Dear Diary,
We were supposed to settle on our house on Friday, but Monday we had a hiccup. The hard money lender we were using did a classic bate and switch of loan programs. Instead of this project being a "no brainer" (according to the underwriter) it turned into a huge problem. In the beginning they were going to lend up $140,000 which included the purchase price and the rehab cost. For over a week I asked for the terms of the loan, to no avail. Finally, 5:30 pm on Monday I got the terms. They were now offering $100,000, with the insistance that the purchase price be renegotiated to $50,000 (a reduction of $35,000). We were less than 5 days from settlement on a short sale. There was no way we could get the price reduced. But, that wasn't the clincher, diary, they wanted us to sign a "Deed in Lieu of Foreclosure" up front and let them hold it and, in addition, the terms stated that they could foreclose with out any notice to us. There's no way I was going to sign that agreement. In addition they wanted us to use their title company, even though we had already ordered title work and it was complete along with the 
survey, and they wanted us to use their insurance provider for Builder's Risk insurance at an increased cost to us of over $300.
I called my good friend Steve Kirr at Equity Mortgage Lending in Towson and he introduced me to Jason Balen at Hard Money Bankers. I met with Jason and we are now back in business and will settle early next week. And, they'll use the title work that's already completed and I made a good connection between Hard Money Bankers LLC and our insurance provider Carter Mason, who will provide our Builder's Risk Insurance.
Never discount the power of networking. Everyone you meet could be your next deal!!
This was just a minor set back. And, with the snow over the weekend and the frigid temperatures today, this was just a minor set back and we'll soon be back in business.
Stay tuned until next time!!
*************************************************************************************
If you are thinking of buying or selling a home give me a call today and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building a lone is worth the plunge into todays market.
During 2009 Advance Realty Anne Arundel Inc is waving administrative fees active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve Advance Realty Anne Arundel Inc. will waive the admin fee at settlement. This is a $350 savings. If you are thinking about buying or selling a home give Advance Realty Anne Arundel a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-761-1550.
June Piper-Brandon, Broker - Advance Realty Anne Arundel Inc.
Comments(2)