This is a headache! Help!

What is the name of your state? Minnesota

I am selling my home and purchasing another one.

The buyers on my home have dragged the closing out beyond the date agreed upon in the purchase agreement which was Sept. 1. They have lied about the reasons for this: starting with wanting to sell mom's house to get more down payment money, this was not a contignency, then he had a judgement he wanted to go to court to clear up, said it was really a previous business partners judgement and somehow it got in his name. As it turns out the real reason is that they didn't like the interest rate they were getting from their lender (purchase agreement was based on "market rates") so they switched lenders in mid-stream.

The problem is that they changed to FHA financing. The purchase agreement states only conventional financing. I did not want to have to deal with the slow wheels and government requirements in this process.

I told them that FHA financing is not an option. Their realtor scheduled an appraiser to come out here yesterday. An appraiser? Since when does an appraiser check the water, electrical and electrical box and reverse mechanism on the garage door opener and discuss waiving FHA requirements?
I think this was an FHA inspection which I emphatically told them I would not allow!

The biggest problem is that if I don't close on my purchase by Tuesday, my sellers are pulling out. They are tired of waiting and I certainly don't blame them. I was originally scheduled to close on my buy Aug. 26, and the sellers graciously agreed to Sept. 1 and again graciously agreed to Sept. 10. We are not past that date.

I have been told that the closing are all supposed to take place on Tuesday of this week but I really have my doubts about that considering the FHA is involved in this.

Do I have any recourse?

P.S. We were not notified at the time these buyers decided to switch financing to FHA.

[FloridaRob]

An appraiser has a sheet called VC(Valuation Conditions) that have to filled out for an FHA inspection. Could be the appraiser is an Fha appraiser and does this sort of checking even for conventional financing. The fact that is an FHA loan vs conventional doesn't mean anything to the appraiser because he does the same job regardless. Or he should do the same job regardless..

Just more paperwork for the government appraisal....

AS far as recourse, you may need to consult an attorney. IF it is just getting your earnest money back, that should be spelled out in teh contract.

[HomeGuru]

Originally Posted by tnich

What is the name of your state? Minnesota

I am selling my home and purchasing another one.

The buyers on my home have dragged the closing out beyond the date agreed upon in the purchase agreement which was Sept. 1. They have lied about the reasons for this: starting with wanting to sell mom's house to get more down payment money, this was not a contignency, then he had a judgement he wanted to go to court to clear up, said it was really a previous business partners judgement and somehow it got in his name. As it turns out the real reason is that they didn't like the interest rate they were getting from their lender (purchase agreement was based on "market rates") so they switched lenders in mid-stream.

The problem is that they changed to FHA financing. The purchase agreement states only conventional financing. I did not want to have to deal with the slow wheels and government requirements in this process.

**A: then you have justification for breach of contract or to terminate the contratc.
*******
I told them that FHA financing is not an option. Their realtor scheduled an appraiser to come out here yesterday. An appraiser? Since when does an appraiser check the water, electrical and electrical box and reverse mechanism on the garage door opener and discuss waiving FHA requirements?

**A: since now HUD requires an FHA appraisal inspection to be almost like a general home inspection. Search HUD Homebuyers Protection Act.
******
I think this was an FHA inspection which I emphatically told them I would not allow!

The biggest problem is that if I don't close on my purchase by Tuesday, my sellers are pulling out. They are tired of waiting and I certainly don't blame them. I was originally scheduled to close on my buy Aug. 26, and the sellers graciously agreed to Sept. 1 and again graciously agreed to Sept. 10. We are not past that date.

I have been told that the closing are all supposed to take place on Tuesday of this week but I really have my doubts about that considering the FHA is involved in this.

Do I have any recourse?

**A: time for an attorney review.

[HomeGuru]

[quote=FloridaRob]An appraiser has a sheet called VC(Valuation Conditions) that have to filled out for an FHA inspection. Could be the appraiser is an Fha appraiser and does this sort of checking even for conventional financing. The fact that is an FHA loan vs conventional doesn't mean anything to the appraiser because he does the same job regardless. Or he should do the same job regardless..

**A: not true. The appraiser inspection standards are different for a conventional loan versus an FHA loan.

[FloridaRob]

guru, not true. inspections standards by appraisers are the same regardless of where the appraisal is going. Now how the appraiser handles those things are different. On an FHA loan, the appraiser will require all items to work properly or be made to work properly. He appraises the property "subject to" those items that are in need of repair to be completed.

If it is a conventional appraisal he will consider the property "as is" and consider the items required to be fixed as deferred depreciation.

There are things that FHA requires that conventional do not but as far as the appariser goes, his job should be the same regardless. If he is a decent appraiser anyway. but many appraisers out there today are there just to justify a loan amount and have no clue what appraising really is....

Thank you all. You have been quite helpful. I think I will consult an attorney.
This really has gone to far with all of their deceit.

[HomeGuru]

Originally Posted by FloridaRob

guru, not true. inspections standards by appraisers are the same regardless of where the appraisal is going. Now how the appraiser handles those things are different. On an FHA loan, the appraiser will require all items to work properly or be made to work properly. He appraises the property "subject to" those items that are in need of repair to be completed.

If it is a conventional appraisal he will consider the property "as is" and consider the items required to be fixed as deferred depreciation.

There are things that FHA requires that conventional do not but as far as the appariser goes, his job should be the same regardless. If he is a decent appraiser anyway. but many appraisers out there today are there just to justify a loan amount and have no clue what appraising really is....

**A: are you an approved FHA appraiser? It is obvious that you do not know the inspection standards between an FHA and a conventional appraisal.

[FloridaRob]

Originally Posted by HomeGuru

**A: are you an approved FHA appraiser? I is obvious that you do not know the inspection standards between an FHA and a conventional appraisal.

hey clueless. Why don't YOU tell me the difference? This should be entertaining.

[HomeGuru]

Originally Posted by FloridaRob

hey clueless. Why don't YOU tell me the difference? This should be entertaining.

**A: I asked you first. What's the matter, you don't really know?

[FloridaRob]

Guru. tell me just one difference in inspection process. Just one. That should not take you all that long to come up just one. Just one thing that an appraiser will do in the inspection of an FHA property that he wont do in the conventional process. Can you come up with ONE difference.....

[HomeGuru]

Originally Posted by FloridaRob

Guru. tell me just one difference in inspection process. Just one. That should not take you all that long to come up just one. Just one thing that an appraiser will do in the inspection of an FHA property that he wont do in the conventional process. Can you come up with ONE difference.....

**A: you failed to answer my one easy yes or no question. Are you an FHA appraiser, Yes or NO? Just say yes or no. What is so hard about doing that?

[BelizeBreeze]

Guru. tell me just one difference in inspection process. Just one.

Well now, I'm not HG but I'm tiring of your crap as well.

So, let's see. ONE difference in the inspection process? How about starting at the very beginning. whether or not the home is being financed by FHA, HUD or private lending institution which all require separate forms and processes to be completed.

Or would you suggest that a 'drive-by' inspection report be submitted for an FHA-financed home in need of less than $5,000 in repairs and forgo the completion of the URAR or the VC and specific reporting requirements?

Now, isn't about time you answered HG's question? It might be very interesting to hear the answer.

[FloridaRob]

Beli, Glad you could join the party. Apparently your reading skills and comprehension skills are every bit as good or bad as HGs. Are you guys related??

I already said that the inspection process was the same for Conventional and FHA but how that information is handled is different. I am sure if you read above you can find it. If you need help, I will copy and paste it.

Again I repeat the appraiser inspection standards are THE SAME. (that is of course if the appraiser is worth anything.) If there are items found in the FHA inspection, the appraiser requires them to be fixed in the VC addendums. If is is conventional, the appraiser considers them in the depreciation or deferred maintenance. Of course a drive by is not acceptable as an FHA inspection. But I am not talking about a driveby that any bank employee can do. I am talking about an exterior-interior 1004 URAR appraisal inspection. Name one thing that the appraiser looks at as an FHA inspector but NOT when the property is going Conventional. The clock is ticking.. Now I answered his question?? Just as I answered above.

[FloridaRob]

And yes Guru, I am an FHA appraiser in Central Florida.