WHEN THE ROOF CAUSES A LEAK IN YOUR MORTGAGE APPROVAL

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WHEN THE ROOF CAUSES A LEAK IN YOUR MORTGAGE APPROVAL

What do you do when the roof needs to be fixed before you can close on your mortgage? I will be sharing some stories of clients who have found solutions and work-arounds to get their mortgage closed in spite of running into roof problems. Scott Owen from Best Choice Roofing in Memphis will be sharing some practical advice when comes to decking, shingles and insurance claims.

What do YOU want to accomplish with YOUR mortgage? Let’s stay connected! Subscribe to get Real Estate Mortgage Shoppe’s weekly podcasts with show notes in your inbox at www.JoGarner.com

To Your Success,

Jo Garner, Mortgage Loan Officer NMLS# 757308

(901) 482-0354 Jo@JoGarner.com

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Welcome to Real Estate Mortgage Shoppe!

Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. You can connect with me at www.JoGarner.com. Thank you to Joe Rojas, representative for Quality Title Group in Memphis, TN. For your real estate closing for the purchase of your home or refinance, contact Joe Rojas at (901) 289-5821. Our general topic is WHEN THE ROOF CAUSES A LEAK IN YOUR MORTGAGE APPROVAL. Subscribe to get our weekly blogposts with podcasts at www.JoGarner.com. Call us while we are live at (901) 535-9732 Today is June 22, 2019.

What do you do when the roof needs to be fixed before you can close on your mortgage? I will be sharing some stories of clients who have found solutions and work-arounds to get their mortgage closed in spite of running into roof problems. Scott Owen from Best Choice Roofing in Memphis will be sharing some practical advice when comes to decking, shingles and insurance claims.

Introducing Scott Owen of Best Choice Roofing

Scott Owen, welcome to our Real Estate Mortgage Shoppe studio. I have heard some good things about your work from some real estate and business friends who have used your services. Talk a minute or so and introduce yourself so we can know a little more about you and about what Best Choice Roofing in Memphis does for your customers. (Scott introduces himself and talks about what Best Choice Roofing does for their clients.)

Tal and Tia’s story- Clever Solution For Dealing With Required Roof Repair

(Jo) Sitting at the mortgage loan officer desk for over 25 years, I have learned a lot from my mortgage customers and the realtors who refer them to me. When the real estate market is moving fast, one sure way to put the brakes on a real estate transaction is to get the report back from the home inspector or noting that the roof needs repaired or replaced.

If the roof is leaking or showing sounds that it MIGHT leak any day, and the appraiser notes this on the appraisal, a mortgage company will probably propose a number of different options on how to remedy this issue. We can cover some of these later in the show.

Tal and Tia Thompkins are empty-nesters and want to down size to a home with just enough room to have the kids and grandkids over to visit but not big enough for everyone to get comfortable moving back in with mom and dad. Their spacious 5 bedroom-3.5 bath mansion with a barn and acreage to mow was cramping their budget.

One of the life-long dreams Tal and Tia have yearned for is to travel around the world doing cruise ship vacations with a travel group of friends. The obstacle stubbornly preventing the Thompkins from getting to see the world was MONEY—or not enough of it.

The Thompkins were excited about reinventing themselves as frequent cruise ship adventurers. They were smitten by a very small, sort of rustic older place with a minute sized storage shed to match the style of the home and a low maintenance, postage stamp sized lawn. Tal and Tia felt at home in the quaint neighborhood and the smaller place would expand their free time and money too.

Bad news came like a black cloud with the home inspection though. The home needed a major roof repair which was going to cost about $3,500. The mortgage company required this to be repaired before closing since it affected the structure and habitability of the house. It looked like a stalemate since the sellers would not have enough money to pay for it until the home closed and the Thompkins did not want to spend $3,500 on a roof for a home they did not own yet.

In this case, the realtor helped negotiate for the seller to pay for the roof repair AND have it done before closing, but only AFTER the Thompkins mortgage was fully approved subject only to the repair being done. The roofing contractor agreed to be paid the day the home sold and the sellers had received their money at the closing table. It was a happy ending helped by the realtor, the lender and the buyer and sellers being willing to negotiate creatively.

What is YOUR real estate conundrum? Let’s look at options to help YOUR transaction close smoothly. MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Connect with me at www.JoGarner.com. Email me at Jo@JoGarner.com or just call me at (901) 482-0354.

Scott, I bet you can fix a lot of roof challenges like the Thompkins were facing. Talk about some of the most common roof problems you see and how you go about best helping your customers? (Scott gives some advice learned in the roofing industry on the best way to handle roof repairs when it comes to your insurance claim. )

You’re on Real Estate Mortgage Shoppe. I’m Jo Garner, your host. Connect with me at www.JoGarner.com What do YOU want to accomplish with YOUR mortgage? When we come back we will be hearing more from Scott Owen of Best Choice Roofing …

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TOPICS COVERED BY SCOTT OWEN OF BEST CHOICE ROOFING

1.    What steps should a homeowner take prior to filing claims on a roof repair or replacement?

2.    What other services do you offer besides roof replacements?

3.    What type of roofing products do you recommend? Which roof types would you NOT recommend?

4.    What roof types tend to perform better than others?

5.    What are some preventable maintenance steps homeowners can do to help maintain and prolong the life of their roof?

6.    Do you work with real estate investors, Insurance agents? 

7.    What type of warranties do you offer?

8.    What do you do in the restoration business? Please talk a little about how a wind/hail or other damage can affect a homeowner. 

9. What is an Owen’s Corning Platinum preferred contractor?

10. How does the inspection/claims process work?

11. What is the homeowners responsibility during the claim process?

12. How can a homeowner contact you?

(901-730-0761/ www.bestchoiceroofing.com)

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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER

QUESTIONS ANSWERED BY JO GARNER:

  1. Why does the mortgage company have to endorse the insurance claim check to fix my roof?

I got a call from a past client who had to replace his roof. He handed me the check from his insurance company made out to him and the mortgage company. “Can you have someone over at your office endorse this check today so I can pay the roofer?” He wanted to pay his roofer that week. My advice to him was to be patient. There is a process to something as simple as a signature on a check.

Insurance companies make the repair claim check out to the contractor and the mortgage company who holds the lien on your home. They do this because the bank owns your home as much as you do. It’s the same reason vehicle insurance checks are made out to the lienholder and the car owner jointly. In a lot of cases, you will need to send the insurance claim check to the proper mortgage department so they can endorse the check so you can get the money back and pay your contractor.

The best tip on getting your funds from the insurance company with all of endorsements, is to BE PATIENT. Review your insurance policy. Review the amount of your claim check and the costs of the repairs. Make sure you are getting the full amount of what is due to you.

  1. What if the roof shows signs of leaking or has missing shingles on the home I am about to buy?

If you are the buyer and you are getting a mortgage to purchase this home, the appraiser who goes out to the home will very likely notate on the appraisal report that the roof has missing shingles and appears to be leaking.

Mortgage underwriters typically will require the roof be repaired before your loan can close. The roof is considered a repair that affects the habitability of the home. Sometimes appraisers will require a certified roofer to write a letter stating the condition of the roof and how many years of life left in the roof. If a certified roof inspector states the roof has less than 2 years of life, then most loan programs will require the roof be replaced before the loan can close.

Some loan programs will allow the roof repair or replacement to be completed AFTER closing if the buyer or seller puts one and half times the amount of money needed to fix the roof into an escrow account at the title company at closing. Once the roof is fixed and it has passed inspection, the funds are released from the escrow table at the title company.

  1. How do I finance a fixer-upper house where there may be $5,000 or over $105,000 or more in costs to repair the home?

A while back I had a borrower who was a Vietnam veteran. He found a major fixer-upper home. The price was a little over $150,000 and the repairs were over $75,000, but the house would be worth over $275,000 . He was walking into quite a bit of equity, so on paper it made since. But this veteran didn’t care about the equity. He told us when he walked through the house, he felt peace and he felt happiness. He knew he had finally found his forever home. He knew exactly how he wanted to fix up this home. Talk about motivation! The realtor and our mortgage team rolled up our sleeves and got him to his celebration closing day.

On home purchases that require over $5,000 in repairs on the home, some buyers opt to use a special renovation and repair loan. Other buyers opt to pay cash for the home and perhaps later refinance the home and get their cash back.

On a standard renovation and repair mortgage, the repair work has to be done by licensed contractors and not by the borrower. The mortgage company will appoint a HUD approved Consultant (in some cases) to review the bids from contractors, inspect the property and the repairs as they are being done to make sure the work is being done properly. The renovation and repair loans are more expensive because of the cost of the inspections and title updates, but if the house is worth more than the borrower has paid, in the end, it can be a great deal for the buyer. .

  1. What does it mean to escrow money to make a repair.

  2. Stay away from home purchase contracts where sellers are giving a “repair allowance” back to the buyers. Most loan programs do not allow the seller to give cash back to buyers. Sellers CAN pay up to the maximum allowed to cover the buyers’ closing costs and prepaid taxes and insurance. But sellers cannot give cash back to buyers.

REAL ESTATE TIP OF THE WEEK (Scott Owen of Best Choice Roofing shares a real estate related money-saving or time-saving tip)– about 1 minute

ANNOUNCEMENTS:

Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Pinot’s Palette 8225 Dexter Rd Cordova, TN. This Wednesday June 26th, 2019 Talk Shoppe presents: “Mastermind Principle: based on the book Think and Grow Rich by Napoleon Hill.”

Talk Shoppe events are free thanks to supporters like Tim Gilliland of www.BackupRX.com When you need to recover lost data on your computer, you will feel very thankful when you call Tim at BackupRX and simply download all your data and system files immediately when you need it. Contact BackupRX about getting your data automatically backed-up at www.BackupRX.com

Thank you to Mary Lou Nowak of Mid-South Home Helpers. (901) 414-9696 Mary Lou knows what to do when it comes to offering your elderly or handicapped loved ones non-medical assistance so that they can stay safely and comfortably in their own home.

3 Thank you to Joe Rojas, representative for Quality Title Group in Memphis, TN for sponsoring Real Estate Mortgage today. For your closing on your home purchase loan or refinance, contact Joe Rojas of Quality Title Group at (901) 289-5821

4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.

5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE USE FICTIONAL CHARACTERS AND DO NOT REFLECT REAL PEOPLE OR ACTUAL DETAILS IN ANY OF THE SITUATIONS.

QUOTE CORNER:

John F Kennedy- The best time to repair the roof is when the sun is shining. “

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REJOINDERS:

  1. Gina Davis, www.FindVendorBooths.com Greater Memphis & Mid-South –Subscribe with Gina to get the list of events and opportunities to get in front of your target audience face-to-face with a vendor booth

  2. Joe Rojas, representative from Quality Title Group in Memphis, TN (901) 289-5821 joer@qualitytitlepro.com

  3. Jeri Jeffries of Tiger Paws Carpet Cleaning in Memphis, TN. www.tigerpawscarpet.com

Transitional Music: “Memphis In The Meantime” by John Hiatt

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ABOUT SCOTT OWEN, BEST CHOICE ROOFING (Memphis)

About Best Choice Roofing

Best Choice Roofing Featured in Business View Magazine!! Click here to read full article!

Best Choice Roofing is a national roofing company with offices all across the United States. Ever since our start in 2009 we’ve expanded rapidly and are recognized as one of the fastest growing roofing companies in the entire United States. We believe we owe some of this success to the way that we treat both our customers and employees, as well as to our exceptional workmanship and attention to detail.

We also have storm damage experts on staff, acting as technical advisers, to make sure your roof is well cared for in the event of storm damage repair. Whenever you choose to work with Best Choice Roofing you can rest easy knowing you chose the best.

 

Awards and Certifications

Best Choice Roofing is an Owens Corning Roofing Platinum Preferred Contractor, meaning we are recognized by them as one of the top 1% of roofing contractors in the US, and we’ve received widespread recognition for our incredible service. According to Roofing Contractor Magazine we are the #1 Residential Roofer in the USA for roofing companies with 1% or less of their business revenue from commercial projects. We’ve also been in the roofing contractor top 100 for many years and received an Angie’s List Super Service Award in 2016.

ABOUT JO GARNER-MORTGAGE LOAN OFFICER:

WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?

www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308

Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”

As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?

Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”

Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.

Jo Garner has been in the real estate/financing business for over 25 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine  and was personally mentored in San Diego, California  by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.

On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients. 

In addition to her work in the mortgage field, Jo Garner  is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com

PHOTO GALLERY FROM 6-22-19 REMS SHOW:

 

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