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It sounds fine to cash in on equity one has built up, until one realizes they still need a place to live and buying that place to live is no easy, sure thing.
And, that fact is felt by many, and is one reason market inventory is lean.
Sadly, I'm one of those many. We found the process of trying to buy a new place so complicated and exhausting, we recently just gave up and decided to just try to make the best of the house we've got for now. I'm not in love with the idea, but I'm definitely feeling less stressed.
That said, I'm still taking notes on the realty threads here for future reference. Some smart folks here.
Sadly, I'm one of those many. We found the process of trying to buy a new place so complicated and exhausting, we recently just gave up and decided to just try to make the best of the house we've got for now. I'm not in love with the idea, but I'm definitely feeling less stressed.
That said, I'm still taking notes on the realty threads here for future reference. Some smart folks here.
Yes indeed! Maybe using one of our fine realtors might make the purchase search less stressful? You already know they have the professional knowledge and people skills to explain things so it's less confusing.
Sadly, I'm one of those many. We found the process of trying to buy a new place so complicated and exhausting, we recently just gave up and decided to just try to make the best of the house we've got for now. I'm not in love with the idea, but I'm definitely feeling less stressed.
That said, I'm still taking notes on the realty threads here for future reference. Some smart folks here.
Yes there are. MikeJaquish, VickiR, BoBromhal, and TarheelNick among others have brought a wealth of knowledge on here.
How was that intent expressed in 2011 at introduction of DD Period?
I mean, let's not conflate "intent" with "execution."
the DD period primarily protects the Seller. Not the DD fee.
Not for you (I know you're aware), but for the consumers...
long before 2008, we had numerous examples where the inspection back and forth dragged on for too long, even right up until closing. Never resolved? Buyer could walk and get their E$ back. DD Period eliminates this.
from 2006-2008, we started seeing lending/appraisal issues. Pre-DD, the "property must appraise" was a completely separate clause and even document page from loan commitment. And as values jumped, the lenders wanted to wait as long as possible to try and get the appraised value up. Lots of "loan commitments" issued, lots of appraisals finished 2-3 days before closing. Lots of "Oops, sorry! House didn't appraise. I know we're supposed to close in 2 days, but see the appraisal clause? So, are you going to drop the price, or are wee terminating and getting our E$ back?" DD Period eliminates this.
Lending issues - the Buyer now assumes the risk they chose a shoddy lender that says a day before closing "sorry, we're not funding your loan."
They could likely have gone VA without your approval, as the loan terms spelled out are good faith at the time of contract, but not binding if a better deal is found to be available.
Asking you to revise the contract to add hubs opened them up to your counter.
They could have, but the 2 extensions that were needed would most likely not have been granted if it felt like a bait and switch. I knew from experience the VA loan would most likely take longer and it did.
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Quote:
Originally Posted by BoBromhal
the DD period primarily protects the Seller. Not the DD fee.
Not for you (I know you're aware), but for the consumers...
long before 2008, we had numerous examples where the inspection back and forth dragged on for too long, even right up until closing. Never resolved? Buyer could walk and get their E$ back. DD Period eliminates this.
from 2006-2008, we started seeing lending/appraisal issues. Pre-DD, the "property must appraise" was a completely separate clause and even document page from loan commitment. And as values jumped, the lenders wanted to wait as long as possible to try and get the appraised value up. Lots of "loan commitments" issued, lots of appraisals finished 2-3 days before closing. Lots of "Oops, sorry! House didn't appraise. I know we're supposed to close in 2 days, but see the appraisal clause? So, are you going to drop the price, or are wee terminating and getting our E$ back?" DD Period eliminates this.
Lending issues - the Buyer now assumes the risk they chose a shoddy lender that says a day before closing "sorry, we're not funding your loan."
I believe you are in error regarding your opinion of imbalance of protection.
And, you didn't respond to the question of intent at time the DD Period and Fee were introduced.
I don't believe there was inequality in intent to protect either party.
I DO believe there was intent to simplify the process, and that attempt was eminently successful.
Heck, the original intent was that sellers would act in good faith and prep their properties for sale rather than play hide and seek on property condition, reducing potential issues during the transaction and need to disclose further if a transaction terminated.
Agents really ignorantly and proactively screwed up the works, but the DD Period and Fee are still superior to what we had 10 years ago.
Oh.... Yeah... Forgot.
I got into one recently, and the sellers refused to sign the VA Addendum.
NCAR Legal told me they couldn't be compelled to.
Good point.
It is a shame, because VA is really often a superior product for buyers, and seller and agent prejudice and superstition about VA are generally unfounded and pretty much unfair.
I am sure it can work out well. I have seen otherwise, so no superstition or prejudice here. For me as a seller, the well qualified 20% down conventional mortgage will always be stronger than a 5% down VA loan.
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Quote:
Originally Posted by lauradrops
I am sure it can work out well. I have seen otherwise, so no superstition or prejudice here. For me as a seller, the well qualified 20% down conventional mortgage will always be stronger than a 5% down VA loan.
Actually, that is purely discriminatory towards vets.
My client I mentioned had 10% down and wanted to go VA because the APR was so much lower than his conventional.
We sometimes forget that 10% or 20% down or Cash deals fail too. VA deals close at an extremely high percentage.
Actually, that is purely discriminatory towards vets.
My client I mentioned had 10% down and wanted to go VA because the APR was so much lower than his conventional.
We sometimes forget that 10% or 20% down or Cash deals fail too. VA deals close at an extremely high percentage.
Are you saying my personal preference is discriminatory to vets? Wow, I completely disagree with you. My prior knowledge and preference to avoid VA loan was spot on as it was a PITA.
Buyer should have done her homework on her loan before putting in the offer and not make it an inconvenience for me. We knew the house would sell very quickly and had 9 showings the first day. We had 3 other parties interested in making an offer who requested we please call them before accepting any offers so they have a chance to compete. When we received her offer at full ask and original mortgage, my agent said we could probably call the other parties and wind up over ask. At that time we decided to just accept and move forward as we had made a nice profit and already left the state. Quick close was more attractive than a few extra bucks.
In my case, buyer changing to VA loan made the process take longer. That is a fact. My buyer made a contract for full ask with a mortgage ready to go and the promise of a fast close. The change meant adding another person and starting the process over for them. We also got stuck waiting for an available appraiser, because as you know they have to use a VA appraiser and one couldn't get there in time for their due diligence time frame. Not once extended, but twice. After the second extension, my agent told them there would not be a third.
Then the VA loan officer tries to tell me (as the seller) I have to pay for extra things the VA loan requires sellers to pay for. She sent over an addendum for us to sign. At that point I told her I would pay for nothing extra and to follow what I agreed to in the contract. After she saw we were running out of patience with their delays and asking us to pay for stuff sellers typically pay for in VA loans, she wrote it however she had to and had the buyers pay for their own stuff.
There are reasons people don't want to deal with a VA loan, because even though some may go as smoothly as conventional loans, mine did not and neither did the other one I know about. That is not discriminatory and you shouldn't throw that accusation around so frivolously.
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Quote:
Originally Posted by lauradrops
Are you saying my personal preference is discriminatory to vets? Wow, I completely disagree with you. My prior knowledge and preference to avoid VA loan was spot on as it was a PITA.
Buyer should have done her homework on her loan before putting in the offer and not make it an inconvenience for me. We knew the house would sell very quickly and had 9 showings the first day. We had 3 other parties interested in making an offer who requested we please call them before accepting any offers so they have a chance to compete. When we received her offer at full ask and original mortgage, my agent said we could probably call the other parties and wind up over ask. At that time we decided to just accept and move forward as we had made a nice profit and already left the state. Quick close was more attractive than a few extra bucks.
In my case, buyer changing to VA loan made the process take longer. That is a fact. My buyer made a contract for full ask with a mortgage ready to go and the promise of a fast close. The change meant adding another person and starting the process over for them. We also got stuck waiting for an available appraiser, because as you know they have to use a VA appraiser and one couldn't get there in time for their due diligence time frame. Not once extended, but twice. After the second extension, my agent told them there would not be a third.
Then the VA loan officer tries to tell me (as the seller) I have to pay for extra things the VA loan requires sellers to pay for. She sent over an addendum for us to sign. At that point I told her I would pay for nothing extra and to follow what I agreed to in the contract. After she saw we were running out of patience with their delays and asking us to pay for stuff sellers typically pay for in VA loans, she wrote it however she had to and had the buyers pay for their own stuff.
There are reasons people don't want to deal with a VA loan, because even though some may go as smoothly as conventional loans, mine did not and neither did the other one I know about. That is not discriminatory and you shouldn't throw that accusation around so frivolously.
Well...
Now that you've done the Paul Harvey....
There is little in your story that indicates anything more than weak agents and a sketchy lender.
It offers no reason at all to discriminate against VA loans.
When one picks an inexperienced agent or a sketchy lender in any transaction, it is not uncommon for there to be issues. In your transaction, issues were created that are nearly irrelevant to VA requirements.
With transparency, a good and honest lender will clarify that it is THEIR structural policies that push fees toward the seller, NOT any VA stipulations of any sort.
At that point, I might say, "VA? OK. Find another lender."
I often refer people to Melissa Schwartz with Movement Mortgage locally, and she does a lot of VA loans.
Notes from a recent conversation I had with her, that I confirmed in writing via email:
"1. VA is often a superior option than conventional for qualified buyers. Lower rate. No PMI. DTI flexibility. Funding fee can be much lower than PMI on conventional products under 20%.
2. It is LENDERS' structural decision that a seller may pay nuisance fees for VA Buyers, not a law or regulation.
Movement Mortgage structure has room in the fees for Buyer to pay for termite inspection.
(I always note that Seller will not pay for termite regardless of lender fees.)"
See the last line.
When I send over a VA Offer, I put right in the cover letter that I will pay for the termite/wood destroying organism inspection and that the seller will incur no additional costs.
$80-$90 and no big deal, but experienced agents realize I just might have a clue about VA. And, I pass the work on to Custom Termite in Raleigh, who are among the best around.
And, I have never had a fee other than Termite inspection come into question at all in VA loan transactions. There is a benefit to working with honest lenders who are open about the process and take client service seriously.
Your timing issues with the transaction also are not VA issues. Revising a contract to add a buyer and change lending instruments can easily slow things any time.
It may have been fine to agree to the revisions, but require the original timeline to be honored. VA wouldn't care.
The only timing issue with VA is that the VA appraiser has up to ten days to deliver the appraisal after accepting the order. At that, just ordering the appraisal on a timely basis at contract is enough to get it back during typical Due Diligence Periods.
Last edited by MikeJaquish; 08-15-2020 at 06:31 PM..
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