Personal Property on The Real Estate Contract

On just about every purchase we do at Mahone Mortgage there is personal property in the contract. Normally it’s just a refrigerator or stove and it’s no big deal. But lately we’ve seen tractors, boats, tools, TV’s, stereos, furniture, etc. When those types items are in the contract 2 things can happen. The underwriter might want photos of the items but more important, the underwriter might want a value for those items. And a value of $0 will not fly. The underwriter could ask the appraiser to put a value on the items or the underwriter might go to ebay to get a value. You never know. After a value has been obtained the sales price is reduced. Depending on the down payment the borrower is making, this could affect the loan.

So what is the best thing to do with personal property? My advice, put all personal property of a separate addendum. Even if it’s a stove or refrigerator I would suggest getting into that habit. It is just one less headache you can avoid down the road.

Y2
Leave the yachts off please!!

Advertisements

1 Comment

Filed under Underwriting guidelines

One response to “Personal Property on The Real Estate Contract

  1. Jean Cchandler

    Thanks I always put personal property on addendum

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s