Posted by Laurie Worley on 12/16/10 4:59pm
Msg #365246

Borrower's home up for sale?

This was a first for me...straight refi for lower rate and 'For Sale' sign in the yard and I even commented to borrower's about it (thinking I had the wrong address). Is there an obligation here to let title/lender know?

Reply by James Dawson on 12/16/10 5:10pm
Msg #365247

Here in Calif there's a borrower's certification affidavit that I think answers this question for us here but the borrower fills in out. We just notarize it.

Reply by Linda_H/FL on 12/16/10 5:15pm
Msg #365248

Some of the Owner's Affidavits I've seen have a paragraph

to the effect that they have not entered into any agreements to sell the property .. if a listing agreement is considered an "agreement" in this context is up to interpretation ... I hope this was not in your package - in FL we'd have a problem as we can't notarize something if we know the facts contained in the document are wrong.

I'd probably include a note with the package pointing out that the property is for sale - let them take it and run with it if they wish.

MHO

Reply by Linda Juenger on 12/16/10 5:26pm
Msg #365250

Re: Some of the Owner's Affidavits I've seen have a paragraph

I had one some time ago and I called Title from the table. It was a no go.

Reply by James Dawson on 12/16/10 6:29pm
Msg #365258

Re: Some of the Owner's Affidavits I've seen have a paragraph

It would be embarrassing if you found out the borrowers had taken it off the market but hadn't removed the sign yet.

How would you know it was still up for sale without asking them? Hopefully explaining the Docs would clear that up.

I would not asked them about the sign personally, it is not what I'm there for. I believe the form Linda H. is referring to requires a Jurat so I would just give them the oath and if they were lying....well I'm not the D.A.

Reply by ReneeK_MI on 12/17/10 6:19am
Msg #365290

Statements and/or conditions of intent to occupy

are also within the mortgage/DOT and a couple places on the 1003 (on an owner-occupied loan). The Fannie/Freddie mtg/DOT specifies occupancy within 60 days, and maintained for "at least a year".

Reply by Lee/AR on 12/17/10 7:30am
Msg #365292

Re: Home for sale? In this economy

they'll probably be in the home for 'at least a year' even with the 'for sale' sign
in their front yard. Wondering.... so, B signs the statements about staying in home for at least a year, and a week from now some 'life event' happens and B needs to move. B gets lucky & sells home within the year.... what horrible thing happens? Anybody know?

Reply by James Dawson on 12/17/10 7:55am
Msg #365295

Re: Home for sale? In this economy

..ah banks have to update their records.....before they updated their records?

Reply by SharonMN on 12/17/10 9:07am
Msg #365302

Re: Home for sale? In this economy

Happens all the time. They might be there for a year before it sells, but if they are experiencing financial difficulties, a refi can mean thay in the meantime they can still make the payments.

If they pay off the loan when it sells, it shouldn't be a problem. The only time the bank might worry is if they are getting an owner-occupied rate but planning to move soon and still keep the loan open.

Reply by ReneeK_MI on 12/18/10 6:34am
Msg #365406

Or debts being paid on Hud, or cash out - which this wasn't.

It's still something I'd send my client a heads-up about.