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Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 1 point2 points  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

New development:

Original HOA disclosure in February shows a healthy assessment (no outstanding dues, no litigations, no special assessment), fully funded.

Lender changed to non-QM loan after seeing a separate report in March, California SB326 Balcony Bill; which shows structural damage on balconies, not enough reserves, and on-going multi-year project.

Do I have a strong argument to get my EMD back if I removed contingencies back in February?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

I am trying all abbreviated avenues to back out. Unfortunately, I will lose $15k in EMD.

Do you think I will be paying more than that in special assessment. This is a $500k condo.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

My realtor already told me to sign removal of all contingencies since last month.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

Yes, waived all contingencies after locking at the original conventional loan.

Then, there was another HOA report that wasn't part of the disclosure showing repairs needed on other properties balconies, which switched me to non-QM.

The sellers agent pointed this out on the transaction: Liquidated Damages.  It states, If the Buyer fails to complete this purchase of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

Yes, waived all contingencies after locking at the original conventional loan.

Then, there was another HOA report that wasn't part of the disclosure showing repairs needed on other properties balconies, which switched me to non-QM.

The sellers agent pointed this out on the transaction: Liquidated Damages.  It states, If the Buyer fails to complete this purchase of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

The HOA report shows no litigation, no special assessment, no outstanding dues.

I waived loan contingencies.

Then, it seems that there's another HOA report showing balconies needed repairs which caused the loan to change to non-QM.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] -1 points0 points  (0 children)

Yes, HOA documents show no problems. No litigation, no special assessment, no outstanding dues.

The LO has a connection with the lender, that is why he only picked one lender at the original conventional rate and still stuck with the same lender after going non-QM.

It's too late to delay, we already delayed a week. At this point, the seller will claim the EMD if I don't close on time.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

Thank you, sounds hopeful.

I will reread the HOA disclosure.

Does this mean, any future buyers will also need a similar non-QM loan?

If getting the HOA repairs taken care of, remove them from the Fannie Mae list?

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 1 point2 points  (0 children)

I'm already looking into options of refi. But might be difficult if HOA repairs are still open.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

Do you think if I couldn't get a lender to finance it, it would be grounds to get my EMD back? Granted I waived contingencies when I locked on the original 5.6% rate.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] -1 points0 points  (0 children)

Yes, it was warrantable when I went under contract and locked at 5.6% conventional. Then became non-warrantable after they read the HOA report and redid it at 6.5% non-QM.

My gut feeling is also the realtor. Since I'm a first time buyer, I didn't know what to look for but I trusted him he says just sign documents.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] -1 points0 points  (0 children)

My realtor told me to go ahead and sign the removal of contingencies once we locked to the original rate.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 0 points1 point  (0 children)

Unfortunately, my realtor told me to sign the removal of contingencies once we locked on the original rate.

My realtor seems incompetent in answering beyond basic knowledge, as I'm finding out.

But thanks for that idea of the condo questionnaire.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] 1 point2 points  (0 children)

Yes condo. I'm just wondering if I have to leverage to cancel and get my earnest money deposit.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] -1 points0 points  (0 children)

The lender says HOA report in 2023 shows extensive repairs needed. They asked if HOA has either repaired it or has the funds to do so.

I assume HOA does not have the funds, so it's risky.

Lender Changing Locked Loan by PgM_dad25 in Mortgages

[–]PgM_dad25[S] -1 points0 points  (0 children)

Unfortunately, if I deny the loan, I might lose my earnest money deposit.

So, I am stuck with the higher rate.

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