Buyer Confusion

[frustrated02]

What is the name of your state (only U.S. law)? Texas

We placed a contract on a house that is bank owned. We had submitted our loan approval with our offer and had set the closing for two weeks for the day the contract was submitted. I thought this was quick, but my realtor and mortgage guy said it could be done. So our contract was accepted and we thought we were on our way to closing. Well we were until I found out that our lender was trying to take us FHA. On our loan approval it does not say FHA so I did not know until I was sent some documents to sign and saw we were going FHA. The thing with this is FHA limits are $271K here and we would have to have over $100k to put down on the home. So at this point we were 8 days from closing.

When I contact our lender that day to tell him this wouldn't work he said he would call me back once he gets our new loan lined out. Well after many calls to him and e-mails we never heard anything. So I started to panic and started looking for another lender. At this point our realtor requested an extension for a week. So I had to find a lender to close us in two weeks. After finding a guy who said he could do it but it would be tight. When he went to submit to underwriting it went from a two day turnaround to 7 day turnaround. So this would mean we could not close again on time.

So our realtor goes to submit another extension and now the bank says unless we can get qualified from their bank he won't extend the contract.

So from what I understand we are dead in the water and have now lost our earnest check as well. Is this right? I can't get an answer from anyone on this. The mortgage guy from the bank won't return my calls either.

[nextwife]

Originally Posted by frustrated02

So our realtor goes to submit another extension and now the bank says unless we can get qualified from their bank he won't extend the contract.

So WHY won't you talk to someone from the bank who owns the REO to get qualified? The REO owner will sometimes offer far better deals on their own properties than you can get through a mortgage broker, and lower closing fees.

Placing an offer for a two week closing that needs to go FHA is crazy. You really should have pinned down exactly what type of program you were going to sue before writing an offer. A seller of an REO may not be willing to sell to an FHA buyer. It needs to be disclosed UP FRONT if a buyer intends to use FHA.

[frustrated02]

Originally Posted by nextwife

So WHY won't you talk to someone from the bank who owns the REO to get qualified? The REO owner will sometimes offer far better deals on their own properties than you can get through a mortgage broker, and lower closing fees.

Placing an offer for a two week closing that needs to go FHA is crazy. You really should have pinned down exactly what type of program you were going to sue before writing an offer. A seller of an REO may not be willing to sell to an FHA buyer. It needs to be disclosed UP FRONT if a buyer intends to use FHA.

First, I did think I knew what type of program. On our approval letter it says conventional. No where does it say FHA! I caught that it was FHA when I was sent some documents to sign.

Also, I have tried to contact the banks Mortgage company. I can't get a call back. So now I am stuck and about to lose this house.

[HomeGuru]

Originally Posted by frustrated02

First, I did think I knew what type of program. On our approval letter it says conventional. No where does it say FHA! I caught that it was FHA when I was sent some documents to sign.

Also, I have tried to contact the banks Mortgage company. I can't get a call back. So now I am stuck and about to lose this house.

**A: maybe you need to find another house.

[nextwife]

Originally Posted by frustrated02

First, I did think I knew what type of program. On our approval letter it says conventional. No where does it say FHA! I caught that it was FHA when I was sent some documents to sign.

Also, I have tried to contact the banks Mortgage company. I can't get a call back. So now I am stuck and about to lose this house.

Ask your broker to have the listing agent find out from the lender contact who THEY want to to talk to, and their contact info.

[HomeGuru]

Typical delays regarding REO properties.