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    Thursday, May 06, 2010

    They liked my offer!?! YAY!!...But wait a minute, um, *that's* not *my* offer!

    The continuing saga of my hunt for "affordable" housing in Southern CA...
    :)

    So if any of you were following along via Twitter, on Tuesday (5/4) you saw the following excited posts (or Tweets to use the correct Lingo ;-):

    OMG OMG OMG!!! Mega Exciting News!!! Seller's Bank (Short Sale) has approved the offer I made (April) on a Condo in Foothills Ranch!! #fb

    and then:

    and the Seller's Bank even wants to close in 2 weeks!! That's AMAZING!!! :D

    (For those on Facebook, yes, you too also saw these posts - 1st Tweet was imported to Facebook, and 2nd tweet I added as a Comment on my Facebook post).

    However, since then, things have developed an interesting Twist (& complication).

    Yesterday (5/5) morning while reading through the paperwork, it became obvious that the Bank's Letter of Acceptance was referencing wrong information (not part of my original offer signed by both Seller and myself). Doh!!!

    Doh! Finally got to look over paperwork that bank wrote up for their approval & Seller's broker (or escrow??) wrote my offer wrong... :(
    Which means that I now have to resubmit to the bank for clarification on various points. Boo! :(

    By 4pm (5/5) I got an email from my broker (also my aunt :), who had been on the phone basically ALL day trying to straighten out this matter (and another one - more details later in this post). Goodness!

    Basically, the escrow officer read my offer wrong and presented his/her misinterpretation to the bank for approval. DOH!!!!

    Some background: There are 2 units with identical floor plans (1 bedroom + loft, 1 bathroom, 900 SF) that were Available in the same complex in Foothill Ranch and I liked them both, so I put offers in on both. One was significantly cheaper than the other but it had $10K in back owed HOA fees that *had* to be paid before the bank would sign off on a sale. (Reminder: Both are Short Sales so need Bank Approval.) By the time you added in the back owed amounts (etc.) on the cheaper one - #19C - it was only $5K cheaper than the other unit (#39G).
          [Other differences between the two: #19C would also need to be painted as it has blank white walls; a mirrored closet in dining room area that I'd want torn out to use as space for say a China Hutch; would need to look into sun blocking window shades for all the windows facing west - there's a lot - and some quite high up!, and a couple of light fixtures were OK but could be updated to 'nicer' ones...while 39G was already painted in colors I actually *liked*, had nice pretty nice light fixtures already, had that unnecessary dining room closet torn out, etc. Oh, and 39G is Poolside. Overlooks the complex's pool area...which is good and bad :). ]

    Anyways - I first saw (& yes, actually walked through) both units on Sunday afternoon April 25th. My broker did her comps and figured out the best deal that I could afford that would still be enticing to the Seller (and did her homework on what 'hidden' costs might be lurking...such as back owed HOA and property taxes, if any - yes in the one instance), and after I agreed with her suggested offer on each unit she wrote up both offers and I signed both sets and we got them off to the respective Sellers' brokers. And then we set ourselves to wait. But we didn't have to wait for long! I believe we actually got responses from both brokers the very next day (or so) saying their respective Sellers/Owners were defnitely interested and would sign off on the deal. Um, ok wow. Both accepted, huh? Wow. Guess we'll see *which one* really follows through (or follows through first) or else I will get to make a decision between the two. :) Not a bad position to be in, obviously.

    By Friday (4/30) we had received a Seller's signed copy of my Offer from the broker on #19C. (But nothing back from 39G who keep *saying* the Seller was going to sign and was still saying he/she would.) We also go word from the Broker for #19C that they had already forwarded the now signed Offer to Escrow and the Seller's Bank for Approval and that they expected the Bank to approve it early next week (1st week of May). Wow, that would be fast if it happens, right?

    So we're waiting, and then on Tuesday - I get the call from my broker that yes, the bank accepted. (YAY!) Only problem is that Escrow misread my offer and presented it wrong. For example: I said I'd Pay X amount and that figure *included* payment for the back owed HOA fees (up to the $10K). Seller's Broker wanted it all listed on the first page of the Offer so it'd be clear & 'easy to read' and we complied and wrote it up that way. Deposit amount "A" plus $10K ("B") plus balance of purchase price ("C") = "X" amount paid (Total Price). Easy, right? Wrong, apparently. Escrow read that I'd be paying X *plus* an additional $10K. Um NOOOO!!!

            Also, the box was checked on my Offer saying the Buyer - that's me - would pay for Termite Inspection. Normally, yes, the seller pays for it, but on Short Sales my aunt has found that typically the Bank hates that. We didn't want to have the bank come back with a counter saying that the they the Bank objected to the Seller paying the Termite Inspection so we were proactive in just saying that I, the Buyer, would go ahead and pay the Termite Inspection. **However**, Escrow wrote down that the Seller would pay for Termite Inspection in their Presentation of the Offer to the Bank. Ugh!!

    Isn't Escrow supposed to be careful in reading these things? (They're *supposed* to be very detail oriented, right?) MAJOR oversight here!!

    So now (5/6) we  have to get Escrow to fix their mistake and re-submit the presentation to the Seller's bank for approval. We'll see what happens. Possibly fixable.

    But Wait! There's More!!

    In the meantime, remember that 39G unit (poolside, with nice paint & fixtures) which said the Seller was interested & would sign, but I never actually got a signed contract back from the Seller?

    Yesterday, my aunt got a call from ANOTHER Escrow company wanting my mailing address, phone number, Social Security number, and date of birth. Um, why? She got ahold of the Escrow officer and asked "what's going on? Why do you need the SS no, date of birth, etc.?" Turns out its for the 39G unit and Escrow officer said the negotiator wants it because the Bank is requesting it for their files. Jody, my aunt, then says "I don't have a signed contract from the seller, so why does the negotiator have the offer?" Escrow officer wasn't sure herself but needed the requested information "in order for the negotiator to continue processing the offer." Period. That's it on the explanation. (By the way, my offer is an All Cash offer, so why do they need that info for an all cash offer?? I could understand if they wanted the info to do a credit check on me if I was doing a bank loan, but I'm not doing a loan. I'm doing cash. Plus I already provided proof of my finances when I first submitted my offer.)
          Next my aunt (finally) gets ahold of someone in the Seller's broker's office and ends up talking with the Agent's assistant. He tells my aunt that they sent the offer through to the bank WITHOUT THE SELLER'S SIGNATURE to just get the process going and that he'll get my aunt an update later via email.

    Um...say what?!? Who in their right mind sends in an offer to be processed *without the Seller signing off on it*?

    LOL!!!

    What drama! :) Laughable - and hopefully fixable - drama, but drama nonetheless.


    Hopefully *one* of these offers/deals actually goes through soon. That would be really nice. :)

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