Looking for some help people....The property had been approved by Bank of America for $535,000 and HAFA approved with a 2nd mortgage also accepting all terms. Set to settle January 17th. Then the Buyers mortgage company's appraisel came in at $505,000. Wonderfully, both banks approve the new price. I've been working on this for 1-1/2 yrs. about 6 months ago, Seller rented the property out on a month to month basis -giving tenant 45 days notice. The Seller would not give notice to tenant until all approvals were in, which is too late for January closing. The Buyer is leaving the country for 1 month on the 19th. I requested an extension with the reason being Buyer out of town. BofA denied. I want to use that the tenant needs 45 days notice but am afraid the mortgage company will deny or be upset because property rented out. My understanding is that the rules were changed and tenant occupancy is allowed. However, I am leery. Suggestions?
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I would work on ways to get this closed without needing another extension. Maybe the new owner would allow the tenant 30 days to vacate?
The bigger issue is did the seller claim the rent $$ as income on his financial statement to the lender? If he did then they know it is rented. If he didn't...well he has an issue.
Close it now. Have it vacated by the time to buyer gets back into the country. Have the seller place some money in escrow until the tenant moves out for the protection of the buyer.
The bank does not give two hoots about the tenant needing time to move. By the way, it is my understanding that the HAFA money goes to the occupant of the property not the seller.
Thanks Bryant....But...more issues....The Buyers mortgage company wants tenant out and wants to re-inspect before settlement to be sure tenant is out and all debris is out of property....or I would have suggested the escrow idea already. The income wasn't stated in the financials because it was rented after income was reported and not asked to update. HAFA is allowing the $8500 to go to the 2nd mortgage. Bank of America has the property listed as tenant occupied in the Equator system. But actually putting it in writing to the Bank makes me nervous. So aggravating.....