Closing on My Next Property, Back on Track
As I previously mentioned, I walked away from closing because the appraisal on the property was not complete as I had been led to believe.
A lot has happened since then:
Lender: After being handed off many times, I finally was connected with someone who took ownership of the issue. Recognizing there was a miscommunication on the lender's part, we were able to discuss how we could get this rectified asap. The lender offered to pay for an appraisal (no cost to me), extend the rate lock (which I don't need), and not charge any redraw fees for the loan. I believe I could press for additional concessions because I know the seller is surely going to ask for something, but as long as I get some indication the seller is not asking for anything unreasonable I think I will just go ahead with this so we can close asap.
The lender also reordered the appraisal and the property appraisal for more than the purchase price - sweet! Everything is ready to go as long as the seller is on board.
Seller: After being unresponsive to several emails and voice messages, the seller finally responded and still would like to close (ofcourse) and has asked me to pay for his carrying costs for the period (in the neighborhood of $100). Now that I have an idea about what my costs could be as a result of the delay, I will accept the lender's offer and get this wrapped up asap.
In the end it looks like I will be able to close and may come out ahead by a few dollars although the money wasn't worth the hassle of dealing with this issue. Definitely a couple lessons learned from this experience. I am really grateful everything appears to be falling into place.
A lot has happened since then:
Lender: After being handed off many times, I finally was connected with someone who took ownership of the issue. Recognizing there was a miscommunication on the lender's part, we were able to discuss how we could get this rectified asap. The lender offered to pay for an appraisal (no cost to me), extend the rate lock (which I don't need), and not charge any redraw fees for the loan. I believe I could press for additional concessions because I know the seller is surely going to ask for something, but as long as I get some indication the seller is not asking for anything unreasonable I think I will just go ahead with this so we can close asap.
The lender also reordered the appraisal and the property appraisal for more than the purchase price - sweet! Everything is ready to go as long as the seller is on board.
Seller: After being unresponsive to several emails and voice messages, the seller finally responded and still would like to close (ofcourse) and has asked me to pay for his carrying costs for the period (in the neighborhood of $100). Now that I have an idea about what my costs could be as a result of the delay, I will accept the lender's offer and get this wrapped up asap.
In the end it looks like I will be able to close and may come out ahead by a few dollars although the money wasn't worth the hassle of dealing with this issue. Definitely a couple lessons learned from this experience. I am really grateful everything appears to be falling into place.
posted by 2million at
6/28/2006 08:38:00 AM
8 Comments:
Great News! Look forward to reading your next entry AFTER you have completed the purchase.
David
By
Anonymous, at 6:25 PM
I suppose if everyone is jumping on the band wagon of property you would be jumping on the property band wagon but "caveat de emptor" buyer beware.
Most people that are jumping on the property band wagon are trying to avoid inflation at the time when the US government and the World is allowing the US dollar (the currency of trade) to be printed in such large quantities that it is causing commodity prices to go up (eg. oil, steel, gold, etc.).
I suppose everyone should just go on and buy property, but did anyone think that once people realise that the US dollar is not worth anything but the paper it is printed on will it cause "hyper-inflation" will it cause the US government and the World government to over-react and try to reduce the amount of useless paper money being printed.
Think about it the US and World government would have to find something else as valueable as oil and gold to back up their currency or their currency cannot be traded for anything else except more paper currency, thats when money or the form of money we know would no longer exist and we would have to go back to the old system of money whereby there is something to back up the money with.
Anonymous Millionaire.
By
Anonymous, at 10:16 PM
Anon:
Why do you shoot everything down? If everyone else is doing everything wrong... well what are you doing that is so right to build wealth?
By
Anonymous, at 12:16 AM
The reason why I am so negative is because I do not want to see what happened in France in the 16th to 17th century repeated in the World economy.
Imagine a World where all paper currency is useless because they have no value and people do not trust paper money or electronic money, imagine what will happen then, the governments of the World will have a melt-down and they would have to look at new way to facillitate trade, we might go back to the gold standard or something else like oil or commodities but imagine the devastation that will happen in that next few decades, it won't be years but decades, perhaps more than a century before the World economy will run smoothly again. Poverty by that time will be tremendous.
And of course the rich will get richer. They will exploit this problem. People buying their property right now knows that the bank will finance their property. Imagine in a World where you do not have any finance from banks or individuals, you would have to sell your property at a very low price if you want to convert it to something liquid.
That is something that will happen in the transtition of the World economy from using paper currency to something tangible and of value to facillitate trade in the World economy. Because paper currency will become useless as the more you print the more you devalue your currency and lower the standard of living in your country.
The banks itself at that time to get rid of their useless holdings of paper currency might even forclose on your property because they know that the property is an asset that is a hedge against inflation and that their paper and electronic currency is not worth anything at all.
Thats the reason why you see the banks raising their rates faster than the Federal reserve.
Anonymous Millionarie.
By
Anonymous, at 11:15 PM
much better than i expected.
good job and excellent self-control!
It is odd that the carrying costs are only $100.
Anon Millionaire, I think our economy is much further away from fiat money inflation ala france. Especially compared to the 1720s and John Law (I assume you're referring to him).
The fed just increased the discount rate and will continue to do so as long as domestic inflation is a threat.
There are many more resources available now than 200 years ago for countries to manage their currencies.
Also, far too many people would be destroyed by your scenario - many wealthy. That is part of the supportto keep things on track.
$2m, what are your thoughts?
makingourway
By
makingourway, at 1:42 AM
Good luck with the rest of the process 2mil.
Anon Mil, what do you recommend people do then? Buy gold? How will the rich stay rich if the worst case scenario you described? Just curious...
By
freedumb, at 2:55 AM
What I meant regading the seller's caying costs was apparently the accured interest in his mortgage(s) on the property.
The seller's position was they wanted the difference in the HUD settlement statements from the delayed closing - which makes sense to me (I would do the same thing, but that doesn't mean I gave it to them ;-) - the difference being the accured interest on the seller's motgages.
By
2million, at 9:19 AM
I really enjoyed reading.
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