David Saks: September 2014

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3710


Come on !

If the house isn't worth the amount of money your asking the lender to loan you, forget it !

The home might need lots of repairs.

The home might be in negative amortization, meaning that you owe more money on the home that it's worth.

The neighborhood might be stigmatized, have high crime, be obsolescent or the prices on the homes capsizing.

If single-family residences where the combined loans frequently exceed the market value of the home, in some cases by as much as 25 to 50 percent, the lender's got a red flag waving in front of them.


In the case of high LTV loans, typically secured by junior liens, or owneroccupied, when these loans default and the combined LTV exceeds 90 percent, the net sales proceeds aren't going to be sufficient to repay the debt because of things such as foreclosure, selling expenses or needed repairs.

Lenders are risking quite a bit of loss if the borrower defaults.

Chime in with your thoughts !

David Saks

Time&Temp Memphis

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Comment balloon 2 commentsDavid Saks • September 22 2014 02:42AM
Real Estate Practice : Lesson 3710
Come on If the house isn't worth the amount of money your asking the lender to loan you, forget it The home might need lots of repairs. The home might be in negative amortization, meaning that you owe more money on the… more
Real Estate Practice : Lesson 3709
The banks and the lenders have specific guidelines under which they'll approve or deny a loan applicant. Remember that lenders and banks have different policies in relation to the way they will or will not make a loan. You should… more
Real Estate Practice : Lesson 3708
A history of not paying your debts or not paying them on time will blow your credit ship out of the water and sink your chances for obtaining a loan. Lenders just won't buy a bad debt history Occasionally they'll stretch the… more
Real Estate Practice : Lesson 3707
Simple process here that either confirms or abnegates your statement to the lender. Your lender will attempt to determine if the information that you provide on the employment application is verifiable. The lender will contact the… more
Real Estate Practice : Lesson 3706
When you tell your lender that you've only been on your job at the car wash for two weeks it might not look too good for you at loan decision time. In addition to the necessity of verifying your assets the lender will want to verify… more
Real Estate Practice : Lesson 3705
If your don't have any experience with credit, the chances are your not going to be approved for a big ticket loan such as a house or a car. So, in a nutshell, there's not enough data in your credit history for the lender to make a… more
Real Estate Practice : Lesson 3704
One sure way to lower have your credit score lowered and louse up your chances of getting a loan is from excessive inquiries on your credit reports. Every time you apply for credit or a new loan an inquiry is performed and your credit… more
Real Estate Practice : Lesson 3702
If you have insufficient income or insufficient funds for a down payment, your loan application will be rejected because your income is insufficient in relation to the price of the house, or you have insufficient funds for the closing costs… more
Real Estate Practice : Lesson 3701
If you're not paying your bills, you're in danger of having your creditor get a court judgment against you and garnishing your wages or property. If a creditor goes to court and wins the case against you will receive a court ordered… more
Real Estate Practice : Lesson 3700
Bankruptcy is a nasty thing. It destroys families, causes divorce, illness, depression, cripples your creditworthiness, and can put you on the street. Everyone loses in a bankruptcy: The lender because the credit that they… more