Yep.... last Thursday night my realtor informed me that there was a little "glitch" with our closing. The buyers lender (a mortgage broker) said FHA changed their rules to reinstate the FHA 90 day non-flipping rule. I called him up an reamed him up and down. Not professional, I know... But remember, I spoke directly to him right when we received my buyers offer and he ASSURED me that the 90 day flipping rule would not be an issue. He also assured me that the profit I would be making from the sale would be a non-issue. Okay fast forward about 40 days to last Thursday. I was absolutely livid when I got the call that he could not proceed to closing. I was also livid that he assured me, the realtors AND the buyer that this would close w/ no issues. I was also confused that FHA would reinstate the 90 day rule after just over a month. So I went on over towww.flippinghomes.com to see if anyone had posted this change. Hmmm, no posts referring to the change. Weird? My first thought is that this guy is lying to us. Why would someone do that? Just to be sure I posted the question of whether this change was actually reinstated. Here is the answer http://www.flippinghomes.com/forum/replies.aspx?tp=1&tr=165244#m184494
Okay, can anyone say I was livid at this point? I call the broker up again and ask him to fax me the change. He then proceeds to tell me that he never said that FHA reinstated their 90 day rule it was just the lender he was using............. If I could have gotten my fist through that phone to connect with his face I would have been one happy camper. Anyhoo, we went back and forth and in the end I basically called him a liar and that I would never work with him in the future, ever.
So the buyer is now out $1,200 for 2 appraisals and a home inspection on a property she cannot buy. Man, would I be pissed if I was her. Now, I could wait the 90 days but I just can't hold on to the property and hope she can close then. I really feel for her. She is trying her damndest to get another loan but it doesn't seem to be working out for her. I told them that they have to go through a local bank for me to even entertain the extension again.
So what are we doing with the property now? Well this buyer still wants it but we are not waiting so we put a bump clause in their contract. This way if we get another buyer they are bumped out of place. I just found out this morning we have another buyer who should be submitting an offer by the end of the week. I got this particular buyer off CL and he wanted to go through it right when we got the FHA offer. Urrgh... should have taken him through. We also have a showing tomorrow night. I think it will work out fine, less profit but still something to pay down our last credit card (WOO HOO credit card debt free!!! Can't wait).
More to share later...