Problems! Problems! Problems!

Problems! Problems! Problems!

Problems! Problems! Problems!

We met at a condo open house that I was hosting.

She was starting her adult life over and wanted a condo for her and her two kids while she studied to get into a great career.

Not surprisingly, she bought a 2 bedroom condo. It was in an older complex in a great area that had just been completely renovated on the outside. New roofs, new siding, new vinyl double pane windows, new work on all the decks.

It had been fully fixed up and was priced to sell. There were multiple offers right out of the gate. We “landed” it by going above full price and using an escalator clause. After we did the inspection she was troubled. Would there really be enough room in this 2 bedroom condo for her to navigate for the next 5 years?

We ditched the 2 bedroom and made an offer on a 3 bedroom 2 bath in the same complex. It was bank owned, but was overpriced. So we entered a prolonged negotiation period with the bank, and eventually it was under contract. It too was in very nice condition, and with all the outside of the complex brand new, what could go wrong?

It would have worked out well to go FHA. The complex showed up as FHA approved. However, the work done was accomplished by borrowing money, not by using cash reserves as should have been the case. So on top of the regular dues, there was a monthly payment for 10 years to pay for all the work that was just completed. FHA no longer approved the condo complex.

The unit she bought was owned by FNMA, and they offer a Home Path financing option. The appraisal was already done, so approving the complex would not enter in to the mix.

We tried to add her mom to the loan, but that did not work.

We decided the only way it would close is if her mom bought the condo as an investment, and the daughter lived in it as a tenant. So we rewrote all the contract to reflect a different buyer and an investor instead of a homeowner.That seemed to be the ticket to accomplish a win-win for everybody involved.

Yesterday the loan was turned down on a technicality. It would have gone through 5 years ago, but now every excuse to NOT make a loan is searched for. They found an excuse and the loan was turned down at the last minute.

We tried! We really did!

Now to do the paperwork to UNDO the purchase, get her the earnest money back and move on. She assures me she will use me again in a year or two when her new career is in full swing. I believe her...