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Updated about 8 years ago,
Trying to be a "have"
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i am a first time buyer in the hope program who needs to go Fha. October 3rd made an offer on a home that was in process of being rehabbed. They accepted offer, knowing I would be using Fha. I have done everything required, paid off my car to lower my debt ratio, havent spent any monies, found insurer and paid for inspections and appraisals. I was told expect november 22 closing. Got a call from underwriter on november 15 saying loan was approved pending the repairs the seller was to make... except the contract could not be legally entered into until after December 13th because the house was bought at auction for 60k and sold for 63k. Both titles were recorded on 9/13/16. It was dissapointing since I had to be out of my apartment already and staying in a weekly. I had inquired if i could rent property from them in begining of November but property was not yet ready. They verbally said waiting three weeks would be okay, they would not put it back on market or anything (likely because they were already fully aware of the 90 day rule)
I was hopeful, since i had everything in place, the underwriter said process shouldnt take too long.
After thanksgiving holiday checking to see if the dryer vent and killbox and been taken care of, the buyer could not be reached. Finally reached their broker, who said the property was contingent with another buyer. (Who also is fha financing) broker said the other party have a loophole around the 90 day rule. Do not know what that is, except that maybe because it will be up in a week.
The seller has not even given me courtesy call that I need to resume my search. Shouldn't i have some sort of recourse? They seller falsely claimed they were not flipping houses. When I looked up the guy who bought property at auction- he also provided several homes to rehab and flip to now cancelled tv show about flipping homes in vegas. I am a naive low income first time homebuyer- (or I was planning to be!!!) Now I am stuck in a weekly-with my belongings in storage with local housing inventory tighter and more expensive- and really do not have money to pay for additional inspections, appraisals, rentals and storage. Let alone a lawyer. Any suggestions or advice?