Real Estate Transaction Implosion

[awgee_IHB]

Make a larger down payment in order to relieve some the marginality of the loan.

 

[Maltese_IHB]

I am indeed a licensed physician. The bank made an exception on the 2-year history of self employment based on that fact, and based on a contract I have with a health care organization which guarantees a certain income for a 2 year period. They took this as being equivalant to 2 years income. Of course I have a long history of income, but not in my current practice setting.

The only 30 year fixed product we can find as an alternative to the large bank requires 4-6 weeks to close, and the rate is a full percentage point higher.

In response to Awgee, the big bank only offered one option: get a cosigner for the loan from a parent. We didn't think that would be fair to ask the parents, although it would have solved the problem.

 

[IrvineRealtor_IHB]

A couple of observations from the sidelines...

1. You should be asking your realtor these questions. If you are not getting good (sound) advice you should find another partner with experience and the ability to give you clear guidance, in the area that you are searching in.

2. If it was your realtor's advice to remove a loan contingency when you had not been fully-approved, you would have a good case for getting your funds back. You very likely will have to do it circuitously, by letting the seller have the escrow forfeiture and then seeking legal action against the broker. If this becomes necessary, feel free to PM for a referral.

3. On a "notice to perform" there is no need for a counterparty to sign. It is a notice. If it was sent and received 3 days ago, and you are indeed in breach of contract, the seller now has the right to cancel until the variance is corrected.

4. If you had a per diem penalty established in the original contract, you would be obligated to pay for being late. From what you've described, it was not included. The seller can not impose this on you without your agreement. I liken this situation to the unarmed police officer - "Stop." Or else I'll say "Stop" again. It holds no teeth.

5. The elephant in the room - Is this the best time to buy a $1.5M home for you? (It may be, and you may have your reasons.) Homes in this mid-upper price range are the ones being hit hardest right now with price reductions across the county. From your posts it appears that you are getting a heavy mix of internal and external pressure to purchase right now. Maybe looking at a new list of comparable homes at this time will be of benefit to you to see what changes have taken place even within the last 30 days. My guess is that you will now find a more racemic mix of equity-to-distressed sellers in that range. I could be wrong. Either way, though, you'll gain some salience as to whether this is the right move for you now.

I hope this helps. Good luck.

-IR2

 

[Mazy_IHB]

I am indeed a licensed physician. The bank made an exception on the 2-year history of self employment based on that fact, and based on a contract I have with a health care organization which guarantees a certain income for a 2 year period. They took this as being equivalant to 2 years income. Of course I have a long history of income, but not in my current practice setting.

The only 30 year fixed product we can find as an alternative to the large bank requires 4-6 weeks to close, and the rate is a full percentage point higher.

In response to Awgee, the big bank only offered one option: get a cosigner for the loan from a parent. We didn't think that would be fair to ask the parents, although it would have solved the problem.

Ok, I'll pm you the contact info of our loan officer. The employment duration won't be an issue with them and you should be able to get the fixed-rate product you like from them. Their rates are quite competetive too. Good luck.

 

[awgee_IHB]

A couple of observations from the sidelines...

1. You should be asking your realtor these questions. If you are not getting good (sound) advice you should find another partner with experience and the ability to give you clear guidance, in the area that you are searching in.

2. If it was your realtor's advice to remove a loan contingency when you had not been fully-approved, you would have a good case for getting your funds back. You very likely will have to do it circuitously, by letting the seller have the escrow forfeiture and then seeking legal action against the broker. If this becomes necessary, feel free to PM for a referral.

3. On a "notice to perform" there is no need for a counterparty to sign. It is a notice. If it was sent and received 3 days ago, and you are indeed in breach of contract, the seller now has the right to cancel until the variance is corrected.

4. If you had a per diem penalty established in the original contract, you would be obligated to pay for being late. From what you've described, it was not included. The seller can not impose this on you without your agreement. I liken this situation to the unarmed police officer - "Stop." Or else I'll say "Stop" again. It holds no teeth.

5. The elephant in the room - Is this the best time to buy a $1.5M home for you? (It may be, and you may have your reasons.) Homes in this mid-upper price range are the ones being hit hardest right now with price reductions across the county. From your posts it appears that you are getting a heavy mix of internal and external pressure to purchase right now. Maybe looking at a new list of comparable homes at this time will be of benefit to you to see what changes have taken place even within the last 30 days. My guess is that you will now find a more racemic mix of equity-to-distressed sellers in that range. I could be wrong. Either way, though, you'll gain some salience as to whether this is the right move for you now.

I hope this helps. Good luck.

-IR2

This is why this guy is one of the only, if not the only, realtors I would recommend.

 

[LoudRoar_IHB]

Interestingly, while we were in escrow with our fixed 30-year loan locked, a family friend (the guy is a mini Donald Trump and owns a couple of high-rises and parking structures in Manhattan) blasted us for going fixed. He argued that no matter how much we liked the house today, we will definitely want to move up in 10 years, so doing a fixed rate loan is dumb and a 10/1 ARM is the way to go to be able to enjoy the lower rate for the time we own the house and get rid of it by the time the rate goes variable. Of course in your case, it seems that you have to go ARM to have the same rate you had with you fixed loan, which is kind of lame.

BTW, any of you guys happen to be a licensed physician? Our lender has specific loan programs for physicians and the self-employment duration won't be an issue with them.

This assumes that when the ARM recasts interest rates are still low. There are no guarantees, just like there was no guarantees 3 years ago when everyone jumped on the ARM bandwagon and then couldn't refinance. Moreover, with a fixed you get the security of knowing exactly what each payment will be. Many people are in for a shock when the ARM recasts. Even worse is pick a payment, have fun doing the math. The bank will stick you any chance it gets. A fixed mitigates that chance.

 

[freedomCM_IHB]

My guess is that you will now find a more racemic mix of equity-to-distressed sellers in that range. I could be wrong. Either way, though, you'll gain some salience as to whether this is the right move for you now.

I hope this helps. Good luck.

-IR2

This is why this guy is one of the only, if not the only, realtors I would recommend.

Even if I hadn't already been super impressed with him, I'd be on board with IR2 just because he can use the word "racemic" correctly.

Of course, most physicians sleep through that part of class.......

 

[roundcorners_IHB]

Interestingly, while we were in escrow with our fixed 30-year loan locked, a family friend (the guy is a mini Donald Trump and owns a couple of high-rises and parking structures in Manhattan) blasted us for going fixed. He argued that no matter how much we liked the house today, we will definitely want to move up in 10 years, so doing a fixed rate loan is dumb and a 10/1 ARM is the way to go to be able to enjoy the lower rate for the time we own the house and get rid of it by the time the rate goes variable. Of course in your case, it seems that you have to go ARM to have the same rate you had with you fixed loan, which is kind of lame.

BTW, any of you guys happen to be a licensed physician? Our lender has specific loan programs for physicians and the self-employment duration won't be an issue with them.

Not I, I'd probably faint at the site of blood and I don't think I could handle another 4 years of school at this point.

second that... man, I wish I went to med school in this economy... couldn't handle HS anatomy,, just couldn't skin that poor cat.. had to drop out...

 

[usctrojanman29_IHB]

Interestingly, while we were in escrow with our fixed 30-year loan locked, a family friend (the guy is a mini Donald Trump and owns a couple of high-rises and parking structures in Manhattan) blasted us for going fixed. He argued that no matter how much we liked the house today, we will definitely want to move up in 10 years, so doing a fixed rate loan is dumb and a 10/1 ARM is the way to go to be able to enjoy the lower rate for the time we own the house and get rid of it by the time the rate goes variable. Of course in your case, it seems that you have to go ARM to have the same rate you had with you fixed loan, which is kind of lame.

BTW, any of you guys happen to be a licensed physician? Our lender has specific loan programs for physicians and the self-employment duration won't be an issue with them.

Not I, I'd probably faint at the site of blood and I don't think I could handle another 4 years of school at this point.

second that... man, I wish I went to med school in this economy... couldn't handle HS anatomy,, just couldn't skin that poor cat.. had to drop out...

If I had to do it all over again, I would have either gone on the tax side (plenty of those jobs out there) or would have become a pharmacist.

 

[caycifish_IHB]

A couple of observations from the sidelines...

1. You should be asking your realtor these questions. If you are not getting good (sound) advice you should find another partner with experience and the ability to give you clear guidance, in the area that you are searching in.

2. If it was your realtor's advice to remove a loan contingency when you had not been fully-approved, you would have a good case for getting your funds back. You very likely will have to do it circuitously, by letting the seller have the escrow forfeiture and then seeking legal action against the broker. If this becomes necessary, feel free to PM for a referral.

3. On a "notice to perform" there is no need for a counterparty to sign. It is a notice. If it was sent and received 3 days ago, and you are indeed in breach of contract, the seller now has the right to cancel until the variance is corrected.

4. If you had a per diem penalty established in the original contract, you would be obligated to pay for being late. From what you've described, it was not included. The seller can not impose this on you without your agreement. I liken this situation to the unarmed police officer - "Stop." Or else I'll say "Stop" again. It holds no teeth.

5. The elephant in the room - Is this the best time to buy a $1.5M home for you? (It may be, and you may have your reasons.) Homes in this mid-upper price range are the ones being hit hardest right now with price reductions across the county. From your posts it appears that you are getting a heavy mix of internal and external pressure to purchase right now. Maybe looking at a new list of comparable homes at this time will be of benefit to you to see what changes have taken place even within the last 30 days. My guess is that you will now find a more racemic mix of equity-to-distressed sellers in that range. I could be wrong. Either way, though, you'll gain some salience as to whether this is the right move for you now.

I hope this helps. Good luck.

-IR2

And that post is part of why I make you crack brownies. You deserve them.

 

[OC_Boston_Bay_IHB]

Interestingly, while we were in escrow with our fixed 30-year loan locked, a family friend (the guy is a mini Donald Trump and owns a couple of high-rises and parking structures in Manhattan) blasted us for going fixed. He argued that no matter how much we liked the house today, we will definitely want to move up in 10 years, so doing a fixed rate loan is dumb and a 10/1 ARM is the way to go to be able to enjoy the lower rate for the time we own the house and get rid of it by the time the rate goes variable. Of course in your case, it seems that you have to go ARM to have the same rate you had with you fixed loan, which is kind of lame.

BTW, any of you guys happen to be a licensed physician? Our lender has specific loan programs for physicians and the self-employment duration won't be an issue with them.

Not I, I'd probably faint at the site of blood and I don't think I could handle another 4 years of school at this point.

second that... man, I wish I went to med school in this economy... couldn't handle HS anatomy,, just couldn't skin that poor cat.. had to drop out...

If I had to do it all over again, I would have either gone on the tax side (plenty of those jobs out there) or would have become a pharmacist.

USC School of Engineering gave me all the tools I'll need to be gainfully employed until I retire. It was harder than a m*&&f&&&r to graduate but it sure has paid off. I actuallly use my degree every day in my job (technical sales), plus USC provided a somewhat cutthroat social environment which turned out to be great training in its own right.

 

[usctrojanman29_IHB]

Not I, I'd probably faint at the site of blood and I don't think I could handle another 4 years of school at this point.

second that... man, I wish I went to med school in this economy... couldn't handle HS anatomy,, just couldn't skin that poor cat.. had to drop out...

If I had to do it all over again, I would have either gone on the tax side (plenty of those jobs out there) or would have become a pharmacist.

USC School of Engineering gave me all the tools I'll need to be gainfully employed until I retire. It was harder than a m*&&f&&&r to graduate but it sure has paid off. I actuallly use my degree every day in my job (technical sales), plus USC provided a somewhat cutthroat social environment which turned out to be great training in its own right.

Hey there fellow Trojan...what industry do you work in and which kind engineering did you focus on your studies on? I have to admit that the USC alumni network makes the UCLA alumni network look like a joke. I've met so many USC alums that were very helpful, even though they liked giving me crap about being a UCLA undergrad. haha I had a lot of fun at USC's Business School and would do it all over again (I'm sure compared to the Engineering School the Business School was like a vacation). FIGHT ON!

 

[irvine_home_owner_IHB]

My guess is that you will now find a more racemic mix of equity-to-distressed sellers in that range. I could be wrong. Either way, though, you'll gain some salience as to whether this is the right move for you now.

I hope this helps. Good luck.

-IR2

This is why this guy is one of the only, if not the only, realtors I would recommend.

Even if I hadn't already been super impressed with him, I'd be on board with IR2 just because he can use the word "racemic" correctly.

And "salience".



Vizzini: HE DIDN'T FALL? INCONCEIVABLE.

Inigo Montoya: You keep using that word. I do not think it means what you think it means.



IR2 - The Lexiconic* Realtor

*Yes... I made up that word.

 

[usctrojanman29_IHB]

I am indeed a licensed physician. The bank made an exception on the 2-year history of self employment based on that fact, and based on a contract I have with a health care organization which guarantees a certain income for a 2 year period. They took this as being equivalant to 2 years income. Of course I have a long history of income, but not in my current practice setting.

The only 30 year fixed product we can find as an alternative to the large bank requires 4-6 weeks to close, and the rate is a full percentage point higher.

In response to Awgee, the big bank only offered one option: get a cosigner for the loan from a parent. We didn't think that would be fair to ask the parents, although it would have solved the problem.

The lender contact that Mazy is gonna PM you with is great...I will be recommending her to my other buyers. Keep us posted on the status of what's happening.

 

[SoCal78_IHB]

IR2 - The Lexiconic* Realtor

*Yes... I made up that word.

IR2 - The Lexiconic™ Realtor