Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 16
Registered: ‎09-08-2015
0

Temporary Occupancy Certiticate. Borrowers risks?

I'm FHA loan approved. I'm going through my builder's lender .. my builder is mortgage broker. The closing date is already set for next month but the builder said we would go on closing with a Temporary Occupany Certificate - the loan will be held in escrow. The whole house - both interior and exterior will be completed 100% However the backyard and the front area will be pending. With the temporary Occupany ceritifcate, what risks a borrower can face? Please throw some insight

Moderator
Posts: 10,223
Registered: ‎03-06-2010
0

Re: Temporary Occupancy Certiticate. Borrowers risks?


funtertainment wrote:

I'm FHA loan approved. I'm going through my builder's lender .. my builder is mortgage broker. The closing date is already set for next month but the builder said we would go on closing with a Temporary Occupany Certificate - the loan will be held in escrow. The whole house - both interior and exterior will be completed 100% However the backyard and the front area will be pending. With the temporary Occupany ceritifcate, what risks a borrower can face? Please throw some insight


I have sold many homes by builders.

What I have personally seen, with my own two eyes, is that the builder becomes less motivated to do the pending work - no matter how small - once you close. Then getting the builder back out to complete the work is a nightmare.

 

I have never seen an entire FHA loan held in escrow though.  I didn't even know that was an option now. Years ago you could escrow for repair-type items, but not now. 

 

Maybe the LO's here can tell their experience with "escrowing the entire loan"...

Super Contributor
Posts: 7,899
Registered: ‎07-03-2007
0

Re: Temporary Occupancy Certiticate. Borrowers risks?

never had a borrower close on a temp

 

and for the reasons stated above.... i wouldnt.

 

the builder wants YOU to pay interest on the incomplete transaction... instead of them.

 

i would say no

 

i also wouldnt get legal real estate advice from a forum. call an attorney

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

* The Loan Officer who you can call anytime... and answers your questions Nights & Weekends

Moderator
Posts: 10,223
Registered: ‎03-06-2010
0

Re: Temporary Occupancy Certiticate. Borrowers risks?

^^^Agree with DallasLoanGuy - speak to a good real estate attorney NOT associated with the builder or the builders title co. An independant attorney.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.