“This is NO Dream House”

Good morning, Joe --- two of the most important things in residential real estate are not as tangible as the home itself:  compromise and reality.   It's time for these buyers to understand those two concepts in my opinion.   

You're the expert in this instance Joe. I'd go with whatever your suggestion would be...

How about an FHA construction loan?  Mike Young - I'll bet you have someone on your team that can look into this.

Joe - honesty is the best policy.  They need more information to save themselves from making a mistake.

Dependent on so many things, Joe Petrowsky.  A lender can only do what a lender can do, within their company's programs offered.  You have provided sound advice based on that.  It will be interesting to hear if they truly do pursue the purchase elsewhere .. keep us informed ...

Gene 

You gave them professional guidance and advice based upon FHA guidelines and the property condition. There isn't anything more you can or should have to do. Some people just don't like the answer they are given.  

Joe,

Where there is a will there is a way, perhaps they will find a way, or they need a reality check.  I am always willing to encourage someone try to do it.  A

Stand your ground, Joe. You know your business. These buyers will soon see the truth.

Joe and here lies the problem we had in the last decade.  You tell people the facts, tell them no you can't do it and why, but that is not what they want to hear.  So they keep looking until they find someone who says yes.  They then find themselves in foreclosure soon after purchasing they home, because they did not want to listen to the truth.  But OH wait it is ALL the fault of the Lender who ended up giving them what they wanted and would not take NO for an answer.

Sounds like an over active sense of instant gratification and they will hold their breath until someone gives them what they want

Joe, what did they not understand. Why would they want to get this house and be house poor and not able to do any renovations....I don't understand these buyers.

Kathleen, thanks for the heads up on this one. On the surface it certainly looks like a 203k or Homestyle possibility. The new FHA guidelines allow for repairing the pool regardless of the cost, there is no longer a $1500 limit for those repairs. Joe, send more information privately and I'll send you in the right direction. I'd need to know the potential purchase price +  $100,000 renovation and if that resulting number is $656,000 we should be good to go. If it more we have another product available that goes up to $3,000,000. this is not an advertisement, we don't make loans but we can certainly guide you in the right direction. 

You are a realist Joe. Honest and had working.

Well done, Joe!    Sometimes folks cannot be convinced not to pursue things they shouldn't pursue.   You can only guide.  

Some people are very determined to get themselves in serious financial trouble.  Aren't they, Joe?

Good morning Joe Petrowsky,

In this case you did the right thing! These people would be in way over their head with expenses to make this house livable. They obviously don't have the expertise or resources to take this project on..you are saving themselves from making a huge commitment and end up sorely disappointed!

Sounds like it could have turned into the all too common money pit. 

Tell them to buy a lottery ticket to finance the house Joe Petrowsky.   The odds are better than them getting a mortgage through you. 

You did the right thing. As industry professionals, we don't just sell houses and help with financing - what we do impacts lives. Whether someone chooses to note the facts or prefers to hunt down fictions that are more to their liking is a personal choice, but rarely seems to work well. It never feels good to be the first lender to say no, but kudos to you.

Sometimes, you need to step aside and to think again: what are your best options and who are the people you can trust.