FHA Loans, ?

[OhMari]

The people,buying our home applied for a FHA loan. When they made us an offer, they wanted only 45 days until we closed. we pushed it back and countered off to add 10 more days. We are suppose to close of our house next week and our realtor emailed us and said the buyers need to counter again, because the Underwriters with FHA has not completed their paper work yet.

It is getting so close, is this bad news for us, that our buyers will not get financing, or did they not allow enough time for financing. Anyone familiar with FHA loans?

 

[My3Princez]

It can vary quite a bit, but the timing you mention is pretty typical. The underwriting can vary ALOT. It isn't necessarily an indication of trouble that they need more time to process. Talk to your realtor - they should be able to help you figure it out.

 

[OhMari]

Thank you, for your reply.

Our realtor, was a team of 3. To put it nicely, it was more like a tag team, that said, "not it". If we emailed one, that one would tell us to call the other one, and when we would call they other one, they would ask us why the other one didn't tell us. I know they are the professionals, but in the six months we had them, we had a total of 3 open houses. The Green Bay Packer schedule dictated everything, (absolutely no open houses on Packer Sunday's). We thought we did our homework finding a realtor, we miserable failed. They didn't take one person through our home, a different realty did, so they have to share the commission, and they are not happy. We are praying this contract goes through.

 

[DisneyBabies]

We have FHA for our mortgage and our approval came the day before closing.

We had 60 days to find a house and close so we were stressed enough with that.

It had nothing to do with us and everything to do with the underwriters. Our mortgage team kept on the underwriters and they assured them that it would be finalized in time. We did have an issue though that the builders were trying to put money in the escrow account to make up for an issue that couldn't be dealt with before we moved in and the underwriters said no and took that money out of the paperwork, and by the time we learned about it from the underwriters, we didn't have enough time to re-do the paperwork, so we lost about 2k.

So no, I don't think you have anything to worry about, the underwriters just have their own idea of what timeline is acceptable.

Hope this helps.

 

[My3Princez]

Thank you, for your reply.

Our realtor, was a team of 3. To put it nicely, it was more like a tag team, that said, "not it". If we emailed one, that one would tell us to call the other one, and when we would call they other one, they would ask us why the other one didn't tell us. I know they are the professionals, but in the six months we had them, we had a total of 3 open houses. The Green Bay Packer schedule dictated everything, (absolutely no open houses on Packer Sunday's). We thought we did our homework finding a realtor, we miserable failed. They didn't take one person through our home, a different realty did, so they have to share the commission, and they are not happy. We are praying this contract goes through.

What a nightmare! I'm sorry you've had that experience. We've always had solid reliable Realtors to help guide us through the process. I always valued their accessibility send expertise. So sorry you aren't having that experience.
(Although, from what I understand of Packer "culture", if you're in the Green Bay vicinity, I doubt that you would have had much traffic at an open-house held on a Packer Sunday anyway! Doesn't the stadium basically hold the entire city's population? Lol. So, at least on that point the Realtors may have had a valid point. )

 

[powellrj]

We just closed on my mom and dads condo a few weeks ago and our closing was postponed more than once because of the underwriters paperwork. It was so hard on us because we were waiting on the funds to place my parents in assisted living and finally had to use our funds because of the delays, but in the end it did come through.

 

[MSLRAC]

DH and I are currently in underwriting for an FHA loan and it is taking forever! Our clsoing has gone from 45 days to closer to 60 days. Luckily we've had a great agent and broker and very patient and understanding sellers. But we've also been open about all the delays with the seller's agent so that they know that we are are not jerking them around.

 

[OhMari]

What a nightmare! I'm sorry you've had that experience. We've always had solid reliable Realtors to help guide us through the process. I always valued their accessibility send expertise. So sorry you aren't having that experience.
(Although, from what I understand of Packer "culture", if you're in the Green Bay vicinity, I doubt that you would have had much traffic at an open-house held on a Packer Sunday anyway! Doesn't the stadium basically hold the entire city's population? Lol. So, at least on that point the Realtors may have had a valid point. )

I live 90 miles south of Green Bay, our realtors refused to work on game days.

 

[OhMari]

DH and I are currently in underwriting for an FHA loan and it is taking forever! Our clsoing has gone from 45 days to closer to 60 days. Luckily we've had a great agent and broker and very patient and understanding sellers. But we've also been open about all the delays with the seller's agent so that they know that we are are not jerking them around.

We communicated more in the last 24 hrs, than we did the last six months. We found putt at noon, the paper work is now done and we are closing on Feb. 27th.

 

[tvguy]

Never dealt with FHA. Sold my parents house in 2013 and the buyers offer specified 21 days to close, and then they came back wanting to cut it to 14 days. I can't imagine waiting 60 days or more to close.

 

[LJSquishy]

FHA financing can be a slow process. The buyers aren't countering, they're filing an extension to extend the closing date (unless they're adjusting their offer and paying more for the house, in which case it would be a counter offer). It's extremely common to have to extend the closing date 2,3, or 4 times because of FHA paperwork.

We sold our house this past August to an FHA financed buyer and had to extend the closing date twice. They were pre-qualified and wanted a 30-day close but it ended up being closer to 45 days if I remember correctly. We just had to keep signing the extension documents to push back the closing date, it was no big deal, just frustrating because we wanted to be legally free of our house!

Having to extend the closing date isn't a sign of anything negative so don't worry.

 

[powellrj]

I live 90 miles south of Green Bay, our realtors refused to work on game days.

We live about an hour north of Indy and our agent wouldn't schedule open houses or showings on the days the Colts played or during the holidays. We were lucky that the condo sold on a Thursday night!

 

[disneyfantotheend]

Well at least now I know to never sign a contract with a realtor who is into sports. LOL!!!

FHA can definitely be tricky and unpredictable, but so can any loan underwriting any more. They have a lot more hoops to jump now a days than they used to.

 

[Shelly F - Ohio]

One thing to keep in mind is that just a few months ago the interest rates took a drop so a lot of people refinanced. Thus underwriters are now working over time to get those loans processed. The bank my sister works at had a record number of loans done in one day back in Dec. They processed 80 million dollars in loan applications. So I would not be too concerned.

 

[crisi]

I'm sorry you are going through this. My experience has been that realtors work hard to get that closing date met, because a missed closing when everyone is trading houses in contingency gets to be a domino effect.

My experience is that YOUR realtor doesn't bring people through YOUR house. Your realtor lists, the buyers realtor shows. In Minnesota they aren't supposed to be the same person - even the same realty company creates extra paperwork. Being the sellers realtor is a lot less effort than being the buyers realtor.

A lot of realtors don't like open houses - you tend to get the neighbors coming through. People seriously looking work with their own realtor and make appointments - often weekday appointments.

When we sold the little house, we didn't need to worry about contingency (it was an empty house), and we could afford to lose a little money on it. So we put it up for sale for about $5k less than what the realtor suggested. It was a little house - that meant that a house the should have listed for $124k (which is what we'd bought it for two years earlier) was listed at $119k. We had seven offers the first weekend, got into a bidding war, and sold it for $126k, cash closing, no inspection. We need need to pay the realtors their commissions, so we didn't come out ahead (we knew we wouldn't when we bought it), but we didn't have it for any longer than we needed to - which saved us something in taxes and mortgage.

 

[morgan98]

OP, I am not trying to defend your realtor, but don't be so sure they would not hold the open house only because of the Packers. We are on the process of selling our home (closing February 26th) and our very experienced realtor told us exact dates to do everything. For example, had we not sold in only four days and had needed an open house, she specifically said no open houses on Super Bowl Sunday. Not because she is a sports fan, but because you want a day when you will get decent traffic.

I was say it is more the norm for a realtor to have to split the commission, as the buyer and seller rarely use the same realtor. I understand your frustration if your home has been for sale for six months. However, if a house is not selling it is more about the price of the home than not having open houses.

The communication problems with the realtors just stink.

 

[kamik86]

Honestly from when I bought my house my realtor seemed to like open houses more to get people that didn't yet have a buyers realtor to use her (That is how we found her, we went to an open house for a house that only sort of fit what we wanted, but we were impressed with her and when she found out we didn't have a realtor of our own she met with us and showed us other properties.)

The realtor of the house we bought SUCKED. Well she didn't suck for us. She told us all about how the people who owned the house got another job and were buying another house where they had to move to so they were trying to sell this one and not have to keep both houses. So when the house didn't appraise we immediately said no we won't raise our down payment and were ready to walk if they didn't drop the price. they dropped the price because they didn't want to have to keep the house for months while they found another buyer. So she saved me a nice chunk of money. If I didn't know they NEEDED to sell I might have agreed to put in some of the money.

 

[daughtersrus]

I'm sorry you are going through this. My experience has been that realtors work hard to get that closing date met, because a missed closing when everyone is trading houses in contingency gets to be a domino effect.

My experience is that YOUR realtor doesn't bring people through YOUR house. Your realtor lists, the buyers realtor shows. In Minnesota they aren't supposed to be the same person - even the same realty company creates extra paperwork. Being the sellers realtor is a lot less effort than being the buyers realtor.
.

Laws vary state to state. In IL, agents can and do sell the properties that they list. When purchased our last house, the agent listed and sold both our new house and the one we moved from. He got the full commission from both properties.

 

[elgerber]

My experience is that YOUR realtor doesn't bring people through YOUR house. Your realtor lists, the buyers realtor shows. In Minnesota they aren't supposed to be the same person - even the same realty company creates extra paperwork. Being the sellers realtor is a lot less effort than being the buyers realtor.

While not ideal, there is nothing in MN that says they can't be dual agents. I work in mortgage and we see dual agents once in awhile. Not that often, but it's not against any rules. Our realtor was also our builders realtor when we built our house. We had no issues, they actually went above and beyond for us.

I should also add, both times we have sold houses, our realtors didn't do open houses either, for the same reasons listed by other posters here.

 

[Iowajes]

Honestly from when I bought my house my realtor seemed to like open houses more to get people that didn't yet have a buyers realtor to use her (That is how we found her, we went to an open house for a house that only sort of fit what we wanted, but we were impressed with her and when she found out we didn't have a realtor of our own she met with us and showed us other properties.)

Our realtor doesn't do open houses. He says they exist to get realtors clients and rarely sell the actual house being looked at. So in his firm (or whatever you call them) open houses are assigned to beginners (which he is not).

Houses sell on showings- so the seller's agent needs to make sure the property is well listed, has great pictures, and talk it up to other realtors to get them to bring their clients there.

But an agent should 100% be there to answer questions like this one. I'd be pissed if I was paying 6% to a group that won't answer basic questions.