Starting to look at houses...carpet questions

And what's happening with the house? Is someone still living there?

IME, an unoccupied house tends to be like a plane that hasn't flown in a long time....things start going bad.
 
jesse said:
Well -- we've been in our ghetto efficiency apartment for a month now waiting to close. The seller's bank recently said that I can plan on an October 20th close but don't count on it.

My bank is charging me another $350 on my closing costs since it is taking so long. Sigh.
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Why is your bank charging YOU $350 because the OTHER bank is dragging their feet?

Interesting side note: Rachel will be leading a Weight Watchers meeting at Wells Fargo Home Mortgage next week. She said she has to get a security clearance and wear a badge while she's there. I said that makes sense - so many people are ****ed at the banks right now, they probably have bomb sniffing dogs at the door. And I can understand why...
 
Notify the seller that their delay is costing you an extra $350. Remind them that you've been cooperating even though you are greatly inconvenienced by their delay. Require them to cover any additional costs caused by their delay. Offer to drop the requirement if they can close within a week.

Hey, it can't work if you don't try.
 
Clark1961 said:
Notify the seller that their delay is costing you an extra $350. Remind them that you've been cooperating even though you are greatly inconvenienced by their delay. Require them to cover any additional costs caused by their delay. Offer to drop the requirement if they can close within a week.

Hey, it can't work if you don't try.
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The seller is broke -- it's a short sale -- the bank is losing money on the deal as it is. Negotiating is tough. If the deal ever goes through I'll save a lot of money. If it doesn't -- I'll wish I hadn't tried.
 
CJones said:
Why is your bank charging YOU $350 because the OTHER bank is dragging their feet?
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Whats funny is that the OTHER bank is the SAME bank. Both Wells Fargo Home Mortgage.
 
jesse said:
Whats funny is that the OTHER bank is the SAME bank. Both Wells Fargo Home Mortgage.
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I'm not sure "funny" is the word I'd use for it.

You're getting the screws. That sucks, man.
 
jesse said:
The seller is broke -- it's a short sale -- the bank is losing money on the deal as it is. Negotiating is tough. If the deal ever goes through I'll save a lot of money. If it doesn't -- I'll wish I hadn't tried.
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Gotta agree with that. The only leverage you've got is the purchase offer and you aren't willing to walk away from that yet.

Heck, I only manage to practice what I preach on home sale negotiations about half the time. It sure is fun when it works.
 
steingar said:
I would have walked away by now. I really don't like being chumped.
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Neither do I. Perhaps EdFred's idea of setting up a tent in Wells Fargo's office and calling the media might be the best plan?
 
jesse said:
Neither do I. Perhaps EdFred's idea of setting up a tent in Wells Fargo's office and calling the media might be the best plan?
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Just walk. They've reneged on their own contract, so you can hold it null and void. Let them try and find another buyer with winter approaching.
 
Man, that sucks. I hope it all works out for you in the end. If not, it will have been a lot of effort for nothing.
 
steingar said:
Just walk. They've reneged on their own contract, so you can hold it null and void. Let them try and find another buyer with winter approaching.
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I'm playing a game right now though with the $8,000 tax credit. I have to close before November 30th to get the credit. I haven't found another house on the market that I'm interested in -- so walking doesn't do me any good.
 
jesse said:
You've got it.
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Well, that's lame, but it's better than losing the tax credit - as slow as underwriting and closing is these days, even if you found something else you liked, there's no way the paperwork could get done by 11/30.


Trapper John
 
jesse said:
The seller is broke -- it's a short sale -- the bank is losing money on the deal as it is. Negotiating is tough. If the deal ever goes through I'll save a lot of money. If it doesn't -- I'll wish I hadn't tried.
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No pain, no gain... ;)

jesse said:
Whats funny is that the OTHER bank is the SAME bank. Both Wells Fargo Home Mortgage.
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If they're charging to extend a rate lock because they, themselves, are not responding quickly enough... there is a conflict of interest and that conflict is costing you money.

I'm betting that some publicity or a nudge to the Attorney General (or whatever agency regulates mortgage brokers in your state) would get this closed pretty fast and get those extra charges refunded. They gotta realize that the longer they drag this out they will make extra $$$ to extend the rate lock - that's pure profit to them. Sometimes threating to walk is the best thing to do.
 
wsuffa said:
If they're charging to extend a rate lock because they, themselves, are not responding quickly enough... there is a conflict of interest and that conflict is costing you money.
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Interesting. My request for them to waive the fee hasn't went anywhere yet. Perhaps a complaint to the attorney general may be justified...
 
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I am told today that Wells Fargo wants the seller to sign a promissory note for $18,000. If they don't sign it the deal is off. Considering how the seller is broke I doubt she'll do it.

I am rather frustrated. I made an offer on July 10th-ish. They accepted it around July 27th. My close was supposed to be August 25th. On August 22nd they tell me that it'll be delayed a few weeks. On September 20th-ish they tell me we can plan on an October 20th close. Today on October 8th they tell me that the seller must sign that for the deal to be valid.

I've been strung along for three months. I've had to put all my belongings in storage and live a rather crappy life waiting. It is most likely costing me the $8,000 tax credit. It cost me a $500 appraisal, $400 inspection, several hundred more in loan fees....
 
jesse said:
I am told today that Wells Fargo wants the seller to sign a promissory note for $18,000. If they don't sign it the deal is off. Considering how the seller is broke I doubt she'll do it.

I am rather frustrated. I made an offer on July 10th-ish. They accepted it around July 27th. My close was supposed to be August 25th. On August 22nd they tell me that it'll be delayed a few weeks. On September 20th-ish they tell me we can plan on an October 20th close. Today on October 8th they tell me that the seller must sign that for the deal to be valid.

I've been strung along for three months. I've had to put all my belongings in storage and live a rather crappy life waiting. It is most likely costing me the $8,000 tax credit. It cost me a $500 appraisal, $400 inspection, several hundred more in loan fees....
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Just remember the Golden Rule - Them with the gold makes the rules.

That does stink, however. And why would the seller have to sign a promissory note? They're selling, not buying.
 
jesse said:
I am told today that Wells Fargo wants the seller to sign a promissory note for $18,000. If they don't sign it the deal is off. Considering how the seller is broke I doubt she'll do it.

I am rather frustrated. I made an offer on July 10th-ish. They accepted it around July 27th. My close was supposed to be August 25th. On August 22nd they tell me that it'll be delayed a few weeks. On September 20th-ish they tell me we can plan on an October 20th close. Today on October 8th they tell me that the seller must sign that for the deal to be valid.

I've been strung along for three months. I've had to put all my belongings in storage and live a rather crappy life waiting. It is most likely costing me the $8,000 tax credit. It cost me a $500 appraisal, $400 inspection, several hundred more in loan fees....
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Jesse, what do you have in writing WRT the original purchase agreement between you and Wells Fargo? Or baring that do you have a witness to any verbal agreements they made to you? You might have a legal right to force them to complete the sale and/or compensate you for your losses.
 
gismo said:
Jesse, what do you have in writing WRT the original purchase agreement between you and Wells Fargo? Or baring that do you have a witness to any verbal agreements they made to you? You might have a legal right to force them to complete the sale and/or compensate you for your losses.
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The problem is that I've never talked to Wells Fargo directly -- I can't. They will only talk to the seller's agent. I can't even talk to the sellers agent directly -- it gets relayed to me agent who then talks to me.

My original offer had all the numbers and required they accept by July 27th. My agent told me via e-mail:
We just got approval from the seller's bank to go forward with the sale! There will be some extra forms to sign. They are getting the seller to sign now and I will let you know when the forms come to me. I should have them in a couple of days.

Once they are all signed, we can do inspections and I will get a copy to your bank so they can process your loan.
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me said:
Good to hear. I'll be waiting to hear from you. Do you think we can still make an August 25th closing?


--Jesse
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agent said:
Yes, I think we should be able to close by the 25th. I will check with Scott at the bank, but we are still over 4 weeks out so that should be enough time.
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They sent me more paperwork which I'd have to look at closely but it certainly seemed to be their acceptance.
 
Seems like WF is giving the seller the choice of defaulting on the mortgage or on a promissory note. WF obviously wants some sort of paper for the loss on their books.

It seems to me that there was some bad faith somewhere along the line if the promissory note had not been previously mentioned. If you have any written agreement from WF then maybe there would be some leverage to demand compensation for your out of pocket expenses. I've seen it done on much larger deals when the seller reneges.
 
Ghery said:
That does stink, however. And why would the seller have to sign a promissory note? They're selling, not buying.
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I imagine Wells Fargo is trying to get the seller to cover the gap between the mortgage balance and the sale price. Seems unusual to me, they can go after the seller for the shortage anyway, but then again, I don't know anything about how this works in Nebraska, either...


Trapper John
 
Might be worth the mention that whatever they loose now will be far less than what they will loose when the property sits empty over the winter.
 
I really need to talk to a local real-estate lawyer. The problem is that I don't have a TON of cash on hand -- and this deal is screwing me on a fair amount of what I do have. Therefore I really can't afford to hire a lawyer and fight Wells Fargo *AND* buy a different house at the same time.
 
jesse said:
I really need to talk to a local real-estate lawyer. The problem is that I don't have a TON of cash on hand -- and this deal is screwing me on a fair amount of what I do have. Therefore I really can't afford to hire a lawyer and fight Wells Fargo *AND* buy a different house at the same time.
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Who's name is on the sale contract, the broke owner, or Wells Fargo?


Trapper John
 
Interesting update. A few days ago out of frustration I e-mailed the CEO of Wells Fargo and several of their vice presidents. (I researched their names and then guessed their e-mail addresses).

I just received a phone call from one of the CEO's assistants that is investigating the issue. She sounded like she cares.
 
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Jesse- Maybe time to also send an e-mail to the state attorney general or other appropriate government entities? Even if you don't "win", Wells Fargo still may have 'splainin to do. I'm not above a scorched-earth strategy.
 
Jesse:

You're accommodating them *not* taking possession of foreclosed real estate. that's a Good Thing for a bank. I suspect an overzaelous local manager of some sort who thinks that they can squeeze a note out of the seller.
 
I 2nd the suggestion to contact the state AG. I 2nd the notion that WF is acting in bad faith. This is a short sale. Spike does well to mention the "accomodating" aspect of Jesse's forebearance.
 
What a pain. Hopefully complaining to the right people will make this problem get resolved. Sounds to me like you need a lawyer if Wells Fargo doesn't get this issue fixed for you.
 
I had a disagreement with a bank over fees on a credit card a few years ago. Looked around on-line and found some advice to include the Comptroller of the Currency as a cc on the letter. Next thing I knew I had the bank doing backflips to stay out of my way. And the feds followed up. I fired the bank, anyway.
 
Wells Fargo just backed out of the deal completely. So at this point I basically need to make an offer on a house within a day or two or just say forget about it and find something to rent.
 
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