Loan must be reduced due to seller incentives?

Home Forums Purchase Program Loan must be reduced due to seller incentives?

This topic contains 1 reply, has 2 voices, and was last updated by  TTrumble 1 week ago.

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  • #38692

    TanyaM513
    Member

    My loan process seems to have stalled, and no one is returning my phone calls or emails. We are supposed to close on the 28th due to the seller needing more time, but the original close date was the 25th. My webfile says the lender is requiring the loan amount be reduced by the value of the wet bar in the basement and the bench on the front porch because these are considered incentives to purchase the property. I don’t understand this because the sale price is $100 less than the appraisal with these things included. The wet bar is built into the basement and is not going anywhere. That’s like saying the loan needs to be reduced by the value of the kitchen counter and sink. They’re both permanent fixtures of the house. The bench on the front porch, we just asked them if we could keep it and they agreed. It didn’t affect the sale price at all. So what do I do? NACA responded the first time they said this with “disagreed”, but Bank of America still says it needs to changed.No one has called me to talk to me or my real estate agent about anything. The only emails I’ve gotten were about homeowners insurance. I hate that I’m not able to talk to anyone at this stage. Prior to bank application, I was in regular contact with my counselor answering all of my questions. Now he says it’s out of his hands so I need to contact the closer, but he never responds to my emails or voicemails. I feel so lost in the process now.

    #38716

    TTrumble
    Member

    Hello TanyaM513,

    I think the issue here may boil down to when the wet bar was installed, and getting a letter from the seller stating that the bench is being given to you as a gift and that it was given after the Purchase and Sale agreement was signed.

    If the wet bar was just recently installed, it could well be considered an incentive to buy, since the timing would imply that it was in fact installed for that purpose. If it has been installed for a while, once again, get a letter from the seller confirming that it has been part of the house for some time and is in fact a permanent fixture.

    As we’ve noted here many times, telephone is about the worst way to try to reach your counselor, and that applies to your Closing Coordinator as well. Email, every time, email.

    Get the letters or other evidence needed regarding the bench and the wet bar, submit them to your file, and keep emailing the Closing Coordinator.

    And finally, relax a little. “NACA responded the first time they said this with “disagreed”, but Bank of America still says it needs to changed” doesn’t mean that the objection on our part is done. Let your Closing Coordinator do his or her job, and get that information to help them get this done for you.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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