ON Canada - this is good then you would have an equity on the property right away.

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Ok, here is the deal. the seller stated the sq footage of this house was 1270, when really it is only 1058. the difference is a storage room that has a/c, but isn't considered usable, so it won't be considered on the appraisal. i had asked an appraiser what it was worth based on the 1270 sq ft and made an offer. now they are saying it isn't going to comp. i know i can offer back at the appraised value, but if he won't accept it, i feel entitled to all the money i spent on a survey, inspection, and appraisal since they lied on the square footage. what will most likely happen with the house as far as being able to get it for the new price? also, if he says no to the new price, am i entitled to get my funds reimbursed? there is fraud involved, they lied about the sq footage. i would sue for what i am out. there are realtors involved. what i am afraid of is that i already talked him down from 169,900 to 154,000. (tax appraisal is only 100k. the house is only 1058 sq foot, but is lake front property.)

It's one thing for you to say "fraud" involved, it's another thing for a judge to say"fraud" involved. The lender is only going to lend at the appraised value or sale price, whichever is lower. I would think in the current mortgage climate where ready, willing, and able buyers are extremely rare, the seller should be happy you are there. If the seller isn't interested in working with you, then it's up to you and/or your legal counsel to do what you must do.

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We recently put down $5,000 earnest money (required by the builder) for a house we want to buy. but, i have been looking at recently sold homes in the neighborhood and none of them are as expensive as the one we want and ours is a little smaller then the rest of the house's recently sold. if the bank appraiser doesn't appraise the house for the asking price, can i get my earnest money refunded and back out of the deal?

If the house does not appraise, you have three options; 1) put up the difference in cash, 2) Have the seller come down to the appraised amount or 3) request a cancellation of the transaction. If you have purchased a home and the bank says they do not think it is worth what you agreed to pay, they will not make the loan therefore you can not purchase. Unless there is working in your contract that is spacific to this situation then the guidlines I have stated above should hold true. I have been a real estate agent for 25 years.

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Ok- owe $126m, house should appraise for $135m-$140m. i am planning on getting a realtor & trying to sell the normal way. i live in st. louis, mo., and i want to move to pa in the summer so my son can start school in aug-sept. if the house doesn't sell by mid-july, isn't there a way i can contact the mortgage company and get them to buy it for the amount i owe? i'm afraid a "buy houses quick" place will not offer me the price i need to pay off the mortgage. the house is in great shape, clutter-free, and i think it will sell fast, but who knows in this market? i've heard of a short-sale, but it sounds to me like that occurs when you are behind in your mortgage, and you offer the mortgage co less than what you owe, and it sounds like it could affect your credit. sure- i'd love to make money on this house, but when it comes down to it, if it doesn't sell, i'm willing to just get out without owing anything. thanks in advance for your help!

Pricing your house a little below market now instead of a month or two from now is the best way to get the house sold. The other houses for sale in your neighborhood are trying to sell for more because the sellers don't have the time constraints as you do (so they are likely priced higher than they are worth). A below market price will enable you to meet your priority of selling the house quick , and might enable you to pocket a few dollars for the big move. Your lender doesn't want the house, but if it comes down to you not being able to sell you can give them the "deed in lieu" of foreclosure, but it would still be a black mark on your credit. As another answerer suggested to have your Realtor market in creative ways isn't a bad idea, but I don't believe is proper in this case because in order to offer seller paid closing costs you would have to initially price your house higher. Besides now a days most Realtors advise (or buyers already know) that a buyer can include closing costs in an offer anyway. AmandaH obviously hasn't spent any time in the business world to realize that "m" often stands for thousand when referring to quantities of goods, thus your abbreviation is completely understandable.

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Okay, here's the situation. i signed paperwork to have a house built that probably isn't going to be started until late next month and won't be done until the nov/december time frame (the builder won't commit to meeting the 1 dec deadline for the $8k credit, which has me nervous). i paid a $2000 deposit and the $350 loan appraisal fee. my paperwork went through earlier this week and i qualified for the loan. things were good until i got called today about this week's mortgage rate spike. i'm financing through the builder to take advantage of the incentives offered, and naturally their quotes are running about 1% higher than the bankrate.com average at about 6.25%. i'm starting to get concerned now. i figured with all the stimulus spending, the fed meddling, and inflationary effects wouldn't start hitting until i was within 120 days and able to lock without paying fees. well that's out the window. all signs point to rates steadily going up for the rest of the year, possibly 7-8% and i wouldn't rule out double digits. so the lender offered several lock-in options, one for 2 1/4 points. now, i just don't have that money to commit at this time because i'm a full time graduate student and my guaranteed job doesn't start until mid-august, and i've been supporting myself on savings since january and setting a strict budget out to meet expenses and qualify for the home loan and take advantage of the credit. while i've been told that my debt to equity is okay to sustain the rate increases, i'm concerned because when i start my new job, my goal is to try to replenish the savings i've lived on as quickly as possible. with just the basic neccessities, at a 6.5 or 7% rate, i feel like i'm going to be barely breaking even based on the salary of the new job. this is not what i exactly had in mind. so my question is this. they haven't started building the house yet. i know there's provisions in the contract that allow me to back-out upon the completion, or if the va doesn't appraise the house for at least the purchase price, but what about now? i thought rates were good, and if i could afford the points to buy down, i probably would, i just don't have the money at the moment, and will just be starting to once again bring in steady income upon the expected closing. i know i'll have to go through the purchase agreement again, but i figure that this has to be something pretty common and that i wasn't the only one affected by the transactions this week. i really feel bad for the people that thought on tuesday they were going to get to refinance. that's just horrible. ps> the builder is ryland, if that helps or anyone has experience with them. valerie - it's va. not too concerned about the $2k, although i'm supposed to also make $500 deposits per month for the next 5 months. i know i signed some form that doesn't let me transfer the loan.

What state are you in? Many real estate laws vary state by state. I'm a real estate broker in NY, and unless one of the conditions that is a contingency in the contract fails to be met, a buyer generally have to forfeit downpayment money to get out of a contract. It might be worth your while to have an attorney review the contract and see if there is another out. If you don't want to walk away from your $2000, it also might be possible to assign the contract to another purchaser, who will assume all the conditions and put up the same downpayment. You have to read, or have a professional read, you contract carefully to see if you have a legal out. Bright side, if you walk away from your $2K, it won't impact your credit.

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I want to buy my first home but i would not like to spend any extra money outside my loan? since i am not so picky i am demanding a house that appraises hight but cost less so that the rest of the money doesn't cost me that much but all realtors i speak to feign ignorance although i know they do it. is it illegal?

It sounds like you haven't found the right real estate agent yet. Don't waste your time with agents that won't listen to you and take you seriously. There are ways to finance closing costs into the mortgage and with the right deal, you can find yourself in a home for absolutely no cash outlay. This sounds like what you are wanting to do. You do not mention your general location. Many states have "first time buyer" programs that are very attractive financially. These are the kinds of things a good real estate agent will work with you on. Best advice for buying your first home: Don't fall in love with the home, fall in love with the deal. Good luck with your home purchase.

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I am purchasing a home from a family member at what he owes on the home, there will be over $100,000 in equity. the lender, now at the end of the loan application process, a day before our closing, now is requiring the owner (my family member) to state that he is giving the buyer (me) $104,000 as a gift of equity. the owner says he doesn't have to do anything, he can sell the house for what ever he wants to. the lender says they will charge us an extremely high interest rate if the owner will not sign this gift of equity sales contract. i am so frustrated!!!! this loan application was approved on october 19th, can they change all this at the last minute?

For computations sake, let's say the house is worth $200,000 and you are buying it for $100,000. You are getting a loan for $100,000. Without the letter stating there is an equity gift, you will be purchasing the house (selling at $100K for $100K) with a 100% loan to value. This, unless you are getting a VA loan, almost always raises the rate of the loan. The other thing that is going on here is that the lender wants to ensure that you don't have a 2nd Private Mortgage that they know nothing about. This way they can say they are lending with a 50% loan to value, which gives you a great rate and gives them low risk - regardless of your credit. They are also making sure that no-one gets sued for taking advantage of the seller.

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He got federal income tax taken out of his paychecks monthly. the irs decided he owed for 2004 and 2005 even after federal withholding. he made 51,000 a year. his house was appraised at 107,000 with a mortgage of 93,000 (balance is 78,000). he isn't willing to pay more taxes than his federal withholding. i agree with him, i'd refuse to pay for wars orchestrated by this government. food on the table is more important. the irs gave notice of seizure on his property. he paid a few friends to burn the house down while he and my sister were on vacation (fire ruled accidental), and the insurance company paid off the balance of the house to the mortgage company (think he said he got some money too) before the irs was able to legally "seize" the house. he cleared out his bank accounts, has all vehicles registered in my name, and gets paid under the table doing sales and commission. he makes about 3 grand a month now. will he ever be able to buy a house again? irs doesn't suspect foul play. the fire was started because of some "faulty" electrical inside the home...this is what i heard. he doesn't plan on rearing his head anytime soon. he has liquidated over 70,000 in assets and placed those in one of the relatives bank accounts. he is silently chunking away money in this bank account, and will continue to do so for years. he has essentially dissapeared under the radar. he is no longer at his current or previous addresses. he has no recorded employment for the irs to garnish the wages. basically, he wants to buy a house, but may end up living with relatives or renting the rest of his life. the irs won't win this one. he only owes 8 grand in back taxes, penalties, and late fees. he only protests the taxes because he owes even more than his federal withholding. he already paid his taxes each month from his paychecks. now he finds out he owes even more when doing the filing via turbotax. the dunning notices start, and he simply refuses to fund these wars and invasions. a certain somebody has tried unsuccessfully to invade/rebuild two countries. spending in excess of 1 trillion dollars for the attempt. if you invest in a company who spends money with that reckless regard, would you want to invest any more money in it, or pull out right away? they say tax protesters use the constitution (no income tax is defined in the constitution) as their basis. federal courts shoot down this argument. why? they are affiliated with the government. if he is smart, he will live with relatives or rent from a place that doesn't check credit (individual landlords who rent houses). he's got nearly 6 figures saved, and saving more under the table. he's good for a long time. i fail to see where i assisted him. i had nothing to do with the house fire. i had nothing to do with helping him hide, or paying him under the radar. i simply know of his whereabouts, and i know of his ventures as of late. it is not a crime to know about someone's delinquent tax issues, nor someone's ways of depriving the irs of property that the irs plans to steal from the individual. as for the 3 vehicles (all 2006 models), he gave them to me as gifts. i properly paid the gift tax on each car. he reimbursed me for the taxes and title fees. i fail to see how this is illegal. it was a legal gift transaction.

Sounds like your brother in law is one of those "tax protesters". He's not going to get away with anything. I suspect the IRS has his name on file and pretty much know what he's doing. One of these days they'll get around to him. Since you are assisting him you will be charged as an accessory with him. Since you say he "dropped off the radar"; he has not established any kind of recent credit history or work history that he can offer the bank. His ability to secure a large loan under such circumstances is doubtful. I noticed that he put money in some relative's account and continues to add to this account. Who's paying the tax on that money, the relative? The IRS will probably come after the relative for the unpaid taxes on this money. What is the relative going to do? Go to jail for your greedy, dumb s**t brother in law? Your brother in law is going to jail and taking you and other family members with him. Get your name off his property and get the hell away from this nut before you destroy your life.

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We are looking at a house that is listed for 59,900. we are considering offering 59,900 and buying it. but i called the county appraisers office and it appraised for 45,180. is this bad? or is this bank going to say the house isn't worth what i'm offering? if i submit a contract and the bank doesn't thinks its worth that much, what do i do?

Understand that the county 'appraisal' value is only for taxation purposes,and may or may not not reflect current market value. Ignore the tax assessment valuation and be satisfied with the loan appraiser's valuation of current market value . Example ? My current home is tax assessed at about $220,000. It's current market value (in spite of decreased home values) is around $340K.

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I have a house that i bought 7 years ago in an "up and coming" neighborhood. after 9-11 and a bad divorce, i have now tried to sell it for over 5 years. i owe $264k and it appraised at $230, but comprable houses in the neighborhood are selling at $195k. i have had 6 realtors but no one has been able to sell it. i have had one offer in 5 years. the house is gorgeous, historic and in great condition, but i am in a rut. i can no longer afford to pay two mortages and am sick of renting it out. i can take a loss, but that doesn't even work. can anyone help me? i just want to unload it, but don't want to ruin my credit. help!!!!!

Your house is not worth $230K. You still have the house is because you didn't want to sell it at the going price in your neighborhood of $195K. Market price is a price buyer and seller agree upon. In your neighborhood, it seems to be established at $195K for now. If you really want to unload your house, you have to sell it at $195K now.

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My husband's parents own the home and land we have lived in for the past 6 months. we have paid the note and all bills every month, and have made a few minor improvements to the house and land. they will sell it to us for 45000, and the value is over 60000 for the house and land. our issue is that we have very bad credit in the 400-550 range-ish. yes, it's our fault, and we do take responsibility, and we have begun the clean up process by paying everything off in increments. my husband is a disabled veteran with a for sure steady income that more than supplies the payments for the note and monthly costs. our past two w2s show that. also, we plan to attempt the va loan, which doesn't require a down payment. the house is ours regardless, even if we have to rent to own. but obviously, the ideal matter would be to buy it for ourselves and get their names off of the notes so that they qualify for the loan to build their dream house. my question is this: since we can prove that we have paid the notes and all utilities for the past 6 months, the selling price is 20000 less than the appraised value, we can show that we have steady income, and we are buying from our parents, will we still be able to get the loan despite our deplorable credit? we live in texas where interest rates are at 4% for great credit right now, so we are hoping that we can snag a lower rate at this opportune time if at all possible. advice? :)

Hi there, Unfortunately, any loan from you would not be approved especially with your bad credit history. Though you would present additional documents for your claims, your record weighs heavier. It would take some time for you and your husband to raise your credit score. Do whatever you can to pay your credits faster so that you can have the score you need in no time.