Comments on: Rehab Loan Options for Homeowners http://www.203kmortgagelender.com/blog/rehab-loan-options-for-homeowners/ Information, Questions & Answers about the FHA 203K Wed, 01 Feb 2012 03:57:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Marvin Hernandez http://www.203kmortgagelender.com/blog/rehab-loan-options-for-homeowners/comment-page-1/#comment-770 Marvin Hernandez Tue, 15 Jun 2010 18:51:00 +0000 http://www.203kmortgagelender.com/blog/?p=523#comment-770 <strong>Suzy said: </strong> Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!! <strong>Marvin's Reply:</strong> Hi Suzy, Sorry to hear about your 203k nightmare. Definitely choosing the right FHA Consultant and General Contractor is important. Recently we posted information regarding <a href="http://www.203kmortgagelender.com/blog/203k-contractors-and-cost-consultants/" rel="nofollow">Contractors & Consultants</a> on the 203k mortgage lender blog. The preference should always be that “ You , the Buyer/ Borrower pick out your own contractor as well as the Consultant (when needed) as you will be the one dealing with the day to day progress and issues ... not the lender. So going with your gut feelings as well as some personal references is a very good idea. Suzy, you may already know this but as far as the contractor getting paid, the disbursement checks are two party checks which require the Buyer/Borrower to sign. This ultimately gives you the last word and keeps you in charge. Now the question is getting the checks. Due to the increased popularity of the program some lenders may be slower than others in releasing the draw checks but in those cases the lender should be more understanding of the time frame deadlines if they are the ones slowing down the process. Any contractor who has dealt with or will be working with the 203k should be aware that their check comes after the phase is complete not before, so having a contractor that has the resources to do work first and to get paid later would help. If you prefer, and have the funds available, you could consider paying the contractor or sub-contractor yourself and then reimbursing yourself when you receive the disbursement check as an alternative. As in any type of rehab or construction, 203k or NON-203k, there is always something that comes up and with bigger projects there will probably be bigger stories to tell. Best of luck to you I hope at the end of all this you enjoy your rehabbed home. Marvin Suzy said:

Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!!

Marvin’s Reply:

Hi Suzy,

Sorry to hear about your 203k nightmare. Definitely choosing the right FHA Consultant and General Contractor is important. Recently we posted information regarding Contractors & Consultants on the 203k mortgage lender blog. The preference should always be that “ You , the Buyer/ Borrower pick out your own contractor as well as the Consultant (when needed) as you will be the one dealing with the day to day progress and issues … not the lender. So going with your gut feelings as well as some personal references is a very good idea. Suzy, you may already know this but as far as the contractor getting paid, the disbursement checks are two party checks which require the Buyer/Borrower to sign. This ultimately gives you the last word and keeps you in charge.

Now the question is getting the checks. Due to the increased popularity of the program some lenders may be slower than others in releasing the draw checks but in those cases the lender should be more understanding of the time frame deadlines if they are the ones slowing down the process. Any contractor who has dealt with or will be working with the 203k should be aware that their check comes after the phase is complete not before, so having a contractor that has the resources to do work first and to get paid later would help. If you prefer, and have the funds available, you could consider paying the contractor or sub-contractor yourself and then reimbursing yourself when you receive the disbursement check as an alternative.

As in any type of rehab or construction, 203k or NON-203k, there is always something that comes up and with bigger projects there will probably be bigger stories to tell.

Best of luck to you I hope at the end of all this you enjoy your rehabbed home.

Marvin

]]> By: Suzy http://www.203kmortgagelender.com/blog/rehab-loan-options-for-homeowners/comment-page-1/#comment-746 Suzy Wed, 09 Jun 2010 21:18:55 +0000 http://www.203kmortgagelender.com/blog/?p=523#comment-746 Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so "it's easier". Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It's awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it's a great program but unless the parties are on board and do what they're supposed to it's a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!! Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!!

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