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Unformatted text preview: a sub-par credit score. Be aware of potential errors in electronic credit files. With a sub-par score, look hard at the score factor codes and work with applicant to clear “fixable” items. The property is never viewed as to condition or external factors. Rather; the property is appraised by a collateral assessment, which uses statistical analysis, including regression analysis, and compares property features with others that have recently been sold. Success of this approach is yet to be proved. FAIR CREDIT REPORTING ACT
The federal Fair Credit Reporting Act affects credit reporting agencies and users of credit information. If a loan is rejected because of information in a credit report, the borrower must be notified and given the name and address of the credit agency. The borrower then has the right to obtain from the agency the following: 1. 2. All the information it has in its file on the borrower Sources of the information Dynasty School (www.dynastySchool.com) 14-35 REAL ESTATE FINANCE
3. All the creditors to whom the agency has furnished reports within the last six months If an error is found, the credit agency must correct it quickly. If there is a dispute over a debt, the agency must include the borrower's side of the story, called a Consumer's Statement. LOAN SUBJECT TO'S (SELLER LIABLE)
Where property is purchased “subject to” the existing loan of record, the buyer does not agree to assume primary liability for the debt. Instead, the seller continues on the obligation; that is, although the buyer makes the payments directly to the lender, the seller remains responsible for any deficiency, if a judgment is obtained. As a practical matter, however, even though the buyer is not obligated to make the payments, the buyer will naturally continue the payments in order to keep the property. This is because the debt is secured by the property, and the lender's security is held intact regardless of who makes the payments. Thus, if the buyer fails to make the payments, the lender proceeds against the property through foreclo...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10