txfireguy2003
05-23-2008, 10:30 PM
So I typed this up and then realized how long it is so I thought I would put in a warning. It's long, read if you like, comment if you wish, it's just a rant with an idea near the end.
So I have a rant today, and good reason for it too! You see, everyone is moaning and complaining about the struggling housing market, but nobody has a solution to it. I understand that a lot of people have lost their homes because of adjustible rate mortgates, and the rising price of pretty much everything, but now the MARKET is struggling because not many people are buying, or in a position to buy. Well, I happen to be one of the lucky ones who has a stable job with security who has been in the market to buy a home for the last three months or so. I found the one I want last month and put in an offer. The offer was accepted, the lender was ready to close everything was a go, until today. You see, today was supposed to be my closing date, but it didn't happen for a multitude of reasons, all caused by the seller.
First of all, the house is a repo, so it is owned by a bank from out of state, so they had to hire a Texas title company to handle the title work, fine, but they hired one 3 hours away, who in turn hired another title company locally to handle it. So we ordered title papers on the 1st of May, and again on the 9th of May and recieved it about 3 days ago (that's the 20th of May!). There was a problem in that the owner of the home, GMAC, had contracted with another bank, Citi Residential Lending. So, the seller on the title work is Citi, but the owner is GMAC...problem...you can't sell something you don't own. So, had the title company sent the paperwork to my lender in a timely fassion, we would have had time to correct that, but they did not. "Not to worry" says my lender, "There are other options. I'll get the paperwork that shows that Citi has authority to sell the house." Well, they can't produce paperwork that shows that. So we decide that GMAC can transfer title to Citi and all will be good, and they agreed to that. NEXT PROBLEM...FHA, who is the guarantor of my loan, will not make a loan on a property that has been "sold" in the last 90 days! The title transfer between those two banks would constitute a sale. So, the government (FHA) who is so worried about the struggling housing market is preventing me from buying a home! What kind of crap is that?
So, here's the deal, how many of you would vote for me if I ran for office on the platform that I can fix the housing market? It's a simple platform really, if you want a house and can afford it, we'll let you buy it! My lender says that he's had this problem numerous times because the banks that repo houses don't ever sell them, they contract with some other bank to do it. The problem is that a lot of the time, there is no actual contract between the two companies for each house, it's more like Bill at GMAC calls Mike at Citi and says, "Hey buddy, sell this house." So, as long as the buyer can pay cash, or has "conventional financing", it's no problem, but when the buyer wants an FHA loan, FHA won't do the financing. So, the seller is running some shady business practices, but we could have solved those problems, but then the goverment has some hard and fast rule, written in the late 60's to prevent property flipping, that is keeping the market even lower than it has to be. How many repoed houses are on the market right now that can't be resold because FHA won't guarantee the loan? I know there were 141 houses repoed in my county alone in the last month!!!
Sorry for the novel here guys, just something I needed to say. I'm just a little ticked.
So I have a rant today, and good reason for it too! You see, everyone is moaning and complaining about the struggling housing market, but nobody has a solution to it. I understand that a lot of people have lost their homes because of adjustible rate mortgates, and the rising price of pretty much everything, but now the MARKET is struggling because not many people are buying, or in a position to buy. Well, I happen to be one of the lucky ones who has a stable job with security who has been in the market to buy a home for the last three months or so. I found the one I want last month and put in an offer. The offer was accepted, the lender was ready to close everything was a go, until today. You see, today was supposed to be my closing date, but it didn't happen for a multitude of reasons, all caused by the seller.
First of all, the house is a repo, so it is owned by a bank from out of state, so they had to hire a Texas title company to handle the title work, fine, but they hired one 3 hours away, who in turn hired another title company locally to handle it. So we ordered title papers on the 1st of May, and again on the 9th of May and recieved it about 3 days ago (that's the 20th of May!). There was a problem in that the owner of the home, GMAC, had contracted with another bank, Citi Residential Lending. So, the seller on the title work is Citi, but the owner is GMAC...problem...you can't sell something you don't own. So, had the title company sent the paperwork to my lender in a timely fassion, we would have had time to correct that, but they did not. "Not to worry" says my lender, "There are other options. I'll get the paperwork that shows that Citi has authority to sell the house." Well, they can't produce paperwork that shows that. So we decide that GMAC can transfer title to Citi and all will be good, and they agreed to that. NEXT PROBLEM...FHA, who is the guarantor of my loan, will not make a loan on a property that has been "sold" in the last 90 days! The title transfer between those two banks would constitute a sale. So, the government (FHA) who is so worried about the struggling housing market is preventing me from buying a home! What kind of crap is that?
So, here's the deal, how many of you would vote for me if I ran for office on the platform that I can fix the housing market? It's a simple platform really, if you want a house and can afford it, we'll let you buy it! My lender says that he's had this problem numerous times because the banks that repo houses don't ever sell them, they contract with some other bank to do it. The problem is that a lot of the time, there is no actual contract between the two companies for each house, it's more like Bill at GMAC calls Mike at Citi and says, "Hey buddy, sell this house." So, as long as the buyer can pay cash, or has "conventional financing", it's no problem, but when the buyer wants an FHA loan, FHA won't do the financing. So, the seller is running some shady business practices, but we could have solved those problems, but then the goverment has some hard and fast rule, written in the late 60's to prevent property flipping, that is keeping the market even lower than it has to be. How many repoed houses are on the market right now that can't be resold because FHA won't guarantee the loan? I know there were 141 houses repoed in my county alone in the last month!!!
Sorry for the novel here guys, just something I needed to say. I'm just a little ticked.