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October 30, 2007
Mortgage Drama on a 3 Family Brownstone
I am in the process of trying to get a mortgage on a 3 family brownstone. The brownstone has a CofO for a 3 family but is configured for a 1 family. While the appraisals (this bank required 2 seperate appraisals) came in at the purchase price - I am having a hard time with the bank signing off on the mortgage because of the configuration mismatch. Has anyone run into this problem? Please help!!!!
Comments
did you use a mortgage broker?
sometimes they can smooth out this kind of drama with the bank since they have a vested interest in making sure you get the loan.. . .
Posted by: guest at October 30, 2007 2:56 PM
I am consulting with one now. Thanks for the feedback.
Posted by: Brownstone Lover at October 30, 2007 3:22 PM
I had the same problem. I spoke with the owner and he agreed to allow me to throw in 2 ovens and fridges. it worked in my case as they considered a stove to = a kitchen.
Posted by: guest at October 30, 2007 6:10 PM
Thanks 6:10. I actually would like to get more intel since I am not finding any solutions. Can I e-mail you off-line? Please let me know.
Posted by: Brownstone Lover at October 30, 2007 6:27 PM
What does your atty say? You may also want to give a call to an expediter like Scott Schnall...nutty, but knowledgeable.
Posted by: tinarina at October 30, 2007 9:01 PM
Call Benjamin Levin at Parkview Mortgage--we had the same problem and he was a Miracle worker for us. . No--I am not related to him --I am very creditable and even have a blog on this site. He was basically the only person on our team that exceeded expectations while every one else not only let us down but kicked us while we were down there. Number is 718-837-5794> tell him his biggest fan sent you
Posted by: HomeSweetstuy at October 31, 2007 8:58 AM
Thanks HomeSweetstuy! I just called Ben Levin and he was pretty helpful. He seems to think we can get it done. I will keep you posted. Thanks again.
Posted by: Brownstone Lover at October 31, 2007 10:24 AM
We had exactly this problem and it almost cost us the house and our deposit. It was largely caused by our mortgage broker.
I would definitely speak with a very well established mortgage broker (e.g., Manhattan mortgage). Also, some banks have no problem with this (Wells Fargo and HSBC seemed easiest to deal with) while others are very difficult (Citi Mortgage). Insist that the broker simultaneously submit your app to multiple banks and see who is able to deal with the issue.
You may also want to look for banks with local underwriters who understand that this "under use" is both extremely common and legal. Moreover, they should understand that a one-family appraisal is valid (and likely conservative since there is value in the option to convert to 3 family at some point in the future). Someone who has never set foot in Brooklyn may not understand.
I can certainly give you more guidance on how we got around this if you would like to speak by phone.
Posted by: guest at November 1, 2007 10:21 AM
Yes I would like to speak by phone on this. Please send me your e-mail address and I will give you my phone number.
Posted by: Brownstone Lover at November 1, 2007 12:45 PM
Problem from lender's standpoint is that they are expecting income from the other 2 units which are expected to have at least a kitchen and full bath.
Real 3 families are worth more than single families and provide income to offset mortgage.
Posted by: bmfesq at November 1, 2007 3:44 PM
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