03-20-2012 04:51 PM
My story thus far.
I was preapproved for fha and at the end of Feb I placed a bid in a hud home. I bid 3000 over the list price, thinking that since I was pre approved for a much larger amount that the $3000 would be included in the loan.
Later that night I stayed up researching what happens when people over bid the hud list price. Read that the buyer is expected to bring the difference to the table. Of course this is on top of the closing costs and down payment.
My realtor gives me a call back the following day to tell me that my bid won, thats when I break the news to him that I don't have the extra $3000. (This was news to him as well). He makes a few calls and calls me back, mentions a 203k and said that if we go that route I wouldn't have to bring the $3000 to the table that it would be included into the loan along with the other minor repairs.
So we're going through with the 203k and come to find out, I am still expected to bring the $3000 to the table. At this point I've been under contract for two weeks.
Of course I'm still not able to bring the extra $3000. We've begun the process of with drawing my bid and reclaiming my ernest money that I'd put down. My mortgage broker is fine with writing a letter to hud so they can release the funds.
The house will go back on the market (as long as their isn't a back up buyer who then accepts the house) and I'll have to resubmit a bid. This time I'll submit at the list price, nothing more!!!!!
Hopefully a first time home buyer will read this and not make the same mistake as I did. I just wish I would have read that before hand
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