Home Buying in 01803>Question Details

Failed Title…, Home Buyer in 01803

I'm making a cash purchase for a home w/ failed title V. I'll rehab it w/ my own cash, can i get mortgage after w/o escrowing for failed

Asked by Failed Title V, 01803 Tue Apr 5, 2011

title V?

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Cash or finance you can not transfer a deed or record title within the Commonwealth without a clear Title V.
compliance. If you do choose to finance, lenders typically are reluctant to allow holdbacks for reasons other than the ground being frozen. It's a major health and environmental issue that needs to be addressed well prior to closing in some form or another.
1 vote Thank Flag Link Tue May 31, 2011
Home buyer:

Double check with your attorney, but I am fairly certain you can convey a home with a failed title V. The Title V came into effect to protect the banks in 1978. Now you may need to do the septic inorder to refi the property. It is really important that you do your due dilligence before you close. Cash is a wonderful tool in this market, but you need to be really smart how you spend it. All the best.
0 votes Thank Flag Link Tue May 31, 2011
I think that's why everyone is mentioning you need to sit with an experienced mortgage professional. Mortgages aren't just a pick off the shelf item. There's alot that goes into it. Guidelines are constantly changing and dependent upon your credit, way the property will be titled, type of use of property, condition of the property, amounts of $$ involved, type of lending institution used for source of funding etc. etc. There really isn't just 1 blanket answer to cover your question. You should ask friends, family, colleagues for the name of a mortgage professional they've used recently and been happy with. If they aren't familiar with rehab loans and Title V issues perhaps they can refer you to someone they know. This way you can go over all the previously mentioned issues & find the right loan program for you & your situation.

Hope that helps,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Tue Apr 5, 2011
Sorry if my quesiton wasn't clear. I don't want to do a rehab loan or a 203K loan. I've been down that road and it is a nightmare with all the paperwork. I will purchase the home in cash and fix it up with cash. After, I'd like to get a mortgage on it to replenish my funds (so i'm not house broke). I want to use the 2 years under the law to install a new septic. I don't want to escrow the funds for the new septic b/c that means its just cash wasted not earning interest. Is there a loan or mortgage I can get after all the improvements have been complete that will not require me to escrow money for the failed title V septic?

Thank you!!
0 votes Thank Flag Link Tue Apr 5, 2011
yes you can do a rehab loan or a 203k, call Andrew Adams at Salem Five. They are the best
0 votes Thank Flag Link Tue Apr 5, 2011
I know a great broker that could help you with this. You can always do a 203k and float the banks money during the rehab then pay it off with cash so you maintain your liquidity. Just a thought :)

0 votes Thank Flag Link Tue Apr 5, 2011
Definitely speak with a mortgage broker -- especially if you want to take out more than the purchase price for a mortgage. Some banks on a rehab refinance will only let you take out a mortgage for the purchase price, not the purchase price plus the renovation money. I guess the one question that comes to mind is why not fix the septic before you refinance/finance the property?
Web Reference: http://www.sherriway.com
0 votes Thank Flag Link Tue Apr 5, 2011
You should sit down & chat with a mortgage professional experienced in rehabilitation loans & Title IV. They can review the different loan programs that may be available to you.

Hope that helps,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Tue Apr 5, 2011
You have 2 years to fix it. Most lenders are interested in protecting their investment, especially in this real estate environment. Thus, I think it will be hard to get a lender to "overlook" the failed septic.
0 votes Thank Flag Link Tue Apr 5, 2011
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