2nd buyer with very large down payment and pre approved loan received notice that their bank's underwriter has told them the need to either remove more funds from their IRA or sell other property to get their loan funded. Buyers are retired and evidently the dispersements from their retirement accounts don't give them the cash flow the underwriter requires to qualify. A second bank is now involved but no guarantees that their underwriter won't come to the same conclusion.
Sale was due to close 7/15 and contract has been in process for about 40 days.
According to our contract the Title company makes the determination about earnest $. Our realtor has two other agents names in our file for people looking for homes in our community. Either way we could be looking at another 45 days minimum For house to close. We'll know more next week, we hope!
Glitch number - I donk know, I lost count 😄!
But, we love living in our Rolling Rest Home.. We are really enjoying our little jobs here in Elma, WA and the managers are terrific and other hosts are Really nice. We're healthy and cash flow is good, fur kids keep us laughing nd the sun is shining.
Sherry
scrappy said
04:34 PM Jul 6, 2013
*fingers crossed*
Ckerr said
07:38 PM Jul 7, 2013
I'm not sure what the rules of real estate are in, is it Washington?
Here's my 2 cents as a Realtor. Given the state of the mortgage industry, it is extremely unlikely that a 2nd bank/underwriter will come to a different conclusion. It sounds like their debt to income ratio is too high and that will limit any lenders ability to resell the loan. The only thing that will make a difference is if the 2nd lender is funding and plans to keep the loan in house. Then they might be able to consider different limits. Sorry, don't mean to be a wet blanket, but want to be realistic.
If the buyers have other property that is greater in value than the property they are trying to buy from you, they might be able to take out a line of credit against that property and use the money to buy yours. Not sure what the circumstances are, but it might be possible.
Most real estate contracts have a clause that says the contract is contingent on financing and if the buyer cannot secure financing they are off the hook and get their earnest money back. But like I said, I'm not familiar with the process in all states.
If I were you I would tell the realtor to wake up those other prospects just in case and that you are willing to negotiate and sign a back up contract just in case this one doesn't go through.
Still keeping my fingers crossed too! Good luck
WestWardHo said
04:54 PM Jul 8, 2013
Carol,
You are not a wet blanket at all and you are spot on. We will contract our realtor today and see if those other prospects are still live and to get a solid back up offer! Great advice.
Thanks,
Sherry
Alie and Jims Carrilite said
02:45 AM Jul 9, 2013
We just got bit too. Our buyer backed out today after his daughter got into trouble somehow... aiding and abetting a known felon... so his downpayment just went to bail..
WestWardHo said
04:18 AM Jul 9, 2013
Oh Jim, sorry to hear that!!! Really, really sorry.
Sherry
Ckerr said
05:10 PM Jul 9, 2013
Sorry to hear that Jim. At least the market has picked up and there seems to be a lot more activity. Here's hoping someone new comes along soon.
2nd buyer with very large down payment and pre approved loan received notice that their bank's underwriter has told them the need to either remove more funds from their IRA or sell other property to get their loan funded. Buyers are retired and evidently the dispersements from their retirement accounts don't give them the cash flow the underwriter requires to qualify. A second bank is now involved but no guarantees that their underwriter won't come to the same conclusion.
Sale was due to close 7/15 and contract has been in process for about 40 days.
According to our contract the Title company makes the determination about earnest $. Our realtor has two other agents names in our file for people looking for homes in our community. Either way we could be looking at another 45 days minimum For house to close. We'll know more next week, we hope!
Glitch number - I donk know, I lost count 😄!
But, we love living in our Rolling Rest Home.. We are really enjoying our little jobs here in Elma, WA and the managers are terrific and other hosts are Really nice. We're healthy and cash flow is good, fur kids keep us laughing nd the sun is shining.
Sherry
*fingers crossed*
Here's my 2 cents as a Realtor. Given the state of the mortgage industry, it is extremely unlikely that a 2nd bank/underwriter will come to a different conclusion. It sounds like their debt to income ratio is too high and that will limit any lenders ability to resell the loan. The only thing that will make a difference is if the 2nd lender is funding and plans to keep the loan in house. Then they might be able to consider different limits. Sorry, don't mean to be a wet blanket, but want to be realistic.
If the buyers have other property that is greater in value than the property they are trying to buy from you, they might be able to take out a line of credit against that property and use the money to buy yours. Not sure what the circumstances are, but it might be possible.
Most real estate contracts have a clause that says the contract is contingent on financing and if the buyer cannot secure financing they are off the hook and get their earnest money back. But like I said, I'm not familiar with the process in all states.
If I were you I would tell the realtor to wake up those other prospects just in case and that you are willing to negotiate and sign a back up contract just in case this one doesn't go through.
Still keeping my fingers crossed too! Good luck
You are not a wet blanket at all and you are spot on. We will contract our realtor today and see if those other prospects are still live and to get a solid back up offer! Great advice.
Thanks,
Sherry
We just got bit too. Our buyer backed out today after his daughter got into trouble somehow... aiding and abetting a known felon... so his downpayment just went to bail..
Sherry