Place the data in the digital lead file .
• If the property is in another state , look up Judicial vs nonjudicial foreclosure . Many lenders only make loans in nonjudicial states . A few exceptions exist , like Florida and Texas , if the borrower is an entity . Some states provide for both methods . trust or the loan agreement . The deed of trust is a recorded instrument , but the loan agreement is not . Sometimes , the prohibition only appears on the loan agreement , so a copy is not readily available as a recorded instrument . You must request it from the borrower .
• If the borrower is an individual and has a business , then obtain three months ' bank statements for both the borrower and the company . schedule , two years ' tax returns , or , as an alternative , three recent bank statements . Some lenders may not require income verification when the protective equity is high . Lenders are looking for cash flow to pay the loan payments .
• If the proposed loan transaction is a second lien , two things must be proved . One is to obtain a recent payment statement to show the balance and that the loan is current .
• The bare minimum documentation for underwriting a loan transaction is a completed application , a recent home loan payment statement , three months ' bank statements , a credit report , and a background check .
• The loan is a second trust deed . Ensure you understand whether placing a second lien on the property is not contractually prohibited .
• On single oneunit to four units , you can place a second lien as a matter of law .
• An exception may be if the first trust deed is in a prior owner ' s name and not the current owner ' s . In that case , you may want to have it passed by your attorney .
• On units of five or greater and all commercial , industrial , and land , you must review the documents . The prohibition for placing a junior lien on the property will be in the deed of
• The key to having a business and personal account is to figure out the trail of cash flow . Sometimes , a written explanation from the borrower is necessary .
• All commercial property inquiries should lead to a visit to the geotracker to determine if the property or properties around it may be contaminated . Download the summary and place it in your digital loan file .
https :// geotracker . waterboards . ca . gov / map /
The loan process includes the following :
• Identify a potential transaction , discussing the requested amount and collateral backing the loan .
• Obtain a 1003 residential or commercial loan application for nonSFR .
• Financial statement , real estate
The other is to review the first lien trust deed to determine whether a second lien is allowed without the first lien lender ’ s approval . On all properties , other than one to four residential , there may be a “ dueonencumbrance ” provision , which is the trust deed or loan agreement .
• Authorization to obtain a credit report . Credit is less of an issue .
• Obtain info about the borrower ’ s property insurance coverage . The lender must be named on the policy as a “ lender loss payee .”
• If an association exists , a lender will verify that the association dues are current .
• Are the property taxes current , or must they be paid out of the proceeds of the new loan ?
• Various other miscellaneous disclosures depending on the purpose of the loan , borrowing entity , property type , and state of origination .
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