[SD Realtor]

I would strongly agree with CAR. Not only could the reduction be under the recent comps, to me it is a material fact. Frankly if I were buying a home I would like to know if there were alot of loan mods or reductions in that area. It is also valuable for people who are perhaps trying to petition property tax reductions and cannot find many comps.

I cannot think of any good reasons why the information should be concealed. On the flip side, knowledge of that information would seemingly help not only future homeowners and appraisers, but could be argued that for people buying, if other lenders knew of that information that would be helpful as well. Maybe not helpful to the buyer because the lenders may treat that in a negative manner but still, getting the information out will be good.

To me loan mods and other reductions are this grey cloud we all hear of and have stories about, but don’t really know much about. At the very least reductions should be recorded.

I understand where you are coming from Russ and there is a privacy issue…makes sense…I fall on the other side of it though.

[SD Realtor]

I would strongly agree with CAR. Not only could the reduction be under the recent comps, to me it is a material fact. Frankly if I were buying a home I would like to know if there were alot of loan mods or reductions in that area. It is also valuable for people who are perhaps trying to petition property tax reductions and cannot find many comps.

I cannot think of any good reasons why the information should be concealed. On the flip side, knowledge of that information would seemingly help not only future homeowners and appraisers, but could be argued that for people buying, if other lenders knew of that information that would be helpful as well. Maybe not helpful to the buyer because the lenders may treat that in a negative manner but still, getting the information out will be good.

To me loan mods and other reductions are this grey cloud we all hear of and have stories about, but don’t really know much about. At the very least reductions should be recorded.

I understand where you are coming from Russ and there is a privacy issue…makes sense…I fall on the other side of it though.

[SD Realtor]

I would strongly agree with CAR. Not only could the reduction be under the recent comps, to me it is a material fact. Frankly if I were buying a home I would like to know if there were alot of loan mods or reductions in that area. It is also valuable for people who are perhaps trying to petition property tax reductions and cannot find many comps.

I cannot think of any good reasons why the information should be concealed. On the flip side, knowledge of that information would seemingly help not only future homeowners and appraisers, but could be argued that for people buying, if other lenders knew of that information that would be helpful as well. Maybe not helpful to the buyer because the lenders may treat that in a negative manner but still, getting the information out will be good.

To me loan mods and other reductions are this grey cloud we all hear of and have stories about, but don’t really know much about. At the very least reductions should be recorded.

I understand where you are coming from Russ and there is a privacy issue…makes sense…I fall on the other side of it though.

[SD Realtor]

I would strongly agree with CAR. Not only could the reduction be under the recent comps, to me it is a material fact. Frankly if I were buying a home I would like to know if there were alot of loan mods or reductions in that area. It is also valuable for people who are perhaps trying to petition property tax reductions and cannot find many comps.

I cannot think of any good reasons why the information should be concealed. On the flip side, knowledge of that information would seemingly help not only future homeowners and appraisers, but could be argued that for people buying, if other lenders knew of that information that would be helpful as well. Maybe not helpful to the buyer because the lenders may treat that in a negative manner but still, getting the information out will be good.

To me loan mods and other reductions are this grey cloud we all hear of and have stories about, but don’t really know much about. At the very least reductions should be recorded.

I understand where you are coming from Russ and there is a privacy issue…makes sense…I fall on the other side of it though.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[SD Realtor]

sdr thank you for the correction. Yes you do want a full lien release on the note which I thought is what I implied but didn’t elaborate clearly enough. Your point being made that the note being the important instrument is what is important here.

I am not sure what you have seen but I have not been involved where the approval letter is not specific or accompanied by an indication of the specific instructions of the intention of the lender. That is, in the best case where they authorize a full lien release (of the note) or they forgive the note. Other times I have seen notification of an approval (lien release) based on the homeowner agreeing to a conversion of the note from a note secured by real property to an unsecured note.

The point is that when the approval letter does get issued, it usually is pretty easy to figure out the intention of the lender is.

[Author]

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