House #12: $1800 Richer

January 19, 2010 · 8 comments

After all the drama surrounding The Mini House two weeks ago, it looks like the buyer was having more issues than she knew about. Apparently, between the time that she put the house under contract and the time the loan was supposed to close, her credit score dropped enough that she could no-longer qualify for her FHA financing…

So, long story short, she wasn’t able to close last week, we will get her $1800 deposit as compensation, and we will be putting the house back on the market…

After several failed contracts on this house, I’m starting to wonder why I thought this would be such an easy sale. The price is great, the house looks fantastic, and there are plenty of interested buyers; but, it never seems to work out.

This buyer (and her agent and mortgage broker) seem to believe that they can fix the credit issues in the next week or two, and I’ve promised them that if they can fix the problem and if we can negotiate a new contract, that we’ll credit the $1800 in deposit money to her next deposit. I’m certainly not holding my breath though… 🙂

8 responses to “House #12: $1800 Richer”

  1. Man that house must be cursed! If I was that buyer I’d be so pissed at my mortgage broker & agent. Jeez!

  2. Chris Ranney says:

    Hey J, sounds like you are keeping positive. Everything always turns out okay. Keep up the good work. btw-I’m loving this warm weather.

  3. Luis says:

    I empathize with what you are going through. Out of experience one learns some things that “should” work but life is this continual learning curve.

    Are you going to be changing your marketing or anything else with this house going forward?

  4. Don Hines says:

    I have seen this before. They can qualify for a new car or other consumer loan that will drop their score before they get all in order on their home loan. I had one last year that just couldn’t understand why she couldn’t close after she pre-qualified. There is a difference between “prequalified” and “preapproved”. Her new car messed up the deal she bought at the same time messed up the deal.

  5. J Scott says:

    Luis –

    Nope, not planning on changing much. We seem to have no problem getting contracts on this house, so we’ll keep doing what we’re doing.

    The only change I’m going to make is to demand bigger earnest money deposits, so that when the deals fall through, we still make decent money for our efforts.

  6. who knows, maybe you can ‘cashflow’ from deposits if you make them large enough and it will be called the ‘EMD House’ instead 🙂

  7. Jason,
    Landlording can be just the same. When it rains it pours or bad things happen in 3. I bet you will get a great offer on the house any day now.

  8. J Scott says:

    Jennifer –

    If you didn’t notice my latest post, we DID just get another contract on the house…only three days later!

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