Quote:
Originally Posted by will76
The moral of the story isn't buy with cash, but.... don't move into a house that you are buying until AFTER you bought it, signed the papers and went to closing.
You seem to get yourself into a lot of bad situation. Do me a favor bro, next time you go to make a big decission like buying a house, giving a friend of a friend 25K on some guaranteed 12% ROI investment etc. Contact me and run by me what you plan on doing. I can save you a lot of grief.
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Yeah, I've made some pretty bad decisions, I appreciate the help
With this house, I am only leasing it, have not moved in. The reason being is that if I didn't I would be out of contract with the sellers and loose the $8k tax credit, as well they would be able to renegotiate the deal. Since they now know the appraised price, I feared they would raise the asking price.
It was a gamble, but after speaking with my attorney this was the best solution to keep them from renegotiating or starting a new contract.
Quote:
Originally Posted by AlphaSky
You mentioned you are leasing the house from the owner, as well as renting your own apartment at the same time?
I have a feeling your agent/broker is representing you and the owner, is this correct?
The owner had to move and doesn't want to "wait" for your loan to close, so they threatened you with "lease the house until the close of escrow" or you will lose the house.
That's a scare tactic created by the Realtor or Broker that is repping the owner.
The owner moved out too soon and is losing money also, and now is trying to recoup it from you.
You are the buyer and have the power. (unless your agent is taking the power away from you, because he is repping the seller also.. or he/she is a really bad agent.)
A simple escrow extention should've been created. When in escrow, Owners never threaten to pull the plug on a deal if the loan is within weeks of closing, simply because they'll have to put the house back on the market and lose another 30 to 60 days getting a buyer and doing another escrow. I don't think the house had multiple offers, because he could've bumped your offer out when it didn't close the first time and bring in the back up buyer. Which should tell you, you have more power than you know.
Your current escrow is closing at the end of June now... but, you are leasing the new house and your apartment. Did you sign a lease? If not, don't pay a penny to the owner for leasing the unit. If you have a valid escrow, and it has been extended to the end of June (I think I read that in your prior post) then let the owner scream all he wants. IF in the escrow extension they wrote in "buyer to lease unit at $XXX amount of dollars, have that money come out out of the closing fees to so you are not out of pocket.
About your current landlord situation, most landlords lose money when a tenant moves out and are very reasonable about having you extend your stay. Tell him the situation and prorate your rent due. Unless he has a tenant all ready to move in...which I doubt..check your building vacancy... then just call him up and say, my escrow has been extended, can I pay for another 10 days (or more).... of course he'll take your money.
Get that done first, so you can relax, then read your escrow extension and see if you wrote in the lease back. If you did, pay up at the close of escrow....
Stay on top of your lender. Sounds like there is bug in your loan and they are not telling you the truth. What they are doing is "panic shopping" your loan around to get it funded..... OR they are jerking your chain, and at the last minute will present you with an outrageous loan w/high points due to the "difficulty" in getting it funded. This is another shitty tactic lenders due to buyers to fuck them at the end and rob them blind. Buyers like you are so stressed out from all the delays will sign anything to end the ordeal. Be carefull and smart.
You have the power at the close of escrow, like you don't even know. When the lender gives you some shitty papers at 3 points higher than you were quoted, simply tell them "NO" and threaten to walk. Yes, have the balls.... and they will piss in their pants right in front of you and knock off points and fees to get you to sign.
I'm dead serious. Buyers just don't know how much power they have. If they try to fuck you at the close, just threaten to walk. Just the threat alone will "bring in the manager" and they will "see what we can do to lower some of these fees." I hate lenders, they are crooks with pens. FHA loans are so easy to manipulate and lenders do their best to do that because they working with buyers that don't have the skills nor the knowledge to compete.
Good luck with your escrow. Don't take any shit. And get your Realtor/Broker on the phone and bitch him out for putting you in this situation. He's making a commission on this deal, so you should've been taken care of.
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Thanks for the input, greatly appreciated.
I am only leasing their home based on their current mortgage which I get back any principle back at closing, so I only loose interest payments between now and closing.
The lease deal is set per diem based on first available closing date. We've moved the closing date now 3 times and just recently per the brokers request until the end of June. Our agent is only representing us and I hired a real estate attorney; mainly so he would be doing the title search and not someone from the bank.
The major concern was being out of contract with the buyer. If that was the case then I would loose the $8k tax credit. And in that event, then I would have told them either to sit and wait until I can close or you can walk away.
Spending a few hundred now to get back the $8k is worth the gamble from my end, otherwise I agree, it would have been a stupid decision but its based on risk vs reward.