Getting Nervous – Long - Posted by Connie SoCA
Posted by Connie SoCA on August 01, 2001 at 22:58:44:
I have had a house up for sale for too long. I am going to start losing money in a couple of months. However, I have a buyer who is going into escrow.
This buyer showed up, at first, with a signed purchase agreement. Her price was too low for me, so we negotiated and I got what I wanted.
She is on a tight budget and keeps balking at putting out money. She is getting help from the City with the down payment. She is also getting an FHA loan. She seems serious about buying and wants the house.
I am still getting calls from my ads. I am taking backup offers, but when they find out the house is in escrow, they say, “thanks!”
Here’s the nervous part: After we signed the initial counter offer that I gave her (through her Realtor!), she asked if she could move in right away. I had offered that as a lease/purchase up front, but she said no. Then the next day she wanted to move in. I gave her lease contracts, told her she needed to give me earnest money as a deposit. Her Realtor agreed that this was what should happen.
THEN today she saw her mortgage person. She has to come up with more $$ (about $1700) estimated closing. They (she and her Realtor) wanted me to come down in price $2000 to cover that since I had talked him down to 2% commission, and I said no. I could see this becoming high-maintenance until closing! So I asked to take a note back for $2000 at 10% for 3 years. They agreed. I wrote that into the lease as the earnest money. However, we have to do this outside the FHA. I try to keep one-up on them, but they are starting to get funny about it. No money has been put on the table. She was supposed to bring me $500 cash today as part of rent so she could get a receipt to show some government agency. She didn’t have a cashier’s check. Suddenly it’s OK to give me the rent on Monday, when she is moving in. She was going to come to my house last night with cash. But then we decided to meet today. This isn’t going well, is it?
I decided to buy this house in the first place to get the first deal under my belt. I didn’t want to get stuck in the wholesaling side and find I didn’t know what to do next. I bought a HUD repo at a good price, fixed it up quickly, and put it on the market. It’s been 4 months!
So, now I’m nervous. Although my loan has a high interest rate because they knew I wanted to sell soon after, am I going to run into SEASONING issues with FHA? Am I stuck with a house that I have to rent out at a loss (high interest means high monthly)? Is my buyer going to renege? I have given her this form and that form.
I think I will start dealing just with her Realtor. He seemed easy at first, but they are friends. They make a funny team. He is older, probably retired, white, and has had a heart attack recently and needs a new hip. He can’t get around. She is Cambodian, has a thick accent, has 6 kids and a fiance (who is probably Hispanic/Italian). I don’t know where her kids are, since I have only seen 2 of them. My house is SMALL. I don’t know how or where they will actually fit in the rooms.
So, I am nervous. I got blind-sided today. We met at the house and the Realtor couldn’t get out of the car. It was hot, so we are negotiating in his dirty, hot car, about the $2000.
I want to sell this house. This deal may go south. The house is getting tented Friday. She moves in on Monday. She has to get out of her other place. So, what would you do? I seem to have more problems than solutions. Any suggestions would be appreciated.