All Forum Posts by: Jan B.

Thanks for all the responses. The latest is that we did receive word today that the buyer received final decline letter from the mortgage bank. My realtor has received several offers on the house (all FHA) but is asking them to convert to conventional for the pre-approval. We are hoping that the new appraisal under a conventional loan will get me closer to making a profit instead of losing $$$.

Josh, thanks for the info. I'll check and see which case applies for me in the contract.

Mike, the property incurred labor delays that took the project from 9 weeks to 5 1/2 months. The offer on the house came in at $182,900. My total costs for the project was $155,100. (House=$50k, Materials and labor=$92k, and closing costs). The FHA appraisal came in at 150k. It seems so wrong for an appraiser to have such power and that their opinion stands for the next buyer should the sale falls through even if comps rise in in the area for the a spring/summer market.

Wayne, that is an interesting thought for the judgment. I just wish they had been straight forward with me on this. So much time wasted. This area has so far only generated FHA offers. It could be that the demographics for the area is lower income families. I am not sure I would ever accept an FHA offer again. I was told by my realtor that the appraisal is final for FHA financing and follows the property no matter who buys it going forward with FHA financing. This has been a vulnerability that I was not aware of. I would have assumed that if the sale fell through, that new (hopefully higher) comps could be obtained with a new appraisal. There is always something to learn. Thanks, Gregg, for the response. I'm glad to know that I'm not stuck. It did sound crazy to me that I would be left with no recourse but to wait and wait and wait for the next three months to be able to sell. The agent thought that I would have to take them to court to get my house available for another buyer. Good to know I can go with another title company and get resolution.

Thank so much for the advice. Yes, I agree. I need to be able to trust the pre-approval letter before acceptance of their offer. Thanks for your insight and keeping my hopes high for a resolution.

The day before the closing date (May 30th) I was told that the buyer's financing could not be approved for the FHA loan due to a judgement on his credit. I am now being told by my realtor that I can not sell the house to another buyer until the 1st buyer releases the escrow money. However, he is refusing to release the 2k in escrow. He believes that the judgement will be removed any day now and he will be cleared for the FHA loan. Qualified Buyer As a flipper, I was counting on a banker's approval letter as confirmation that the proposed buyer's credit had been reviewed and (that for that moment) they qualified for the loan. How can I get my house released so that I can sell to another Buyer? Pre-qualify the Offer Has anyone heard of running prospective buyers through a seller's choice of a pre-determined bank to get a solid review of their credit? I no longer consider prequalified letter from bank as something to be trusted. If I had known that there was issues with his credit, I would not have accepted his offer. Suggestions? I am wanting to get this home sold. Has anyone else experience this when selling (in Texas)? How can I handle this situation better? Thanks in advance for the advise.

Thanks, Tom.  Yes.  I brought a cashiers ck made out to the Settlement company.  There were a whole bunch of names noted in this effort. 

Wholesale company (markets off-market homes)

LLC company (sells house to me)

Indiv. Seller (sells house to LLC)

Title company 

Settlement company (coordinates closing)

Jack, thanks so much for your suggestions.  I will do a better job with due diligence with all parties before jumping into another buy using a wholesaler.   

Update ... 

I just received copies of the two Warranty Deeds reflecting the sale of the house to the LLC from Mr. Smith and another from the LLC to me. Problem solved. This was a little scary for my first transaction. I wonder if I could have done things better so that I wouldn't worry that maybe I had been too trusting.

Additional info... I've never spoke with anyone other than the wholesaler and the settlement company that is handling the title insurance and coordinating my closing. I've never spoken to anyone from the LLC company.

I've posed questions to the lawyer at the settlement company and to the wholesaler but am still waiting for response.