How does the lender determine the eligibility of a borrower for a loan modification? Well, they usually require you fill out a financial statement and particularly as showing what your income is, the members of your household, the household income and what your expenses are. If you have a regular job and you have pay stubs, and then that goes a long ways for them to evaluate whether or not they will give you a loan modifications. Many times you see where they’ll have a trial period. And I don’t represent lenders. So, that’s the best I can do on telling you on what they look at or what the documentation they’ve requested of my clients. Whenever I’m attempting to get a loan modification for a borrower who happens to be in foreclosure. So there may be a, a modification, although I haven’t seen many where your current and you just want to modify your loan, that would be something you submit financial information to, or if the loan has been paid down. So if you have any questions about a loan modification, give me a call at (727) 847-2288.
How many loan modifications may a borrower receive? The short answer to that is, as many as the lender is willing to give to the borrower and these days and times with COVID, the lenders are probably more inclined to work with the borrowers in order to modify the loan, to keep them in their houses or various loan programs with FHA BA or loans that are government backed as far as programs. You need to of course have the ability to pay whatever the reduced modified payments would be. But, there’s no limit on the number of loan modifications. It’s strictly within the discretion of the lender as to how many times they’re willing to work with the borrower and modify the loan. So, if you have any questions about the loan modification, well give me a call at (727) 847-2288.
Why would my spouse have to sign If I’m going to live on the property? This is a question I get asked frequently, whenever someone is married and they wish to buy a home many times that there are estranged from their spouse and have come to Florida and want to buy a house and need to have financing. The reason for this is, the Florida constitution provides that if you obtain homestead property, that the mortgage must be joined, which means the spouse must sign the mortgage document in order for the mortgage to be effective against the property that you’re purchasing. So a result of that, no lenders going to lend you any money unless they have a valid mortgage. The title companies will always ask your marital status. And if you are married well then, they will require the joiner of your spouse. Which means the spouse would have to sign the mortgage. The spouse doesn’t necessarily have to sign the promissory note. The promissory note says, I promise to pay, or as the IOU, whereas the mortgage simply says it’s a lien and gives the lender the right to take the property away from the borrower, if the promissory note is not paid. So the reason for it is pursuant to the Florida constitution. It is required in order to have an effective mortgage. If you have any questions, give me a call at (727) 847-2288.
Why do you wait until the day before closing to tell me how much I need for the closing? The reason for that as the closing agent is we do not have the information or we don’t have the amount. This is usually associated with Europe, obtaining a mortgage through a financial institution. They don’t finalize their figures as to how much money you need to bring for closing as a result of getting financing and how much money they’re going to supply less their closing costs. So we cannot determine the amount that you need to have prior to the day before closing, if you would like to wire an amount which may be an excess of what you need and get a refund. Well, you need to ask the closing agent for that figure, and we’d be pleased to give it to you if you want the exact figure.
However, we wound up waiting until the last minute or the day before closing, because the lender doesn’t give us all finalized , what they call the closing disclosure form. The final closing disclosure form until the day before closing on a cash transaction, you should be able to get that information ahead of time, unless it’s a very quick closing and we do not have all of the information in as far as, taxes or liens or something such as that, but an a cash closing, you should be able to know how much you need to send them prior to closing. Of course, we do require all wires to be sent or the money be wired for closings. if you have any questions, give me a call at (727) 847-2288.
Is a survey necessary when you purchase a home and obtain bank financing? Yes, it is necessary. Your lender may say,” Oh, we don’t require a survey”. However, they do require title insurance. The title insurance would ensure that the bank has a first mortgage on the property. And part of their requirements is that the survey exception be deleted from the title insurance, which says that there are no encroachments or problems with the boundaries of the property or where the improvements are located. So the title insurance agent will require that a current survey be provided so that those exceptions can be deleted from the title insurance. So, although a lender may say we don’t require a survey, their requirements do require a survey to be obtained. So yes, you will need to obtain a survey. Whenever you obtain bank financing, when you’re purchasing a home, if you have any questions, well give me a call at (727) 847-2288.