Loan approved.... one more question!!!

16 years ago

I posted awhile back that we weren't going to qualify for our home we purchased back in March due to the stated income loans going bye bye.

Well we were able to qualify going full doc but now the tricky part comes in. You all know the Vegas market is tanking (duh)

Base price 429K

Upgrades 70K

Builder incentives 27K + 2% towards closing

Base price has since dropped to 383K now including granite. I want to put in a new offer due to the declining market.

360K including all upgrades and add granite we will cover closing costs. Does that sound reasonable? If they decline I have no problem walking away since it seems most of the contracts have gone under and I can wait it out.

My biggest question is do you all advise using a Real Estate Lawyer to draft up the new offer?

Sort by:Oldest

Comments (5)

mgreen1
16 years ago
You should have a professional handle this situation. You can negotiate with a real estate lawyer to supervise the whole transaction for a fixed fee or utilize the services of a real estate agent. If you use a real estate agent, the developer will have to pay his or her commission and it will not cost you. Arguably, making the developer pay a commission might reduce the amount of concessions the developer is willing to make, however, in my experience as a real estate attorney for over twenty years, you are better off having a professional (and you should be very careful choosing your professional as there are not many out there) negotiating on your behalf to get the most bang for your buck. If you choose either type representative, make sure you "google" them, ask for a resume and check with the local bar association or department of real estate to see if they can refer anyone or have information on the individuals you have spoken to. There are more bad attorneys and poor real estate agents then competant ones out there. The market in Vegas has tanked and will only get worse for the forseeable future. Go for as much as you can-the developer is lucky to have a sale. Good Luck with everything and as bad as the market is, I cannot remember anyone (excluding completely reckless individuals) ever, in the long run, regreting being a homeowner.
vegas_t
Original Author
16 years ago
Thanks mgreen1. I am not able to use an agent since they need to be with you at the time of registration...hindsight is 20/20. Original contract was signed last March.

You are right they are lucky to have a sale since most other contracts have canceled. I will definately do my research on the lawyer!!
Related Discussions
Help! Style and renovation loan questions!
Q
Comments (20)
The land is only assessed at $275,000 (I'm on another computer but it was close to that number) with the improvements (buildings) adding up to a total assessed value of around $1.1MM. They were asking 1.7MM so coming down to just under $1 was probably a stretch to them, but when the company was sold in 200? (I think it was 2007?) they only valued the property at $600,000 and some change when they made that sale (it was a corporate sale to a bigger entity). I think honestly...they have been smoking too much enbalming fluid....but given their recent drop, and their crazy previous asking price, I'm guessing they won't sell for $100,000 which is about all you'd want to pay with the work you say is necessary. FYI, I was actually just curious about the condition of the property, hence looking it up. I love an old house like no body's business :) I was hoping the damage you were discussing was overblown and maybe it wouldn't need the amount of work you mentioned...but given they show NO interior photo's...I'm guessing they know how bad it is. The other comps in the 8 surrounding blocks were all sales including a home and land at half a mill or less, a couple above that but just barely. Given most of them are on lots half the size, I'd guess they're in the 100,000 range but you could enter an address on your local tax records search engine and get that for sure. It is not taxed as two parcels so if you were to sell one, you'd have to have that approved (my land is similar) and in some places that's easy...some nearly impossible. Even if there are some multi-million mansions within the historic area (are there?) you still have to compare them with the other homes when doing a comp. If the local mansions are 6000 plus sq ft (seemed like big old homes are more on larger property? but I don't know for sure) than you'd have to have this place end up near that size or larger for a comp. THat's a big challenge...I'm guessing the old house used to be more like 3,000 to 5,000? The old house that was there was charming! And it saddens me to see that it's been destroyed, but sometimes you just have to sadly walk away and put your hard work and money into something that is more reasonable to save. :*( Makes you want to just shoot the people who destroyed it doesn't it? FYI, my house was a hospital...they can come back :) But in the end we will likely spend 1 to 2x our purchase price to get it there :( and it won't be appraised anywhere near what has to go into it. Such is life in the major old house remodel sadly! I was just lucky they didn't add flat roofed cement buildings to the back! (But we did find embalming fluid bottles as well as poison's in the cistern)
...See More
new fnma requirements on seller in order to approve buyer's loan?
Q
Comments (6)
rrah - I am considering reporting this deal to the Realtor's board. The brother was was also extremely rude to my agent and my mortgage broker. I haven't had any direct dealings with him, though, so the rudeness is hearsay. Oh, and he isn't just an agent, he IS the broker. The second lender actually worked out fine (junk fees actually a tad lower than the original lender), and the brother did have to pay a point to get me back to my locked rate (!ha!). If we didn't have personal reasons why we had to be in the house by the end of July, I might have pushed harder to keep my lender and push closing back 90 days. That would have given us three fewer months with two mortgages! The red flag was the contract that had been changed from "Mr. and Mrs. seller", to "Mr. and Mrs. Seller and assigns" to "Brother Broker." I did sign for the changes, but the lender found it fishy nonetheless. Everything, it appears, has come together. We did the walk through this afternoon (should I have written into the contract they had to take the dogs with them?) and closing is set for 2pm Friday. Thanks, all, and keep your fingers crossed.
...See More
Will I have a prayer at being approved for a construction loan?
Q
Comments (23)
The best way to get an answer to your question is to talk with a few different banks and see. If her name is on the deed to the land, she'll most likely need to be on the mortgage. However, there are ways around that (quit claim deed, removing her -for example). The problem I see will be your DTI as a single borrower. Even though you have no debt, with a $50k salary, a $1800-$2000 (borrowing $250k) mortgage payment puts you at almost 50% DTI. The other problem is that if you're wanting a $250k loan to build, the bank is probably going to want to see more than $20k in contingency funds unless you have a fixed contract. And remember, land equity does not equal cash. We had $140k cash, plus $300k in assets on a $600k build and I'd be horribly uncomfortable with anything less, knowing now how the building process goes.
...See More
One more catering/party question
Q
Comments (9)
I use caterers all the time (multiple times a week, different caterers.) They are rarely late as they are in the business of keeping customers happy. The latest I've seen is about 10 minutes. Personally, I would have them set up just prior to eating.... unless there isn't enough room for setup and guests at the same time. If the food is sitting there, but "off limits" until you say so, I think that doesn't present well. (What will you do? Put a sign up saying to not touch or rope off the area until 6...?) If there isn't enough room for set up and guests at the same time, I would ask for food to be setup for "eating at 5 pm." That would ensure they are gone before then, or close. They know what they are doing for set up and don't require supervision -- except showing them what table to set up at.
...See More
chapnc
16 years ago
You've already signed a contract with the builder? If you've already signed a contract, how can you put in a new offer?

Better take a close look at that contract. Is there a clause that allows you to cancel the contract (which you signed) just because the price dropped? I doubt it.

If you signed a contract and the builder has met all of their obligations under the contract, they could sue you for specific performance of the contract. Unless you can find a clause that allows you to withdraw or cancel, then the terms (and price) outlined in the signed contract still stand, regardless of any market drops or price reductions.

Maybe I'm missing something...........
vegas_t
Original Author
16 years ago
My contract has been looked over with a fine tooth comb, there is nothing there that says they can sue. Yes they will keep my deposit and upgrade deposit if I walked away.

Putting in a new offer is the only sensible thing to do. I will not buy a house that will not appraise for the purchase price nor will I move in being 100k upside down... doesnt make any sense.

Contracts are being walked away from on a daily bases right now...under construction homes on both sides of my house are now standing inventory because the buyers walked away.

I want the house, the builder wants to sell the house. I am sure they will be willing to renegotiate.

Thanks for your input Chapnc
hobokenkitchen
16 years ago
Do you have a financing contingency?

If so you could approach the builder by saying that you still want to buy the house but are certain that the house won't appraise (which would give you the option to walk away and get your deposits back).

Say you still want to buy the house at a price which will comp out to current sales and therefor appraise allowing you to move forward to closing.

Good luck.

Loan approved.... one more question!!!

Comments (5)

mgreen1

vegas_t
Original Author

Related Discussions

chapnc

vegas_t
Original Author

hobokenkitchen

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Loan approved.... one more question!!!

Comments (5)

mgreen1

vegas_tOriginal Author

Related Discussions

chapnc

vegas_tOriginal Author

hobokenkitchen

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

vegas_t
Original Author

vegas_t
Original Author