| Our
investors reserve the
right to the following: |
| 1. |
Due
Diligence:
Our investors exercise
appropriate Due Diligence
in consideration of
a loan, regardless
of your borrower's
credentials and/or
the merits of the property,
and do so in whatever
manner and time frame
may be required to
properly consider and
administer the loan
request. Translation: no
guaranteed funding
within any set time
frame, period. |
| 2. |
Value
Determination:
Our investor may
request an appraisal
of the property to
verify fair market
value by an appraiser
of his choosing and
credentials, or a
review of an existing
appraisal to determine
fair market value.
Further, to deny
a loan based on an
inflated appraisal,
unrealistic stated
value or super-appreciated
value as compared
to the acquisition
price. An acceptable
LOE, appraisal, and/or
and other documentation
may be required to
support questionable
acquisition cost
versus stated or
documented fair market
value, particularly
where reasonable
comps cannot be documented. |
| 3. |
Income Doc: It is illegal for any party to make a loan secured by real estate to any borrower who does not or cannot demonstrate the ability to repay the loan according to the terms of the Note. Our investor may request proof of the borrower's ability to repay the loan under the terms of the “Note” and to deny an application for a loan whereby the applicant cannot reasonably demonstrate the ability to repay, if requested. |
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| 4. |
Additional
Documentation:
Our investors may request
additional documentation
of rents, income / operating
expense, deferred maintenance,
or other issues applicable
to commercial, mixed-use
properties, and land
leased for rental income. |
| 5. |
Determination
of Marketability:
Our investors may refuse
a loan request for a
property the investor
considers being non-marketable
or difficult to resell
at a profit in the event
of a foreclosure. |
| 6. |
Right
to Favorable Terms:
Our investors may approve
a loan based on a rate,
LTV, CLTV, conditions,
restrictions, terms,
and fees favorable to
the investor (and within
state lending law and
limitations), and not
the applicant or broker. |
| 7. |
Right
to Limit Commissions
Paid: Since
it is the investor that
pays points initially
to the broker, it is
within the investor’s
right to limit how many
points may be paid to
the broker. We have an
established fee policy
-- see "Maximum
Broker Fees". |
| 8. |
Denial
Based on Debt Service:
Our investors may refuse
to make a subordinate
loan behind a very large
or private existing 1st
or 2nd Trust Deed (high-risk "debt
service"). |
| 9. |
Right
to Interest Reserve:
Our investors may require
or provide by request
an "interest reserve" for
a predetermined period
of time at his/her discretion.
Interest reserves are
common for hard money
construction and rehab
loans, but may be required
on other property and
transactions as well. |
| 10. |
Right
to Prepayment Penalty:
Our investors may require
a prepayment penalty
for a predetermined period
of time, or to require
additional interest or
points for waiver of
prepayment penalty. |
| 11. |
Right
to Cross-Collateralized
Security: Our
investors may require
cross-collateralization
of other acceptable REO
at his/her discretion. |
| 12. |
Right
to Cancel: Our
investor may cancel a
loan if the applicant
or broker cannot or do
not produce required
documentation or meet
other conditions in a
timely manner, or to
cancel for any other
reason, without written
notification to broker
or borrower. |
| 13. |
Right
of Assignment and Third
Party Services:
Our investors may assign
a separate servicer and/or
Trustee for the loan,
use a specific title
and/or escrow company,
appraiser, or other third-party
service provider for
the transaction at his/her
discretion. |
| 14. |
Right
to Borrower Access:
Our investors may speak
directly with your borrower
about the loan if so
desired. Likewise, our
investor may refuse to
be contacted by the borrower. |
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