How Obamacare Killed the Deal
This week one of my buyers should have closed on their new home in a nice Spring Hill community. Except, it's not happening.
You see, it started out with an accepted contract at the beginning of December, the inspections were done, the buyers were approved for the loan and the appraisal came back above purchase price. In short, everything went well.
Then the call came. Mr. Buyer, whose wife is working in the medical field, informed me that his wife was told right after the New Year that her position would be cut coming February because of Obamacare.
Without going into the politics of it, the fact remains that one of the borrowers is losing her job which will change the household income, the income/debt ratio for the loan and so on.
Unfortunately, in this case, closing early was not an option and considering the circumstances, buyers did not want to get into a position where they might have to sign paperwork at closing stating that nothing had changed in their income and job situation as they already had knowledge of the impending changes.
This was a bitter pill to swallow when everything else was going well and buyers and sellers were preparing for their respective upcoming moves! There was nothing else to do but to prepare a cancellation and release from the contract requesting the escrow deposit be returned to the buyers which was granted by the seller.
I'm afraid this might just be the first example of many where Obamacare will have adverse effect on real estate transactions or the market in general especially in areas such as ours where many potential home buyers are employed in the medical field.
It's also just another example of the many unexpected things that can go wrong when buying or selling a home.
Are you looking to Buy or Sell a Home in Spring Hill, Florida?
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