Refinancing...
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Matt Sebek
Dec 13, 2009, 1:51:11 PM12/13/09
to Ely Walker Group
All -
Has anyone on the list gone through the refinance process for their unit? I've jumped through hoops with several loan officers and they all eventually hit dead ends.
Looking for advice/referrals if anyone has successfully gone through the process.
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Matt Sebek
314.606.0528
matt....@gmail.com
Has anyone on the list gone through the refinance process for their unit? I've jumped through hoops with several loan officers and they all eventually hit dead ends.
Looking for advice/referrals if anyone has successfully gone through the process.
-----
Matt Sebek
314.606.0528
matt....@gmail.com
Patrick Tueth
Dec 14, 2009, 7:36:36 PM12/14/09
to elywalk...@googlegroups.com
hey buddy same here. My wife's mom is a real estate agent, she has tried everyone-- bank of america, credit unions, you name it. They say they can do it up front, and then it falls through. It's a mess, and we are screwed unfortunately until the bylaws change somehow. I'll let you know if something changes that I hear of, please do the same.
Patrick
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lebo83
Dec 14, 2009, 10:10:30 PM12/14/09
to Ely Walker Lofts
From my understanding its not the bylaws but the fact that a single
party owns 50% of the building. If I remember my facts correctly, most
banks want the number to be closer to 10% for a single investor.
Either way, it has nothing to do with the bylaws and we are all stuck
unless the banks change this policy before the rentals are allowed to
go on sale in 4 years.
On Dec 14, 6:36 pm, Patrick Tueth <ptleft...@yahoo.com> wrote:
> hey buddy same here. My wife's mom is a real estate agent, she has tried everyone-- bank of america, credit unions, you name it. They say they can do it up front, and then it falls through. It's a mess, and we are screwed unfortunately until the bylaws change somehow. I'll let you know if something changes that I hear of, please do the same.
>
> Patrick
> Unit 217
>
> --- On Sun, 12/13/09, Matt Sebek <matt.se...@gmail.com> wrote:
party owns 50% of the building. If I remember my facts correctly, most
banks want the number to be closer to 10% for a single investor.
Either way, it has nothing to do with the bylaws and we are all stuck
unless the banks change this policy before the rentals are allowed to
go on sale in 4 years.
On Dec 14, 6:36 pm, Patrick Tueth <ptleft...@yahoo.com> wrote:
> hey buddy same here. My wife's mom is a real estate agent, she has tried everyone-- bank of america, credit unions, you name it. They say they can do it up front, and then it falls through. It's a mess, and we are screwed unfortunately until the bylaws change somehow. I'll let you know if something changes that I hear of, please do the same.
>
> Patrick
> Unit 217
>
>
> From: Matt Sebek <matt.se...@gmail.com>
> Subject: [Ely Walker] Refinancing...
> To: "Ely Walker Group" <elywalk...@googlegroups.com>
> Date: Sunday, December 13, 2009, 12:51 PM
>
> All -
>
> Has anyone on the list gone through the refinance process for their unit? I've jumped through hoops with several loan officers and they all eventually hit dead ends.
>
> Looking for advice/referrals if anyone has successfully gone through the process.
>
> -----
> Matt Sebek
> 314.606.0528
> matt.se...@gmail.com
> From: Matt Sebek <matt.se...@gmail.com>
> Subject: [Ely Walker] Refinancing...
> To: "Ely Walker Group" <elywalk...@googlegroups.com>
> Date: Sunday, December 13, 2009, 12:51 PM
>
> All -
>
> Has anyone on the list gone through the refinance process for their unit? I've jumped through hoops with several loan officers and they all eventually hit dead ends.
>
> Looking for advice/referrals if anyone has successfully gone through the process.
>
> -----
> Matt Sebek
> 314.606.0528
>
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>
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Patrick Tueth
Dec 15, 2009, 7:11:21 PM12/15/09
to elywalk...@googlegroups.com
| sorry for the wording of "bylaws." The point is it is impossible to refinance; look out for the wordsmith. --- On Mon, 12/14/09, lebo83 <lebovi...@gmail.com> wrote: |
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Dan Goellner
Dec 23, 2009, 3:07:22 PM12/23/09
to elywalk...@googlegroups.com
Hello other unit owners,
I thought my refinance deal was working out and I was hoping to bring good news. I have 800 credit score and 20% vested. My mortgage broker confirmed what was stated below about the developer owning 50%, and that over 10% of the units are rentals makes the property unwarranted. She told me she doesn't see industry policies changing anytime soon. She said the only way to refi is to perhaps go through your current lender, or find a bank willing to do a portfolio loan (which means that bank can't sell the property to a 2nd party)
Paying an additional $300 per month because I can't reap on the current low rates is one thing. The major outrage is that if I need to sell my place the buyer will have to pay CASH or get some portfolio loan that requires outstanding credit and probably a substantial net worth.
To say that I'm upset is an understatement. I feel trapped and basically swindled. I don't feel that this information was ever presented to us at the time Orchard turned the units into rentals.
Dan 309
> Date: Mon, 14 Dec 2009 19:10:30 -0800
I thought my refinance deal was working out and I was hoping to bring good news. I have 800 credit score and 20% vested. My mortgage broker confirmed what was stated below about the developer owning 50%, and that over 10% of the units are rentals makes the property unwarranted. She told me she doesn't see industry policies changing anytime soon. She said the only way to refi is to perhaps go through your current lender, or find a bank willing to do a portfolio loan (which means that bank can't sell the property to a 2nd party)
Paying an additional $300 per month because I can't reap on the current low rates is one thing. The major outrage is that if I need to sell my place the buyer will have to pay CASH or get some portfolio loan that requires outstanding credit and probably a substantial net worth.
To say that I'm upset is an understatement. I feel trapped and basically swindled. I don't feel that this information was ever presented to us at the time Orchard turned the units into rentals.
Dan 309
> Date: Mon, 14 Dec 2009 19:10:30 -0800
> Subject: [Ely Walker] Re: Refinancing...
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Kristen DiFate
Dec 29, 2009, 11:24:08 PM12/29/09
to elywalk...@googlegroups.com
For clarifications sake, what do you mean about a buyer needing to pay cash or get a portfolio loan? Does not being able to refi also effect being able to sell? What's our protection?
Is this something the advisory board (which I'm part of) can and should bring up with Orchard?
Kristen DiFate
Unit 427
Dan Goellner
Dec 30, 2009, 10:40:19 AM12/30/09
to elywalk...@googlegroups.com
Hi Kristen,
Our units are considered "unwarrantable property" to a new lender. If someone were to come tomorrow to try and buy my unit they would apply for a loan and any conventional loan application (under the current loan regulations that probably won't loosen for at least 2 years) would be denied because Orchard owns over 50% and those units are rentals. I have been told that a single owner needs to own approx less than 20% for lenders to consider a loan as a warrantable investment. So, the only option for a purchaser is to put down a LARGE down payment, or apply for something called a portfolio loan. Portfolio loans are ones held by individual lenders so they can't be sold off. This means the lender is at serious default risk so the rates will probably be higher and the criteria to qualify will be much more stringent. I know of several banks that don't even offer portfolio loans anymore.
In short, our option to sell is as open as ever but finding a purchaser who can get a loan (and is willing to go through the hassles associated) will be extremely difficult. I was told that my income and net worth would need to significantly increase to be considered for the unit that I currently own and afford.
I don't know what we should do. My mortgage person actually suggested we seek legal counsel.
Dan Goellner
unit 309
Date: Tue, 29 Dec 2009 22:24:08 -0600
Subject: Re: [Ely Walker] Re: Refinancing...
From: spacer...@gmail.com
To: elywalk...@googlegroups.com
Our units are considered "unwarrantable property" to a new lender. If someone were to come tomorrow to try and buy my unit they would apply for a loan and any conventional loan application (under the current loan regulations that probably won't loosen for at least 2 years) would be denied because Orchard owns over 50% and those units are rentals. I have been told that a single owner needs to own approx less than 20% for lenders to consider a loan as a warrantable investment. So, the only option for a purchaser is to put down a LARGE down payment, or apply for something called a portfolio loan. Portfolio loans are ones held by individual lenders so they can't be sold off. This means the lender is at serious default risk so the rates will probably be higher and the criteria to qualify will be much more stringent. I know of several banks that don't even offer portfolio loans anymore.
In short, our option to sell is as open as ever but finding a purchaser who can get a loan (and is willing to go through the hassles associated) will be extremely difficult. I was told that my income and net worth would need to significantly increase to be considered for the unit that I currently own and afford.
I don't know what we should do. My mortgage person actually suggested we seek legal counsel.
Dan Goellner
unit 309
Date: Tue, 29 Dec 2009 22:24:08 -0600
Subject: Re: [Ely Walker] Re: Refinancing...
From: spacer...@gmail.com
To: elywalk...@googlegroups.com
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Kristen DiFate
Jan 18, 2010, 12:28:49 AM1/18/10
to elywalk...@googlegroups.com
Thanks, Dan. Wow. That sheds some light on things.
You said your mortgage person said we should seek legal counsel. But, is there anything we might be able to do legally? It seems like we're at the mercy of Orchard. And who knows what they will decide to do with the building when they can sell again.
I knew the units weren't worth *nearly* what we paid for them. I didn't realize this was also an issue. Argh.
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