Geshu

I really appreciate everybody's input here. First of all, I was represented by a real estate broker and an attorney for the contract. There was no such thing as FHA mentioned in the contract. However, the sellers well aware that were going for FHA loan because we asked if the construction is FHA approved. They said it is in the later stages of the approval process and should have approval any day. We ended up signing the contract and a date to close was scheduled. We had everything ready - the only problem was that the building has not yet received the approval and the underwriter could not clear the loan to close on the closing date. Therefore it is not my fault we were not able to close but theirs. The sellers agent was sugar-coating on the timeline of FHA approval.

Now my broker floated the idea to sellers broker regarding me moving in possibly rent-free. The seller's broker spoke to the builder and came back to us saying to ask our lawyer to draft an agreement. Currently the lawyer is in process of drafting an agreement - that will be the most important thing to see once it is on paper.

In terms of researching on the builder - i called up HUD to see if they have any claims or complains but they said there were none against the builder.

William - you have been playing devil's advocate and I like that! thanks for you advice. I will make sure the points/clauses that you have mentioned are somehow addressed in the agreement that my lawyer drafts. I will update once I have the draft. Please let me know if anyone can come up with some more points on this. Thanks a lot! - Fri Aug 22 2008, 20:50

while I wait to see the draft of the agreement - I have another dilemma. If I get my landlonrd (who is very nice) to agree to let me stay beyond my lease on month-to-month basis, should I still move into the new condo (i have been informed that it will be rent-free - yet to get in writing though) I have couple of scenarios playing in my head now and would greatly appreciate your input.

1. my landlord lets me stay on month-to-month basis and builder allows me to move in rent free. What should I do? stay in my rental or move to the new condo?

2. If I get to stay in condo for rent free for lets say 90 days - I save 90 days of rent and can MAYBE add to my downpayment to get conventional loan (currently I can only offer 3%) if the building does not get FHA approval and then MAY BE refinance to FHA??

Basically I believe the condo is a great investment and I am sick of paying a rental that equals a mortgage payment. But I also dont want to move in and then have to move out of the condo because of the FHA thing! - Fri Aug 22 2008, 13:13

Thanks, William. They say they are in the later stages of the process to get the approval. The sense I am getting from my real estate broker is that they understand that we were not able to close not because of any fault of mine but really theirs. The seller's agent had been telling us that the condo will FHA approved any day and it didnt happen yet. So they are trying to make it right by saying that they can let her move in until it is approved. Also, I cannot go the conventional loan route and have made this very clear to my broker. IF it does not FHA approved, I will not buy it via conventional route. They are obviously trying to see the legalities of it.. I will read the agreement once I receive

But have you heard of anyone doing something like that where the builder lets you move in like in my case. Is he being nice or there might be ways that I can be screwed as a buyer. It is my first time buying a house...and Its just not going the way I had in my mind! - Fri Aug 22 2008, 10:11

Thanks, Christine. I have gone and seen the property and am about to sign the contract. I want to get opinions of the people who know of the area, complex around 38th street/jfk blvd and how do they think the property might fare in next 5 yrs or so? - Thu Jul 24 2008, 16:50