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Answers (8)
- Ofe Polack, "Ofe Polack"
- Contributions:1417
You can't close if your lender does not give you the loan, I am sure that was written in your contract. Of course, you have the option of going conventional or paying cash, if you want the property badly. I have never heard of an HOA's FHA approval expiring but in today's market anything is possible, since the ratio of owner occupied properties could have changed dramatically prompting FHA to reject the building.
- sillyrabbittrix
- Contributions:4
Thanks everyone. I am not 100% clear on all the details on the FHA approval expiration, but I was told that this was something new, as in never done before, that the FHA was forcing associations to re-apply so they could more closely scrutinize them. We looked at going conventional to close but we do not have a large sum for down payment and were told conventional loans with 10% down or less are getting denied without over 750 credit scores now. We have a portfolio lender that we are in touch with, who told us the above on the conventional. I could try contacting others to see if I get a different answer, but if that's standard these days, I'm getting the impression that we have no other choice but to try to see the association approval through. I will definitely be contacting my attorney on the contract issue. I thank you all again!
- Matt Laricy, "Matt Laricy"
- Contributions:1620
I havent heard of an FHA "expiring" but I have heard of a building losing their FHA approval because they didnt meet the criteria anymore. If this is the case, you probably wont be able to move forward with an FHA loan.
When it comes to the other things, nothing surprises me anymore with short sales. Tons of crazy things can and do happen with them that make zero sense. Everything you have said I have heard and seen before, as crazy and dumb as they sound.
When it comes to the other things, nothing surprises me anymore with short sales. Tons of crazy things can and do happen with them that make zero sense. Everything you have said I have heard and seen before, as crazy and dumb as they sound.
- Dave Matthews, "Dave Matthews"
- Contributions:14
If your contract included a mortgage contingency it would also have included a mortgage commitment date. If you don't have the commitment by that date, they can cancel the contract or, as has been done, grant you the right of first refusal. If another offer comes in, they will first come to you and ask you to lift your contingency. If you can't, or won't, they will then negotiate with the other buyer.
As has been stated in other responses, you should look for a portfolio lender in order to get this loan closed.
Good luck!
As has been stated in other responses, you should look for a portfolio lender in order to get this loan closed.
Good luck!
- Andy Linss, "AndyLinss"
- Contributions:122
Most of these comments seem in the ball park, but you really should be talking with your attorney. That is your best source for a definative answer. I think you are saying that the bank has approved the short sale but your financing can't be finalized until the FHA approval issue is worked out. In that case, I would think the mortgage commitment clause (date) would drive the timing of potential contract cancellation.
The listing agreement of the listing realtor should not effect your contract at all and that Realtor should not be changing the status to active without a signed contract cancellation agreement by both parties.
Good luck and talk with your attorney!
The listing agreement of the listing realtor should not effect your contract at all and that Realtor should not be changing the status to active without a signed contract cancellation agreement by both parties.
Good luck and talk with your attorney!
- B Mike West
- Contributions:240
It depends on the terms agreed upon in the purchase offer document. You can't expect the seller or their lien holder to wait around for you to get the necessary financing. Most lien holders in a short sale put a deadline on their short sale approval. If you can not close by the deadline the sellers are back at square one and have to start the process all over again..
Condo financing is very difficult to find if the complex does not have FHA approval. You might try a commercial bank or credit union, a lender who services their own loans, called a portfolio lender. None of the big banks will lend on a condo that is not FHA approved because they can't sell the loan on the secondary market.
Condo financing is very difficult to find if the complex does not have FHA approval. You might try a commercial bank or credit union, a lender who services their own loans, called a portfolio lender. None of the big banks will lend on a condo that is not FHA approved because they can't sell the loan on the secondary market.
- Philip Sencer, "Philip_Chicago"
- Contributions:551
Much of what you say makes no sense to me. You should contact your lender to ask if an FHA approval can expire. It is my understanding that once a building is approved for FHA that's it....there is no expiration.....but I might be wrong.
Since this is a short sale, the lien holder can take 2-5 months to 'process' the file before agreeing to accept the contract. They do not care (or even know about) the FHA issue so I see no need to cancel or do anything by either side. Look at the dates on the contract. It spells out at what point in time either the buyer or seller can cancel the deal. It cannot be cancelled at any time.
The fact that the listing might expire before the lien holder responds is irrelevant. Both agents are still able to collect the commission.
The only thing I see is that IF the listing agent is concerned about losing the listing to another agent once it expires she might want to kill your deal, put it back on the market without any contingency and hope to get another offer/contract before it expires to save her commission,. HOWEVER the owner is the only one who can do that and ONLY if the contract allows it. Look at the dates for the contingencies on the contract. I bet the owner cannot do it yet and this is a legal issue you need to discuss with your attorney if they try it.
This whole thing sounds odd.
- David Barr, "dpbarr2000"
- Contributions:280
An option would be to get non FHA financing and move forward.
Can seller/bank cancel contract?
The seller's agent has been calling my realtor daily, first saying that she was putting the house back on the market (it is, but marked contingent) and then hinting or inferring (my realtor says) that she might lose the listing by the end of the month if we don't close.
Can they do this? We really want to close on this house but we feel like our hands are tied.
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