All Forum Posts by: Dena Wesley

It's been a rough week and it's only Monday. A deal that was going rather smoothly is now slowly falling apart and I'm a bit frustrated at how it has played out. I put under contract in late June a house that I plan on rehabbing and converting back to a duplex using a 203K loan. Found a great lender who has guided me through the process without any hiccups on their end. The seller on the other hand has been....how can I say this....I won't because it would require me using an expletive or two. We had to request an extension to close twice due to me having to switch lenders the first time and contractor delays the 2nd time. The second request for an extension is where the problems began. My agent sent the request on August 19th. We finally heard back from the seller's agent on August 28th via e-mail saying he agreed to it (we requested to close Sept. 30th) A week or so passes and my agent still hadn't received the signed amendment. She sends an e-mail to the his agent on Sept. 3rd asking what the eta is on the signed amendment as well as a couple other issues we were trying to get some conformation on. No reply back so she sends another e-mail on Sept. 6th. At this stage, the last thing my lender needs is to order the appraisal which he did the first week in September. Well now, the appraiser can't seem to contact the seller's agent. He's called to set up a time and isn't getting a response. My agent called, e-mailed and texted her several more times to no avail. My agent sent another text last Friday 9/17, to the seller's agent saying if she didn't contact her regarding the amendment, she'll have to get their broker involved (yes, they work for the same company). My agent finally hears from her later that evening and she claims that the seller had his attorney look over the contract and was told that he couldn't sign it as a trustee and it has to supposedly be re-done but in the meantime, he'd gotten a higher cash offer but she talked him into doing the right thing and sticking with my contract.

My agent followed up today to see when we'd receive the signed amendment. This was the seller's agent response:  

"I have no control over when he signs it. I simply cannot make him do anything. You must understand from the way this transaction has unfolded that he does not respond quickly. I have worked to try to hold this together for your buyer; he has a cash offer $5000 more at this time. If you want to cancel that contract, I'm sure he would be happy to."

It almost comes off as though they want me to meet the new offer price based on her stating "that contract" if I want to make the deal work otherwise, why doesn't the seller just say he won't sign the amendment and he accepting the cash offer and call it done? I've decided to meet with an attorney tomorrow to discuss if there are any options legally I have. I am not going to up my offer at this juncture. I had already made other concessions trying to make the deal work. 

This is my second transaction in the past six months that has unraveled so as you can imagine, it can be a little deflating but.....I'm not giving up. If this doesn't work out, then on to the next one. 

Thanks for reading and letting me vent.

Dena

@John Walker and @Chris Dawson, thanks for the info. I've gotten a broker's name from a colleague and will also contact Chris Collins.

Hello BP Members,

I'm purchasing a property in the Kansas City area that I'm doing a gut rehab and converting it back to a duplex. I'll be owner occupying one unit and renting the other. Unfortunately after doing an inspection, my current insurance company will only insure the property after the rehab is complete. Any suggestions on agencies that are willing to insure during the rehab process? I'd like to stick with the same company rather than search for a different carrier after the rehab is complete. Thanks!

Dena

Here's a link to the Jackson County, Missouri website. Delinquent tax sales of homes are coming up in August.

http://www.jacksongov.org/170/2016-Tax-Sale-Proper...

Hope this helps!

@Robin Wilk,

Thank you Robin.  I did tell my agent I'd be willing to take care of the other contents if he disposed of the x-ray stuff and am waiting to hear back.

@Rick H.,

If the seller refuses, I'm prepared to move forward with the purchase since like I stated in my previous post, the property is in a area on the upswing in terms of economic growth and real estate development. And yes, lesson learned. In the future I'll be more specific and detailed in the contract. Thanks for keeping me focused Rick.

@Eric P. and @Rachel H. Thank you! My next step may have to be renegotiating sales price based on cost to hire someone if seller still refuses to dispose of materials. 

Hello everyone,

I went under contract on a mixed use property back in late June that I'm converting back to a duplex. My agent sent over an addendum to extend the closing since I'm using a rehab loan and I also had added that all hazardous materials must be removed prior to closing. It was a chiropractor office on the lower level with an apartment upstairs that still has the x-ray machine/equipment and patient x-ray films. The sell is through a trust and the son of the deceased doctor is only willing to provide a dumpster. He does not want to do an actual clean out. The films are illegal to throw in the trash and the machine appears to be pre-1979. According to Missouri Department of Natural Resources, machines this old may contain hazardous PCB's and should be disposed of by a professional. The sales contract does stipulate that the "unless otherwise agreed in writing, SELLER must remove all possessions, trash and debris, and clean the property upon vacating or prior to delivery of possession." I want to choose my battles wisely and told my agent I have no problem disposing of the other contents of the property which is a bunch of furniture and pictures, since it's being rehabbed and we'll have a dumpster on hand to pitch those items but I'm pretty sure I'd incur an extra expense getting rid of the x-ray materials.

I did locate a couple of local companies that will dispose of such items and forwarded them to my agent for her to pass on to the seller's agent.

Can a seller just refuse to clean out a property? I don't want to threaten to walk away because I did get it for a good price and it's in an area that is experiencing a lot of growth. Plus, I had the 203k consultant do a feasibility study this week which was $500 cash out of pocket. Thoughts and advice is much appreciated!

Hello everyone,

I went under contract on a mixed use property back in late June that I'm converting back to a duplex. My agent sent over an addendum to extend the closing since I'm using a rehab loan and I also had added that all hazardous materials must be removed prior to closing. It was a chiropractor office on the lower level with an apartment upstairs that still has the x-ray machine/equipment and patient x-ray films. The sell is through a trust and the son of the deceased doctor is only willing to provide a dumpster. He does not want to do an actual clean out. The films are illegal to throw in the trash and the machine appears to be pre-1979. According to Missouri Department of Natural Resources, machines this old may contain hazardous PCB's and should be disposed of by a professional. The sales contract does stipulate that the "unless otherwise agreed in writing, SELLER must remove all possessions, trash and debris, and clean the property upon vacating or prior to delivery of possession." I want to choose my battles wisely and told my agent I have no problem disposing of the other contents of the property which is a bunch of furniture and pictures, since it's being rehabbed and we'll have a dumpster on hand to pitch those items but I'm pretty sure I'd incur an extra expense getting rid of the x-ray materials.

I did locate a couple of local companies that will dispose of such items and forwarded them to my agent for her to pass on to the seller's agent.

Can a seller just refuse to clean out a property? I don't want to threaten to walk away because I did get it for a good price and it's in an area that is experiencing a lot of growth. Plus, I had the 203k consultant do a feasibility study this week which was $500 cash out of pocket. Thoughts and advice is much appreciated!

Hi BP Community,

Back in March, I came across two properties for sale owned by a non profit that was using them for office space. They are located in Kansas City and the area is currently undergoing gentrification so increase in value is most likely. One is a two story ($59,500), the other an earth contact home ($35,500). I was well aware of lenders shying away from earth homes due to comps but the appraiser was in fact able to find comps and give it a market value of $36,000. Yay right? The appraiser did note in the report that it's an earth contact home, not of the traditional style of the other homes in the area. I din't take the notation as being a negative, just a fact. Monday, the loan officer called and told me that the earth home wasn't eligible for Fannie Mae because of it not conforming to the style of homes in the area and they have to deny the loan. I was floored!...and pretty mad quite honestly which prompted me to go to the Fannie Mae website. I've reviewed everything on the Fannie Mae website and can find anything to support the underwriter determining this. In fact, there is a recent FAQ sheet (2016) that states that unique properties including earth homes, are eligible and can be located in all areas, including rural provided the appraiser has adequate info to develop a reliable opinion of market value. I've e-mailed the lender to challenge the decision and am waiting to hear back but in the meantime, if someone knows of any lender who can possibly make this work, please let me know. Thanks.

@Kerry Baird 

Thanks for responding! Nope, didn't walk. The seller is a non profit organization which is why I didn't ask about them carrying . I decided that I wouldn't refer to the house as either since it's primarily a descriptive. So far I've gotten a pre-approval from one lender and am working with my credit union who may have a better rate for me in addition to less of a down payment requirement. Thanks again for replying.