I got an email from my mortgage broker last night regarding the refi of Rental #1. He said the current mortgage for Rental #1 does not show up on my credit report, so he would need me to fill out a Verification Of Mortgage form.
There are two reasons the loan doesn't show up on my credit report: 1) It's in the name of my LLC, not me personally. 2) I have not reported any payments to any credit agencies. If you recall, this is a mortgage from one of my LLCs to another and no bank is involved. I haven't reported any payments, although I suppose I could if I wanted to establish credit for my LLC.
Anyway, I emailed the broker back and asked what exactly a Verification Of Mortgage is. After all, I've already sent him a copy of the actual mortgage, complete with the county recorder's filing stamps on it. I've also already sent a payoff letter to the escrow company. I can't imagine what other verification he would need. No response so far.
Update: Turns out a Verification Of Mortgage means the new lender wants something from the old lender showing that the payments were made on time, the loan is current, etc.
Property Management Blues (Updated)
Rental #1 is the first rental I've had that I've used a property management company for and I must say, I am not happy so far. I've had several occasions to contact them about various issues and their response has not been good. Whenever I call, I am unable to get the person I need to speak with on the phone the first time I call. I have never had a phone message returned and I only manage to talk to someone on my second or third attempt at calling. I have tried email, but even that takes two days for a response. Furthermore, the email address I was given seems to be a personal email address instead of a business one, so I have misgivings about using it. And finally, the item that bothers me the most - I still have not received my rent for April. It is the 24th of the month and it still isn't here. I was told the bookkeepping department was behind this month and that my check was put in the mail on the 18th. I called yesterday when the check was still missing. It was after hours in Oklahoma, so I got voice mail. I left an upset message and said I wanted a call back immediately. I still have heard nothing.
Update: Of course, the day I post this, the rent check arrives..
Update: Of course, the day I post this, the rent check arrives..
Slow Week
Not much progress will be made this week on the purchase on Rental #2 or the refi of Rental #1. The mortgage broker I am using for both is on vacation. I did mail back the paperwork on Monday, and he said his assistant would be working on it, but it's been my experience that the paperwork just sits around until the main person gets back from vacation.
I did get a call from the escrow agent asking for a payoff amount on the mortgage for Rental #1. I faxed that to her this morning.
Other than those things, I don't think any progress will be made this week. I hate that.
I did get a call from the escrow agent asking for a payoff amount on the mortgage for Rental #1. I faxed that to her this morning.
Other than those things, I don't think any progress will be made this week. I hate that.
Foreclosures Skyrocket In Phoenix Area
The Arizona Republic is reporting that foreclosures in the Phoenix area have increased ten times over last year's number. Delinquencies are also at a four year high, so the problem may get even worse.
The reader's comments after the story are interesting. Several people say they will be picking up deals as they become available.
The reader's comments after the story are interesting. Several people say they will be picking up deals as they become available.
Zillow Ordered To Cease Estimates In Arizona
Zillow.com, the real estate value website that has been the talk of the town for the last year or so, was ordered by the Arizona Board Of Appraisals to stop providing "zestimates" of property values in Arizona. They claim the company needs an appraiser license to do this. The full story can be found at the Arizona Republic website.
This could be a huge blow to Zillow, especially if other states start following suit. On the other hand, I can't believe no one at the company saw this coming. I'd be willing to bet they have some sort of plan to deal with it.
Personally, I don't use Zillow. I've found their valuations to be a bit inaccurate. Of course, I last looked at them in detail a year ago, when they didn't have much data in the Phoenix area to work with. Supposedly, their estimates will get better with more data.
This could be a huge blow to Zillow, especially if other states start following suit. On the other hand, I can't believe no one at the company saw this coming. I'd be willing to bet they have some sort of plan to deal with it.
Personally, I don't use Zillow. I've found their valuations to be a bit inaccurate. Of course, I last looked at them in detail a year ago, when they didn't have much data in the Phoenix area to work with. Supposedly, their estimates will get better with more data.
