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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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SO FUSTRATING - UPDATE
Ok I need some advice and support with what is going on with the sale of our co-op. We sold our co-op to this girl that is a total nightmare!!!! She has been a problem since the beginning and the only thing good about her is she is good on paper. Now the last step for us to get our closing date is for her to get her commitment letter.. Which our co-op has been appraised and the bank has agreed to fund her. But the co-op only got appraised for the mortgage amount and she has to pay a PMI fee because it was not appraised for the selling amount. Now days before we are suppose to close (we are also buying a house from a couple that is moving to Kansas and need to close on their new house) our buyer came to us and said that she wants us to split the difference on the appraisal amount so that she doesn’t have to pay the PMI (which her payment would be 40.00 a month for the PMI).. She wants us to put up 4,200.. Is this insane or what????? She thinks that she has us cornered because we have the house deal.. We refuse to pay a penny to her for this!!!! We don’t feel this is our problem. Our closing date was on or about September 9th.. and now here we are at almost at the end of that 30 day swing with no closing date in site.
Any advice??? Of course we don’t want to lose our house but I refuse to pay 4,200 to this girl (which we don't have anyway)!!!!
Update:
I made a mistake with all these numbers yesterday (I think I was losing my mind and we really didn’t have all the details until we talked to the mortgage broker yesterday).
Our buyer is putting down 30k (our selling price is 186,000) which at that price was 16% down.
Our appraisal on our co-op was 179,000.
This has less to do with the appraisal, than we originally thought.. Bottom line is she is fighting with us over 40 dollars a month (PMI).. and expecting us to help her avoid PMI and contribute to her down payment..
There was also two banks that did and appraisal...
Lender level = This was the appraisal that was done for 186,000
State level = This was the appraisal done for 179,000
We have refused to give her any or the money she is asking for and haven't heard back from her lawyer in two days.
Message edited 9/29/2006 10:01:19 AM.
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Posted 9/28/06 9:48 AM  |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SO FUSTRATING
why did it appraise for less?
as a buyer, I would probably ask for the same thing - but if I really wanted the co-op, I would just pay the $40 a month for PMI. it sounds like she is second guessing the purchase -
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| Posted 9/28/06 9:52 AM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING
Posted by Meaghan729
why did it appraise for less?
as a buyer, I would probably ask for the same thing - but if I really wanted the co-op, I would just pay the $40 a month for PMI. it sounds like she is second guessing the purchase -
I don't know why it appraised for less.. my guess is that since she put down 30% and didn't have to pay PMI that way.. they got her this way.. I could be completely wrong but I think that they just wanted to get more money from her and maybe the mortgage guy gets a commission off the PMI insurance.
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| Posted 9/28/06 9:56 AM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: SO FUSTRATING
Property may not always appraise for the sellling price.
Have you spoken to your attorney about your options.?
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| Posted 9/28/06 3:03 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SO FUSTRATING
Posted by mskimmy98
Posted by Meaghan729
why did it appraise for less?
as a buyer, I would probably ask for the same thing - but if I really wanted the co-op, I would just pay the $40 a month for PMI. it sounds like she is second guessing the purchase -
I don't know why it appraised for less.. my guess is that since she put down 30% and didn't have to pay PMI that way.. they got her this way.. I could be completely wrong but I think that they just wanted to get more money from her and maybe the mortgage guy gets a commission off the PMI insurance.
wait -i dont get something - she is putting 30% of the purchase price down but it only appraised for the mortgage amount. which means it appraised for 30% less than the asking price???? if I were her I would run, sorry!
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| Posted 9/28/06 3:10 PM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: SO FUSTRATING
Posted by mskimmy98
Posted by Meaghan729
why did it appraise for less?
as a buyer, I would probably ask for the same thing - but if I really wanted the co-op, I would just pay the $40 a month for PMI. it sounds like she is second guessing the purchase -
I don't know why it appraised for less.. my guess is that since she put down 30% and didn't have to pay PMI that way.. they got her this way.. I could be completely wrong but I think that they just wanted to get more money from her and maybe the mortgage guy gets a commission off the PMI insurance.
I don't understand why her putting down more money would affect the appraised value 
No offense, but I probably would not buy something that appraised for 30% less than the purchase price.
She would be walking into a piece of property worth significantly less than she paid for it.........that generally happens with cars, not real estate.
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| Posted 9/28/06 3:16 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING
There were two appraisal done.. One was a state loan mortgage that she is getting for a very low interest rate, that is the one that appraised for less.. but another appraisal was done for higher than our selling price.. so I don't understand how our co-op could be worth it for one bank and not worth it for another.. of course she doesn't want to take the mortgage from the bank that appraised higher because it is higher interest rate.
Message edited 9/28/2006 3:23:26 PM.
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| Posted 9/28/06 3:23 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SO FUSTRATING
Posted by mskimmy98
There were two appraisal done.. One was a state loan mortgage that she is getting for a very low interest rate, that is the one that appraised for less.. but another appraisal was done for higher than our selling price.. so I don't understand how our co-op could be worth it for one bank and not worth it for another.. of course she doesn't want to take the mortgage from the bank that appraised higher because it is higher interest rate.
I work in banking, and that is the weirdest thing Ive ever heard.
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| Posted 9/28/06 3:33 PM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: SO FUSTRATING
Posted by Meaghan729
Posted by mskimmy98
There were two appraisal done.. One was a state loan mortgage that she is getting for a very low interest rate, that is the one that appraised for less.. but another appraisal was done for higher than our selling price.. so I don't understand how our co-op could be worth it for one bank and not worth it for another.. of course she doesn't want to take the mortgage from the bank that appraised higher because it is higher interest rate.
I work in banking, and that is the weirdest thing Ive ever heard.
Me, too.
If I were her, I would question the large discrepency. What comps did the state loan mortgage bank use as opposed to the traditional bank?
Maybe it's not that the state loan bank appraised for less, but maybe they will lend on a lesser LTV (loan to value)??
In any case, I wish you luck 
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| Posted 9/28/06 3:39 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: SO FUSTRATING
where's your realtor and why arent they involved in this? you shouldnt be talking to the buyer directly...it just makes the transaction so much uglier...
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| Posted 9/28/06 7:21 PM |
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MrsERod
Praying for Everyone.
Member since 5/05 26170 total posts
Name:
MrsERod™®
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Re: SO FUSTRATING
did you agree to a seller's concession?
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| Posted 9/28/06 7:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: SO FUSTRATING
I would give her the $4K before she realizes that this is not a good deal for her
there is no way I would by a co-op that didn't appraise for what I was buying it for
co-op are harder to sell b/c of the board and all the other good stuff that goes along with in
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| Posted 9/28/06 7:31 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING
I made a mistake with all these numbers yesterday (I think I was losing my mind and we really didn’t have all the details until we talked to the mortgage broker yesterday).
Our buyer is putting down 30k (our selling price is 186,000) which at that price was 16% down.
Our appraisal on our co-op was 179,000.
This has less to do with the appraisal, than we originally thought.. Bottom line is she is fighting with us over 40 dollars a month (PMI).. and expecting us to help her avoid PMI and contribute to her down payment..
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| Posted 9/29/06 9:55 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SO FUSTRATING - UPDATE
even when she was putting $30K down at the $186K selling price, that is still less than 20%, so she would have had to pay PMI anyway. so if she is fighting with you for paying more PMI - I would try to find another buyer - but with this declining market, and knowing that it only appraised for $179 - eating the $4k might not be such a bad idea.
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| Posted 9/29/06 10:00 AM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING - UPDATE
Posted by Meaghan729
even when she was putting $30K down at the $186K selling price, that is still less than 20%, so she would have had to pay PMI anyway. so if she is fighting with you for paying more PMI - I would try to find another buyer - but with this declining market, and knowing that it only appraised for $179 - eating the $4k might not be such a bad idea.
She put 18,000 down at contract.. I don't see how she will walk away with that if we refuse to give her the 4,200.
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| Posted 9/29/06 10:03 AM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: SO FUSTRATING - UPDATE
Posted by mskimmy98
Posted by Meaghan729
even when she was putting $30K down at the $186K selling price, that is still less than 20%, so she would have had to pay PMI anyway. so if she is fighting with you for paying more PMI - I would try to find another buyer - but with this declining market, and knowing that it only appraised for $179 - eating the $4k might not be such a bad idea.
She put 18,000 down at contract.. I don't see how she will walk away with that if we refuse to give her the 4,200.
What are the terms of the contract?
Is it contingent on her being able to obtain a mortgage for a certain amount? If so, and she can't get 80% of the purchase price through a mortgage, she would be able to get her $$ back.......
Talk to your attorney and find out worse case scenerios!!
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| Posted 9/29/06 10:28 AM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: SO FUSTRATING - UPDATE
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
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| Posted 9/29/06 1:10 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING - UPDATE
Posted by Hi-Fi55
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
So that means since I didn't get the interest rate I wanted for my mortgage I should ask the seller of the house to drop their price.. I mean come on!
If she wants to walk away she loses 18,000.. buy all means if 18,000 is more important than 40 dollars a month for two years than she should dot it.
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| Posted 9/29/06 1:41 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: SO FUSTRATING - UPDATE
Posted by mskimmy98
Posted by Hi-Fi55
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
So that means since I didn't get the interest rate I wanted for my mortgage I should ask the seller of the house to drop their price.. I mean come on!
If she wants to walk away she loses 18,000.. buy all means if 18,000 is more important than 40 dollars a month for two years than she should dot it.
I know that when I bought my house, one of the stipulations in the contract was that the house needed to appraise for at least the selling price. I agree that you have more to lose that she has......
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| Posted 9/29/06 1:51 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SO FUSTRATING - UPDATE
I really dont think its too much to ask to meet in the middle.
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| Posted 9/29/06 1:52 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: SO FUSTRATING - UPDATE
Posted by mskimmy98
Posted by Hi-Fi55
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
So that means since I didn't get the interest rate I wanted for my mortgage I should ask the seller of the house to drop their price.. I mean come on!
If she wants to walk away she loses 18,000.. buy all means if 18,000 is more important than 40 dollars a month for two years than she should dot it.
No, the interest rate doesn't matter. It's a mortgage regardless of the interest rate. I would look at your contract and talk to your lawyer.
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| Posted 9/29/06 1:55 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: SO FUSTRATING - UPDATE
Posted by Blu-ize
Posted by mskimmy98
Posted by Hi-Fi55
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
So that means since I didn't get the interest rate I wanted for my mortgage I should ask the seller of the house to drop their price.. I mean come on!
If she wants to walk away she loses 18,000.. buy all means if 18,000 is more important than 40 dollars a month for two years than she should dot it.
No, the interest rate doesn't matter. It's a mortgage regardless of the interest rate. I would look at your contract and talk to your lawyer.
Yes I did... I was just making a point.. Our contract states that the only way she can get out (without losing the 18,000) is if she wasn't approved at all for a mortgage not "if she doesn't like the terms (if that was the case everyone in the world could get out of a contract)".. She was 100% approved for a mortgage!
Now we have decided that we will (in good faith) offer her 500 dollars and the RA will offer her 500.. that will pay her PMI for 2 years.. Now we are just wait to see what she says to this.
Message edited 9/29/2006 2:12:43 PM.
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| Posted 9/29/06 2:11 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: SO FUSTRATING - UPDATE
Posted by mskimmy98
Posted by Hi-Fi55
Since the appraisal came in short, what you should do is decrease the purchase price to the amount of the appraisal or at least give her the amount she is asking for. She has every right to walk away and get her downpayment back. You have more to lose in this situation. It's harder to sell a co-op right now in this market. I would work it out with her.
So that means since I didn't get the interest rate I wanted for my mortgage I should ask the seller of the house to drop their price.. I mean come on!
If she wants to walk away she loses 18,000.. buy all means if 18,000 is more important than 40 dollars a month for two years than she should dot it.
Most contracts are contingent upon the appraisal and if her attorney didn't put that clause in, well I would be quite surprised and shame on them.
Rates and appraisals are like apples and oranges when it comes to mortgages. I can understand you are frustrated, but who would want to buy a home that is worth less than the purchase price.
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| Posted 9/29/06 3:50 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: SO FUSTRATING - UPDATE
[/quote]
Rates and appraisals are like apples and oranges when it comes to mortgages. I can understand you are frustrated, but who would want to buy a home that is worth less than the purchase price.
I agree
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| Posted 9/29/06 4:02 PM |
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