a letter of explanation would alleviate the need to qualify for both mortgage payments, she stated that the LOE would be needed to explain the downsizing of a property that is underwater; and she is 100% correct. There is no guideline that "prohibits" a person from buying another property when underwater, just one that details the guidelines for such a transaction. If they don't have the 25 or 30% it does not mean they are out of luck. You do understand that don't you?The truth is that funding one is difficult if not impossible without a well submitted file with a strong supporting LOE that details the reasoning behind it. Both of you understand and adequately stated the guidelines that will require qualification using both PITI payments; it seems only one understands how to actually get the file approved and submitted properly.
"Often times, it is the Realtor is the person who is communicating between the Title Company and the Lender to get the necessary documents for Closing."Your over-inflated concept of self-importance is amusing. A Realtor has zero to do with getting the required financial documentation from a borrower necessary to facilitate closing."I help 90% of my clients find financing because we are an International Company."What? What does one thing have to do with the other? You gotta just love Realtors, always pitching a line of BS that means nothing.
" Because Realtors have experience and know who gets the job done and who does not!"Really? What experience would that be in? If the question is about mortgage financing, Realtors have no more experience than the towel guy at the car wash. What criteria would you be making this referral on? You certainly cannot comment on price and you would have to ask your past clients about what type of service they received. You also have no idea if this person is asking about a purchase or refi so what makes you think you are capable of offering any informed input at all?
" All loans are now lender based now and the origination fees that brokers were paid by the lenders they represent have gone away because of the change in a Federal law."This statement could not be any more incorrect. Lenders still pay mortgage brokers origination fees built into a higher interest rate, it's just now pre-determined what that compensation will be and misleadingly disclosed on the GFE to look like something that it isn't.
It appears that you will have no luck with this.The divorced, non-vet spouse of a vet cannot do an IRRRL to get the property in their name alone, VA does not allow it, so that's out.There are no refinance programs to address the negative equity you have on a VA loan, so that's out.He cannot just remove his name from the mortgage, so that does not work.What Pasadenan suggests, that he document rent for 2 years is also not going to work because you cannot use rental income from someone that is on the deed and I assume you don't plan on quit claiming any time soon.If you don't want to leave the house and he is not inclined to force you to do so, he has zero options.
In January, Wells Fargo settled a suit over these and are modifying existing pick-a-pay loans. You need to contact Wells Fargo. Details HereWells Fargo Release Here.
"That one is definately laying in the pasture."But nothing will happen because the people doping the "mystery shopping" have zero idea what they are doing. The arrogance they display by thinking they understand this better than the experts that do it daily is impressive. The public has no idea what to think because cow chip quotes like this are allowed with no consequences but to shoot the messenger. Post a quote request yourself... see the BS in living color!
"examples?"http://www.zillow.com/mortgage/BorrowerQuoteDetail.htm?quote=ZQ-YZCSRHDExplanation for the layperson:4.625% is quoted with 1.25 discount points on a 600K high balance loan.4.625% could only be achieved on this through a borrow paid scenario paying only 1.25 points.There is no origination fee disclosed on this quote so if it is borrower paid, it is not in compliance.If this person is claiming that this is lender paid at 4.625% for a 600K loan at a cost of 1.25 points, they are a liar.Conclusion: this quote is impossible.