I put an offer on a house back in September, a short sale. It was approved by the owner in September and selling bank in December. 10 days before closing, the loan officer I had been working with discovered that his bank doesn't write mortgages for anyone that has had a loan modification in the past 4 years. I modified under making home affordable in 2009.
My credit is stellar, over 800. I have no debt and am putting 20% down on this house.
So, I found a new mortgage broker, who lined me up with yet another bank. That bank requested that I make some improvements before they would lend. So I did. (yeah, I know crazy -- fixing a house owned by someone else. The broker told me that there was a risk, but I assumed the risk believing that the onus was on me to get the repairs done in time. Which I did.) One new roof and floors throughout the whole house later - the house is ready to go. Except that now, 4 days before closing, the second bank's loan officer 'discovered' that her bank doesn't lend for homes that are in a redemption period. It's confusing I know. There should be no issue of redemption period with an accepted short-sale offer, but apparently there is. It has something to do with the amount of time this has taken.
So, I got another extension to close from the selling bank, I now need to close by the 29th. A new apprasial was ordered last week, completed Thursday and will go to the bank on Monday. I need the new bank to turn everything around in time to close on Wednesday, about 48 hours. The broker says it'll work if there are no snafus. I believe I've already used up any available snafus, so I'm optimistic it'll go through in time. But, it's going to be close.
-- Now for the question --
If it looks like this latest bank cannot pull the loan through in time for a Wednesday close, I'm considering placing a lien on the property to protect my investment of time & materials, about 20k. I really want this house
, and am wondering what the hive thinks placing a lien on the home will do for my chances to get it down the road, should the deal fall through this coming week.
I know a lien will make other buyers shy away from the property, and complicate things for the selling bank as well -- but I'm wondering how complicated it will make the purchase for me
, in the future?
My attorney says no problem placing a lien on the property. I have a mtg tentative with him on Tuesday afternoon.
Somewhat related: I divorced in December and am still living with my ex and two kids. This house is 2.5 miles away & will be great for our 50/50 parenting time arrangement. The kids helped with the cleanup & fixup. Formerly owned by a lady with lots of cats -- stench mitigation was a high priority & has been successfully completed.