Replies to This Discussion

Permalink Reply by Bryant Tutas on February 27, 2010 at 2:59am

Jeanne. The reason they won't let the buyer bring the cash or the purchase price to be increased is because they want the seller to contribute to the debt they owe. This is normally based on the sellers ability to pay so they must have some funds available for this.

The answer is to negotiate. See how much the seller is willing to bring and then counter offer. You can also try a combination of cash to close and a promissory note. These notes normally have 0% interest and can be stretched out to 10 years.

Lenders can't get blood from a turnip and they know that. The sellers must have the means to make this work.

Just keep working it. If the deal dies because MI won't budge then you may need to just resubmit at the higher price and go back through the process to see if you get a different response from the MI company.

Permalink Reply by Joan Hawthorne on March 4, 2010 at 5:43pm

I currently have an approval from BOA. We tried it in Equator and it was denied and my file was deleted in a blink so I had to start over but the offer was higher. I complained when it was deleted without a counter option and was told that if it did not meet the Investor's terms it was to be denied and deleted. I complained that it was not a fair business practice to delete without the opportunity of a counter after all it takes time to do any process. I was told they were looking at 210k and my offer was 199k at the time. It was raised to $205k and re-entered.

At the same time I started the paper file when it was taking time for the equator file to get moving again.. They both progressed however the paper version got farther. My offer was approved but all of the sudden, we were slapped ith $7500 MI. BOA agreed to pay $4036.00 and said that all parties could contribute to the $3444.00 an not just the seller. He does not have the money or access now with his situation and just having twins born. His realtor has offered .5% to the cause $1025.00 and now we are hoping the buyer can contribute some of closing costs credit but not sure if that will work. What should we offer here to get this deal done? This was the last surprise factorr. Where else can we get the $2419.00? Should we offer a promissory? What can someone suggest that has been this route? With all the BOA I do, there is always an unwelcomed surprise.
Thank you

Permalink Reply by Jeanne Kozak on March 5, 2010 at 1:30am

There are only 4 places you can get it...seller, sellers agent, buyer, buyers agent...it really gets down to that. Somebody is going to have to ante up to get it done. The lenders are driving the bus, you either pay the fare or get off the bus. It may not seem fair, but nothing about this whole situation is fair. We had one this week go to sale on the couthouse steps and sold for $109,000, we had an offer on the table for $170,000 and they would not give us a 30 day extension to get the loan done. How stupid is that. There is no emotion on the other side, as agents we tend to get too emotional about the outcome, but the playing field is one sided. Buyers and sellers need to know this too. $2419 is a small price to pay to move on with life. A 0% interest note for the seller would be minimal in cost, and then they can move on and enjoy their new twins.