Lawyer dropped me, because i was a short saler

General Real Estate Investing
1

Hi ALL. Get a load of this. Tell me whats going on PLEASE.

I just went to sit down with my lawyer for the second time today (he has been putting me off and cancelling my apts for 2 weeks now). HE had his secretary sit me down and show me a memo that he recieved from like the president of the title company he works for…

And she told me that he has opted out of helping me any further. He needs to grow some and tell me himself but anyways…

He made her go over something that she didnt even understand. I read it and it basically said that there are new FHA and VA laws in place that will NOT allow anyone getting those loans to buy a house that has been bought and resold in 90 days. After 90 days in order for a FHA or VA loan to go through the house cannot be resold for 100% or more of the aquisition price and anything under 100% has to have two appraisals and proof of fix up.

She also stated that traditional lenders would soon be following the same guidelines basically trying to shut down quick turns.

The memo subject line actually read “Flipping and Mortgage Fraud”

Is a short sale mortgage fraud, if so i’m not so sure i want to get into this stuff. I thought what we did was completely legal?

Let me know what you think.

2

fraud = lying on the loan application or other documents.

short selling is not fraud.
“flipping” is not fraud.
selling within 90 days is not fraud.

however, those who do commit loan fraud usually follow certain patterns. one of these telltale behaviors is quick turns. the quick turn isn’t what’s the problem, it’s selling properties at over-inflated values to take advantage of buyers and stiff banks. since fannie, freddie et al. guarantee these loans, they have adopted the policies you outline to help reduce the problem. you can get the specifics from

http://www.hudclips.org/sub_nonhud/cgi/pdfforms/03-7ml.doc

note, that “non conventional” loans don’t have to worry about this requirement.

and your atty is a chickens**t.

3

The information that the secretary gave you anbout FHA/VA is correct…they are trying to tighten down on quick turn-overs. I also ran into this on a FANNIE MAE…

I agree with Mark - your attorney needs to be a male or a female, not a eunuch.

Keith

4

Thanks for your replies. I just wanted to make sure what I was doing wasnt horrible.

I agree my lawyer(male) is a big chickens**t.

I was so mad, I told the poor secretary that I was just sick that they would do this to someone, string me along for 2 weeks cancelling appointments just to get me to drive 30 minutes down there and tell me they were dropping me as a client. Poor girl got a earful but he put her in that situation cause he didnt want to be the one getting ripped. I just think that is awful that he did that. Why not just call me and tell me two weeks ago.

THanks guys.

5

Although I dont think there is anything “wrong” with short sales, flipping etc (in fact i think its an important part of the business)

I do feel that the market will change significantly over the next year or two.

I hope that we all start crossing more t’s and dotting more i’s to become better professionals at what we do

if we do that, changes in the system should have minimal effect on us

probably even create better opportunity as competition fades away

6

Just had my buyer’s attorney drop him for the same reason…
The lawyer could not figure out how the bank could settle
for 55k short sale versus the 160k they were rightfully owed.
WOW…Could not believe it, but true. This atty is a chicken
s**t 2.

7

These FHA “laws” you refer to are not really law. Instead they are regulations that apply to FHA loans. They are not new. We have been dealing with them for the past five years, or so.

Institutional lenders can still make the loans for your buyers, just don’t go for an FHA loan.

8

sue him for discrimination!:slight_smile: play their game.