Renovation loans can be a powerful tool for transforming a fixer-upper into your dream home, but they also come with unique challenges. At Northpoint Mortgage, we understand that a successful renovation project requires more than just financing— they require expert guidance and hands-on support throughout the process. That's where having an in-house Renovation Manager can make all the difference.
In this case study, we hand the reins over to our very own Renovation Manager, Ed Pawlik (NMLS# 6885), to showcase how we tackle unexpected obstacles head-on. Ed doesn’t just assist our loan officers in closing renovation loans; he actively manages his own clients' projects, conducting "wellness checks" to ensure everything is on track. Here’s more on a unique situation Ed recently encountered, and how his out-of-the-box thinking was able to salvage the project:
Recently I was looking through my pipeline of loans and decided to reach out to one specific borrower regarding their progress on a renovation project. Thankfully I did - come to find out the project had stalled. Not only was the renovation stalled, but they also had an angry neighbor blocking the driveway, not allowing the new owners into the property!
I met my client at the property to review the issue. Turns out the home had a right-of-way issue with the neighbor. The neighbor believed the new owner had no access to the new property, was contesting the right of way, and had blocked access by taking a backhoe and putting rocks across the new property driveway.
I took pictures and started thinking about how we could resolve this issue while keeping everyone involved happy.
My first thought was to reach out to the attorney who said the right-of-way would no longer be a concern for this property, but unfortunately, they didn’t want to get involved.
My second thought - reach out to the police. They stated they could do nothing unless someone got hurt and that would impede fire or ambulance drivers from accessing the home.
Third thought – move the driveway. After checking to confirm the absence of underground pipes or wires, this seemed like the best solution.
It worked! The neighbor had no issues with the new right of way and allowed the contractor and the new owner access to the property. After a few months of work the new owner settled in and is very happy with the outcome of the renovation loan!
Lesson learned, the new owners, the contractor, and the HUD consultant didn’t think outside the box. The solution was simple and right in front of everyone, a simple solution to get the project back on track.
This is a prime example of why renovation loans are an excellent option for transforming a property into your dream home. However, the true value of these loans goes beyond just the financing—they require experienced professionals who can navigate the challenges that may arise during a renovation. At Northpoint Mortgage, having a dedicated Renovation Team, who isn’t afraid to think outside the box, sets us apart.
Our ability to assess a complicated situation and find a simple, effective solution ensured that this project got back on track and ultimately led to a satisfied homeowner. Our proactive approach and dedication highlight how a Renovation Manager’s hands-on support can make a significant difference in the success of a renovation project.
If you’d like to learn more or have specific questions about renovation loans, reach out to Ed Pawlik, or your local Northpoint Loan Officer!