Hi all,
I was supposed to close today on a $270k new build duplex out-of-state, but it's been delayed to Tuesday. Can I get any general advice on what my options are? Can I back out? What are my costs if I back out?
Some of the headaches in this process:
1) Duplex wasn't ready for inspection, even though Listing Agent had set the date. Inspection rep facetimed me saying hey this is a mess, inspection should NOT have been today, there's leaks everywhere, nothing is ready, etc. .....I had to pay for the 2nd Inspection
2) New build wasn't supposed to have tenants, on the day of 2nd inspection 2 weeks ago, again I get a call from the Inspection rep that there were people living on both sides. I called my property manager and she hadn't set up any tenants, and was set to interview a bunch of people. Thought I had squatters already. Turns out the Listing Agent put tenants in herself.
3) I found out 3 days before close that Comparable rents came back too low, despite the Listing Agent having put tenants in for higher rent (an interesting positive from that situation), but the Lender couldn't use her contracts. We've been scrambling since, they offered for me to put 40% down, or to buy the interest rate down, I said no. It's since been resolved
4) I had planned for 2% Closing Costs, but the Closing Costs are actually 5.3%, which is quite the chunk of change that I was not planning on.
5) I also had found out 3 days ago that this was a DSCR loan, not a conventional loan. It clicked then why the interest rate was so high (8.4%) and why closing costs were higher than expected. I am having them look into a conventional loan hopefully today, but I don't know how this affects things with the close date.
What are my options and what would you do if you were me?
