Denver, CO - I was not quite sure how to Title this article based on the discussion I had with this First Time Buyer, during our consultation this week.
I thought maybe I would call it, "Brokers fail a first time buyer", "Licensed professionals drop the ball", "How could this happen in today's environment", or maybe "What were they thinking?".
A past client has referred a close friend of hers to me, after she told her story and we will now have the great opportunity of making her home ownership take place.
Let me set the stage, and then maybe I can get your opinion on this situation:
1) A first time home buyer was working with her Realtor in acquiring a townhome/condo in one of the West suburban areas of Denver. Now, keep in mind that there are probably enough complexes in this area you can count on two hands. Not many, in other words.
2) First issue was that the buyer had thought she was writing on a townhome. But learned it has a condo legal description.
3) The buyer paid $200 for her inspection and was satisfied.
4) They ordered the appraisal for her FHA loan, and HERE is where the issue had surfaced. Remember, that cost was $400 to the buyer.
5) The appraiser discovered that is complex was NOT FHA approved!! Wow, how could this happen at this point in the process??
6) Why was this NOT discovered by the Listing Broker when placing it on the market. Whether it was an REO, estate, individual... should NOT make any difference. The listing broker needs to do their homework if they want to list properties.
7) The Selling Broker, working with the Buyer, should have KNOWN what complexes in this area are FHA approved or not, before showing and definitely before helping their buyer to write an offer!!
8) The lender, once they received the executed offer, should have checked the FHA approved list, before letting the buyer incur any further costs, like an appraisal!
In this day and age, of FHA loans and all the restrictions imposed upon Condo complexes, you would think these individuals would be on board with the new regulations.
There is NO excuse for such shoddy efforts causing unacceptable and unnecessary costs to a First Time Buyer, of $600.
Shame on those folks!
Again, not knowing how to title this article, the bottom line is that this First Time Buyer incurred COSTS that should have NEVER happened!
Thanks for reading this, Dan Hopper.
View My homes for sale at www.danhopper.com.
Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
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The views expressed here are Dan Hopper's personal views and do not reflect the views of RE/MAX Alliance.
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