Buying a second home after the first was modified by Ocwen (real estate, 2015)

[Anxious jane]

After being qualified we've been under contract FHA with 203k rehab loan since Aug 15-2015. We've gone through securing 203k certified contractor and his final bid. HUD consultant has already inspected needed repairs and has submitted his paper work. It has been grueling trying to get all parties on same page. Seller has given 2 extensions, but since 12/15 we're being penalized 150/per diem until 1/16/2016.

Our first house had under gone a loan modification 2 + years ago with no late payments. That matter seemed to be clarified in first month of loan processing. Loan modification was due to unemployment and we moved to Seattle for employment.

Our loan originator had estimated a closing date early part of January. We just received email, the investor wants a letter from Ocwen (first house mortgage) indicating the loan with 2nd house will not be in conflict with loan modification. First loan is not through FHA. We've placed the first house with property management and have steady tenants for last 4 + years.

Any thoughts about loan modification conflicting with securing current FHA loan? Also, can we do anything to get out of this past extention date 150 per diem penalty?

[thelopez2]

Originally Posted by Anxious jane

After being qualified we've been under contract FHA with 203k rehab loan since Aug 15-2015. We've gone through securing 203k certified contractor and his final bid. HUD consultant has already inspected needed repairs and has submitted his paper work. It has been grueling trying to get all parties on same page. Seller has given 2 extensions, but since 12/15 we're being penalized 150/per diem until 1/16/2016.

Our first house had under gone a loan modification 2 + years ago with no late payments. That matter seemed to be clarified in first month of loan processing. Loan modification was due to unemployment and we moved to Seattle for employment.

Our loan originator had estimated a closing date early part of January. We just received email, the investor wants a letter from Ocwen (first house mortgage) indicating the loan with 2nd house will not be in conflict with loan modification. First loan is not through FHA. We've placed the first house with property management and have steady tenants for last 4 + years.

Any thoughts about loan modification conflicting with securing current FHA loan? Also, can we do anything to get out of this past extention date 150 per diem penalty?

I'm speculating, they want to make sure that the modified loan does not need to be owner occupied or a reduction in payment is temporary. There is a real estate mortgage form here where you might want to repost or request to have this moved.

[nightlysparrow]

Originally Posted by Anxious jane

Any thoughts about loan modification conflicting with securing current FHA loan? Also, can we do anything to get out of this past extention date 150 per diem penalty?

Did you notice that there's a Real Estate forum here?
http://www.city-data.com/forum/real-estate/

[Anxious jane]

Finally we're through the closing after a long 5 month process. We were able to get our first mortgage to send paper to lender verifying there were no conditions that would effect the first mortgage in buying a second home.
Buying this house through a FHA 203k rehab loan has been costly. Besides paying out of pocket 500. intimate home inspection, all the bids (just to cover defincies was 65,000) which exceeded 35,000 streamline amount so we had to hire a 203k consultant 800 to go with standard rehab. Additional fees (about 1500 rolled over in loan). The seller Nationstar Mortgaged charged 4,500. 150/per diem because time line for closing extended their timeline, that we had to pay to get this house. We are going to talk with escrow attorney tomorrow about us having to pay that fee when the delays had nothing to do with our being able to finance this house. Delays were caused because our lender ordered appraisal before the 203k consultant had sent in his report. That brought up 2 issues that needed to be addressed, septic & 90 year old barn. We ordered the septic work but it took time for our contractor to work with 203k consultant to figure out a bid for required repairs. Then the lender's 203k team had to approve it. There were so many people to try and get them all to communicate promptly and clearly.
A caution to those buying with FHA 203k rehab loan, do your research and ask for reasonable communication between all participants.

[nightlysparrow]

Originally Posted by nightlysparrow

Did you notice that there's a Real Estate forum here?
http://www.city-data.com/forum/real-estate/

Guess you didn't