I got approved to buy a house on my own in May of this year.. We were 2 weeks short of closing when the lawyers or whomever was doing the finally close out on the house notice the sellers stop paying their mortage in March! So they owe $3,000. Well its a divorced situation & neither wanted to work w/each other on the situation & they were just trying to sell the house & not make money. Well then it went into a short sale type of sale. Wells Fargo their bank did their inspections & had a apprasial done & the apprasial for lower then what im trying to even buy it for.. So now as of Sept.. Wells Fargo wants me to switch my loan from a USDA w/no seller concession to a FHA which I can get some sellers concession.. Well im a single mom & need sellers concession.. SO why are they wanting me to switch? I cant switch cause I need another $3,000. down (I was told in May to already have $3,000. from my bank) & I already have paid for the inspections on the house in June so no matter what I will be out of $900.00. UGH it all sucks & makes me depressed.. All I want to give my son a home & OUR home.. & this place is perfect for him & I...
What does your realtor say? The thing with FHA is if the appraisal is lower than the price of the house then you need to pay the difference out of pocket, they won't finance over the appraisal amount. If you don't have the extra $3000. you just don't have it, so they need to either work with you or not. Wishing you luck.
Assuming WF holds the original mortgage with the sellers, they are not going to be willing to offer any seller concessions because they are already going to take a loss on this loan; they can't assume the sellers will ever pay them back for the short amount. So they are trying to limit their losses. Now, if they are smart they'll do whatever to close the deal as quickly as possible to prevent losing any more money than they have.
I wasn't quite clear from your message if WF is your bank as well? If so, it might be time for you to talk turkey with another bank about your options. I know you've done a lot of paperwork with WF, but your inspections and appraisal will carry over. My experience with WF (used them for 3 different situations on my current house) is they are very rigid, corporate, and have lots of red tape. My transactions took months and months to close, compared to 2-3 weeks with 2 other banks. You may feel like you are starting over with another bank, but they might have the negotiation skills needed to get WF to close this deal once and for all in everyone's best interest. Although they make it sound like they have no wiggle room, they do. Banks and underwriters can make just about anything happen. They just need management approval. They need to be asked outright if they are willing to let this deal die over $3000, because if they do, it's going to end up costing them a lot more in the long run because the sellers still will not be making payments.
As others have said it is probably time for you to play a little hardball of your own. Don't budge on that additional $3,000.00 you aren't here to make the deal convenient for them but for you and your son. It may come down to you may have to walk away from this house and find another. Buying a home in a divorce situation can be a very tricky situation for the buyer as well as buying a house that may be in foreclosure.
If you already have legal represenation for your closing, then I would let my attorney handle dealing with WF's attorney's.
This could go either way. You could close and this house with your FHA mortgage or not close on this house at all. The attorney may be able to help you recover some portion of the inspection fee's you paid because the bank would have effectively killed the deal with their ridgid ways.
While his house may have been perfect, it isn't the only perfect house and be prepared to shake the dust off and keep it moving if you need to.
In house buying sometimes you have to kiss a lot of frogs before you find your handsome prince.
This is kind of late advice, but you really need to research everything before you buy so you completely understand what is going on when buying a house. Use different search engines and read lots of blogs and look for potential problems. Short sales aren't always the best idea. There can be more than one lein against a property/house and you might not even know it. You have to have a title run on the house, before you even think about buying it and that goes for any house. The only houses that are sold free and clear are certain ones at a sherif's sale and they have to tell you up front. Certain sherif sales will wipe out all leins against the property, so that they can get their tax money that is due to the county. Foreclosures aren't as risky as short sales; however, there is a new bill in congress to allow original owners to take back their homes if their lending company was misleading. We find the best deals are the estate sales and senior citizens. Usually the morgages are paid off, because they owned the house for a long time. Executrixes usually want to unload the property as soon as they can and are easier to negotiate a lower price. Never ever pay full price for real estate. Always try to get them down. It's not like the house will sell tomorrow or you'll never find another just as good.
I would go talk to the bank and inform them of whats going on. That you are wanting this house; however, do not have the extra. Most the time they will work with you to get it from going into forclosure.
