Episode 5 - Real Estate Hell...

So, here is what happened with our horrible Real Estate transaction. We were SUPPOSED to close (for the second time)on Tuesday. On Monday afternoon, Ron (our agent) calls and says "there is a little problem". It seems that since the first loan the buyers had, (the 80/20 loan where they were putting 20% down, $98,000) fell through, they weren't able to close on May 22, the way the contract said. So, being nice people, we gave them a 2 week extension, so they could get a new loan. The buyer makes plenty of money, so I assumed HE KNEW SOMETHING ABOUT THE LOAN PROCESS. However, he lost his first loan, because once he was approved, according to HIS agent, he took on "a lot" of new debt, which changed his debt to income ratio, and lowered his credit score. And, since his Lender checked his FICA Score the day before the Closing, and saw the drop in the score, they cancelled his first loan, which also cancelled our closing. So, (see "nice people" above) we gave him another chance. Back to my story: On Monday afternoon when I ask Ron what the "little problem" is, he says that the Loan Appraisal has to be redone since it is a new lender and that the Buyers agent "forgot" they needed a new one. So, by this time, it is late on Monday, so Ron says the appraiser is coming early on Tuesday AM, and "don't worry" we are still closing on Tuesday at 3pm. Tuesday AM, the appraiser is running late, and does not get to my house until 11:30 am. I'm NOT surprised to see that he is the SAME appraiser who came here last month with the last loan! I ask him why he had to come again, since he was here less than a month ago. I assure him that I have not burned the kitchen up since I saw him last. He wants to earn another commission, however, so he takes NEW photos, (same as the old photos), and then leaves. I then get a call from Ron, telling me that since the new appraisal did not make it to the Lender before 12 noon, the closing on my house will be delayed until Wednesday, at 11 am. Wednesday AM, (guess what happens next) I get a call from Ron, telling me that "there is a problem with the Power of Attorney. The buyers, who planned to (and did)leave the country the day after the May 22 settlement (missed) date, went ahead and left town, giving their mother-in-law Power of Attorney to sign the sales papers for them. Apparently, the Notary Public that signed the Power of Attorney papers hadn't noticed that his commission had EXPIRED THE DAY BEFORE HE SIGNED THE POWER OF ATTORNEY!!!!! Of course, the Buyers agent says, don't worry, it will only take a day or so to get new Power of Attorney papers from wherever in Europe the buyers have gone. Thursday am: Ron calls us to tell us that they new Power of Attorney papers have been faxed from Europe, and we are a "go" for the Settlement this morning. He tells us to be at the Settlement agency at 10am. We go, and ALL BY OURSELVES , we sign the papers to sell our house. Ron says "Don't worry" (that again), the buyer's mother-in-law is just waiting to get the papers from the lender, and will be signing the Sales documents at 1pm on Thursday. Ron tells us to go ahead and go to Virginia, that we can do the walk-through on our new house, and then go and sign all the sales papers and that by the time the sales papers are signed in VA, the Buyer will have signed the sales papers in Maryland and it will all be a DONE DEAL. So, we do the walk-through on our new house in Virginia, then go to the Settlement Attorney in VA and sign all the papers to buy the house. They give us the key and and tell us that it is a done deal, ALTHOUGH the Buyer has NOT SIGNED THE SALES PAPERS ON OUR HOUSE IN MD. "Don't Worry" says our agent, it is just a small delay, the money is on it's way, and as soon as it arrives, the deal is done. We take our new keys, and unlock our new house. We have already had to call and change our moving date twice already, and also had to call the guys who are putting in our new wood floors and put them off several times. We know that the floor guys are on the way over with all the wood and are planning to take up the old carpet and start putting in the wood floors on Thursday pm. At almost 6pm, we get (yet another) call from Ron, he says that the Loan company wants to REVIEW the terms of the buyers loan again, so we better not start working on the floors. So we have to call the floor guys back and cancel. Finally Thursday evening, Ron calls and says the loan company is finally satisfied, and will send the money to complete the sale on Friday at 9am. Friday morning we go over to the new house and start taping off the walls before we start painting (figuring that we can always pull the tape back off if it all falls through), and waiting for the call that the money has been transferred. Ron calls again and says that when the loan company said the money was being wired at 9am Friday, they meant 9am CALIFORNIA TIME!!! Long story short, the money for the sale of our house came through at 3pm, and the settlement company in VA got the money to complete the purchase of our new house at 4:45pm, so they have it, but it will not go to the bank until Monday. It was the most stressful experience of my life. AND it was made worse by the fact that I couldn't buy my new mattresses until today (no certain delivery address) and I am sick of sleeping on the floor. Tomorrow we are going to the new house early and painting the mustard colored living room and the blood colored dining room a nice antique white, after applying several coats of KILZ!!!

Rewired, Retired, Episode 4

With all their financial problems, what do you think the buyer is focused on? My garage door! During the walk through, the buyer became convinced that the garage door does not safety-reverse correctly. Now, Gus and I were right in the back yard during the walk through, wouldn't you think if the buyer had a problem, he would have strolled into the back yard and mentioned it? Noooooo... He waited until he left, and then complained to HIS agent, who called MY agent, who called me. According to the buyers agent, the buyer tried the door several times, and it did not reverse when he put his hand under it. He even "had his young son stand under the door as it was closing, and the child had to jump out from under the door to prevent being hurt". Well, I ask you... If you thought the door was defective, would YOU test it by making your kid stand under the door??? I tell MY agent that the door works correctly, that I think the buyer does not understand the correct way to test it, and that he is welcome to come over himself and see it reverse. My agent stops by, and of course, there is nothing wrong with the door. He calls the buyers agent, she calls the buyer, the buyer replies that he wants to come back so he can see for himself that it works. So, back he comes. At this point I am SO OVER them, so Gus has to deal with him. Gus tries to explain that the door is designed to reverse when it hits something that STOPS it, like a box, a trash can, or a hand held FIRMLY under it. However when the buyer tests it, as soon as it touches his hand, he whips his hand out from under it, so of course it does not reverse. Gus explains to him that the door is 15 years old, does not have an electric eye, and is not going to reverse just because he stands near it! Buyer is finally made to understand that he can take it or leave it, we are not buying him a new door. The next day, his agent "remembers' that we need to sign a little form that has to be taken to the closing, and can she bring it over for us to sign? When she arrives with the form, it turns out to be a material change to the Sales Contract. The original Contract called for the buyers to make a $98,000 down payment, this new contract specifies NO Down Payment, and a 100% mortgage! This is a dangerous change, it means that the buyers are not putting ANY money into the deal, so it would cost them nothing to walk away at the last minute. Luckily, I remember that I had demanded that the $5000 earnest money is mine if they don't show up on Tuesday, and this is Friday afternoon, so I sign the new form. If the sale falls through, at least it will be only a few more days, and I will have $5000 to help me put the house back on the market.
This scenario is not the only reason I am not sleeping well at night. In order to save a surprisingly large sum on our moving costs, we decided to not move our current 15 year old queen size mattress set. We will get rid of the old mattresses here and buy new ones and have them delivered to our new house after we move. This means that we have to send one piece at a time out with the trash. Last Friday the box springs went out, and next Friday the mattress will go out. However, the only way to sleep on the mattress without the box springs is to put the mattress directly on the floor. If you think it is difficult to get down on the floor to go to bed, try getting up off the floor in the morning when you are feeling stiff...

Episode 3, More Aggravation...

I inform my agent that I am willing to try again with the free spending buyers, since he assures me that he has got them a new loan. HOWEVER, in order to sign an extention to the closing date, I insist that the agent write into the contract that if we do not close the sale on the new closing date FOR ANY REASON, I am to immediately receive the $5000 earnest money, mine to keep. Agent says he does not think the buyers will go for it, I tell him I am not signing otherwise, I am sick of playing with these people. If they want me to keep the house off the market for another 3 weeks during a time of falling prices, they are going to compensate me if they fink out. He hustles out to deal with the buyers, and shortly later he tells me that they have agreed. Then, I ask him to get me a letter from their lender saying that they have got the loan for sure ( I am no longer taking anyone's word for anything, if the buyers say it's raining, I am going to check the window). He email me the lender letter, and I am very surprised to see that the buyers are taking an adjustable 2/28 (this means that the interest rate stays artificially low for the first 2 years, then adjusts SHARPLY upward) 1st mortgage of $389,000 at 7.99% and a 2nd BALLOON Mortgage for $88,000 at 10.99%!!!!! These are AWFUL terms, I would not buy this house with that kind of a deal. In order to get the loans, they also had to have their wife's mother sign in on the deal, and now she is going to live with them. Hmmmmm..... The next day, the agent calls to tell me that the buyers have plans to go out of the country for a while, they have given the mother-in-law power of attorney to sign the sales contract, but that they want to have the Pre-Settlement Walkthrough today. We agree, and go hang out in the back yard while the buyers and their agent "walk through". They do not speak to us at all while they are in the house, although Gus goes in and tells them that we are in the backyard if they have any questions. AFTER they leave, we get an email from our agent saying that they claim that the garage door is not working correctly...