All Forum Posts by: David Green

Thanks for the info and advice.  I am still negotiating.  A new comp came in (that supports my price) but the lender (Rate.com) said they can't use it since it was after the appraisal was done.  

My attorney told me that the buyer has a conventional loan and banks will not allow any financing to come from the seller.  He also shared he has seen many recent deals in the local market come in with lower appraisals and that most buyers and sellers are meeting in the middle.  I will see how these negotiations go.

I agree, I had multiple offers in the first 3 days. I do not think it is right for realtors to all go into this thinking they will drop the price back down as soon as the appraisal comes in. They can pay PMI and drop their down payment if needed.

I am sure they are willing to pay the extra 8000, but I don't know if they have it on hand. I think the 20% down (to prevent PMI) was pushing their reserves.

I will of course negotiate the best deal that I can get and was thinking of asking for a promissory note to make up the difference (if they don't have the cash)

That is helpful!  I do not want a ton of headaches here.  They are putting 20% down btw.  I would rather take a personal note for 8000 that they may not even pay back rather than drop the price 8000.  I think they have good credit so it is likely they would pay it back.  

I wonder if an unsecured loan will cause them issues (other than dept to income) with getting the mortgate.

I am selling a condo and the appraisal came in $8000 short.  

My realtor was suggesting that we drop the price to the appraised value, but I feel like that is leaving money on the table.

I am considering offering seller financing on a second position (Junior) mortgage or perhaps an unsecured loan for the remaining $8000.  

Are there any servicing companies out there that would make sense for an $8000 loan?  Is this going to be a huge headache?  

I spent some time on google and I think I do not have to hire a loan originator (covered under the only one loan per 12-month rule - dodd frank), though not sure.

Do I have to issue monthly statements, annual insurance, report correctly on my taxes?

Would an unsecured note simplify the paperwork?  

This unit is in Illinois if that makes any difference.  

Any advice or direction would be appreciated.  

Thanks

I was wondering the same?  Have you learned any more about this?

Thanks for the responses.  I was hoping that I might be able to argue proforma rent to the insurance company or go after the insurance company for recommending the construction company who took way longer than advertised.

It sounds like I don't have any options since my rental policy has language that says loss-of-use applies to the "rented part".

We had a small fire in the common area of our association that caused damage to all six units.

Some owners decided to take advantage of the situation and add on minor renovations to the repairs.

The insurance company (Erie Insurance) recommended that we hire (Perfection Restoration). Long story short, the repairs took over 10 months to complete. All my unit required was paint and cleaning.

Loss of use was not covered under my renters policy since the unit was not occupied at the time of the fire and I had it under contract to sell.

I was wondering if the association, owners, insurance company, or restoration company were liable for the excessive repair time?

I had to eat over 20K in losses due to this fire.

@Timothy W.  Thank you so much for your reply.  I plan to follow up with the supervisor this week (they never call me back or meet their follow up commitments).   I will stick to the facts you listed and see how he responds.  

We are talking at least 6 months of rent now at 2100/month.  It is creating a lot of pain for my family!!!

Thanks