There’s a first time for everything!!
Look at this view. Worth a million bucks. Right? I put this house, on the southern tip of Charles River Cove, under agreement in May, 2017. Buyers got their mortgage commitment in June. Closing scheduled for August, 2017. The week before the closing the bank changed it’s tune and sent a “Letter of Denial.” No mortgage, no funds, no closing. Disaster. Sellers had moved out of the house.
What happened? Buyers had multiple properties, lots of assets, lots of debt and, we thought, lots of different ways to buy this gorgeous bungalow, which they were going to renovate and live in. Bank decided at the last minute that buyers had Too Much Debt.
I’ve been selling real estate for almost 25 years, and this has never happened to me. I’ve heard stories, but most seem so unbelievable to care much about. The story we were told here is that the buyers had commercial debt and the requirements for residential debt are stricter, according to Fanny Mae requirements. Whether that is the whole story, I don’t know.
By all rights the deposit money should have stayed with the Sellers, but Buyers threatened to put a lien on the house if the deposit wasn’t returned in full. Sellers did not want to get tied up in litigation, so they agreed.
A terrible situation…….can’t win ’em all. We’re back on the market, with some good prospects!!
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