Jbasecki, Home Buyer in San Jose, CA

Is an attorney able to help secure funding for a rehab?

Asked by Jbasecki, San Jose, CA Tue Jul 19, 2011

Is an attorney able to help secure funding for a rehab?

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12
Rob Weber’s answer
Jbasecki,

If you're still seeking information on securing rehab financing, please refer to a similar Q&A at the link below. Copying/pasting seemed a bit lame, feel free to follow the link instead. The bulk of what you're seeking will be in this other thread.

http://www.trulia.com/voices/Remodel_and_Renovate/When_using…
0 votes Thank Flag Link Wed Apr 11, 2012
Your attorney will help you with paperwork, corporate formation, and advise you of your legal rights. Your attorney should also communicate with your lender and realtor, as well as with the seller's attorney. If your attorney is going to give you money or secure funding in his name and become your partner, you should know that this is a conflict of interest, and not allowed in Illinois.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area. Contact us at http://www.ranjmohip.com for more information.
1 vote Thank Flag Link Wed Jul 20, 2011
Hi there, Jbasecki!

Thank you for your question.
Your lender - in most circumstances - will be responsible for securing financing for you in order to allow you to rehab a property you are also buying.

If you are financing outside the realm of "traditional financing," you should most definitely have an experienced real estate attorney involved in the transaction.

Best of luck to you!
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Jul 20, 2011
No, your lender takes care of all your funding.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Wed Jul 20, 2011
Absent a legal dispute, an attorney's role in a real estate transaction should be limited to insuring clear title to your property for both you and your lender. Be selective when choosing a lender, as it can be difficult to start the process over again when incompetence is discovered late in the game. Your Realtor, having your best interests at heart, also has a vested interest in making sure that your sale is closed quickly and competently. Start with a recommendation from your Realtor and interview other lenders before submitting your application.
0 votes Thank Flag Link Wed Jul 20, 2011
Your credit and ability to repay secures your funding and an attorney plays the role of getting your transaction finalized and closed here in Illinois. However, it is to your best interest to find a lender who is well versed and can explain the process (docs, professional quotes, plans and specs, etc.,) . One assumes it would be for owner occupied. Another avenue to pursue if you can show history of success in rehabbing is going to a local portfolio lender who does such type of loans locally. Many people have done that as well, but again, it depends upon your history as local banks have also taken a "hit" with inability to complete the project, shoddy work, and then lack of resalrability. Those are major issues with any bank.

Barb Van Stensel
Keller Williams LIncoln Square
2156 W. Montrose
Chicago, IL 60618
0 votes Thank Flag Link Wed Jul 20, 2011
your attorney can help you for sure but the realotr is probably the best person to talk to so they can send you to reputable lender..who is the one with the money
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Wed Jul 20, 2011
I hope the answers have clarified for you the role of an attorney in the lending process. The FHA 203k program is really your best option. i notice you are from San Jose, but posted this in Chicago. You need to know that the 203K program is for owner occupied properties only. I specialize in the product in CA, and soon to be Oregon; but do not do loans in IL at this time. I have written several articles on the programs and would be happy to share them with you if you want more information.

If you are seeking to do an owner occupied rehab in IL I would suggest you contact John at Spartan Construction (below). The 203K consultant role is very privotal in the 203k process and his experience could be invaluable in leading you to a local lender who is experienced in fundiing and managing the 203K program. I strongly recommend you work with a local lender and a banker is better than a broker in this instance. Best of luck!
0 votes Thank Flag Link Wed Jul 20, 2011
You need to contact a lender that does 203K loans. The attorney is there to protect and guide you with
the paperwork and closing of the property,once the contract has been accepted by both parties. If you need
a lender that does 203K loans I have several that can help you with the process. Debbie Bergthold-Smith
Classic Real Estate 708-267-5552
0 votes Thank Flag Link Tue Jul 19, 2011
The attorney plays an important role in giving you legal & sound advice in a real estate transaction. They usually attend the closing with you to assure you that all goes well with the purchase of a new home. However, an attorney would not secure financing for a rehab unless they own or work for a financial institution that specializes in this type of loans. Should you need additional information for securing financing for a rehab loan, please feel free to contact me or visit my website for more information on the FHA 203k Program. I am a 203k Consultant approved by HUD since 1991, in this Program to assist people, by inspecting your home or multi unit building (1-4 Units) and outlining the required work as well as improvements that you may want to include.

Thank you,
John G Moustis
President / Owner
SPARTAN CONSTRUCTION & DESIGN, INC.
Phone & Fax: 630-963-6020
Email: jmoustis@spartancontractor.com
Website: http://www.spartancontractor.com

Quality building, remodeling & consulting services in the Chicagoland area since 1991
0 votes Thank Flag Link Tue Jul 19, 2011
Hello,
You'll need to speak with a lender. However, if your looking to purchase a rehab/distressed property then I would suggest contacting an attorney.
Good luck!
0 votes Thank Flag Link Tue Jul 19, 2011
An attorney has nothing to do with the loan process. You need to find a lender who does rehab loans. One of the most common is the 203K FHA loan. My web site has some references and Ardain Mortgage does them
0 votes Thank Flag Link Tue Jul 19, 2011
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