I am there with you. I have been trying to close on a 3 flat since Sept. Finally after months of BS with the seller(liar) and everything else. I get it to a lender that was preapprove three months in advance. The underwriter comes back and says sorry we don’t do the LTV quoted to you for first time investors. Ok, me being on top of things…was ready with another lender …Loan Approved …but we want Leases…Ok dip Sh%$ what leases…the property is vacant…it is all over the application and the appraisal…Also the UW wants a re-build letter from the City…can there be anymore crap that goes wrong with this…OK I AM DONE venting myself…good night!
We finally sold a property that has been a dog to say the least! We will just be breaking even on it.
Buyers have a Conventional loan and we were supposed to close last Friday! All of a sudden the lender wants a 2nd appraisal! they say it is because of the new flipping law. (effective June 2nd which was AFTER our scheduled closing date!) I explained that the new restrictions are for FHA loans, not conventional. They didn’t care.
I just got a call from the appraiser today and he isn’t going to the property till this coming Friday!! I am so mad!!! and to top it off! The new buyers have already moved in the house! We have a pre-posession agreement, but that was only supposed to be for 1 day! Not over a week!
I’m not worried about the appraisal, we dropped the price of the house to be below market value just to unload it, but the time of closing and the lender coming up with this new requirement really upsets me!
OK, I’m going to bed now! Just had to vent this issue!
You might want to modify your contracts so that they have a “time is of the essence” clause and a per diem charge for each day they’re late in closing.
The good faith deposit increases and becomes non-refundable upon early occupancy.
Conventional lenders vs. FHA - Posted by Kristine-CA
Posted by Kristine-CA on June 04, 2003 at 10:51:47:
Kristy: sorry to hear about your frustrations. This was bound to happen with lenders, even for the non-FHA loans. There were already a lot of changes and concerns before the new ruling. Even some of the subprime lenders had already cracked down on assignments and seasoning before the ruling. The ruling will be interpreted as a way to address fraud. So,consequently, most lenders will be paying attention to it.
Guess we’ll be gearing up for the 90 day waiting period, the additional documentation and the additional appraisals.
The other thing to look forward to is the interest rates, points and terms on whatever new products lenders come up with for those desperate to get around this. You know, the non-FHA, no-waiting period, no-seasoning, 5 points, 18% interest loan for the buyer needing the house today. It’ll make the buyer’s payments more than they can afford. But it will be legal.
It’s a little depressing, isn’t it? Sincerely, Kristine