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Lenders fear FSBO's - not an arms length?

By
Real Estate Agent with RE/MAX Platinum Medford 941000194

I just heard a rumor from a lender that "lenders" are being told to back away from FSBOs because they a seen as not an arms length transaction.  They fear these coming back to haunt them later since the persons involved may be in collusion, and the appraisals not real.  In some areas they want at least a 90% LTV.

Could it be that maybe the lending institutions now see that we Realtors have some value and might know about house pricing? 

Sean Allen
International Financing Solutions - Fort Myers, FL
International Financing Solutions

hhhmm, all the more reason for home sellers and buyers to use the services of a Realtor.

Sean Allen

Mar 13, 2008 12:37 PM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Krista,  I have not heard that rumor.  The lender who told you this probably has issues with FSBO's.  Doesn't make much sense either.  I think the LTV limits on FSBO's would create its own problems.  I wouldn't put much stock in the rumor.
Mar 13, 2008 12:40 PM
Krista L. Walker
RE/MAX Platinum Medford - Medford, OR
Oregon- Homes & Real Estate for Sale
Jimmy- I looked on google and saw a lenders forum where they said it was happening in California
Mar 13, 2008 12:45 PM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States
Krista - I know that FSBO's with seller carrybacks are triggering the "non-arms length", but I hadn't heard about FSBO's only doing this. Wouldn't be surprised if lenders do review appraisals on them, which they always reserve the right to do.
Mar 13, 2008 01:50 PM
Jacki & Jerry Shafer
The Shafer Real Estate Team, Keller Williams Louisville East - Crestwood, KY
The Shafer Team, Call 502-643-SOLD

Whoo hoo!  They're finally starting to get it!  Nothing like a shaky market to get all the people who disrespected us in the past to all of a sudden see our value.

Jacki Shafer

The Shafer Team

Keller Williams Realty Louisville East

 

Mar 17, 2008 11:40 AM
Adam Bogle
TEN Realty Group - Ashland, OR
CRS, Southern Oregon... The Most Recognized Realto

Very interesting.

I can't say that I had heard that rumor either, but something good to look for.

Mar 29, 2008 05:58 AM