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ppulatie
2259 Posts |
 Posted - 03/14/2008 : 09:34:52 AM
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Realtor has now done it again. They put in an offer on a home, listed for $189k. Offer was $185k. Countrywide countered to $215k and they signed the counteroffer.
House is 996 sq ft. It has an addition to it, 400 sq ft, not permitted. Realtor is saying that the addition is fine. It was financed once with it, subprime, so it will pass again.
Was going to go FHA CALHFA. They will deny it, as most other lenders will. 97.5% financing. Realtor still says it will be approved.
I am thinking of walking away. What say ye?
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brandie
3260 Posts |
Posted - 03/14/2008 : 09:37:58 AM
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| I think both CW and the realtor are smoking crack! |
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MortgageBoarder
4042 Posts |
Posted - 03/14/2008 : 09:40:49 AM
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| Countrywide countered up, this is a short sale then? As Brandie said, idiots... unless you can convey to him WHY it's not ok he will continue to have this mind set and deliver empty promises to buyers and sellers in the future. Handle it, DO WORK! |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 09:42:50 AM
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Borrower is in love with this house and you know what that means. She will not listen to me, only the realtor, who is a friend.
I am really thinking of walking away. How could I not?
Am I wrong in thinking that this will not be approved? |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 09:44:46 AM
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| It is a foreclosed property. Not a short sale. That makes it even worse. |
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MortgageBoarder
4042 Posts |
Posted - 03/14/2008 : 09:46:07 AM
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My thoughts are the UW is an idiot... realistically, they would approve this with a reduced value based off of the 996 sq. ft. only, that would be the proper way to handle it. But if it's a short sale, they can't go under 215k and are ignoring the fact that appraisal review will slash the value.
This deal will NOT be approved as submitted... I'd say your hands are tied unless you can some how make the deal work with a value off of 996sqft, and get CW to lower their purchase price. |
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brandie
3260 Posts |
Posted - 03/14/2008 : 09:50:22 AM
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No you are not wrong in your thinking, because an underwriter is going to look at this and say denied. Plus I can foresee an appraisal problem popping up.
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kmikkola
800 Posts |
Posted - 03/14/2008 : 09:52:07 AM
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| Forgive me for asking, but are you saying that you are recommending that the borrower NOT APPLY???? |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 11:00:10 AM
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Kent,
If the home is no good, and the addition will cost thousands to bring it up to code or may have to be pulled down, isn't it in the best interest of the buyer to be told this?
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kmikkola
800 Posts |
Posted - 03/14/2008 : 11:02:50 AM
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| It is their best interest to be informed of it, but we are required to NOT discourage someone from applying. |
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anthonyt2325
1387 Posts |
Posted - 03/14/2008 : 11:03:08 AM
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quote:
Kent,
If the home is no good, and the addition will cost thousands to bring it up to code or may have to be pulled down, isn't it in the best interest of the buyer to be told this?
Shouldn't the realtor bring this up? |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 11:21:36 AM
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But we have a fiduciary responsibility to our clients to advise them against doing something. I will try and get her the loan, but I don't have to like it.
Yes, it is the realtor's responsibility but the realtor is only concerned about a commission. She is not looking out for the best interests of this woman. For the same money, the buyer could get a much better and larger home, fully permitted, with no section 1's, and in a much better neighborhood.
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seanyboy51
211 Posts |
Posted - 03/14/2008 : 12:08:52 PM
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| next your going to tell me the realtors name is liz |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 12:18:38 PM
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Nope. it is not.
What i am waiting to see is for the buyer to go to someone else, and they will order an FHA appraisal and the deal gets turned down. Buyer out the appraisal cost and on to another home.
For me, it is more important to maintain my own intregrity in the community. I get business because people know I will tell them the truth, good or bad. I lose this deal, and when the buyer gets screwed, it will only improve my own standing. |
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nowbroker
1387 Posts |
Posted - 03/14/2008 : 12:46:15 PM
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| If the house will not appraise out with the reduced square footage, can you obtain a permit through the city? This has been done before, they inspect it and may pick random areas to remove sheetrock for inspection, but may be able to obtain a permit from the local jurisdiction- then close it! |
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mortgagemessiah
8003 Posts |
Posted - 03/14/2008 : 12:53:07 PM
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Pat,
I would walk because they sound like a F.U.N. client. |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 1:49:14 PM
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Countrywide probably does not want it inspected, since they own the property. They are afraid of the worms that will be found. I have just contacted the buyer and told her to have a city inspector check it out as a condition of buying.
I am ready to walk. Even though this was a referral from a very good friend, it is not worth the headaches. But truthfully, I don't think I will have to walk. The agent will direct the buyer to another loan officer, is my gut feeling. |
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ppulatie
2259 Posts |
Posted - 03/14/2008 : 1:54:04 PM
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Steve,
Check your email. A couple things you will like. |
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