- This topic has 0 replies, 1 voice, and was last updated 9 years, 9 months ago by Anonymous.
- May 24, 2011 at 3:47 pm #218039AnonymousInactive
We made an offer on my step-grandfathers house, which is a short sale. We were told that you are not allowed to to do this being family. So, up front we signed an amendum stating we were distant relatives and the bank excepted our offer.
We were given a closing date of 4 March 2011, which is today. This past week my realtor told me we had to notify the lender that we were related which I thought he already knew. Turns out he backed out as soon as he found out. This was the 2nd of March. He told my realtor that no ne will give us the money. We were going to have to get an extension anyways since it is a VA loan and they have so many days to do an appraisel. As soon as I talked to my realtor and she told me no lender would give us money I had to find out for myself. I called chase and USAA and both were shocked by this lender and said they would do it. According to the Arm’s length transaction with a VA loan they have no regulations for buying a short sell from family. So, I guess its just a lenders preferance.
As of right now, I went ahead and got pre-approved with USAA and now we are waiting for an extension from the bank. USAA said they would need atleast 35 days. My realtor emailed the negotiator since she has no other way of getting ahold of her and has not heard anything. Since I was su[ppose to sloe today, 4 mar 11, is this going to hurt us? I can’t control that the lender backed out on us and I hope the bank understands that. Does anyone have any advice?
On an additional note. Call me crazy if you want to but here it is. As I said before the seller is my step grandfather. The realtor we are working with is a Friend of the family. So, I know there are no other offers on the house. Since the seller is my step grandfather I’m sure he would not try to get out of the sale since this could be considered a breach in the contract.
I’m just hoping the bank that has the lien on the house, who excepted the offer, will understand and ask why we need the extension. This was the last thing any of us wanted to happen. This turned out to be a little more stressful then expected. Especially now that I’m a little more invested in this.
To the individual who said we are committing fraud. You cannot commit fraud if you told the bank you are related. Me and my “step” grandfather are not blood. When you do a traditional loan or FHA or whatever you cannot be related to do a short-sale. With a VA loan they don’t care they have no regulations. If the bank with the lien on the house knows we are relatives, in whatever fashion, and they have excepted the terms and my offer on the house then the VA doesn’t care. When it comes to the lender it is their decision. USAA said they would do the loan, they even pulled up the Arm’s length transaction and said it specifically says with the VA loan there are no regulations or anything. I have a friend who works at the VA in the forclosure department and she did the research for short sales and they don’t care. I understand why they don’t want you buying from family with short sales but I will ve living in this house and when me move to a new base I will sale or re-rent it. This
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