Interesting Situation On A Refinance - You Gotta Read This.
I ran across a gentleman today who asked me to help him / point him in the right direction. Here is his situation. Purchased a home on an unrecorded land contract about 11 months ago on a SFR. He now wants to make preperations to refi into his name and possibly cash out a little. He is in a good possition to do 75% - 80% no problem and still be able to cash out. Well here is the deal, every mortgage broker he has talked to so far was not able to help him because, GET THIS, he has his monthly lease/mortgage payment taken out of his check, 1/2 every two weeks, and his payroll dept. sends a check to the seller. Therefore NO CANCELLED CHECKS or bank statement reflections. WOW. The only thing he has is payroll check stubs showing the deduction but under a generic description: Allotment xyz or something. I think he is military. What do we, he, anybody do with this guy.
If he is trying to to any kind of refinance, the first thing that I would do if I were him is to record the deed.
I would then seek out a good mortgage broker to outsource a lender who could refi for me. A good broker can get things like this done. Generally if this was an issue, they would simply require a letter from the seller of the land contract to verify that he has indeed recieved the funds on time as stated.
Hope that helps!
BAMZ
I would think that the payroll department would have the original document that instructed them to withhold the payments. Perhaps he could produce this along with the pay stubs.
Get copy of deposited checks from seller showing it came from buyers employer. Get or have buyer make agreement from employer showing that deductions on payroll were to pay for his lease. Record contract. Buyer might have to wait for 12mo however. Most lender want to see 12mo on contract before they treat it as a refi instead of a purchase.
I'm sure the seller may have a few of the checks, but all 11 I doubt. I will run these ideas past him to see what can be done. Any more suggestions would be appreciated.
John
You are not talking ot the right mortgage brokers....keep looking in your area, there are several ways to deal withtthis that will be acceptable to most underwriters....all you need is a papertrail. The checks are a standard requests but VOM's, letters and other supporting documents should work fine.