Equal Opportunity Lender doesn't mean each lender offers their clients "Equal Opportunity" for proper service during their loan process.
BIGGEST 203K Misnomer: A lender's job is done when the loan closes.
The truth is, most people in our industry will "try" to do a 203K if it crosses their radar. It isn't hard to read up on a few hand outs, grab some third party service provider that is trying to earn your business and get them to bring some experience and clout to the "pitch"or best yet, just fake it. In order to facilitate and advise a client property in a 203K, the education should start with an initial meeting, setting the stage for all phases of this project. Writing the real estate contract for a 203K requires certain language that protects the buyers best interests... who is going to do that, the buyer?
Getting a qualified contractor now-a-days isn't the easiest thing either. It is the LENDER'S job to ensure the contractor is not only qualified, licensed and insured... The lender is responsible to educate the CONTRACTOR about the various terms and conditions of the 203K draw process. How many contractors are around that are willing to do some work without getting a 1/3 draw UPFRONT? Then there is the entire process to get the lender approved for the bank you intend on selling the loan to... fun fun.
What about the contractor and borrower that have issues during the build process? What about the contractor that abandons the job? What about the borrower that says they want to change the Scope of Work? What about the homeowner that says the work was done poorly and not to their standards??? What to do?
Well, you, fine lender... originated the loan and somehow got it to close and ITS NOT YOUR CONCERN.... EHHHHH! Wrong Answer! The troubles only begin.
Ladies and Gentlemen... Please do yourself a favor and utilize someone that has experience doing 203K's and intends on being with you through the ENTIRE PROJECT. You will be a happier homeowner if you do.
Please contact me with any questions. :)
Brent Kluge
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