Got preapproval, found house, now bank won’t loan
Question: I find Ohio Guys posts a lot of fun. He is actually trying >to be frugal >which is the name of the group. He doesn’t >get combative when he comes >under attack. >experience with problems–the bank said the house was >going to fall down a >hill
Answer: Thanks! I’ve always thought of Usenet as a helpful place to post questions and share answers – sort of like a virtual bulletin board. Most of the groups I subscribe to are hobbies of mine – gardening, etc. I post answers to other folks’ questions when I have one, and my own questions from time to time. I usually post questions only AFTER my own search, when I’ve come up with nothing useful on my own.
You would be AMAZED at how much $ and time I’ve saved over the years just by asking people more experienced than myself. I have a fair amount of experience when it comes to entomology, testing computer hard drives, writing and plumbing. With everything else, I certainly don’t mind another opinion. Woah – seriously?
In the case of the property we were looking at, it was in a perfect location for us, and we did like it. However, the listing did not reveal that it was zoned business, nor did the listing say anything about it being a non-conforming structure. We were approved for double the purchase price, so I thought it would be easy for us to acquire. Turns out, the non-conforming issue is what has kept it on the market so long. Every single bank or credit union I’ve called says they will not provide financing on such a property, mostly because they can’t resell the mortgage, but also because of the increased risk they would be taking. I don’t think the bank will find a buyer until someone can pay cash for the property.
Yesterday, I even had the real estate agent ask the bank which owns the property if there might be some way for us to get finacing through THEM to take the property off of their hands. They declined.
We COULD get a home equity loan on our current house of around $40k, but even with our savings, that would leave us about $11k short in being able to pay them the cash they want. Plus, it would then be a 15 year loan, and require us to pay much more per month than a typical 30 year fixed rate mortgage.
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Filed under: Home Equity Loan
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