Summary of the Transaction:
- Purchase offer in Maricopa, AZ for $185,000
- First-time homebuyer who wants to ensure they close in time to qualify for the $8000 tax credit.
- REO “Bank-Owned” Property
- Offer accepted by the seller on 10/20/09
- Seller sets close of escrow date of 12/04/09
- Seller requires written approval by 11/13/09
Red-Flag Items on File:
- Total Debt-To-Income is at 52%
- Previous bankruptcy
- Open collections on credit report (subsequent to bankruptcy)
- $17,000 federal tax lien showing open on credit report
- Down payment source is a gift from an out-of-state relative
File Timeline:
- 10/21/09: Application and disclosure sent to buyer
- 10/21/09: Rate locked at 4.875%
- 10/26/09: Final appraisal received with value of $183,000 (2,000 below purchase price)
- 10/27/09 9:25 AM: Addendum to purchase contract obtained ** without sellers signatures **
- 10/27/09 10:17 AM: File submitted to underwriting
- 10/27/09 11:41 AM: File approved with conditions
- Conditions:
- Seller-signed addendum to purchase contract prior to documents sent to the title company
- Open tax lien removed from credit report prior to documents sent to the title company
- 10/27/09: Proof of tax lien release sent to credit reporting agencies to scrub from the credit report.
- 10/28/09: Credit report received with tax lien showing released
- 10/30/09 4:30 PM (Friday) Seller-signed addendum received
- 11/02/09 (Monday) Loan documents sent to the title company
And Then …
- 11/13/09 Date the bank requested a written loan approval by…
- 12/04/09 Close of escrow date per the purchase contract …
Steve Lines
Authorized FHA Loan Consultant and Co-Branch Manager
Academy Mortgage
Serving Arizona
480-344-3662 (direct)
480-329-3346 (mobile)
slines@bestfhalender.com (email)
www.bestFHAlender.com (my blog)
www.twitter.com/stevelines
www.linkedin.com/in/stevenlines
