Yes, if a derogatory item must be paid in full as a condition of the mortgage approval, it can be paid at closing via the closing attorney. You will just need to be able to verify sufficient funds to pay it off or be able to get a gift.
If it is Midland Funding, then it is probably a collection account rather than a charge off. We see charge offs more when the debt is still with the original creditor. Once a collection agency takes it over, it usually stays as an open collection account rather than being charged off.
The older the age of the account and the lower the balance, the less likely it would have to be paid.... more
I can't speak for his commission but I've financed $100 down HUD homes in Georgia and the ones I've dealt with are excellent properties. There are, however, some that do need repair and you can finance minor repairs with this program. Ask your agent. Is the agent concerned about your down payment or other issues? Have you been pre-approved and shown that you have sufficient funds to complete a transaction requiring a down payment? You are certainly entitled to look at non-HUD homes for which you qualify; if your agent doesn't accomodate this then it may be time for a new agent!
Read completely through your contract and bank addendums. They can get pretty sneaky at throughing things in the bank addendums. If everything is good and they do not have a backdoor, have your Realtor get their Broker involved. Maybe that will help. If it does fall apart I would demand they pay your expenses because that was not the condition of the house when you had a meeting of the minds and a contract! .
Really sorry to hear this and I wish you all the luck!!!... more
Talk to your lender. Flood insurance can raise the cost of your mortgage payment considerably and you may not be able to qualify at the higher mortgage payment. If your contract has a financing contingency, that may be a way out for you......
However, the BEST bet is for you to take your contract to a real estate Attorney, and ask them that question. That is definately a legal question that should be addressed to an Attorney.
Discussing official flood zones.....I have a one word answer................YES.......let me repeat that..........YES
If there is a listing agent involved she should have already looked into this, and should know what the exact status is - to what extent it is or isn't located in a flood zone. A certificate will be issued describing whether the house or property are partially or completely located in the zone, if indeed they are
The mortgage company may or may not require flood insurance - it all depends on where it is located within the zone..We have official flood maps in our office, but this is something easliy discovered online for a small fee.
The attorney for the buyer always includes a line regarding this in the contract, and gives the buyer the right to terminate the contract if the home is discovered to be located in a flood zone.
No one likes surprises...........sellers should disclose this ahead of time!
By the way - it is possible for a home to be in an offical flood zone, and never flood...conversely, it is possible a home floods ,. but isn't in a flood zone.... more