Banks making it impossible to buy their glut of properties

[UCGal]

I’m not going to address the specific nits mentioned here – but bring up some hoops a friend is going through.

She and her husband are buying a bank owned home in Simi. Ironically, they’d made an offer when it was pre-forclosure for a lot more than the current agreed upon price. Previous idiots rejected it and got foreclosed on.

They have done everything right. Spent far less then their income to save a large downpayment. Doing so meant living in a very small rental for years. They each have 1 credit card, that they pay off in full each month. They were easily pre-approved, at a decent rate, for the price.

The selling bank first tried to insist they finance through them at a less favorable rate. They successfully rejected that.

Their escrow was going forward when the *selling* bank said they didn’t have *enough* credit. Insisted they get more credit cards. WTF? (They have credit scores in the high 700’s!) Mind you the lender is fine with their credit and they’re the one loaning the money. The *selling* bank also said that their frugal rent of the past 5 years was too low compared to their mortgage payment and suggested they would have payment shock. Their realtor has worked overtime explaining that they were saving the difference – and that was the source of their downpayment.

These are people who lived below their means to save a downpayment. Paid their credit cards on time, in full. Did everything right. Their lender is thrilled with them. The selling bank is being ridiculous.

It’s like the selling bank doesn’t want to sell. Escrow has been pushed back while this is resolved. It’s a nightmare.

[Cosmo31]

Thanks to Greater and Lesser Yoda for all the input. You have eased some of my fears about this purchase addendum and you will probably make my last two days of vacation a bit less alcohol laden because my decreased stress level. Yes, I am thinking about this purchase during my vacation. It happens to fall on my Big Bear get-away, hence my late response to all the useful information.

Urban,
You were spot-on with the 3 different inspection periods listed in the same paragraph. I was under the impression that 17 days was required by law. The addendum says the buyer must inspect the property within 17 calendar days from the “Financial Terms Acknowledgement Date” but buyer must notify the seller of “objections to the condition” (dead bodies covered in mold) within 10 calendar days. However, if the seller makes repairs, 15 days after the repair is the duration of the inspection time. Can’t the hermetically sealed gnomes take an average and say 14 days is the universal inspection time? We will definitely clarify the time for inspection.

I’m still not clear about the “Lending contingency period.” I have no contingencies such as buying this home is contingent upon selling another. But I am not sure if that example is one you are speaking of. Do all property purchases have contingency periods?

SD,
With all the good advice you have graciously bestowed, I have trouble calling you ‘Lesser Yoda.’ I think Urban is a gifted yet overzealous young jedi.

I’m glad the examples listed from the addendum did not seem so completely out of the ordinary to you. My big question was whether this contract was as bogus as my loan agent said. You have shown me that I am possibly injecting a bit too much fear into this process. Oh, let me inject some more fear: my biggest fear is that this middleman company will string out the process and milk me for the $510.00/day penalty because they are dirty, low-down, faceless, nameless, slime-oosing, tentacle-dragging, bottom feeders. Or, maybe they are fair agents trying to unload homes in a timely fashion. There is NO way for me to know. Even though my loan agent spoke to a representative from the company and he felt more at ease after that conversation, it is still my name on that contract.

UCGal,
Your story sounds really familiar.

Thanks a TON for all the info.

[Cosmo31]

Thanks to Greater and Lesser Yoda for all the input. You have eased some of my fears about this purchase addendum and you will probably make my last two days of vacation a bit less alcohol laden because my decreased stress level. Yes, I am thinking about this purchase during my vacation. It happens to fall on my Big Bear get-away, hence my late response to all the useful information.

Urban,
You were spot-on with the 3 different inspection periods listed in the same paragraph. I was under the impression that 17 days was required by law. The addendum says the buyer must inspect the property within 17 calendar days from the “Financial Terms Acknowledgement Date” but buyer must notify the seller of “objections to the condition” (dead bodies covered in mold) within 10 calendar days. However, if the seller makes repairs, 15 days after the repair is the duration of the inspection time. Can’t the hermetically sealed gnomes take an average and say 14 days is the universal inspection time? We will definitely clarify the time for inspection.

I’m still not clear about the “Lending contingency period.” I have no contingencies such as buying this home is contingent upon selling another. But I am not sure if that example is one you are speaking of. Do all property purchases have contingency periods?

SD,
With all the good advice you have graciously bestowed, I have trouble calling you ‘Lesser Yoda.’ I think Urban is a gifted yet overzealous young jedi.

I’m glad the examples listed from the addendum did not seem so completely out of the ordinary to you. My big question was whether this contract was as bogus as my loan agent said. You have shown me that I am possibly injecting a bit too much fear into this process. Oh, let me inject some more fear: my biggest fear is that this middleman company will string out the process and milk me for the $510.00/day penalty because they are dirty, low-down, faceless, nameless, slime-oosing, tentacle-dragging, bottom feeders. Or, maybe they are fair agents trying to unload homes in a timely fashion. There is NO way for me to know. Even though my loan agent spoke to a representative from the company and he felt more at ease after that conversation, it is still my name on that contract.

UCGal,
Your story sounds really familiar.

Thanks a TON for all the info.

[Cosmo31]

Thanks to Greater and Lesser Yoda for all the input. You have eased some of my fears about this purchase addendum and you will probably make my last two days of vacation a bit less alcohol laden because my decreased stress level. Yes, I am thinking about this purchase during my vacation. It happens to fall on my Big Bear get-away, hence my late response to all the useful information.

Urban,
You were spot-on with the 3 different inspection periods listed in the same paragraph. I was under the impression that 17 days was required by law. The addendum says the buyer must inspect the property within 17 calendar days from the “Financial Terms Acknowledgement Date” but buyer must notify the seller of “objections to the condition” (dead bodies covered in mold) within 10 calendar days. However, if the seller makes repairs, 15 days after the repair is the duration of the inspection time. Can’t the hermetically sealed gnomes take an average and say 14 days is the universal inspection time? We will definitely clarify the time for inspection.

I’m still not clear about the “Lending contingency period.” I have no contingencies such as buying this home is contingent upon selling another. But I am not sure if that example is one you are speaking of. Do all property purchases have contingency periods?

SD,
With all the good advice you have graciously bestowed, I have trouble calling you ‘Lesser Yoda.’ I think Urban is a gifted yet overzealous young jedi.

I’m glad the examples listed from the addendum did not seem so completely out of the ordinary to you. My big question was whether this contract was as bogus as my loan agent said. You have shown me that I am possibly injecting a bit too much fear into this process. Oh, let me inject some more fear: my biggest fear is that this middleman company will string out the process and milk me for the $510.00/day penalty because they are dirty, low-down, faceless, nameless, slime-oosing, tentacle-dragging, bottom feeders. Or, maybe they are fair agents trying to unload homes in a timely fashion. There is NO way for me to know. Even though my loan agent spoke to a representative from the company and he felt more at ease after that conversation, it is still my name on that contract.

UCGal,
Your story sounds really familiar.

Thanks a TON for all the info.

[Cosmo31]

Thanks to Greater and Lesser Yoda for all the input. You have eased some of my fears about this purchase addendum and you will probably make my last two days of vacation a bit less alcohol laden because my decreased stress level. Yes, I am thinking about this purchase during my vacation. It happens to fall on my Big Bear get-away, hence my late response to all the useful information.

Urban,
You were spot-on with the 3 different inspection periods listed in the same paragraph. I was under the impression that 17 days was required by law. The addendum says the buyer must inspect the property within 17 calendar days from the “Financial Terms Acknowledgement Date” but buyer must notify the seller of “objections to the condition” (dead bodies covered in mold) within 10 calendar days. However, if the seller makes repairs, 15 days after the repair is the duration of the inspection time. Can’t the hermetically sealed gnomes take an average and say 14 days is the universal inspection time? We will definitely clarify the time for inspection.

I’m still not clear about the “Lending contingency period.” I have no contingencies such as buying this home is contingent upon selling another. But I am not sure if that example is one you are speaking of. Do all property purchases have contingency periods?

SD,
With all the good advice you have graciously bestowed, I have trouble calling you ‘Lesser Yoda.’ I think Urban is a gifted yet overzealous young jedi.

I’m glad the examples listed from the addendum did not seem so completely out of the ordinary to you. My big question was whether this contract was as bogus as my loan agent said. You have shown me that I am possibly injecting a bit too much fear into this process. Oh, let me inject some more fear: my biggest fear is that this middleman company will string out the process and milk me for the $510.00/day penalty because they are dirty, low-down, faceless, nameless, slime-oosing, tentacle-dragging, bottom feeders. Or, maybe they are fair agents trying to unload homes in a timely fashion. There is NO way for me to know. Even though my loan agent spoke to a representative from the company and he felt more at ease after that conversation, it is still my name on that contract.

UCGal,
Your story sounds really familiar.

Thanks a TON for all the info.

[Cosmo31]

Thanks to Greater and Lesser Yoda for all the input. You have eased some of my fears about this purchase addendum and you will probably make my last two days of vacation a bit less alcohol laden because my decreased stress level. Yes, I am thinking about this purchase during my vacation. It happens to fall on my Big Bear get-away, hence my late response to all the useful information.

Urban,
You were spot-on with the 3 different inspection periods listed in the same paragraph. I was under the impression that 17 days was required by law. The addendum says the buyer must inspect the property within 17 calendar days from the “Financial Terms Acknowledgement Date” but buyer must notify the seller of “objections to the condition” (dead bodies covered in mold) within 10 calendar days. However, if the seller makes repairs, 15 days after the repair is the duration of the inspection time. Can’t the hermetically sealed gnomes take an average and say 14 days is the universal inspection time? We will definitely clarify the time for inspection.

I’m still not clear about the “Lending contingency period.” I have no contingencies such as buying this home is contingent upon selling another. But I am not sure if that example is one you are speaking of. Do all property purchases have contingency periods?

SD,
With all the good advice you have graciously bestowed, I have trouble calling you ‘Lesser Yoda.’ I think Urban is a gifted yet overzealous young jedi.

I’m glad the examples listed from the addendum did not seem so completely out of the ordinary to you. My big question was whether this contract was as bogus as my loan agent said. You have shown me that I am possibly injecting a bit too much fear into this process. Oh, let me inject some more fear: my biggest fear is that this middleman company will string out the process and milk me for the $510.00/day penalty because they are dirty, low-down, faceless, nameless, slime-oosing, tentacle-dragging, bottom feeders. Or, maybe they are fair agents trying to unload homes in a timely fashion. There is NO way for me to know. Even though my loan agent spoke to a representative from the company and he felt more at ease after that conversation, it is still my name on that contract.

UCGal,
Your story sounds really familiar.

Thanks a TON for all the info.

[SD Realtor]

Cosmo there are several “contingency” periods. One of them is your loan contingency, or what you are referring to as the lending contingency period. In general, the date of acceptance is when the clock starts ticking so to speak. In your case it may be different but more then likely it is not. From that point you X days that you can back out of the deal because you did not get the loan for whatever reason. Perhaps you didn’t get your desired rate, perhaps something has changed in your life, whatever the reason, if you don’t get the loan you want you can essentially use this contingency to back out. This contingency has nothing to do with you having or not having to sell another home.

Most all lenders that have properties will use a broker or auction house in one form or another to represent them for the property sale. The fine that they are imposing on you is directly from the lender and goes to the lender. The brokerage gets none of it. While this is a speculative statement by me it generally holds true. I know you want to focus your ire on this middleman but in all honesty it is the lender who owns the home that you should gripe about.

If your loan agent is stating this is bogus, ask your loan agent how many contracts they have reviewed for REO properties and if they say ALOT of them then all I can tell you is what you have described is fairly standard with respect to the ones I have seen. I am meeting someone for breakfast tomorrow to present and IDENTICAL contract addendum that you discussed, even down to the late fee. The listing agent is Coldwell Banker and it is an REO property.

As for lesser jedi and all that… I pretty much just laugh… I am to busy to really care.

[SD Realtor]

Cosmo there are several “contingency” periods. One of them is your loan contingency, or what you are referring to as the lending contingency period. In general, the date of acceptance is when the clock starts ticking so to speak. In your case it may be different but more then likely it is not. From that point you X days that you can back out of the deal because you did not get the loan for whatever reason. Perhaps you didn’t get your desired rate, perhaps something has changed in your life, whatever the reason, if you don’t get the loan you want you can essentially use this contingency to back out. This contingency has nothing to do with you having or not having to sell another home.

Most all lenders that have properties will use a broker or auction house in one form or another to represent them for the property sale. The fine that they are imposing on you is directly from the lender and goes to the lender. The brokerage gets none of it. While this is a speculative statement by me it generally holds true. I know you want to focus your ire on this middleman but in all honesty it is the lender who owns the home that you should gripe about.

If your loan agent is stating this is bogus, ask your loan agent how many contracts they have reviewed for REO properties and if they say ALOT of them then all I can tell you is what you have described is fairly standard with respect to the ones I have seen. I am meeting someone for breakfast tomorrow to present and IDENTICAL contract addendum that you discussed, even down to the late fee. The listing agent is Coldwell Banker and it is an REO property.

As for lesser jedi and all that… I pretty much just laugh… I am to busy to really care.

[SD Realtor]

Cosmo there are several “contingency” periods. One of them is your loan contingency, or what you are referring to as the lending contingency period. In general, the date of acceptance is when the clock starts ticking so to speak. In your case it may be different but more then likely it is not. From that point you X days that you can back out of the deal because you did not get the loan for whatever reason. Perhaps you didn’t get your desired rate, perhaps something has changed in your life, whatever the reason, if you don’t get the loan you want you can essentially use this contingency to back out. This contingency has nothing to do with you having or not having to sell another home.

Most all lenders that have properties will use a broker or auction house in one form or another to represent them for the property sale. The fine that they are imposing on you is directly from the lender and goes to the lender. The brokerage gets none of it. While this is a speculative statement by me it generally holds true. I know you want to focus your ire on this middleman but in all honesty it is the lender who owns the home that you should gripe about.

If your loan agent is stating this is bogus, ask your loan agent how many contracts they have reviewed for REO properties and if they say ALOT of them then all I can tell you is what you have described is fairly standard with respect to the ones I have seen. I am meeting someone for breakfast tomorrow to present and IDENTICAL contract addendum that you discussed, even down to the late fee. The listing agent is Coldwell Banker and it is an REO property.

As for lesser jedi and all that… I pretty much just laugh… I am to busy to really care.

[SD Realtor]

Cosmo there are several “contingency” periods. One of them is your loan contingency, or what you are referring to as the lending contingency period. In general, the date of acceptance is when the clock starts ticking so to speak. In your case it may be different but more then likely it is not. From that point you X days that you can back out of the deal because you did not get the loan for whatever reason. Perhaps you didn’t get your desired rate, perhaps something has changed in your life, whatever the reason, if you don’t get the loan you want you can essentially use this contingency to back out. This contingency has nothing to do with you having or not having to sell another home.

Most all lenders that have properties will use a broker or auction house in one form or another to represent them for the property sale. The fine that they are imposing on you is directly from the lender and goes to the lender. The brokerage gets none of it. While this is a speculative statement by me it generally holds true. I know you want to focus your ire on this middleman but in all honesty it is the lender who owns the home that you should gripe about.

If your loan agent is stating this is bogus, ask your loan agent how many contracts they have reviewed for REO properties and if they say ALOT of them then all I can tell you is what you have described is fairly standard with respect to the ones I have seen. I am meeting someone for breakfast tomorrow to present and IDENTICAL contract addendum that you discussed, even down to the late fee. The listing agent is Coldwell Banker and it is an REO property.

As for lesser jedi and all that… I pretty much just laugh… I am to busy to really care.

[SD Realtor]

Cosmo there are several “contingency” periods. One of them is your loan contingency, or what you are referring to as the lending contingency period. In general, the date of acceptance is when the clock starts ticking so to speak. In your case it may be different but more then likely it is not. From that point you X days that you can back out of the deal because you did not get the loan for whatever reason. Perhaps you didn’t get your desired rate, perhaps something has changed in your life, whatever the reason, if you don’t get the loan you want you can essentially use this contingency to back out. This contingency has nothing to do with you having or not having to sell another home.

Most all lenders that have properties will use a broker or auction house in one form or another to represent them for the property sale. The fine that they are imposing on you is directly from the lender and goes to the lender. The brokerage gets none of it. While this is a speculative statement by me it generally holds true. I know you want to focus your ire on this middleman but in all honesty it is the lender who owns the home that you should gripe about.

If your loan agent is stating this is bogus, ask your loan agent how many contracts they have reviewed for REO properties and if they say ALOT of them then all I can tell you is what you have described is fairly standard with respect to the ones I have seen. I am meeting someone for breakfast tomorrow to present and IDENTICAL contract addendum that you discussed, even down to the late fee. The listing agent is Coldwell Banker and it is an REO property.

As for lesser jedi and all that… I pretty much just laugh… I am to busy to really care.

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