Comments on: Why Aren’t There Loan Programs for Foreign Investors? http://www.senasellsvegas.com/blog/2009/06/12/why-aren%e2%80%99t-there-loan-programs-for-foreign-investors/ Las Vegas, North Las Vegas, Henderson and Boulder City Real Estate News Mon, 08 Mar 2010 21:22:49 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: john roberts http://www.senasellsvegas.com/blog/2009/06/12/why-aren%e2%80%99t-there-loan-programs-for-foreign-investors/comment-page-1/#comment-2148 john roberts Tue, 16 Jun 2009 06:54:41 +0000 http://www.senasellsvegas.com/blog/?p=582#comment-2148 I have been investing in up state New York for 5 years, and its almost impossible to obtain finance due to the reasons set out by Michael, I did manage to secure one loan about 3 years ago, for our group with the view for more to follow, we were able to verify our credit rating, income etc in Australia, but subsequent loans were rejected due to cold feet by bank management. I would think in todays financial climate , it would be impossible and probably a waste of good time to chase finance. All of our clients use cash, its not an ideal situation, but the returns gererally make it bearable. The patriot act is 300 pages long, I have read most of it, to be able to debate the issue over the last 4 years with the American banking industry, given our close ties between our countries I find the American Banking industry to be a tad paranoid. John Roberts I have been investing in up state New York for 5 years, and its almost impossible to obtain finance due to the reasons set out by Michael, I did manage to secure one loan about 3 years ago, for our group with the view for more to follow, we were able to verify our credit rating, income etc in Australia, but subsequent loans were rejected due to cold feet by bank management.

I would think in todays financial climate , it would be impossible and probably a waste of good time to chase finance. All of our clients use cash, its not an ideal situation, but the returns gererally make it bearable.

The patriot act is 300 pages long, I have read most of it, to be able to debate the issue over the last 4 years with the American banking industry, given our close ties between our countries I find the American Banking industry to be a tad paranoid.

John Roberts

]]> By: Michael http://www.senasellsvegas.com/blog/2009/06/12/why-aren%e2%80%99t-there-loan-programs-for-foreign-investors/comment-page-1/#comment-2119 Michael Fri, 12 Jun 2009 17:55:05 +0000 http://www.senasellsvegas.com/blog/?p=582#comment-2119 It is very simple especially since the U.S. mortgage industry has gone to the credit score model: 1.) Foreign Investors have no credit history in the U.S. (i.e. no credit score) 2. Offshore Assets are difficult or impossible to verify to meet U.S. lending requirements and are subject to a high instance of fraud 3. There is little recourse against Foreign Investors ( that do not reside in the U.S.) in the event of a default 4. Added costs and difficulty in verifying that the Foreign Borrower and their funds are legal and legitimate (not associated to criminal or terrorist activities) in order to be in compliance with the Patriot Act and other anti-money laundering laws. The first item is one of the major flaws to our entire loan system once we went to the credit scoring models because the credit bureaus, banks, mortgage lenders and regulators did not account for Foreign Investors who usually have no Social Security Number and no Credit History here in the U.S. which would be an added hassle and cost for them. With the demise of the Sub Prime industry so did the few loan programs that were available to Foreign Investors. It is very simple especially since the U.S. mortgage industry has gone to the credit score model:

1.) Foreign Investors have no credit history in the U.S. (i.e. no credit score)

2. Offshore Assets are difficult or impossible to verify to meet U.S. lending requirements and are subject to a high instance of fraud

3. There is little recourse against Foreign Investors ( that do not reside in the U.S.) in the event of a default

4. Added costs and difficulty in verifying that the Foreign Borrower and their funds are legal and legitimate (not associated to criminal or terrorist activities) in order to be in compliance with the Patriot Act and other anti-money laundering laws.

The first item is one of the major flaws to our entire loan system once we went to the credit scoring models because the credit bureaus, banks, mortgage lenders and regulators did not account for Foreign Investors who usually have no Social Security Number and no Credit History here in the U.S. which would be an added hassle and cost for them. With the demise of the Sub Prime industry so did the few loan programs that were available to Foreign Investors.

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