topic Re: Bottom Line, what should we do? USDA Direct in Mortgage Loans

Bottom Line, what should we do? USDA Direct

SuzyStellar — Wed, 22 Feb 2012 05:08:21 GMT

Ok so we haven't heard from the realtor. ...

We are in the process of applying for a usda direct loan. We were told we were selected for processing, and submitted everything that was asked of us. We were in touch with the LO and have gotten positive feedback so far. He is putting everything together to go to his boss. We have been working on this since early January.

We found a home that we fell in love with, and put an offer on it contingent upon financing for the lowest amount we were told we would qualify for, which is $25,000 less than the asking price.

The realtor called and said the seller would like a pre approval letter because there are other offers on the table, and the seller would like to know they aren't wasting their time negotiating with us. I called and asked for one, without saying we submitted the offer. The LO told me he didn't have a number for me yet, and was still working on it. I didn't want to upset him so I left it alone, said thank you and hung up.

I really want to go a little higher with the offer, as the seller asked us for $15, 000 more than what we submitted. I told the realtor who by the way is a dual agent for the property, and us that I wanted to give her another offer, but because of not knowing what our max was I couldn't move for another few days, and hoped that the seller would understand our position. The realtor said, well it is an estate property between family and they really want to just sell it, but would at the same time like to see a family get it. I maintained my position. The other offers and ours is due for an answer tomorrow at the close of business.

If the seller chooses us, is there still room for negotiation, or do they have to take the original offer?

I don't know what any of this means, with all the offers and whatever, but I would like to re counter their offer to be more fair to them, the house is perfect!

Should I call the LO tomorrow and just say look we found the house, we submitted an offer and see where it goes from there?

Would this maybe ruin our chances, like did we do something wrong by making an offer?

I am so confused!! I am not trying to deceive anyone, I thought I was doing the right thing, now I just feel like I did something wrong, and will be punished by having the whole thing taken away.

I really thought most people find a house, submit an offer, and then do all the financing?

Please someone tell me what we should do? Please! This is an emergency. Thank you! :smileyhappy:

Re: Bottom Line, what should we do? USDA Direct

Yodafer — Wed, 22 Feb 2012 12:57:21 GMT

If they accept your offer are you saying want to counter and offer more money? Why would you do that? If they accept the offer you gave them, then that is what the price will be, if they counter offer at a higher price, you can either accept or walk away.

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Wed, 22 Feb 2012 13:12:49 GMT

They did counter the offer. Let me make this a little clearer. We found the house listed at 179,900, we offered 150,000 because I was told that we would qualify for 20,000 to 30,000 less than the max for our county which is 189,900. So 149,900 is the lowest I am sure that we will have available. The seller came back with an offer of 165,000 and here we sit, unable to accept or counter again because of not knowing what our highest and best offer can be. OHHHHHHHH wait my math is off....I still have another 10,000 to go back with, thank you for making me spell that out to myself! ...but should I go higher, or did I really make a mistake cause you arent allowed to make offers before you have the certificate? That's the question I need answered. Thanks!

Re: Bottom Line, what should we do? USDA Direct

Yodafer — Wed, 22 Feb 2012 13:25:09 GMT

I see, so they countered with 165, you could accept 165 and then its a done deal as far as I know, you could go in at like 155...160...etc.

I think people who are confident that they will get financed do not need to wait for preapproval at all. But if the seller is iffy about selling to you without the preapproval they might accept another offer in the mean time.

If you KNOW there will be no issues getting financed I'd either counter below 165 or accept the 165.

Re: Bottom Line, what should we do? USDA Direct

mkm77 — Thu, 23 Feb 2012 08:07:05 GMT

What exactly is the LO doing at this point? A real approval means you have a signed contract and everything has been fully underwritten with all needed docs cleared. A Pre- approval is like a Pre- qualified credit card option which should be fast and easy.

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Thu, 23 Feb 2012 16:09:32 GMT

I got the call yesterday. Someone went in with a cash offer, so the house is gone. :smileysad:

The LO is working on getting us a certificate, promise to lend.

The house is gone now, so I don't have the anxiety anymore. It was the strangest thing, as soon as the agent said I am sorry your offer is off the table, I felt like a weight was lifted, but it was replaced by so much sadness I felt like my heart was breaking. I sent a text out to some family and friends, and they were all very supportive, and made it hurt a little less. I started looking for a new house, but can't find a comparable. My dad was right I have a huge hole in my foot, and it won't heal for a while :smileysad:

but Thanks everyone here for talking me through this stuff. I am sure I will be back, when I find another "the one"

Re: Bottom Line, what should we do? USDA Direct

mkm77 — Thu, 23 Feb 2012 16:16:36 GMT

Suzy, I think in 100% of these cases you will find something that works even better for you! The timing also wasn't quit right and it was putting a lot of pressure on you. Now you can relax a bit, let the finances fall in place, and find an even better home with much less stress on you. :)

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Thu, 23 Feb 2012 16:26:11 GMT

Thanks MKM! You are a nice person to take time to say something nice to someone in distress. I have heard that a thousand times in the past 24 hours, and you are right I'm positive. Still hurts though. I kept daydreaming about the kids playing in the yard, and running through the house, and how happy evryone would be. I truely can't find a house with 4 to 5 bedrooms to make everyone happy in a price range that we can afford now. I just want to cry. I want to call the seller and cry to them, I want to call the person buying and cry to them....but it won't change anything, and it will make me look foolish so I would never, but I really want to let everyone in the process know how hurtful these situations can be. I want to make a law, where the seller has to do counter offers in writting, and have that be considered binding, so we had the time to some back with something before these other people just walked all over me with cash. It just isn't right or fair, and it sucks!

I hope people start listing their houses now for the spring so we can be as happy as I pictured somewhere, and not just anywhere.

Re: Bottom Line, what should we do? USDA Direct

Yodafer — Thu, 23 Feb 2012 16:28:16 GMT

Aw I'm so sorry. I'm sure when you do find "the one" you'll be thankful this one didn't go through. Thank God for unanswered prayers. Thinking of you today..

Re: Bottom Line, what should we do? USDA Direct

bigman023 — Thu, 23 Feb 2012 17:32:23 GMT

OP,

This is a buyer's market. Im pretty sure you will find what you're looking for in this market.

Good Luck!

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Fri, 24 Feb 2012 13:54:49 GMT

Thanks everyone I am feeling a little better about it today. I don't want to jump of the top of the house in protest! Ehhh

Here is something interresting, the realtor called me yesterday and asked if I liked any of the houses she sent me by email, and added she thinks the cash deal may fall through, but didn't want to get my hopes up. OK well then why would you tell me? I don't know what to make of it.

On another note, I just got off the phone with my LO from USDA he is sending out my certificate today!...the bad side, it is only for 129,000 :smileysurprised: I guess things do happen for a reason!

I am wondering if the sellers would drop their price to meet me? Should I even bother asking? It is "The House" and I have a mortgage commitment letter soming, so technically I would be able to close super fast as long as everything worked out with the inspection. They wanted fast I can give it...I still wonder what that cash offer was, but the agent is unable to tell me :smileysad:

I do feel better though, thanks to all of your prayers and good thoughts for our family. Thanks everyone!

What would you do?

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Fri, 24 Feb 2012 15:11:01 GMT

awwweee I just heard from the realtor. The deal is falling because the buyer had an inspection done very quickly and it turned up some issues. Maybe I can offer $120,000! Sweet!!!!

Re: Bottom Line, what should we do? USDA Direct

granny031350 — Sun, 26 Feb 2012 01:36:50 GMT

my mortgage is through USDA. They are quite rigid once they give you an amount. But lucky for you houses are selling well under the usual price. I found a super duper one (brand new at the time) where the builder went under. I love it as much today as I did 2 years ago when i got it.

Re: Bottom Line, what should we do? USDA Direct

SuzyStellar — Thu, 08 Mar 2012 04:35:11 GMT

Update:

"The House" went back on the market. The realtor called me to ask if we are willing to go $150,000, and when I told her the commitment letter came and it was only for $129 something, she said she would talk to the sellers. She called me after 2 days and said sorry someone else came in with a better mortgage offer, and it is gone yet again, and they should be closing mid April. :( Seriously I can't find any houses, our area has 0 decent houses for sale in the areas where we are allowed to buy with this loan. So I have been working on my credit reports day and night, and have reduced the CA's so much I am amazed. I am terrified others are going to start crawling out of the woodwork now, even though I opted out. I was told if the change was so drastic, I can be re added to the loan and the max loan amount will go up, but still even if, we can't find "IT" it seems impossible, and boy I am looking everywhere I can think of. I can't even find an agent who wants to work now :smileyfrustrated:

No matter what though I am happy to have found all of you to help me get my credit straight, and have an opportunity to purchase a home at all, because many people just can't. For this I am thankful. <3