FHA “motivation letter”? What does this mean?

[dharmagirl]

Hello,

My single-mom cousin is buying a REO in Vegas where she lives and works as a bartender. She’s paying $200K for a 1200 sf, 20 year old place that will, at the very LEAST, need lots of cosmetic work. My husband used to live/work in Vegas. When I showed him the MLS listing, he said, “SHE IS NUTS! That house is ridiculously overpriced.”

Anyway, custody issues with the kid’s father have left her feeling like her back is against the wall (he has threatened to sue for full custody if she moves the kid to a new school district).

She needs a place to live, doesnt want to risk another rental/foreclosure situation and has decided -and I quote – “I’m 32. I SHOULD own a home by now.”

I said, “you should own a home when you can afford it. Age has nothing to do with it.” She has no nest egg, no savings, nada. I’ve tried to explain that the cost of the house doesnt end with being able to pay the mortgage…that the furnace could go, the roof…a million things. She isnt even in escrow yet and she just bought a $1800 fridge at Sears.

Yet, she has made up her mind. Some realtor talked her into buying a “no money down” property.

Aaaarrrghh. She agreed. The last sale price was from February at $190K (bank price?).

Carrie’s parents LOVE the realtor because he goes to their church and his son is a lawyer. (My reaction that was, “huh??”)

But, they all believe that for those reasons, the realtor is “looking out” for her best interests. The realtor is insisting that as a “first time buyer” she will have no problem getting the home with no money down.

Now, the loan officer has told her she needs a “motivation letter”. I have no idea what that is, and neither does she. I wonder if it has something to do with her previous escapades in Bad Credit Country?

Although, she tells me her credit is “really great” now.

Besides telling me my poor cousin is a lunatic, does anyone know what a “motivation letter” is? I’m curious.

I feel like I’m about to watch a fiery, grisly car crash, yet I cant quite avert my eyes. I dont think this is going to be good, but she wont listen to me.

thoughts?

[NotCranky]

You cousin is a not so strong buyer using a program for not so strong buyers so the underwriter wants to see a convincing story that puts your cousin in the best of the best of the marginal buyers class. It may just be a formality for the lender involved or it may be that the underwriter is on the verge of denying the loan. Probably the former.

[NotCranky]

You cousin is a not so strong buyer using a program for not so strong buyers so the underwriter wants to see a convincing story that puts your cousin in the best of the best of the marginal buyers class. It may just be a formality for the lender involved or it may be that the underwriter is on the verge of denying the loan. Probably the former.

[NotCranky]

You cousin is a not so strong buyer using a program for not so strong buyers so the underwriter wants to see a convincing story that puts your cousin in the best of the best of the marginal buyers class. It may just be a formality for the lender involved or it may be that the underwriter is on the verge of denying the loan. Probably the former.

[NotCranky]

You cousin is a not so strong buyer using a program for not so strong buyers so the underwriter wants to see a convincing story that puts your cousin in the best of the best of the marginal buyers class. It may just be a formality for the lender involved or it may be that the underwriter is on the verge of denying the loan. Probably the former.

[NotCranky]

You cousin is a not so strong buyer using a program for not so strong buyers so the underwriter wants to see a convincing story that puts your cousin in the best of the best of the marginal buyers class. It may just be a formality for the lender involved or it may be that the underwriter is on the verge of denying the loan. Probably the former.

[dharmagirl]

Thanks, Rustico. That’s what I suspected. It’s too bad, but if her app is not strong she really should not forge ahead…

[dharmagirl]

Thanks, Rustico. That’s what I suspected. It’s too bad, but if her app is not strong she really should not forge ahead…

[dharmagirl]

Thanks, Rustico. That’s what I suspected. It’s too bad, but if her app is not strong she really should not forge ahead…

[dharmagirl]

Thanks, Rustico. That’s what I suspected. It’s too bad, but if her app is not strong she really should not forge ahead…

[dharmagirl]

Thanks, Rustico. That’s what I suspected. It’s too bad, but if her app is not strong she really should not forge ahead…

[Daniel]

FHA loan… I see… Tell Carrie not to worry. If she falls behind with her payments, it would be our pleasure to pick up the tab. I just sent a big fat check to Uncle Sam a few weeks back, so Uncle Sam will take care of her. After all, what are taxpayers good for?

[Daniel]

FHA loan… I see… Tell Carrie not to worry. If she falls behind with her payments, it would be our pleasure to pick up the tab. I just sent a big fat check to Uncle Sam a few weeks back, so Uncle Sam will take care of her. After all, what are taxpayers good for?

[Daniel]

FHA loan… I see… Tell Carrie not to worry. If she falls behind with her payments, it would be our pleasure to pick up the tab. I just sent a big fat check to Uncle Sam a few weeks back, so Uncle Sam will take care of her. After all, what are taxpayers good for?

[Daniel]

FHA loan… I see… Tell Carrie not to worry. If she falls behind with her payments, it would be our pleasure to pick up the tab. I just sent a big fat check to Uncle Sam a few weeks back, so Uncle Sam will take care of her. After all, what are taxpayers good for?

[Author]

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