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My Lender Says I Need To Write A "Motivation" Letter To Complete My File...

By Mike Jones

Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

November 12, 2010 02:17 PM

To Whom It May Concern at the Veterans Administration:

My VA lender tells me that you need a “motivation letter” to complete my file. What next?!

OK, here’s the story. I have gotten to that age where a warm climate in Arizona beats the heck out of three feet of snow in Wisconsin. Most people get there long before my age, but I guess you could say that this military man has a little stubborn streak. I believe I'm tougher than most, but this stupid loan game is wearing me down.

Our home here in Milwaukee is free and clear. It’s paid for. It’s mine. I might sell it, or I might not. I might just want to keep it and rent it out and enjoy the income. Like I said, it’s paid for. (I’ll bet that’s more than you can say for yours…)

My wife and family have already moved to Arizona, and I’m looking forward to joining them.

You might say that I’m motivated.

Oourah!

____________________

I'm Mike in Tucson, your preferred Tucson Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Nogales, and Albuquerque, NM.

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Rodney Mason, VP of Mtg Lending

Guaranteed Rate NMLS# 2611 - Atlanta, GA

AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

Anytime you are retaining a home, an underwriter is usually going to ask for a motivational letter. There is just too much fraud still with someone saying they are buying a new primary residence when its really in investment property.

Nov 12, 2010 02:30 PM

ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779

REAL ESTATE REFERRAL NETWORK - Asheville, NC

CONTACT janeAnne365@gmail.com

I had to smile as I read that letter. ..all the way from the cold winters to the family already moved...and the, " You might say that I'm motivated. Oourah!"

Nov 12, 2010 03:12 PM

Jerry Wright Homes, Inc.

New Homes for Sale Killeen Copperas Cove Ft Hood TX - Copperas Cove, TX

We sell most of our home with VA financing. Never knew that this letter was called a "motivation" letter, but makes sense.

Nov 12, 2010 03:44 PM

Juli Vosmik

Dominion Fine Properties - Scottsdale, AZ

Scottsdale/Cave Creek, AZ real estate 480-710-0739

So, I'm assuming the underwriter is CYA for a buyer who lives out of state and wants to move to paradise. Since it's a local underwriter, we already know the great area we live in. But, one time, 27 years ago, this underwriter got audited by someone who couldn't make it as an underwriter because they have absolutely no common sense and this underwriter got "written up".

Unfortunately, this is so typical. I once had a loan from a buyer who had a high rise in Chicago and wanted to buy a 5 acre estate out in the country. The underwriter asked me for the same thing. My buyer wrote a one liner - because I want to be able to mow the grass on the weekend and smell that wonderful smell. LOL

Nov 12, 2010 04:27 PM

Rita Fong

RE/MAX REAL ESTATE TODAY, Executive Broker 901-488-9590 - Marion, AR

Realtor - Marion Arkansas Homes for Sale

Mike, that sounds motivated enough to me. What is more motivated than wanting to join the rest of the family?

Nov 12, 2010 05:15 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

Mike, that is weird..not the letter (made me smile) but a motivation letter???

Never heard of it, why did he want one to complete the file?

Nov 12, 2010 10:55 PM

Andrea Swiedler

Berkshire Hathaway HomeServices New England Properties - New Milford, CT

Realtor, Southern Litchfield County CT

Mike, what a colossal waste of money and time.

Nov 13, 2010 12:27 AM

Gerry Michaels

Glasswork Media Arts - Gettysburg, PA

GettysburgGerry Social Meida

Mike, thanks for posting this, what a joke. Clearly we have way too many people employed by the government, but we already knew that. I just didn't realize it had gotten this bad...

Nov 13, 2010 12:42 AM

Harry F. D'Elia III

WEDO Real Estate and Beyond, LLC - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for sharing this motivational letter with us today. We would like to see more of your Wisconsin humor this morning. We are the Government and we are here to HELP.

Nov 13, 2010 02:00 AM

Hannah Williams

HomeStarr Realty - Philadelphia, PA

Expertise NE Philadelphia & Bucks 215-820-3376

Mike..I think That is motivation!!!

helpfulHannah

Nov 13, 2010 02:24 AM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Mike, this is a new one for me- I've never heard of a motivation letter, but I enjoyed reading this one.

Nov 13, 2010 03:55 AM

Ed Silva, 203-206-0754

Mapleridge Realty, CT 203-206-0754 - Waterbury, CT

Central CT Real Estate Broker Serving all equally

Mike it starts out as ridiculous and then turns to ludicrous, and it's justified because there's a paper in the file. Our tax dollars at work.

Nov 13, 2010 06:21 AM

Jack Mossman - The Nines Team at Keller Williams in Lodi

The Nines Team at Keller Williams in Lodi - Lodi, CA

The Nines Team in Lodi

Mike ... I'm forwarding via email your post to both of our state senators. What can they do about it? I don't know ... but I'd think they should probably be trying to find out. Thanks for sharing!

Nov 13, 2010 08:55 AM

1~Judi Barrett

Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK

BS Ed, Integrity Real Estate Services -IDABEL OK

Mike,

Did VA require a lender to obtain to a "motivation letter" from a borrower?

I've not encountered this as part of my clients' VA loan processing..

Nov 13, 2010 12:57 PM

Charita Cadenhead

eXp Realty - Birmingham, AL

Serving Jefferson and Shelby Counties (Alabama)

How's that for motivation? I hate to even this is a requirement.

Nov 13, 2010 01:23 PM

Mike Saunders

Retired - Athens, GA

Mike - closed several transactions with VA loansthis year and this is the first time I have heard about a "motivation letter". Unless this is the letter that is stating that the buyer will make the new home the primary residence.

Nov 14, 2010 05:03 AM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

All,

The reason for a Motivation Letter is that VA only lends for a buyer's primary residence. With money so cheap, and prices so low, there's been a fair amount of fraud, with people buying a house, saying it's a primary residence, and it's really a rental property. Not good! VA is now showing up unannounced after the buyer closes to see who answers the door. If it's a renter, it's fraud.

Mike in Tucson

Nov 14, 2010 08:00 AM

Tim Bradford

Cleveland, OH

NMLS 250013

Mike, Glad to see your followup. Those were the reasons I felt the letter was requested. Underwriters are being extra cautious by asking for statements like these to protect themselves. With the Letter in file they show they addressed a possible question and not merely assumed something.

Nov 15, 2010 02:45 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Mike, a motivational letter? For getting a loan or for paying it off? Geeze!

Nov 18, 2010 03:03 PM

Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional

Charles Rutenberg Realty - Clearwater, FL

Palm Harbor, Dunedin, Clearwater, Safety Harbor

A motivational letter is necessary to obtain a loan? I have heard of some crazy things, but this takes the cake!

Nov 20, 2010 09:39 AM