Clients found a home with four bedrooms in the area close to good schools. They wanted to make an offer, but we were facing a number of obstacles.
- They had a foreclosure less than 7 years ago.
- They bought their current home less than 2 years ago and were planning to keep it until October, to avoid paying any taxes.
- Their current home, which has three bedrooms, was financed with an FHA loan.
- General Rule: Borrowers need to pay off their FHA loan BEFORE getting a new one.
- The client started a new job.
- The wife is 6 months pregnant.
- Most of the down payment is a gift from parents.
- They needed to be able to qualify for two mortgages with two mortgage insurances.
- The real estate agent is acting as both buyers’ and sellers’ agent.
- There are two other offers and the real estate agent never worked with our company and recommended her clients use her mortgage lender.
- The credit report did not show the foreclosure, but the lender found out about it from other sources.
- After we found a lender who could do this complex transaction, the clients applied for a loan with another lender who “promised a better deal”.
- They did the same thing to us two years ago.
- When they found out that their lender could not deliver, they came back to us.
- The real estate agent needed to secure an extension for the contract.
- We told the real estate agent that we had never lost a sales transaction over our entire 30-year long career. We knew we would pull this one through as well.