You’d think a bank who wants to sell a house and a buyer who wants to buy a house with agreement on the price would have no problem seeing a transaction through – right? You’d be wrong. The seller has rejected our addendum and rather than saying why, has declared the deal to be dead. Our attorney’s take on this is that with banks laying off so many employees, the Loss Mitigation department staff are often swamped with transactions and not open to a lot of dialogue.
After consultation with everyone that there is to consult, we have a plan. We believe we can salvage this deal but it will mean a few more days and finding a different lender, as our lender needed a signed contract by the end of today’s business day due to our specific loan program being terminated (the so-called 203K program, if I’m not mistaken).
The town where the house is located requires buyers to put funds in escrow with the town to insure the completion of repairs. The fact that we’re getting a renovation loan should be enough, one would reason, to have this requirement waived by the township but it isn’t. We’re having a town inspector come through before resubmitting our offer with the original addendum (causing us to take a $4K loss) to insure that we can actually afford the required escrow.
This has been quite an educational process and it isn’t over yet.
