Realtor calls and asks me to meet with potiential client. - OK
Client wants to keep his current condo, rent it out and buy a larger condo for his growing family. - OK
Wife doesn't claim her waitress income. - Oops
Not much in savings. - Oops
Just qualify FHA is everything falls just right. - OK
- property not FHA approved - Oops
Seller willing to provide info to service to obtain FHA approval - OK
- advisor indicates that condo would be approved for FHA - GREAT BIG OK
Several weeks ago, the client made application to refinance his condo - BIG Oops - Big problem - I advised client that he should talk to his attorney. By signing a contract for purchase and stating that he is obtaining FHA financing, he is stating that he will occupy the new condo. If he proceeds with the closing of the refinance, he is stateing to that lender that he will occupy the current condo. His attorney needs to advise him as to the risk of completing the refinance after signing the contract to purchase. After asking questions, client understands the conflict and insists that they want to buy new condo. - OK
Seller takes the unit off the market. - OK
Buyer's attorney calls to confirm that client will qualify with rents under FHA. - OK
Client calls - says he refinanced and was told that he cannot rent his unit. OH REALLY!
I comment and he remembers that this is what I told him before he signed the contract to purchase and that he will not qualify without the rental income. - DAMN!
Client asks " will I get my $1000 earnest money back since I did not get a mortgage before the mortgage contingency expired?" - NOT IF I WAS THE SELLER! and you better hope that they do not come back for damages!
And then I realized it was not a dream after all and I had wasted at least $50 and 4 hours of my time.
Have a great day!
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