Alright, so here is the short version:
I put an offer in on a property, stating a 203K loan. The offer was accepted, upon consulation with the 203k lender, the part of the property that is in disrepair is a rear addition to a shed, cannot be included in 203K Streamline as it is not attached to the house. So we went forward with the contract, switching to a 203B, with repair escrow. Now the seller has sent a letter of termination stating we did not not come to an agreement to repairs within 14 days, and that I cannot get a 203B with escrow, because no lender would allow that. Even though I have a letter from the lender, stating they will.
I've contacted my real estate lawer, who said they cannot cancel as we were waiting for their written responce. Anyways, now the sellers broker is saying there is no contact and refusing to cooperate with my lawyer. We are prepared to go to court, and have a 80% compleate loan. Today the apriased tried to gain access to the property, when she arrived, the broaker had not sent their agent, and upon calling was told "there is no contact, so no apriasal".
Anyways:
The seller is now saying Cash Only, or commerical rehab loan, witch I think is goofy, sense its not commerical property... So after speaking with my realtor/underwriter (awesome combo btw) she has some investors who could potentially spot me the cash on a short term loan (6M). I could then use the cash to close on the property, make repairs and then refinance.
My question is: If I go this route, my lawyer says I may have a hard time re-financing FHA or Conventional. What is the forums opinion? Is that going to be more of a mess then going to court?
If I go cash, I am looking at paying about 7500 in interest on the loan, where as court could get expensive. I'm ready to go to court, but if we loose, I could loose a lot more then the 7500 I am out if we go cash.
