I am presently representing a 3-time repeat client who is purchasing an REO property, owned by a very large financial institution. Two things here are important ... the lender that owns the property, and the company that will be writing the loan for the property, are one-in-the-same.
FHA loan, great value for what the property has to offer, and very minor issues as a result of the inspection. At one point in time the roof had leaked and there was an old water stain. As a result, this lender is fighting amonst itself that the property it owns, and is slated to lend on, is not in a condition fit to sell. WHAT?!? My inspector is as good as they come, and is a mold and air quality expert. The inspector has emphatically told this lender that there are no environmental issues, in addition to their having the entire inspection, and it is all falling on deaf ears.
Now you would think that IF a lender owned a property, it should:
A.) Do whatever it deems necessary to see it into a fit condition to sell
B.) Do whatever it can to see that it can close, ESPECIALLY if they are writing the note on it!
OH, a third and fourth relevant variable ... the individual who did the FHA appraisal, who was previously an FHA underwriter, said there shouldn't be any issues! The Buyer is fully approved.
I just want to shake some of these banks and the decision-makers at them. If logic was introduced, things might improve drastically out there!
Any like stories in your business? Unique situations that defy logic and understanding?
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