First let me asy that just 'knowing' or even being related to a REALTOR is not sufficient reason to use them. How will this affect the relationship if the deal sours - as yours has? Are not personal relationships more important than professional ones?

So when mixing business with personal lives the professional should take extrodinary care of the transaction in order to maintain the relationship - not always as easy as it sounds.

Now, as far as your question - if the agent removed a contingency without your authorization than you have legal recourse if you lost money in the deal. Each Borad of REALTORS® has an Ethics committee that can certainly get to the bottom of your situation, exploring all of the facts.

It s seem to that you are the one who removed the contingency without your agent authority..The removal
should not removed without the loan approval you should extended the contract..now that the agent asking
you a Gift Letter it is common that letter should be given to the lenders before they will give you final approval..

So how did it turn out? Did you close the deal? Did you loose your deposit?

It sounded like you needed to wait for some seasoned funds before you pulled the money out for your down payment and so you asked someone to "borrow" the money until you can repay them. But FHA would not allow your 3.5% to be borrowed but they would allow it to be a "gift". As a gift letter the signer would be concerned that they would never be paid back. Is this how it went?

When talking with your agent and lender it is very important to share the whole story so that they can advise and council you. Also, the lender should have worked very closely with you as well before you removed any loan contingency you should have know where you were in the loan and the risk involved, then made an informed decision.

Kangan,

I believe your issue is that of the downpayment and "sourcing and seasoning" the funds....in other words the lender wants to know where its coming from and that you have had it for 60 days.

It sounds like you cannot provide sufficient documentation for the DP so they are asking you to sign and write letters saying it was a gift from a family member, and thats not true.

Bottom line? Prove you have the 3.5% down from an acceptable source, or walk away and lose your earnest money.

I don't want to speak ill on your agent. Yet your agent should make extension of remove the contingincies. Without the final lender's approved conformation, I don't know how come your agent let you removed all contingencies. You might lost some deposit but not all...It is not the point right now.
If you have 720 credit score, and full docs. Loan shouldn't be a problem. I closed almost every escrow in 30 days. How much down payment do you have? 5% will be alright. 10% will be have better rate. Try to close the escrow first. If you cannot, please contact to the atteny. I have just down one 10% down 30 years fixed rate at 5.125% in which was locked 3 weeks ago. As today's rate, we can do 4.875% to 5% for 30 years fixed.
I would like to try to help you out of there. I haven't have any case failed because of the loan. Full docs or stated income.



Realty World-Blue Property
Jerry Zang
408-930-4684
jerryzangrealtor@gmail.com
DRE#01702597

Hi, Without knowing the entire story AND going by what you say above, I will do my best to answer your question. You probably should have asked for an extension for the time period to remove the financing contingency until the details could be worked out. The market is improving right now and that means with more buyers and more transactions there are delays. It is not unusual for a buyer to ask for such an extension. So long as you are "preforming in good faith" the sellers have to give you a reasonable amount of time. As far as whether or not you would lose all or part of your deposit, it depends on how the dispute is resolved. In 24 years I have only seen one buyer lose all their deposits. I don't want to give you legal advice but it usually comes down to this: if your intentions were honest you'd likely nopt lose it- certain;ly not all of it. This is only muy opinion based on my experience. as the saying goes, your mileage may vary. Bruce Scheer, RE/MAX Real Estate Services

My credit scores and report are very good, my income, employment history is also very good. The only issue I had was with the downpayment. I had the money I saved invested in something else, I am in a position where I cannot take that money out right now. When I invested the money, I wasn't thinking about buying a home.

I started looking for homes very recently. The issue I am having is with two of the transactions that shows up in my bank statements. Had I waited for two months, I would have saved enough money for a 10% downpayment.

The buyer and seller agent used to work in the same office and I am not sure if that was reason why the loan contingency was removed from the final contingency removal form. I feel stupid and cheated.

The only reason I went to this agent was that he was known to me not because he was giving me any discount on his fees. I just wanted a person whom I could trust and I have learnt my lesson.

Contact Mr.Carlos smith tell him what you paste here and he will have a word with you he is a money lender for the past 12years know in u.k,Canada and some Africa country just get in touch with him on

wallacej231@gmail.com

Hi Kangan,

You should never remove any contingency until you are sure that the issue has been resolved. You always have options to ask for an extension and in today's climate often financing is taking more time and the listing agent on the other end should be understanding.

Your financing sounds like it has some specail considerations, hopefully its not a problem and will go through. It is taking longer than usual so it may not be anything serious and will get approved.

In the worst case if it doesn't get approved, you will need to speak to a qualified real estate attorney. Think positive and I wish you good luck.

Kangan,
Any documents that you sign pertaining to and included in the Purchase Contract, should be brought to your attorney's attention. I suggest you share your concerns with your attorney ASAP. Please write a follow up and let us know the outcome.
Cindy Johnston
Associate Broker
RealtyUSA Cooperstown, NY

Good morning Kangan,

When the financing contingency came off, it removed your 'protection' against losing the earnest money (binder deposit) if the loan does not get approved. Since you have exact explanations for the dings on your credit, let's just keep our fingers crossed & hope that the FHA underwriters will be satisfied & approve the financing for you.

Good luck & enjoy your new home!

Lynn

Kangan


In a perfect world, you would have final approval on the loan before you removed the contingency.
Now the loan is not an "excuse" to pull out of the transaction.

Your deposit is at risk if you do not close the transaction as agreed.

Good Luck

R