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.
Two cents...change lenders. A 203K loan is much less money out of pocket. To me it sounds like you easily creditwise qualify for the 203K. If you want to put more money down on principle you can do that at a later date or re-fi to lower payments. Changing lenders would also change appraisers. The devil of the details is in the contract. Your agent should be consulting with their broker and attorney on your behalf. Others can tell you it's too much trouble and walk, however if the buyer is willing (I have a buyer willing to do a $100K rehab on a historical property) then it is agent's responsibility to get the deal done with as create the best situation for the client/buyer.
As an agent if a buyer wants a property it is my job to find the best situation to faciliate the purchase, the best loan and the least cost for them to obtain the property. It might not be the home I would have picked for them however it's not my money and I don't have to live in it. If they are happy I am happy...referrals will follow.
Taking into account market conditions and the ability for buyers to purchase very desirable homes with walk-in equity many buyers are willing to take the risk to purchase these properties. The agents job is miniumize the risk for their buyer.
This deal can be done it will just take some work to detail.
In addition...for buyers, make sure your agent is not commission hungry. We had a deal almost fall through and my buyers were concerned about ME getting paid. I told them that is not the worry, making sure the home is repaired and their family and investment is secure is the concern. If a deal falls through, it fallsl through and if you are a good agent, you still have the buyer and you just move onto the next property.
Last edited by DawnYurkas; 04-23-2011 at 10:39 AM..
Reason: adding to post
Thank you, Dawn. I wish I had heard from you earlier! I had considered the 203K route earlier in the deal, but got the feeling that would be too much of a hassle. That's certainly the impression I got from reading threads on this board. (Also, my income is low relative to my savings, so I've been under the impression that conventional was the way to go.)
As we stand now the seller and I have agreed to split the foundation repair costs. The repair company will receive all payment at closing, so nothing is needed from me up front. The seller has already signed the contract with the repair company and my loan has gone to underwriting. My loan should clear on Monday and foundation work will begin then, too. All in all I'm pretty happy because I got another $5.5K price reduction, plus the foundation will be fixed before closing.
your foundation repair company seems like a good answer, but not for you, for the sellers.
if I were in your shoes I would do everything possible to not have my name on any paperwork with the foundation company. even if they lein the property, they may have recourse against you if you engaged them. Its their house, have them fix it.
assuming the agreement is that this was factored in, your position I would think should be, I'll adjust the contract to a higher price to effect the cost of the foundation repair contingent on sellers making the foundation repair.
Hey Chris, sorry I overlooked you until now. What you suggested is pretty much what happened. I've not been required to sign any contract with the foundation company; only the seller signed that. The repair company only wants proof that my loan has cleared underwriting, which they'll get on Monday or Tuesday.
John,
I just found this forum today! So glad I did. I'm glad the sale is working out for you and that you enjoy your new home! :-)
Dawn
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.
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.
