We are buying a condo. Through the emails we had with the seller's agent, we agreed paying the price but the seller will pay the city and state transfer tax, and seller's lawyer fee as we didn't get much discount on the price they asked for (less than 2% off)and we don't have a buyer agent. In addition, it is a FHA approved building, and we made it very clear right at the beginning that we will... [more]
We are buying a condo. Through the emails we had with the seller's agent, we agreed paying the price but the seller will pay the city and state transfer tax, and seller's lawyer fee as we didn't get much discount on the price they asked for (less than 2% off)and we don't have a buyer agent. In addition, it is a FHA approved building, and we made it very clear right at the beginning that we will use FHA loan. However, when we went to sign the contract yesterday, the seller wants us to pay their lawyer fee, and two other fees we had never heard of--tax abatement acquisition fee and water meter fee. Is this reasonable? Also, they want us to close the deal 2 months from now, can we get mortgage settled by then for sure? I heard that FHA loan takes longer time. Any advices will be truly appreciated!
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Response by alanhart
about 16 years ago
Posts: 12397
Member since: Feb 2007
As for FHA timing, I have no advice. But as for the other part, if the seller's agent claimed that what you state was agreed to by them, and the seller is aware of the emails but won't honor them, walk happily away from the deal.
But no matter what, certainly don't sign until your lawyer tries to straighten things out.
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Response by TheOtherBob
about 16 years ago
Posts: 103
Member since: Jul 2009
Is there a mortgage contingency, in case it takes more than two months?
I'd be very careful about signing anything if there isn't a contingency -- right now mortgages are taking unpredictable amounts of time. Some are still quick and easy, and some require several months of back-and-forth before they're finished. I don't know how long an FHA loan is likely to take -- and, frankly, no else probably does either. People -- even your lender or your lawyer -- might tell you that it will be quick, because they remember when it used to be quick. But today, mortgages are often much slower than people expect. So I wouldn't sign without a contingency -- you don't know if two months is long enough, and you shouldn't gamble with your down payment.
But talk to your lawyer.
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Response by hhong3138
about 16 years ago
Posts: 3
Member since: May 2010
Thanks, alanhart & TheOtherBob. I talked to my lawyer, and requested waiving those fees and extend the closing date with a mortgage contingency.
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Response by shong
about 16 years ago
Posts: 616
Member since: Apr 2008
Closing an FHA loan in 60 days should be no problem. But it never hurts to ask for more time. It is a full document era now so an FHA loan isn't much different than a conventional loan. sunny.hong@bankofamerica.com
As for FHA timing, I have no advice. But as for the other part, if the seller's agent claimed that what you state was agreed to by them, and the seller is aware of the emails but won't honor them, walk happily away from the deal.
But no matter what, certainly don't sign until your lawyer tries to straighten things out.
Is there a mortgage contingency, in case it takes more than two months?
I'd be very careful about signing anything if there isn't a contingency -- right now mortgages are taking unpredictable amounts of time. Some are still quick and easy, and some require several months of back-and-forth before they're finished. I don't know how long an FHA loan is likely to take -- and, frankly, no else probably does either. People -- even your lender or your lawyer -- might tell you that it will be quick, because they remember when it used to be quick. But today, mortgages are often much slower than people expect. So I wouldn't sign without a contingency -- you don't know if two months is long enough, and you shouldn't gamble with your down payment.
But talk to your lawyer.
Thanks, alanhart & TheOtherBob. I talked to my lawyer, and requested waiving those fees and extend the closing date with a mortgage contingency.
Closing an FHA loan in 60 days should be no problem. But it never hurts to ask for more time. It is a full document era now so an FHA loan isn't much different than a conventional loan. sunny.hong@bankofamerica.com