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lunarhamster
4037 Posts |
 Posted - 05/13/2008 : 4:32:25 PM
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OMG, this is unreal!!
Submitted an FHA loan with an escrow Repair balance, HUD repo. ERB is 4000, borrower going to bring it to closing, no problem.
File goes through underwriting with Freedom Mortgage, get a clear to close, Title sends HUD to Freedom for sign off, Freedoms says NO, we dont allow ERB holdbacks. WHAT???
Why would an underwriter underwrite a loan, knowing it was HUD repo with an ERB, IF THEY dont do them???? why why why????
So, today we have to go over the underwriters head because they are not following HUD guidelines, they are asking us for crazy stuff that we dont have the power to do. Now they want us to have the appraisal changed to reflect the exact ERB, and as you all know the Appraiser by law can not, as he works for HUD, not for me. Unreal.
This is so simple, the borrower has their 3% down, HUD paying the CC, and the borrower brings te ERB to closing, easy. Well the AE sent an e/ml to the underwriter and I was copied by accident, he tells the UW that I must be crazy in my thinking in regard to them allowing escrow repair holdbacks. I wasn't really happy about that, I did respond to the AE and the underwriter and advised them I was not crazy, I have done many FHA deals on HUD repos and the ERB is paid by borrower and put in escrow for repairs that need to be done, I have never heard of an FHA approved lender not allowing this.
The AE has ignored all my calls and e/mls and then I find out today he got fired last night, go figure. I'm so frustrated. If freedom will not sign off on the HUD, I will lose the deal, borrowers are pissed. I dont blame them. |
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nowbroker
1386 Posts |
Posted - 05/13/2008 : 4:38:33 PM
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That is why many many lenders will not do HUD repos, they do not want the hassle and problems of an escrow holdback.
The last HUD repo I did, the buyer did the repairs to the house without permission, so it could close. They broke the window to get in, then fixed it. |
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lunarhamster
4037 Posts |
Posted - 05/13/2008 : 4:45:28 PM
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They are so easy, at least they should be. But once they come in and do the property condition report, there is no getting around it, HUD wants the work done, I am so frustrated I feel like punching someone.
Where is Yuri? |
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