In order to complete our due diligence to create an efficient closing, we need to have the following documents

 

What information do I need to provide FNAC in order to receive an initial offer?

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Getting a quote from First National Acceptance Company is fast and easy

 

 

-------------Property Type & Use: Single Family Home, Single Family Rental, Commercial, Multi-Unit, Vacant Land, etc. 

 

AND

 

------------ Copy of the PROMISSORY note*OR MORTGAGE. 

 

AND    

 

------------- Terms of the note:

 

*Sale Price

 

*Down Payment Amount

 

*1st Payment Date

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*Interest Rate

 

*Monthly Payment

 

*Amount Balloon Date, if applicable

 

*Name and current address of purchaser(s), if available. 

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Home Information:

 

Property Address: City: State: Zip Code: Property Value: Any Other Liens on Property: Is Property Owner Occupied: Is Land Included: Land Plot Size: Additional Home Details Sale Information Date of Sale: Sales Price: Down Payment: Did You Use an Attorney or Title Company to Close: Do You have Title Policy: Note Information Original Note Amount: Position of Note: Note Balance: Interest Rate: Payment Amount: Escrow Amount: Date of 1st Payment: Payment Frequency: Original Length: No. of Payments Made: No. of Payments Remaining: Next Payment Due Date: Are the Payments on Time: Balloon Amount: Balloon Due Date: Borrower Information: Borrower Type: Private Individual(s): Borrower Name(s): Did You Pull a Credit Report at Sale:

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Due Diligence Process:

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This how a typical transaction is processed once we have an accepted offer.

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1. We order a B.P.O to see if the property will value. Normally, this takes 3-5 business days to have the BPO completed.

 

2. If the property values, then with the note seller’s permission, we contact the purchaser(s) who is making payments on the note. We don’t contact the purchaser on every deal. If the equity is 25%+ and the credit is 640+, then we do not contact the purchaser, unless underwriting has a good reason to request that we do so.

 

a. If the property does not value, then it may be a dead deal if the value is way too low. We may re-quote our offer based on the new equity position created by the value, and to also bring our Investment to Value (I.T.V) back in line with our underwriting guidelines.

 

b. If the B.P.O seems way off, then we may order a 2nd opinion BPO from a different source company &/or realtor, or an underwriter may choose to write the value up or down.

 

c. The purchaser interview is simply a quick call to allow the purchaser to confirm the terms of the note and the current balance. We ask questions about the property and their employment situation.

 

3. Once the purchaser interview is completed, the file then goes to our underwriting team. Normally, we receive an answer from underwriting within 24-48 hrs.

 

a. If the “first-look” underwriters pass on a deal, then the file can be taken to an underwriting committee meeting, which is held 4 days a week. The underwriting committee meeting consists of our more senior, executive level underwriters, such as our bank’s president and our bank’s owner.

 

4. Once the file is approved, it is given to our processing team and title is ordered. Normally, this takes 7-10 business days to get title back and clear for closing.

 

5. Once title is clear, we schedule the closing. We offer both title office closings and mail out closings.

 

6. We always set the expectation with our direct note sellers and note brokers that closing a deal will take 4-6 weeks, but in reality, the majority of our deals close within 30 days. We do our best to under-promise and over-deliver, especially due to the fact that we never know when extra days may be added because of a delay in getting the B.P.O, or contacting the purchaser, or because of a rough title issue(s).

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241 E. Saginaw Hwy, E. Lansing, MI 48823 | www.fnacbrokers.com | Phone (855) 265-3397 | brokerdesk@fnba.com

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