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lb416 · Joined: 29 Jul 2008 Posts: 2 2.30 Dollars($)

To avoid foreclosure on my home, I agreed with the mortgage company to do a short sale. We were going to close the deal on the home today when we learned that the buyer will not have enough money to put down as a down payment towards my home. I asked how he could not have known that from before and was told that today a new mortgage law was passed stating that new buyers need 10 percent down. The new buyer was originally told he would need 7 percent which he had but that today a new law was passed saying it increased to 10. I am so confused and baffled by this. I have searched the internet looking for new mortgage laws and have found nothing. What is really going on>?

Guest

Hello.

I haven't heard any Law as such. Which state do you live in?

lb416 · Joined: 29 Jul 2008 Posts: 2 2.30 Dollars($)

Thank you for your response. I live in the state of Michigan.

Caron · Posted: Thu Jul 31, 2008 4:15 am Post subject: RE: first time buyer down payment

Hi Lb,

Welcome to our forums.

Even I haven't heard of any such laws except that the Bush administration will not allow first time buyers get seller funded down payment assistance. By the way, did your mortgage arrange for the buyer or is it you who found out one? Make sure that the buyer will be able to pay off the short sale price or else how would you pay the company.

Good luck

Guest

It is not a mortgage law but a change in all lenders guidelines. The fiends that have caused this mortgage mess has litrally turned the industry upside down even worse than nessesary. Mortgage brokers and lenders, loan officers have been baffled at the rate of change the industry now calls for. One minute you have a good loan for your borrower and the next it is not business as usual and without warning.
Good luck with your buyer and maybe you should consdier doing a small 2nd mortgage to the buyer. Or recommend they take an FHA loan as FHA only requires 3 % down. Good Luck!
The Loan Lady

brian1 · Posted: Sun Aug 17, 2008 4:41 pm Post subject:

I would insist that they show it to you before you release their earnest money

Guest

I am in the process of selling, or practically giving away, my home
in Michigan right now and have a well qualified buyer. We were supposed to close the deal on the 12th but, because his mortgage underwriters all had to go to the seminar on new mortgage guidelines in Michigan, the closing has been delayed until the 19th at an additional cost to me of around $200.00 in interest from my mortgage company. I consider that to be negligence on their part for simply walking away from a pending transaction and incurring more costs to me. Anyone with legal experience on an issue like this, I'd really like to hear from.
Thank you

Caron · Posted: Fri Sep 12, 2008 5:44 am Post subject:

Hi James,

Welcome to our forums.

I feel the company shouldn't have charged you for the delay. Well, I'm afraid you'll have to consult a mortgage attorney in this regard.

good luck

vegas_storms · Joined: 12 Sep 2008 Posts: 67 3.54 Dollars($)

Most important is your going to spend more than the $200 to get any advice worth a darn, so unfortunately either pay the extra interest or find a new buyer.

I know it sounds harsh, but we like to say it how it is.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

lb416,

No there was no law passed. I think it was a line of BS that the loan officer gave when they realized that the buyer was not getting the loan. The problem that has been in effect for about the last year is that lenders will allow 5% down but the PMI companies will only insure at 10% down. This is the catch 22 that will bite a loan officer if they are inexperienced and they won't realize it until the end of the loan. It sounds like this may have happened here. One option may be to split the loans into a first and second. That way there is no PMI. Another idea is for the buyer to look at FHA. They only require 3% down.

Guest

my wife was approved for a 170.000.00 mortgage 2wks ago. We talked to the broker and he guaranted the pre approval for 120 days 1 wk after the approval. Today 03/09/09 she called him to find out other information and he told her she was no longer approved due to a new law being passed today. And instaed of 6800.00 down we needed 40,000.00. whats going on anyone hear of a new law in pa?

adonis · Posted: Tue Mar 10, 2009 12:43 am Post subject:

Hi Aaronf,

As far as I know, no such law has passed. You can ask your lender about the law and request him to explain it to you. Moreover, you should note that the down payment is paid to the seller and not to the lender. However, the lender will always want you to pay more so that you will be considered as a potential buyer. But 40,000 in place of 6800 is too huge an amount. I guess, you should speak to few other lenders and check out if they can pre-approve you.

Guest

Any one out there know if you are trying to do a loan mod. for you mtg. should you have to pay for that?

gmakerley · Posted: Wed Apr 08, 2009 1:10 pm Post subject:

home owner - if you are asking "should i hire one of those 'modification companies' to help me?" then my answer is NO, NO, NO!!!

go to www.hud.gov and look up counseling agencies - who will work with you for FREE in trying to help you do your modification. there are counseling agencies in every state - no matter where you may be.

i know all those in the modification business will fuss at me for what i've just written, so let me say this also. you will find that there are some legitimate law firms and companies who will actually be helpful to you, for a fee. these fees ought to be minimal however and reflective only of real money spent.

my overriding fear is that you'll be charged something like $1000 or $2000 that you could have put to much better use for something as arcane as making a mortgage payment or putting food on the table for your family.
any money spent on frivolous "help" is money wasted in my opinion. if you can get the help you need for free, why not go for it?

Guest

I AM SELLING A HOUSE IN INDIANA AND THE BUYER CAME TO ME WITH AN OFFER AND WANTS ME TO PAY 6 PERCENT ON TOP OF WHAT THEY OFFERED? IS THIS A NEW LAW OR IS SOMEONE PULLING MY CHAIN???

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