house dilemma with the sellers

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Glad you at least got some third party perspective on this via legal consul.

I walked away twice...once before money was spent then after money was spent. The second time I'm glad I did as any house with structural(both in house and owners) was bound to bring me bad luck.

Ya I see no reason you can't still get the credit. You are under contract, changing the terms doesn't reset that.

Good Luck

Edit: See that is the first thing they should have told the sellers agent when listing the house. What are the outstanding liens?...ugh pain in the arse when people can't do their job right.
 
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OH NO!!!

We are flooding in Middle TN today! The neighborhood next to the house I bought is flooded. The local news reported that the police had to use a boat to get the neighborhood residents out of carton plantation neighborhood which touches our neighborhood! There are several roads and interstates are closed here due to flooding. My house is not in a flood zone according to the flood zone determination. But I'm freaking out now because we extended the contract yesterday and I don't have flood insurance. I keep thinking of water getting in the house and mold growing and the house is empty!

http://www.wkrn.com/global/story.asp?s=12409921

Look at I-24 and bell road exit photos at the news site. I live off of that exit! After watching the news, I kept thinking.."why me???" It can't possibly get even worse.
 
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Well, I just got off the phone with my apartment manager. They will not let us live here after 5/31st. they want us out. We have to find somewhere to live in the next four weeks. But since the "great 100 yr flood" happened around the Nashville area(look at the terrible flood thread for photos). I will have to compete with the entire city of folks whose house is flooded for an apartment. I can't expect these folks to live in a shelter until their house is fixed and they probably don't have flood insurance. I told my agent about my situation, he recommended I move into this house. but I'm worried about potential liabilities if the bank forecloses on that house and says I damaged the house in anyway.
 
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Originally Posted By: Cutehumor
Well, I just got off the phone with my apartment manager. They will not let us live here after 5/31st. they want us out......


If I were you, I'd start putting my stuff in a storage unit that is on high ground, and making plans to live out of my parent's basement for a while...

Or better yet, go get a former FEMA trailer and park it in their backyard.

http://cgi.ebay.com/FEMA-CAMPER-TRAVEL-T...#ht_8289wt_1165
 
I feel for you for having to find an apartment in this market with lots of flood damage. Not going to be pretty.

As far as the house goes, while you can worry about it, flood insurance and the condition of the home are still the responsibility of the seller, not you. You haven't closed and have no ownership yet. You have an agreement to take ownership by a certain date if certain conditions are met. If the house floods, do you think it would pass your pre-closing inspection? I don't believe that is the home you agreed to purchase.

I agree with a previous poster - this house certainly seems like it was not meant to be. I would've walked shortly after the "short sale" issue came up. Way too much hassle and there is plenty on the market right now...
 
Maybe this goes against the grain here, but i'd be inclined to move in the house on a VERY 'limited' basis. Put most of your stuff in storage, and just set up 'camp' at the house.

That way, you don't have to pay extra for a new apartment, and the house doesn't stay empty while this process drags out. Someone in the house, running the heat/air/water will keep it in better shape than it being abandoned.

Plus, with house being desparate there with the flood, you want to protect the house against invasion or squatters...
 
There needs to be a signed rental agreement.
You need to pay some level of rent, which can be negotiated. Make sure you have renter's insurance to cover your belongings wherever they are. Spell out who pay for what type of maintenance/repairs if any occur before closing.
Your agent should negotiate a favorable contract; take pictures the first day you occupy and make sure that a joint landlord-tenant inspection check list is filled out, so everyone agrees on the house condition on the day of occupancy.

Remember your "landlord" already has a negative reputation, and make sure you have clear, written agreements.
 
I'm really in a terrible situation. I've been calling apartments like a maniac since yesterday. The rent prices have jumped dramatically.

For example, an apartment quoted me $975/month for 800 sq foot apt, 2 BR 1 BA. Normally, this is a $750/month apt and it's on their website. When I brought this up on the phone, the lady said that apartment just received new granite and appliances. So I asked if they had an apartment for that web price that isn't upgrades, she said they were all rented out.
09.gif
They said I would have to pay $100 application fee, $100 administration fee, $200 security deposit, and a $295 "holding apartment fee" If I want a washer/dryer, I have to pay an extra $30/month. They are really sticking it to folks who need a place to live. This lady told me if I don't get the apartment soon, someone else will take it she said.
smirk2.gif


My in laws have graciously said we can move in with them and put our stuff in storage, but they live an hour away. I believe they will let us live with them for the month of June until 6/30th when our contract expires again. If we did do that, we would possibly move three times. To their house, then to a new apartment, and then to this house possibly. I'm inclined to get an apartment now, but 90% of the apartments want a six month lease minimum. I can't do it since were under contract until 6/30th now. The only way I can do an apt 6 month apt lease is if I know for sure this house will go to short sale. I did find one apartment who would allow me to do month to month, but they wanted three months rent paid in advance before I move in. There's just too much uncertainty.
 
Originally Posted By: Cutehumor
I'm really in a terrible situation. I've been calling apartments like a maniac since yesterday. The rent prices have jumped dramatically.

For example, an apartment quoted me $975/month for 800 sq foot apt, 2 BR 1 BA. Normally, this is a $750/month apt and it's on their website. When I brought this up on the phone, the lady said that apartment just received new granite and appliances. So I asked if they had an apartment for that web price that isn't upgrades, she said they were all rented out.
09.gif
They said I would have to pay $100 application fee, $100 administration fee, $200 security deposit, and a $295 "holding apartment fee" If I want a washer/dryer, I have to pay an extra $30/month. They are really sticking it to folks who need a place to live. This lady told me if I don't get the apartment soon, someone else will take it she said.
smirk2.gif


My in laws have graciously said we can move in with them and put our stuff in storage, but they live an hour away. I believe they will let us live with them for the month of June until 6/30th when our contract expires again. If we did do that, we would possibly move three times. To their house, then to a new apartment, and then to this house possibly. I'm inclined to get an apartment now, but 90% of the apartments want a six month lease minimum. I can't do it since were under contract until 6/30th now. The only way I can do an apt 6 month apt lease is if I know for sure this house will go to short sale. I did find one apartment who would allow me to do month to month, but they wanted three months rent paid in advance before I move in. There's just too much uncertainty.


IF you moved in with your in-laws, why would you have to move three times - you move to their place until you get the house free and clear.

Or are you 'only' allowed to stay there until 06/30, and if the huse falls through or takes longer, you have to find another place in the meantime? Are they that rigid?
 
Personally if your in-laws offered...move there. It says you cash and if you don't hate each other whats the harm.

You may have a better chance finding an apt. then when you need too. Just select a "DRY" & "ELEVATED" storage place and deposit your things there.

Personally you should pay your in-laws exactly what you expected in apt fees. They will be more inclined to let you lengthen your stay if they are making money on the deal.
 
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Originally Posted By: addyguy

IF you moved in with your in-laws, why would you have to move three times - you move to their place until you get the house free and clear.

Or are you 'only' allowed to stay there until 06/30, and if the huse falls through or takes longer, you have to find another place in the meantime? Are they that rigid?


First move would be to in laws house which is temporary housing for 6/1-6/30. If we don't close on 6/30th, second move would be to an apartment. Third move, we would be moving into this house or another house to be determined later.

or..

I can move into this house and live rent free (sellers offered) for the !@#$ they have put us through. However, since the sellers are a couple months behind on their mortgage, the bank can still foreclose the house and kick us out. However, I've been told by my mortgage broker that the bank won't foreclose if a short sale is in process and a buyer is lined up like us. I'm not sure what the legal ramifications of all this would mean, I'm not even sure the homeowner's association covenants allow a home in the neighborhood to be "rented" out. who would pay homeowner due and maintenance??? (I don't even have a lawnmower to cut grass). I've left a message with our real estate attorney to get legal advice on this. The saga continues..

P.S, the mortgage broker we have said if we don't extend our interest rate lock (expires monday 5/10). If I relock later, interest rates now are up 0.25% ($50/month more for the next 30 yr fixed loan) and I would have to pay $3k in points to get that rate. before, I paid nothing for our interest rate. so maybe living rent free at their place is a worthy alternative to make up for my losses..
 
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I thought I would give a quick update on our situation. We luckily found a three month apartment lease that is comparable to what we are paying at our apartment now. The only issue was
there was some overlapping between my ending apartment lease and the new apartment lease. My lease ends at 5/31st, but the new apartment lease starts 5/22nd. So I had to pay an extra $300 in rent this month. They could only hold the new apartment for only ten days. If I didn't sign, they could rent the apartment to someone else. I didn't want to risk losing it and have no where to live, so I signed.

Yesterday, our buyer's agent said that the sellers were turned down for a $28k bank loan to cover their closing costs. So they are using our contract to get the bank to approve a short sale, our contract expires on 6/30th. It looks like we won't be closing on 6/30th unless a miracle happens and the bank approves the short sale in less than 60 days.
 
I really doubt you can close by the 30th of June. Banks are very slow. The bigger the bank, the slower they move.
Cut your losses and find another home. It's still a buyer's market, and a lot of sellers are adjusting their prices to reflect the 8K incentive that expired.
Sometimes things happen for a reason.
 
It actually took 5 weeks and looking at 40 houses before my wife and I could agree on this house. My wife is quite picky with houses. With the housing market as bad as it is, I told her to expect to live in our first home for at least ten years. She said she didn't want to settle unless she found the perfect home for her, I don't blame her.

The seller's bank is Suntrust. I'm fully expecting to walk away after 6/30th. From what I read about the short sale process, if the banks don't approve by our contract deadline of 6/30th. The short sale application process has to be resubmitted all over again with a new contract. By then, we would have waited three months. I'll walk, but I'll have to convince my wife to walk which may not be an easy task, she loves that house.

I'm starting to see lowered priced homes that didn't get picked up by 4/30th. What we'll probably do is look occasionally, if a house comes up, we'll buy, if not, we'll stay put. My agent won't like that a bit, he's anxious to get us looking at 10 houses a day again by June 1st "if it doesn't look like we'll close by 6/30th".
 
Around here you can build for $80/foot (low end) to about $106/foot (mid hi end). If you can't get this house and don't want to (or can't) go the extra $28K, you could think about building.

She could pick her floor plan, colors, appliances, etc., make it the way she wants it.

Sometimes you can get lots cheap. I got a couple of 1/3 acre lots adjacent to each other (2/3 total) on a little lake south of town here at a tax sale a while back. The county assessor had them on the books for $60K; I got both for less than $7K including the back taxes and penalties, interest, blah.

Think out of the box.
 
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