- Dec 26, 1999
- 25,074
- 4
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So, I've been getting a little frustrated in dealing with the bank which owns the home my fiance and I want to purchase. They were very stubborn with the price, no big deal, the price we agreed on was a paltry $500 below asking, but it was a reasonable price, so I could deal with it. So we agree to their counter offer, so everything should be good now. We wait over a week to hear back if they're going to accept our acceptance of the counter offer (?)
We hear back from the bank's agent yesterday, and they're rejecting the offer. Yes, they're rejecting our acceptance to *their* counter offer. Why, you ask? Because we're planning on financing the home with an FHA loan. Months ago, the home was priced 40K more than it is now, but to get the reduction the agent was begging them for (since he was never going to sell it), the bank had some sort of a professional assessment to find reasons to lower the price. The one reason they lowered it? It needs a roof. No big deal. Howerver, the bank will now not let the house go unless we take a 203K rehab loan (1.25% higher than our FHA loan rate) AND roll in the cost of the roof into our mortgage, raising our payments by nearly $300/mo. This effectively pushes our monthly payments out of our budget and we are now washing our hands of this house until we see another price reduction.
The stupid bank has been sitting on this home for a while now, is stubborn on the price, and is stubborn on the terms. They're never going to sell this house and I hope they keep losing money on it.
/rant :|
UPDATE - Well, now I REALLY hate the bank. They rejected THREE of our offers, all for asking price. Why, you ask? They didn't like our financing. First offer, they shot us down and came back saying they wanted a rehab loan. We got a rehab loan, wrote up another offer after being pre-approved for an FHA rehab loan. Shot down. Turns out they want to close in sooner than 45 days, FHA can't close that soon, they say they want HomePath financing. Fine! We'll go through the program they want (which is shady if you ask me) to get the faster closing. Nope. Shot down again. They want Homepath REHAB! You may be wondering why the listing agent didn't just tell this to us in the first place to avoid wasting almost three weeks of our time. The listing agent says the turnaround for the simplest of requests takes forever.
So we read more into the financing the selling bank wants us to use and we'd have to pay, ready for this? $12,700 (6.5 points we'd have to pay up front) to secure financing. That is OUTSIDE of closing costs. That is OUTSIDE of the down payment. None of that money would go toward our mortgage. We'd have to say bye bye to almost $20,000 to close on this house. Good-fucking-bye. This has been a terrible experience. I hope all of these banks trying to squeeze every cent out of these houses chokes and dies. They deserve no bailout and are doing nothing to help stimulate the housing market if this is how they are doing it. Forcing a buyer into unreasonable financing and wasting weeks of our time by not just coming forth with what they're looking for. You should not have to submit an offer and await acceptance to get another piece of the riddle out of the way.
:|
Edit - turns out Fannie Mae, who owns the house, also runs Homepath financing. No wonder why they're trying to strongarm people into that program :disgust:
2/12/09 - Update : the bank realized they had their heads up their ass. Long story short : they accepted a 203K FHA loan. No crazy up front fees or points. We just had the home inspected today and we saw nothing surprising. We'll be closing 3/19 :thumbsup:
We hear back from the bank's agent yesterday, and they're rejecting the offer. Yes, they're rejecting our acceptance to *their* counter offer. Why, you ask? Because we're planning on financing the home with an FHA loan. Months ago, the home was priced 40K more than it is now, but to get the reduction the agent was begging them for (since he was never going to sell it), the bank had some sort of a professional assessment to find reasons to lower the price. The one reason they lowered it? It needs a roof. No big deal. Howerver, the bank will now not let the house go unless we take a 203K rehab loan (1.25% higher than our FHA loan rate) AND roll in the cost of the roof into our mortgage, raising our payments by nearly $300/mo. This effectively pushes our monthly payments out of our budget and we are now washing our hands of this house until we see another price reduction.
The stupid bank has been sitting on this home for a while now, is stubborn on the price, and is stubborn on the terms. They're never going to sell this house and I hope they keep losing money on it.
/rant :|
UPDATE - Well, now I REALLY hate the bank. They rejected THREE of our offers, all for asking price. Why, you ask? They didn't like our financing. First offer, they shot us down and came back saying they wanted a rehab loan. We got a rehab loan, wrote up another offer after being pre-approved for an FHA rehab loan. Shot down. Turns out they want to close in sooner than 45 days, FHA can't close that soon, they say they want HomePath financing. Fine! We'll go through the program they want (which is shady if you ask me) to get the faster closing. Nope. Shot down again. They want Homepath REHAB! You may be wondering why the listing agent didn't just tell this to us in the first place to avoid wasting almost three weeks of our time. The listing agent says the turnaround for the simplest of requests takes forever.
So we read more into the financing the selling bank wants us to use and we'd have to pay, ready for this? $12,700 (6.5 points we'd have to pay up front) to secure financing. That is OUTSIDE of closing costs. That is OUTSIDE of the down payment. None of that money would go toward our mortgage. We'd have to say bye bye to almost $20,000 to close on this house. Good-fucking-bye. This has been a terrible experience. I hope all of these banks trying to squeeze every cent out of these houses chokes and dies. They deserve no bailout and are doing nothing to help stimulate the housing market if this is how they are doing it. Forcing a buyer into unreasonable financing and wasting weeks of our time by not just coming forth with what they're looking for. You should not have to submit an offer and await acceptance to get another piece of the riddle out of the way.
:|
Edit - turns out Fannie Mae, who owns the house, also runs Homepath financing. No wonder why they're trying to strongarm people into that program :disgust:
2/12/09 - Update : the bank realized they had their heads up their ass. Long story short : they accepted a 203K FHA loan. No crazy up front fees or points. We just had the home inspected today and we saw nothing surprising. We'll be closing 3/19 :thumbsup:
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