I Don't Get It?
I have a young couple bought one of my houses in Fed 04. They started trying to Refi in May 04. They have always made their payments never late nothing.
Until now.....No payment for Oct. Called them when notified. They said the bank told them they would be refi by Oct 8th and had put Oct payment into my pay-off. I called bank they said that it would be later than 8th. I talked to them and they asked if I would refund payment if they sent check. I said sure if pay-off reflected the payment.
This is the strange part called them today to see where payment is. They said they can't get refi (to many student loans they said) so I asked nicely for the payment. They said they wanted to cancel our contract. They said I could take my payment out of their deposit. I told them nicely it was a down payment not a deposit and they owed me for Oct. I explained that they would lose that money plus I would take them to court for the payments.
What I tried to explain to them was they have only lived there a few months plus they have only looked at one bank. Why not keep making the payments and work with me to get refi'ed. What can I say to them to make them understand that they are making a mistake? Any help would be great.
J
I would start calling mortgage brokers and help them get refinanced. There are to many programs out there for them to give up on 1.Get some rates from them and give your buyers a solution. Where are they going to go if they leave? Are they having financial problems that you can't see? I think this would be the easiest way to possibly save the deal. If not get them out and start again.
I am a little confused. Did you do owner financing?
I bought the place sub-to and sold it on a contract for deed. Sorry should have been more clear. They have been good but maybe there is some problems with the $$$$ who knows what happens behind close doors. Thanks for the input.
Hi J,
I came across your info tonight . I have to say that it seems like your contract for deed people are having DTI isues and the lo who tried to refi them could not get that to work, they need to be taken stated. I can probably help you and your borrowers if you want to contact me. I'm a mortgage broker for a Lender here in Plymouth, MN, same state as you. Let me now if I can be of assistance .
they probably spent the money that they thought they had because they thought that the refinancing would go thru and now they probably dont have it since they spent it and probably living paycheck to paycheck in the 1st place, that's at least what i usually see to cause people to fall behind on their mortgages.
The issue that would concern me here is if the buyer thought the down was a deposit that would come back to them if they cancelled the contract. I would make sure your CFD paperwork makes that clear--but if you're using Cash's docs, it's clear in there.
I'm with ncboater--try to refi quickly, if not, forget about October's payment, let 'em leave, pay it yourself and start all over with a new down. mo money.
FirstPsalms,
I use Cash's stuff but had a lawyer review it to be state specific. It clearly states that this is a down payment and will be forfieted if contract is cancled. Sent out notice today with offer to help but with notice to vacate. I hope to have them out by Oct 31st.
Lichenhailweb nice to meet you. I will let you know if they still want to go threw with this deal and maybe you can help them. Thanks
J