All Forum Posts by: Maxine Kunimura

@Jason Turgeon

Thanks Jason. I was thinking that may be the best course, since it all comes down to what’s written in the contract. I’ve poured over it and the financing contingency is definitely ‘grey’ in regards to this specific matter.

@Andrew Moore it's a standard VA loan, which actually happened to go down hill fast. We were supposed to close 12/13 and that didn't happen due to the lender (VU).

I was supposed to close 12/13 with a VA loan on a SFH. I intended to turn my current home into a rental. I met all borrower obligations (submitted all documents) with my lender and the lender told me on 12/12 they would be unable to close due to not having the ‘Clear to Close'. They didn't explain why. On 12/13 (original closing date) the lender requests add'l documents that I don't have and to obtain them requires me to visit the IRS office. Nothing nefarious on my end (it's a long explanation) but I could have provided this weeks/months earlier if I had known. My PA was dated 10-21-19, and the lender had almost 60 days to close.. I still haven't received any solid information from the lender as to when they'll be able to close. We're wanting to cease working with this lender - my question is, what obligation do I have to close? I realize I would lose my earnest money and in reading the PA, which was contingent on financing, the seller could take legal action on their losses if I can't close?

I know I could work with another lender, and I’m taking this as a huge learning lesson. I’m just trying to fully understand consequences and obligations from someone with no stake in the game. Of course, I expect my realtor to push for a closing. But I’m basically wondering now if walking away is an option (due to lender’s poor performance/inability to close on time). The lender has ignored my questions as to why this wasn’t caught earlier.

I tried to provide as much info as possible. Currently I have a PA Amendment pushing closing to 12/18 but of course the lender is unable to make that. Maybe next week. The home is currently vacant and owners live in FL I believe (it was previously a rental). Thank you in advance!

@Victor Wasson I’m closing on a home with them in a few weeks, I’ve been very pleased with them. A little more paperwork to submit then a conventional loan, although I think a lot of that was because I was self employed the last few years. But they’ve been very responsive and I like their online platform for tracking the loan process.

@Nicholas Salnicky

I’ll admit I had gotten pretty excited about the property but have since moved on from getting my hopes up. I actually found a great rental in the same area for $280 that needs much less work and is better suited for a new investment.

@Dustin P.

That’s great advice on the rehab sheet! And I think you’re spot on, the best deals will be gone if I can’t move quickly. Ballpark estimates will be really helpful.

@Dustin P.

I know most of the work it will need, but not the exact prices. I had a family friend (contractor of a few decades) walk through it with me. He had estimates in his head as far as rehab, but some areas were outside his specialty. I also got to that number based on the holding costs and length of time the house would be under construction.

@BOB CRANEY

I’ve done work on my current home, but really like that method of slowly stepping it up.

@Chris Mason

Outlining the 2 strategies has cleared this up a lot - thank you! I’ll readjust my strategy.

This is my first intentional REI ‘deal' and it's definitely a bit of work to sort out all the info I've absorbed and put it into play correctly.

I should also say, it’s not an actual mansion. That’s what my oldest called it when we looked at the house, hence the nickname :)