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I gifted my late husband’s mother some money so she could purchase a new house. He had left her money in his will for that purpose but the amount needed fell short by about $5K. The mortgage company simply needed a notarized statement from me indicating the money was indeed a gift and she did not have to repay it. I gave it to her just a few weeks before closing in a cashier’s check and a copy of that check was attached to the notarized statement submitted to the mortgage company.
Different lenders have different rules. Sometimes it depends on whether the lender plans to service the mortgage or sell the mortgage. If they plan to service the mortgage they can take higher risk.
What are my protections to get the equity earned of a (just in case) rejected mortgage application? I closed the pre-approval deal with a new builder back in winter 2020 when the price was $200,000 less. Today, the base price may approach up to $200,000 higher when I close the transaction by August 2021.
The last thing in the world for me is to allow Fannie Mae lender forcing me to cancel the mortgage application, and all the $200,000 equity earned will return back to the builder, then they resell the property at $250,000 higher price (with all the options) as a quick move-in. I don't get a single penny back, while they also get to keep (and profit) my $6,129 deposit too.
What are my EMERGENCY options here? Can I sell or transfer my pending mortgage application to a realtor agent for full-cash closing price, and then in return they hand me the (whatever left, after commission) equity earned? Or, am I totally out of luck?
You options are to come up with the down payment and get qualified, or not buy the house. You don't own the property, it's not your profit if the deal falls through. If I didn't think you were serious, I would be laughing out loud at the audacity you are showing.
Quote:
Originally Posted by waltchan
There's no need for you to point a blame to an innocent person, it hurts our feelings greatly. We now live in a corrupted society these days where profits come first before people. Ask any Black-American families that can't get into homes yet with the lowest home ownership percentage, and they will find your response so appalling.
I just wish it was the 1980s, that's all I can say (and this thread wouldn't exist), and people wouldn't speak like this. I have to look to the future and see what's best work for me. It's only a low 20% chance that I will not be approved. I'm still working on it... Keeping positive...
Profits have always come before people. If you think there were times when that didn't happen, you are naïve.
My parents bought a house in 1982. 20% down minimum, and 11% interest. And, since I was alive in the 80's and an adult, I can confidently say that your whiny OP would be mocked severely by anyone who heard the story. Plus, people were much meaner then because the whole woke PC stuff hadn't started.
Quote:
Originally Posted by waltchan
Correct... I only qualify for up to $375,000 max. There's generally NONE available in California for a big metropolitan city.
Too bad. Rent an apartment until you save enough to buy a house. If you only make $90k per year and want to buy a $720k house, you are deluded about the possibility it would work out.
Even if you can't close the deal, you might be able to get back your deposit. Even if contractual you shouldn't, you just need to whine and the builder probably don't want to deal with you and return your deposit.
No, the builder keeps ALL of my $6,129 deposit, in addition to $250,000 resell (equity taken away from me) at higher market price to a different buyer. I've been robbed big time... I wish people to be more courteous these days, which we don't get anymore due to our corrupted society today.
I would appreciate a small $30,000 courtesy-check back if people would do the right thing, and the builder gets to keep the $226,000 profit. Fair enough for me. How hard is that... Companies just don't care now, they rob every single penny out from you, regardless if no contract was signed for this matter. Why do we have to live in a "too much money is never enough" society.
Give me the mid-1990s, please, with lower interest rate. Home prices bottomed at 1996-1997 year, actually, better deal than 1980s.
20% you won’t get approved? Or 20% your parents won’t gift you the down payment?
It's "20% (chance) your parents won’t gift you the down payment?"
I just spoke with them today, and they're still committed, actually. I should not worry right now. We'll see what happens. I was curious to know on what EMERGENCY situations I need to prepare, according to first post.
Any off-topic post criticizing about me will be ignored, since I'm not at the final-verdict yet. Everything is just rumors.
Back to real question: I'm not sure if I can sell or transfer my mortgage application to a real estate agent, or co-sign with a real estate agent. Only foolish people would cancel the mortgage application, and give all the $200,000 profit back to the builder. What would you do?
I would appreciate a small $25,000 courtesy check back if people would do the right thing, and the builder gets to keep the $231,000 profit. Fair enough for me. How hard is that... companies just don't care now, regardless if no contract was signed for this matter.
A “courtesy check”?” JHC, what planet are you from?
Let’s say by some miracle you round up enough cash to get approved, and buy the house. All off a sudden the market tanks (it could easily happen) and your house is now worth what you paid for it instead of $920,000 or whatever you think it should be worth on the day of purchase. I suppose somebody’s got to pay you for THAT.
I bought a $42,000 condo in 1984 with about a 12% adjustable mortgage. I was making about $22,000 a year.
No, the builder keeps ALL of my $6,129 deposit, in addition to $250,000 resell (equity taken away from me) at higher market price to a different buyer. I've been robbed big time... I wish people to be more courteous these days, which we don't get anymore due to our corrupted society today.
I would appreciate a small $30,000 courtesy-check back if people would do the right thing, and the builder gets to keep the $226,000 profit. Fair enough for me. How hard is that... Companies just don't care now, they rob every single penny out from you, regardless if no contract was signed for this matter. Why do we have to live in a "too much money is never enough" society.
Give me the mid-1990s, please, with lower interest rate. Home prices bottomed at 1996-1997 year, actually, better deal than 1980s.
Here’s a little bit of southern courtesy for you: Bless your heart.
The same thing would have happened to you in the 70s and 80s if you could only qualify for half the price of the house without having the rest in cash.
I would pay the 15% to 20% interest rate back in 1970s-1980s any day of the week than today. Not only the home prices were more affordable, cost of living was lower too, regardless of the 20% mortgage interest.
Honestly, the 20% interest rate talk is so overblown. 98% of people actually refinanced every few years. So, it's only about 10%-12% average APR for most homeowners in the end for a $50,000 house. Which is still much, much lower cost than today, and still easier to qualify back then than today.
Back to real question: I'm not sure if I can sell or transfer my mortgage application to a real estate agent, or co-sign with a real estate agent. Only foolish people would cancel the mortgage application, and give all the $200,000 profit back to the builder. What would you do?
You wouldn't be selling or transferring the mortgage application because that doesn't exist anymore since you said you were declined.
You be selling or assigning your purchase contract to somebody who has the money or financing to buy the house and who recognizes the potential for the equity growth by the close of escrow. Whether or not you can do that depends on the terms and conditions of your purchase contract. Read it. If you don't understand it, take it to a lawyer.
You wouldn't be selling or transferring the mortgage application because that doesn't exist anymore since you said you were declined.
I'm already approved with 50% down payment, but not approved with no down payment, of course. Fannie Mae confirms it. I don't like the way how Fannie Mae operates the system. Why is there only one company these days? We need Lehman Brothers too.
No, the builder keeps ALL of my $6,129 deposit, in addition to $250,000 resell (equity taken away from me) at higher market price to a different buyer. I've been robbed big time... I wish people to be more courteous these days, which we don't get anymore due to our corrupted society today.
I would appreciate a small $30,000 courtesy-check back if people would do the right thing, and the builder gets to keep the $226,000 profit. Fair enough for me. How hard is that... Companies just don't care now, they rob every single penny out from you, regardless if no contract was signed for this matter. Why do we have to live in a "too much money is never enough" society.
Give me the mid-1990s, please, with lower interest rate. Home prices bottomed at 1996-1997 year, actually, better deal than 1980s.
What I am saying is while contractually the builder can keep your deposit, and if they play hard ball, you can find a flat-fee attorney to send a letter to the builder demanding our money back. Builders often don't want to deal with it and give you back the deposit, or at least counter back with an offer after such a letter. It would be worth the risk in my opinion.
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