Lessons Learned-Monster House Financing Fell Through

[Heather Dickison]

We had a 5 unit "monster-house" in escrow that we were supposed to close on this coming Friday. Our lender okayed us getting another 5+ unit property and we were going through the motions of getting the mortgage. On Thursday (the day before New Years Eve), they told us they realized it was a house converted into units and said that while they will finance to us, they won't finance to us on that property. We tried calling other banks but being at the end of the year most people were out of office so we are taking that as a sign to not get it. Hopefully we can get our earnest money back but we will see.

Luckily, we are closing on a separate 6 unit on Thursday so we won't be starting back at square one.

I will take that as a lesson learned - do not buy monster houses!

Has anyone had success with a monster house? Or bad stories such as this?