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We are buying our first house. Our family is selling some properties and wire transfer to our account from out of country. we also have mortgage gift letter from them.
The problem is their buyer step back last minute. Our contract states we have to pay downpayment 100 k but we have 50 k now. There are more than 2 weeks to closing and they may sell and send money on time. Our rate lock until end of september. Can you tell me what is the best option for us. do I have to wait until last minute or talk with the broker now? When the houses sell we can close the %70 of the mortgage.
If there is even the slightest chance that you will NOT have the funds that are expected at close you REALLY ought to discuss the situation with your real estate agent ASAP. Frankly you deal will almost certainly DIE and will likely forfeit your earnest money.
You should NOT have entered into a contract unless you really and truly had funds available, in fact I am more than a little surprised that your lender did not fully verify the availability of liquid funds before they agreed to move forward with a loan for the remaining amount of the home price...
Totally agree with Chet. The lender wants to see those funds in your account before you can go to underwriting. I think the bigger issue, is the seller aware that the gift funds were coming from the proceeds of a house sale? I know in my state that is a material fact and if you didn't disclose that contingency it would be financial misrepresentation putting your earnest money at risk.
The money was practically in our account but we had to return it back because of the buyers very urgent problem. It wasn't something we weren't prepared. The downpayment we put the contract was %30. Our loan application started 2 days ago. Do you think I openly contact with my broker and told them I need to borrow more. For know I have enough money for %15 downpayment and it's worst in case scenario. My family sure that they will send money on time but I'm just worry so much. My real estate agents kinda push us a lot, house has some problems(40 years old) that seller has to fix before (septic system has to be change) and I do not know who I have to talk, my attorney, real estate agent or broker at the time.
Mortgages ARE available with less than 20% down, although you would usually have to pay PMI (private mortgage insurance). Check with your lender IMMEDIATELY to see if you can qualify with a 15% down payment. (I know someone who got a mortgage with a 5% down payment -- she had excellent credit.)
But I, like the others, are puzzled as to how the bank would approve the loan without PROOF of funds IN YOUR ACCOUNT. When I applied for a mortgage this past January, I had to send the lender copies of my bank statements showing my down payment money. Your lender didn't require that? (And I don't understand money "practically being in your account" -- it's either there or it's not. My lender certainly wouldn't accept me saying "well, it's PRACTICALLY there.")
Someone should have explained to you that ANY activity that takes money out of the accounts that have been verified will almost CERTAINLY killed this deal. If the reason your family had the money in the account was because of some other recent real estate deal that too SHOULD have been disclosed. While I understand your family's desire to help out the parties that needed to "unsell" their home they have jeopardized you ability to move forward. If they are truly certain that all will be well then you must trust them, but honestly things can go wrong when you start to move money that was supposed to be "locked up"...
In reality you probably should make some effort toward a "plan B". There is BIG BRIGHT LINE for lending and that happens at 20% down payment -- for most deals that dip below that there will be additional stipulations and for most deals above that the lender gets progressively easier to satisfy. If there is any way that you can scrounge together enough cash to keep your down payment at 20% you MIGHT be able to salvage this deal even if something prevents family from wiring you the money...
Your PRIMARY contact ought to be your buyer's agent. Hopefully they are familiar with your lender and can get this deal to work at 20% instead 30%, of course the lender will need to verify that you have sufficient income and appropriate debt-to-income ratio to support a larger loan.
The question of seller's completion of repairs should have been communicated to your buyer's agent. This should have been handled with addenda to your original offer / contract. Hopefully your attorney reviewed the contract and specified appropriate safeguards for you. They may be able to review the contract and determine if the seller still is compliant with their responsibilities...
The buyer (my family's) get bankrupt and ask my family to cancel the transaction. They don't know the how is the system is works in the USA and get get sorry and cancel the transaction and return the money without our knowledge. If I get the money on time I even can put down to %70 down payment or refinance in a couple of months. I can ask my brother for some help to put %20 down payment. So it's better I talked with my real estate agent first instead of my broker?
Talk to your lender, your broker, your agent. Seriously. Now. You need to find out if other viable options (like a 15% down payment, or a 20% down payment if you can manage it) exist NOW instead of just kind of hoping that things will work out, which it sounds like is where you are now.
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