User988279;Why would you want to trade your valuable cash for a somebody's word that clear title to real property can be transferred to you, while presuming that you will have legal access to the front door, nonetheless the legal ability to sell, finance, will, or give the property in the future?I would hate to see you end up in court trying to re-coup your hard earned cash. A court case can be costly, take many, many years, and you may only have a worthless judgement in your hands at the end.
Charlena;I don't think anything you said would be illegal. As Melissa said, you may or may not have community property interest in the property, depending on when and how it was acquired.
The value of Real Estate is the price somebody is willing to pay. If somebody is willing to pay more for the property than what was previously owed to the bank, then the value of the property is what was paid for it. My experience is that the bank will only accept market value for Real Estate, regardless of what was owed by the previous owner.
I see this quite often. The "price" is simply the asking price. The value of a property is the price somebody is willing to pay in a fair market. In your case, the seller, Fannie Mae, reduced the asking price AFTER you submitted your offer. If you submitted an offer, you were telling the seller that the house was worth your offer. The asking price should not affect the value of the property. You are actually in a good position. Your Realtor should be able to explain this. If not, give me a call, and we can discuss it further.
Usually, the earnest money is not deposited until after bank approval. Your contract should also have a contingency for bank approval. Together, you should be able to cancel before the bank approves the transaction. You may also have other contingencies such as an inspection contigency, and if you are getting a loan, you should have an appraisal contingency and loan approval contingency. Exercising a contingency will allow you to back out of a transaction. Of course, if the closing date passes and you don't close, the contract expires. Be careful with this, though since you may have to pay the seller damages if you don't follow the terms of the contract.
There has been a HUGE increase in the demand for unimproved lots in the Victorville area lately. I believe this new demand is a sign of increased consumer confidence in the economy.
You may not be eligible for HAMP, however you lender may still consider a loan modification.Talk to them about your situation.