C
cwally
Guest
We have purchased a new home (in Missouri) and in the sales contract clearly indicated it was a VA loan. After everyone signed the agreement (us, the builder, and the Real Estate Company), the mortgage company sent a request for an appraisal and requested the contractor's VA builder number. As it turned out, he was not a registered builder.
The realtor came back wanting us to pay the $500 registration fee for the construction company to become a VA builder + another $1000 for the purchase of a 10 year warranty required by the VA. We were offered an alternative: to pursue conventional financing (which would have cost us for Private Mortgage Insurance and a rate increase of more than 1/2 % from the rate we locked in). We refused and pointed out that it was not the builders fault, and certainly not ours. Our contention was that the Realtor, as the professional, should have known the requirements upfront and covered it at the time the VA provision on the sales contract became known, and thus should be responsible for the fees.
In frustration, we finally told them that we would turn it over to our attorney and do whatever he told us to do.
They called us that evening and told us the contractor had agreed to pay the required fees. This is a brand new home, still under construction. Since that time, all construction has stopped. The "For Sale" realtor sign remains on the property without the customary "under contract" sign posted. They told us when we signed the agreement that they had a "backup" offer from someone else, but we got in first. I originally thought that to be a sales tactic. We have been told that the builder has applied to the VA for his registration. The Realtor is no longer keeping us updated as to the progress of the registration, paperwork, etc. and seems to be short and anxious not to speak to us when we call for an update.
We are scheduled to close on November 16. Our mortgage company has sent a commitment letter to the realtor, subject to the appraisal, demonstrating that we have met all the requirements.
I suspect that they may be dragging their feet, waiting for the contract to expire without the conditions being met as a way to get them off the hook.
Is there anyway I can check to see if the VA has received the required documentation and is in the process of issuing the number? Is there anyway I can force the realtor to demonstrate they are progessing in good faith?
We have given notice where we presently reside. I envision us being told at the last minute that the deal cannot be completed on time and having nowhere to go. Would greatly appreciate some advice.
Thx
The realtor came back wanting us to pay the $500 registration fee for the construction company to become a VA builder + another $1000 for the purchase of a 10 year warranty required by the VA. We were offered an alternative: to pursue conventional financing (which would have cost us for Private Mortgage Insurance and a rate increase of more than 1/2 % from the rate we locked in). We refused and pointed out that it was not the builders fault, and certainly not ours. Our contention was that the Realtor, as the professional, should have known the requirements upfront and covered it at the time the VA provision on the sales contract became known, and thus should be responsible for the fees.
In frustration, we finally told them that we would turn it over to our attorney and do whatever he told us to do.
They called us that evening and told us the contractor had agreed to pay the required fees. This is a brand new home, still under construction. Since that time, all construction has stopped. The "For Sale" realtor sign remains on the property without the customary "under contract" sign posted. They told us when we signed the agreement that they had a "backup" offer from someone else, but we got in first. I originally thought that to be a sales tactic. We have been told that the builder has applied to the VA for his registration. The Realtor is no longer keeping us updated as to the progress of the registration, paperwork, etc. and seems to be short and anxious not to speak to us when we call for an update.
We are scheduled to close on November 16. Our mortgage company has sent a commitment letter to the realtor, subject to the appraisal, demonstrating that we have met all the requirements.
I suspect that they may be dragging their feet, waiting for the contract to expire without the conditions being met as a way to get them off the hook.
Is there anyway I can check to see if the VA has received the required documentation and is in the process of issuing the number? Is there anyway I can force the realtor to demonstrate they are progessing in good faith?
We have given notice where we presently reside. I envision us being told at the last minute that the deal cannot be completed on time and having nowhere to go. Would greatly appreciate some advice.
Thx