Is Me And My Family Getting Screwed?
My family is trying to buy a new home and where new home owner we don't know the ropes and everything is really scary.
The reason I'm making this post is because I don't have any experience in real estate but have a desire to learn more.
Here is the thing my family is working with a realtor and a mortgage broker that gurantees will get $100 percent financing on a home. We have already got the go ahead and working with a realtor to find houses in the $115,000 price range preferably lower.
We found a home we like at $105,900 and put and offer thru them the realtor said we should put $500 down and make an offer so we did. then we get the news that the company who is in control of the home is a remodelling company that counter offered and said they wanted $1000 deposit in their choice of closing company. This was on a saturday. We told the realtor at the time we could only come up with $600 and would need till monday to come up with the other $400 thing is it's already monday I can't come up whit the $400 and friends and family are acting rude and uncooperative and won't lend us the money.
Now I talked to the realtor and asked when the deadline was for the $400 she said it was due yesterday. I told her why we couldn't counter offer the company's offer and offer them $103,500 for the home instead of the $102,500 they were asking for and also the $600 we already offered for deposit.
I believe that would have made the company interested they would have made an extra $1000 dollars and they would be happy. I told this to my realtor and she said no they wouldn't accept it because they were the ones that were going to carry the closing costs somewhere around 3 or 4k.
My question : Are my hardworking folks going to have to forfit their $600 and forget about owning a home?
No the other thing the mortgage company were working for say that were already approved for a $115,000 loan and said over the phone wea re guarantee to get the money. But I know better, she can't really guarantee something over the phone because alot of things can happen the loan wen't get approved or what.
That's why tought of askin you guy's im just getting started in Flipping Properties and someday wish that I know more tha I do right Now Over the past Few Days I've learned a whole lot and can't wait for the future when me and my family will profit from me learning real estate investing.
Any feedback will surely be appreciated I know the old saying that knowledge is power but right now I'm not very knowledgeable and don't like I said in the subject "I don't want my family getting screwed."
Well if the facts are truly as you stated your $600 is not at risk and you should be getting it back. That money only becomes at risk once the contract has been accepted.
As you said they made a counter-offer which means no offer has been settled on. Your realtor should be returning your money to you if she doesn't want to make that counter offer for you of raising the offer price.
The people selling are just looking to make sure you are serious about buying and to cover their holding costs. Once a contract is in place they can't sell it to anyone else without some legal issues arising.
They also don't want to get 30 days down the road and have your mortgage company say, oops your not approved for the loan anymore. They could potentially lose a "more qualified buyer" if the house was under contract.
If that happened, then yes your $600 is at risk.