U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-04-2013, 11:51 AM
 
Location: Bike to Surf!
3,080 posts, read 9,694,073 times
Reputation: 2977

Advertisements

Quote:
Originally Posted by thelopez2 View Post
I received it via email, sadly it is true. I'm preparing borrowers for alternative higher cost options to capitalize on this locally. This shutdown significantly hurts sellers and helps buyers.
Please explain how the shutdown helps buyers.
Reply With Quote Quick reply to this message

 
Old 10-04-2013, 12:17 PM
 
3,321 posts, read 7,261,485 times
Reputation: 4105
Wells announced today it will allow files to close without tax transcripts. But SSA forms cannot be processed either. USDA is closed. VA - good luck with that.

I have clients with military service-related disabilities who suddenly cannot move forward, and are in danger of losing earnest money, appraisal, and inspection fees. This is such a disgusting thing, for a country so interested in "fixing" the governments of other countries, to voluntarily shut down.
Reply With Quote Quick reply to this message
 
Old 10-04-2013, 06:40 PM
 
311 posts, read 496,950 times
Reputation: 603
Confusion over 4506-T and The Shutdown - Lenders & Aggregator's Various Policies

Confusion over 4506-T and The Shutdown - Lenders & Aggregator's Various Policies

Looks like some lenders are trying to figure out what to do while there's a government shutdown.
Reply With Quote Quick reply to this message
 
Old 10-04-2013, 06:54 PM
 
3,442 posts, read 4,476,362 times
Reputation: 5387
Quote:
Originally Posted by diddlydudette View Post
After the last closing didn't go through, I did have an addendum done up that each day after the next closing the buyer doesn't make the closing that I get 50.00 per day.

I reminded my realtor of this addendum and she claims that this Government Shutdown is unforeseen and not the buyer's fault. This means that the addendum is null and void in this case. Is this true? I was just taking her word for it.

Also as a first time home seller, I don't know these things. I had no clue that I should beware and stay away from certain loan types. I had NO idea. I've learned that now but it is too late.

I was up until the very early hours this morning doing research and found out that a loan of this type takes usually 45-60 days to close. My realtor was aware that I went to the town where I was moving to find a place to rent. She knew I was about to sign a lease as I had called her before signing. Why didn't she then maybe tell me that these closings rarely happen on time. I was made to believe that the Sept 26 closing would happen.

My realtor kept informing me that the seller has great credit and the loan will go thru. Great, I know it will go thru but why didn't you tell me it would take a long time and to hold off finding a place to live right now. I would have listened if she mentioned that.

The guy next door sold his house after mine sold and their buyer is already in the house and putting up a fence and here I still sit with a garage full of boxes thinking I won't get to move till maybe around the holidays. I feel like there should be some sort of recourse for me.

I take it the buyer is applying for this type loan because it doesn't require any money down. Well how fair is it to me that I sit and pay for 2 places that I can't afford just because this buyer wants a loan with no money down?

I had questioned to my realtor and even posted her my concern as to why the appraisal was taking so long as it was getting close to my closing date. The appraisal finally happened about a week prior to closing but no one at that time told me chances are it is not going to make closing. No. They waited until 2 days before my move that closing was not happening. I was upset but realized that this was typical and not uncommon for homes not to close on time. I accepted that fact and felt like we would definitely make the Oct. 7 closing. I felt good also because of the addendum we wrote up to protect me should the house not close again.

When my realtor called to tell me about the house not closing again on Oct 7, I was upset but told my realtor that at least we have the addendum. She said that doesn't help in a case where it isn't their fault.

To me I do think it's their fault. My realtor told me she put a fire under them to get this paperwork moved and that they would call each and everyday to the lender to make sure it was getting the USDA approval. Well, that was a couple of weeks ago. If they knew there was a possibility of a government shutdown, then why weren't they on that phone nagging the hell out of them to get this done. In the back of my mind, I don't they they were calling each day.

How all this is fair to me, I don't know. Why wasn't I told about this type of loan and told that closing probably isn't happening the first date set? No one told me and this isn't something as a new home seller that I would just know. I hadn't a clue.

Sure I got a decent deal on the house, but what good is that now when it is costing me so much to keep staying here awaiting to close? It's as if I accepted the lowest offer by the time I can move.

I am so frustrated and feel not a thing I can do.

I looked at my addendum that I signed requiring the buyer to pay 50.00 per day that the house doesn't make closing. There is nothing in there saying that it is void if a government shutdown happens. It just states that I am paid 50.00 per day it does not close. Wouldn't it still be affective in this case? Nothing on there states any exceptions such as a shutdown.

ETA: I just got a call from my realtor. She has been on the phone with the buyer's realtor and they've been trying to work on a fix for this mess.
She has proposed that I go ahead and move and let the buyer move in and pay me rent. That way I'm not paying for 2 places and the buyer can go ahead and move in.

I asked what if while the buyer is here, the air conditioner blows and if I'd be responsible. She said she would write that in the contract that I would not be responsible for any repairs.

So perhaps this will fix things and I can go ahead and move as planned. I worry too though because what if the buyer sees something wrong while renting. Can she start making demands on the house and ask these issues be fixed before she closes on the house? She can still refuse to close on the house is she wants and that might get scary if after moving in as a renter, she decides she doesn't care for it for some reason.

Your third paragraph is interesting and timely.
Seems just a few days ago a seller was upset because the buyer was switching his loan from a conventional to FHA.

Most of the " experts" who give advice chastised the seller and said............" what difference does it make ",,,,,,,,,,,,,," why should it concern you "
Reply With Quote Quick reply to this message
 
Old 10-04-2013, 07:36 PM
 
Location: Southern California
4,350 posts, read 4,939,435 times
Reputation: 2129
Quote:
Originally Posted by sponger42 View Post
Please explain how the shutdown helps buyers.
In my area it has been a sellers market. Maybe I should say it will help some borrowers. Now those that have access to money will have less competiton. I know it is short term until banks figure out what to do. Or maybe I should say my borrower and cash buyers will face less competitions , driving prices down for future buyers.
Reply With Quote Quick reply to this message
 
Old 10-05-2013, 05:58 AM
 
2,311 posts, read 3,278,147 times
Reputation: 1754
Quote:
Originally Posted by Teddy52 View Post
Your third paragraph is interesting and timely.
Seems just a few days ago a seller was upset because the buyer was switching his loan from a conventional to FHA.

Most of the " experts" who give advice chastised the seller and said............" what difference does it make ",,,,,,,,,,,,,," why should it concern you "
Exactly. I had read that thread prior to the shutdown wondering why he was upset when the buyers switched their loan type. Now I know why he was upset but kudos for him for knowing prior to selling to stay away from it. I didn't know that.

After reading that thread I also thought maybe my realtor should have let me know that loan takes longer to close and warned me against signing a lease so soon as I naively expected it to close on Sept 25. I kept asking about the appraisal as it wasn't getting done and that worried me, but the realtor tried to make me believe this is normal and I shouldn't be concerned. Now I know why things were progressing slowly and why I HAD to fix certain things that were pointed out in the inspection. Now I know but it's too late. Now I'm forced to rent the buyer my home first while we wait for closing since I can't afford to pay double waiting on loan approval. Yep, I completely understand now why that guy was frustrated. lol
Reply With Quote Quick reply to this message
 
Old 10-05-2013, 08:00 AM
 
423 posts, read 349,265 times
Reputation: 364
To answer you regarding your addendum, if it was drawn up, and all parties signed it, then it's in effect...simple as that.

This shutdown is an unforeseen agency issue for you....but just the same, you are obviously living out of your suitcase as a result of being past your closing date, and as a result, the per diem needs to be in effect.

I don't like to bad mouth a fellow agent, so I'll just say that perhaps yours isn't enforcing this part of the contract as strongly as she could be. Her job is to look out for your interests and close this house for you. If she takes care of the former, the latter will happen. The hard part on a per diem in this situation is getting the other side to agree to it. From what you've posted, that has already occurred, and now the contract needs to be enforced. I'm sure the buyer isn't interested in losing their contingency....and should be showing some interest in living up to the contract.

Have all the inspections been done? All the Section I been completed?
Reply With Quote Quick reply to this message
 
Old 10-05-2013, 08:04 AM
NCN
 
Location: NC/SC Border Patrol
21,136 posts, read 21,140,673 times
Reputation: 23168
Sorry you are a pawn in this chess game.
Reply With Quote Quick reply to this message
 
Old 10-05-2013, 04:38 PM
 
2,311 posts, read 3,278,147 times
Reputation: 1754
Quote:
Originally Posted by Red_Diamond View Post
To answer you regarding your addendum, if it was drawn up, and all parties signed it, then it's in effect...simple as that.

This shutdown is an unforeseen agency issue for you....but just the same, you are obviously living out of your suitcase as a result of being past your closing date, and as a result, the per diem needs to be in effect.

I don't like to bad mouth a fellow agent, so I'll just say that perhaps yours isn't enforcing this part of the contract as strongly as she could be. Her job is to look out for your interests and close this house for you. If she takes care of the former, the latter will happen. The hard part on a per diem in this situation is getting the other side to agree to it. From what you've posted, that has already occurred, and now the contract needs to be enforced. I'm sure the buyer isn't interested in losing their contingency....and should be showing some interest in living up to the contract.

Have all the inspections been done? All the Section I been completed?
Everything is done. Repairs from inspections have been completed. We're just waiting on the approval from USDA. We're going thru with the move and she'll rent from me. I know I probably could legally get the money from her, but for some reason, I don't think it right. I mean, she can't help that the government shut down. I'm ok with us just going ahead with the move. I'll be getting my rent paid and that was my main concern and I'm ok with that. If her renting my house wasn't a solution, then I might have pushed that addendum more but thanks for your response. I too thought I could push it because I'd still be paying double and it IS her fault for the holdup because of her loan type. She should carry the financial burden it causes me.

BTW, I am charging her 50.00 more per month than my mortgage payment only because of those days I had to pay double so I might recoup a little in the end too...not much, but every tiny bit helps. :-)


and lol because this may be the first year I'll have to actually pay someone to do my taxes...between selling a home and being a landlord. I'll have to start it in taxact and see how it goes and if it gets too complicated, I'll let the professionals do it.

Last edited by diddlydudette; 10-05-2013 at 04:50 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top