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So, I found my little dream home in Albuquerque. My price range is small. My original idea was something that didn’t need immediate major repair, but unfortunately there is a problem with the roof, and the seller won’t budge. The insurance company won’t insure it, so the mortgage company won’t do it. I have found a Kind of nonprofit that would loan me additional to cover fixing the roof. I’m afraid that I will lose the place and that they will not refund my earnest money and loan origination fee, which is like a months salary.
So you'd end up with two loans to pay on this house (the loan to fix the roof as well as the mortgage once it's fixed?). Are you certain there are no other major repairs the house needs? Can you afford two loan payments every month? If you can't afford to lose the earnest money and loan fees you may not be in a position to buy anything. Doesn't sound like the house is going to be snapped up by anyone else given that a bank won't loan money for it. Wouldn't touch that without a serious inspection contingency. Think I'd pass on it myself, or wait out the seller. They can only afford "not to budge" for so long.
Last edited by Parnassia; 05-27-2018 at 01:47 AM..
So, I found my little dream home in Albuquerque. My price range is small. My original idea was something that didn’t need immediate major repair, but unfortunately there is a problem with the roof, and the seller won’t budge. The insurance company won’t insure it, so the mortgage company won’t do it. I have found a Kind of nonprofit that would loan me additional to cover fixing the roof. I’m afraid that I will lose the place and that they will not refund my earnest money and loan origination fee, which is like a months salary.
Your contract should tell you if they can keep the earnest money if the loan goes thru or not, and the origination fee should say if it's refundable or not. What does your real estate agent say?
Next time be more careful. Don't put a non refundable earnest money deposit down and don't pay a loan origination fee beforehand.
After carefully re-reading the contract, I see that I am allowed to change mortgage companies, and that if I choose not to buy the house I will receive a full refund.
I can comfortably afford the payments, I just don’t like getting ripped off.
I’ve bought and paid off two houses in the past, and it was a pretty straightforward procedure. I’m just kind of baffled by all of the involved parties miscommunication and how it’s turned into this big hassle.
Is this super common?
If so, it’s the first I’ve ever heard.
So I will either go with the nonprofit, who will combine the repairs into the mortgage, or just walk away.
That would be a shame, really, because it’s a cute little place that ticks all the boxes except ”can’t need immediate major repair.”
Houses in this price range are snapped up in weeks if not days.
The roof repair and a few minor problems were discovered in the inspection. The foundation and systems are quite okay.
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