So. As we all know, I'm buying a house. Or, well, trying to.
The house was being sold as a short sale, so the process has been a bit more... unconventional... than it otherwise might have been. A) It meant that the time between when I submitted my offer and when it was accepted was extended (though not as much as it might have been, from all reports from others who have bought short-sales or foreclosures). B) It meant that there was basically no room for negotiation after the home inspection, since I was already getting a "great deal" on this house.
Now, I knew what I was getting into with the above, and all of that was fine. Sure a few things came up in the home/pest inspection, but nothing major or that would stop me from buying the house for the price that I offered. I mean, I'm getting a "great deal" and so it all balances out.
But I'm also buying this house with an FHA loan, which means that FHA does their own inspection at the time of appraisal, which can bring up other issues that won't come up in a home inspection. The house appraised just fine, so that hurdle was jumped. But. Something did come up (a structural thing) in their inspection. It's not a huge deal, and, as my realtor has been constantly reminding me, wouldn't have even registered with a conventional loan. But I'm not going with a conventional loan. Why? Because I don't have fucking 30K just hanging out in a savings account. I mean, I'm the sort of person that the FHA loans were MADE to help out. But just because it wouldn't have registered with conventional financing doesn't mean that this isn't an actual issue with the house, either. And it's an actual issue that's going to cost like $1,500 to fix, and the loan is contingent upon this $1500 fix happening.
Now, if this were not a short-sale, I would go back to the seller and say, "Um, this is on you to fix, homeslice. And before the date of the close." But of course, it is a short-sale, and my seller is broke as a joke. The seller is not going to fix this problem prior to next Friday. Now, I'm not going to fix a house I don't own prior to next Friday, either. The solution available from the bank is that I put 1.5 x the cost of the fix (according to an estimate I submit) into escrow, and then once it has been fixed, I get that money back. But I have to do that at the date of the close. So all of a sudden, I am supposed to come up with like $2,300 by next Friday that I hadn't thought I'd need to lay out this month. (I have it, and I could do it, but you know what? $2,300 out of my pocket at close that I'd not expected to pay, with only a week's notice? Fuck. Off.) Sure, I'd get that money back ultimately, but still: fuck. off.
So my only recourse at this point, or at least the only obvious one, would be to go back to the banks involved and trying to get them to cough up the cash, whether by getting them to stick the money in the escrow account or by getting them to take it off the asking price. Which a) they may not do and b) could take weeks even to find out what their decision about doing it would be, thus making whole lots of people unhappy about the delay in closing: my realtor, my realtor's husband (who is the realtor for the seller), the seller, my bank that's doing the mortgage, and the banks who hold the mortgages on the house currently.
But you know who wouldn't care all that much about the delay in closing? Me. I am the person who has the least to lose if the closing is delayed. Sure, it would be annoying, and it would screw up my plans, but it's not like I'm going to be homeless if I have to wait a month to hear about this. Also, it pays for me to wait it out: I can't find another house and have a signed contract by the deadline to get the 8K tax credit, but I can wait it out on this house and still get the 8K tax credit, even though it would piss everybody else off.
Further, I think that it would be stupid for me to just eat the cost of this repair, as seriously: this is an actual structural issue with the house, however much it's not a big deal. It's not my fault that this came up as an issue - I don't even own this house yet. Dude, I can twiddle my thumbs for the next six weeks, and even still buy this house, and it wouldn't hurt me at all. In fact, it could even help me. I'm the strongest player in the mix here.
That said, I, too, would love for all of this to go away. So I presented a compromise option to my realtor to then relay to the seller tonight. It's basically a 50-50 proposition, that would allow for us to close on a week from tomorrow. Now, the seller (as of later tonight) can't do what I proposed, but she's working on a version of what I proposed that I could accept. BUT, what I made very clear is that unless it all works out according to my satisfaction, I shall SO wait on the banks for an answer. Because you know why? It hurts me not at all if I do so.
My realtor gets that, I get that, and I think my realtor has communicated to the seller how I feel about all of this. In other words, depending, I may well own a house a week from tomorrow. Or I may not. It's very hard to know. All I know is that where I am with this right now? LAME. And I am not going to eat the cost of this repair in its entirety just to grease the wheels of this process. NOT my responsibility to do that. NOT. At. All.
3 years ago