Investor Giving Me Tons Of Work

[Kate]

In short. This guy is calling me to refi places before he even calls the LO. I go to the sites before we even have a fax from the LO b/c he pays cash and it always eventually comes through.

OK so back about two months ago I did an inlaw for him and mentioned in the report (as I thought I needed to) that he did list the house then changed his mind and desided to refi. He had bought the place on the 3rd, listed on the 10th, took it off on the 16th, and refi-ed on the 20th (dates are not exact but you get the point). The loan has still not closed and he has had to write letter after letter to explain why he did that. The underwriters have red flagged the refi due to his actions.

Now I am doing a new one for him. He flips a lot. He also buys multiple houses from other investors as like group sales. Then desides after what he wants to do. This new one is part of a total of four sales I'm doing for him that he is buing from another investor. I use the word sale losly. He now owns the houses but when he buys them he uses a different kind of financing that will loan him money no questions asked but the rate is high. One of them he is now listing but still wants to refi incase it take a while on the market.

So he still wants to refi and needs the appraisal but he doesn't want me to mention that it is listed due to the problems he is having from the aftformentioned property.

The question and I think I know the answer. Do I have to mention that it is listed? He doesn't want me to. And of corse has told me that tons of more work is comming bla bla bla. BUT he needs this. Do I have to mention it? It's not a sale, just a listing. But if I was right before in mentioning it I think that I am still right in mentioning it now.

 

[Sue McHugh]

Dear Kate,

I would not touch this with a 10 foot pole. (and I don't know your mentor, but hopefully you talked to her or him about it)

 

[Ghost Rider]

Kate, you HAVE to mention it - Be very careful in the situation you describe. While flips are not illegal, you need to be careful in these situations to make SURE everything regarding these appraisals are kosher (which you should be doing with all appraisals) - What you're describing is something that is being heavily investigated by various law enforcement organizations, including the FBI.

Work is important, but this one investor worth putting your license on the line to "overlook one little detail" For me, it wouldn't.

 

[Scott Kibler]

Uh Kate? Who is your client?

 

[Kate]

Originally posted by MHMerriman@Jul 6 2004, 07:53 PM
What you're describing is something that is being heavily investigated by various law enforcement organizations, including the FBI.

Are you serious?

I know that I was right in the first place when I mentioned the listing. Just couldn't find anything in skimming USPAP yet. Found the sales have to be listed but not the listings yet.

Anyway what exactly in what I described is what the FBI is looking at? Heavy investors in general?

 

[Kate]

Originally posted by Scott Kibler@Jul 6 2004, 07:53 PM
Uh Kate? Who is your client?

No I know who my client is. however like I said this guy calls me before he calls the LO. It's very strange.

I can't run from this one. I am going to have to start a war it seems. I have to tell my mentor and the LO what he asked me to do. huh.

 

[Scott Kibler]

He is serious.

I hope you made sure to cross those t's and dot those i's because the loan files including your appraisals are absolutely positively guaranteed to be audited and field reviewed.

Not that I am saying your investor is breaking the law, it's just that mucho dinero is lost every year by financial institutions loaning money to investors such as this.

And Kate, from the tone of your post it seems you are accepting appraisal orders from the investor, not the lender. You are not acting as an advocate for the investor are you? Might want to discuss this at length with your mentor.

 

[Kate]

Originally posted by Scott Kibler@Jul 6 2004, 08:03 PM
You are not acting as an advocate for the investor are you? Might want to discuss this at length with your mentor.

What do you mean?

No he calls me to schedule the appraisals before he calls the LO with a new order. Sometimes days before he even calls the LO. The LO laughs about it, so does my mentor. And yes my mentor knows everything about this dude.

Now you all are really scaring me. What do I do?

 

[Sue McHugh]

I was surprised to hear that "flipping" wasn't illegal. Had not a clue.

 

[Kate]

Oh I know flipping is not illegal. Heck there are even books on it at Barnes and Noble.

I don't see anything illegal in what this guy does but I may just be a dummy. He buys low and sells high. That's capitalism at work. These last four properties as I said though were from another investor. Maybe the guy wanted out so my investor took advantage of a good cituation. Or maybe there is something sneeky. How do I find out? Where do I look?