Hi Everyone, I'm in a really tough situation. My wife and I have been in contract for a co-op since mid August. We've gotten the loan approved with the bank and we submitted our co-op application for review with the board back in mid October. Our financials were good and we have about a year's worth of mortgage and maintenance in reserve (which this board requires). We're expecting to hear from... [more]
Hi Everyone,
I'm in a really tough situation. My wife and I have been in contract for a co-op since mid August. We've gotten the loan approved with the bank and we submitted our co-op application for review with the board back in mid October. Our financials were good and we have about a year's worth of mortgage and maintenance in reserve (which this board requires). We're expecting to hear from the board to schedule our interview any day now. However, I just got laid off from my job last week. My income was about 40% of our total income, and I'm pretty sure I'll be able to find another job quickly, but the timing is terrible. Is there any way to salvage this co-op purchase or are my wife and I screwed? Any suggestions on how best to handle this would be greatly appreciated. I really don't want to have to start again because we've already put deposits down for a new childcare in the new neighborhood and I don't think our family can handle this loss on top of my job.
Thank you for your help.
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Response by JR1
about 8 years ago
Posts: 184
Member since: Jun 2015
Okay, this is a tough situation because I'm pretty certain the mortgage broker or bank (https://www.hauseit.com/difference-between-mortgage-broker-and-bank-nyc/) will call your employer a day or two before the closing to verbally verify your employment. Double check the reference article I listed.
If your employer confirms that you are indeed laid off ... you're in trouble and most likely they will have a right to refuse to fund your loan. They will call the number you provided for your employer, so hopefully the HR person you selected is having a nice day or maybe their system hasn't updated yet. It's pretty tough at this point I'm afraid.
With that said, there's always a silver lining. Did you elect to receive a buyer's broker rebate? If your buyer's agent giving you anything? If not, here's an opportunity to restart your search and work with a seasoned buyer's agent who's also going to give you part of the commission. You can typically find some really brand name brokerages who have discreetly agreed to this via platforms like Hauseit.
Please keep us posted, we're sorry to hear!
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Response by CaptainOfTheGate
about 8 years ago
Posts: 78
Member since: Jun 2017
Certainly you can get the deposit back from the childcare place given the circumstances? Otherwise, totally feel for you. I've had someone close experience the same thing. Fortunately he had advance notice that the layoff was coming so he was able to convince his former employers to drag it out as long as possible until the loan had closed. Forgot whether the layoff happened before or after his official last day, but it did go through.
Perhaps you can just talk to your former boss and see what he can do? Delay notification of layoff for a month or two?
Otherwise you may have to try to get a hard money loan as a last resort. But even then, the coop itself may not be down because they have their own requirements...
From the above it sounds like you didn't get a rebate through Hauseit etc.? If that's the case, at least you'll have an opportunity to try again once you find a new job. You WILL find a new job, it's not the end of the world!!
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Response by jelj13
about 8 years ago
Posts: 821
Member since: Sep 2011
The bank will recheck all your finances just a week before the proposed closing date. I had a buyer who felt his credit was so good with a major bank that they would automatically approve the closing. The bank took a week checking EVERYTHING: bank balances, employment status, salary, credit card balances....
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Response by front_porch
about 8 years ago
Posts: 5316
Member since: Mar 2008
What's the ratio of your housing costs if the purchase goes through (maintenance + mortgage + say, another $100 for insurance) to your partner's income?
ali r.
(downtown broker)
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Response by Squid
about 8 years ago
Posts: 1399
Member since: Sep 2008
You will need also to alert the board of this change in circumstance (not just the bank). Best to do this before an interview. If you are turned down you don't want the seller to have ANY justification to keep your deposit.
You mention that you have the required liquidity - is there additional liquidity you could tap into? Perhaps offer to put a certain amount into escrow for the time being, and explain that you expect to be able to obtain a new job quickly?
The board may be willing to work with you.
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Response by JR1
about 8 years ago
Posts: 184
Member since: Jun 2015
If you have an experienced real estate attorney then I'm pretty certain he or she will have protected you from a situation like this and you'll have an out to get your contract deposit back at least. With that said, def consult your attorney on whether you should disclose or not to the seller.
And if you do disclose, maybe you can find a new job quickly. W2 income is quick and easy to leverage ... vs self employment income!
Good luck, hope you end up choosing an experienced buyer's broker next time around, whether it be through Hauseit and getting a discreet rebate or through a referral etc. Whatever works!
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Response by NicoleNestApple
about 8 years ago
Posts: 22
Member since: Feb 2013
I think the best is to be completely transparent with the board, explain to them your situation. They may understand and be willing to work with you here. Good luck!
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Okay, this is a tough situation because I'm pretty certain the mortgage broker or bank (https://www.hauseit.com/difference-between-mortgage-broker-and-bank-nyc/) will call your employer a day or two before the closing to verbally verify your employment. Double check the reference article I listed.
If your employer confirms that you are indeed laid off ... you're in trouble and most likely they will have a right to refuse to fund your loan. They will call the number you provided for your employer, so hopefully the HR person you selected is having a nice day or maybe their system hasn't updated yet. It's pretty tough at this point I'm afraid.
With that said, there's always a silver lining. Did you elect to receive a buyer's broker rebate? If your buyer's agent giving you anything? If not, here's an opportunity to restart your search and work with a seasoned buyer's agent who's also going to give you part of the commission. You can typically find some really brand name brokerages who have discreetly agreed to this via platforms like Hauseit.
Please keep us posted, we're sorry to hear!
Certainly you can get the deposit back from the childcare place given the circumstances? Otherwise, totally feel for you. I've had someone close experience the same thing. Fortunately he had advance notice that the layoff was coming so he was able to convince his former employers to drag it out as long as possible until the loan had closed. Forgot whether the layoff happened before or after his official last day, but it did go through.
Perhaps you can just talk to your former boss and see what he can do? Delay notification of layoff for a month or two?
Otherwise you may have to try to get a hard money loan as a last resort. But even then, the coop itself may not be down because they have their own requirements...
From the above it sounds like you didn't get a rebate through Hauseit etc.? If that's the case, at least you'll have an opportunity to try again once you find a new job. You WILL find a new job, it's not the end of the world!!
The bank will recheck all your finances just a week before the proposed closing date. I had a buyer who felt his credit was so good with a major bank that they would automatically approve the closing. The bank took a week checking EVERYTHING: bank balances, employment status, salary, credit card balances....
What's the ratio of your housing costs if the purchase goes through (maintenance + mortgage + say, another $100 for insurance) to your partner's income?
ali r.
(downtown broker)
You will need also to alert the board of this change in circumstance (not just the bank). Best to do this before an interview. If you are turned down you don't want the seller to have ANY justification to keep your deposit.
You mention that you have the required liquidity - is there additional liquidity you could tap into? Perhaps offer to put a certain amount into escrow for the time being, and explain that you expect to be able to obtain a new job quickly?
The board may be willing to work with you.
If you have an experienced real estate attorney then I'm pretty certain he or she will have protected you from a situation like this and you'll have an out to get your contract deposit back at least. With that said, def consult your attorney on whether you should disclose or not to the seller.
And if you do disclose, maybe you can find a new job quickly. W2 income is quick and easy to leverage ... vs self employment income!
Good luck, hope you end up choosing an experienced buyer's broker next time around, whether it be through Hauseit and getting a discreet rebate or through a referral etc. Whatever works!
I think the best is to be completely transparent with the board, explain to them your situation. They may understand and be willing to work with you here. Good luck!