October 9th, 2017
Do you ever get that nagging feeling that something’s not right… that feeling deep down inside when your internal alarm bells are going off?
Some people would say it’s a gut feeling. Others might call it intuition.
But no matter what you call it, when it comes to buying a home, you should always trust your gut.
If you choose not to, it could put you in a serious bind like it did for some recent borrowers of ours.
Down to the Wire
We believe in daily communication throughout the loan process. But sometimes, things just seem to pop up at the last minute no matter what we do.
In real estate, that usually means the day before or the day of the closing.
We recently had a loan where the borrowers had nothing but trouble with the sellers almost from day one.
Non responsive, not following through with agreements, etc!
Like most clients who have a home they REALLY want, they decided to push through the problems, ignore the alarm bells and continue with the process.
Despite all the trouble, they made it to the walk through the day before the closing, and that’s when things really went sideways.
Every time they had seen the house up until then, it had been fully furnished. Except now at the walkthrough, the furniture was gone and they noticed spots on the floor they hadn’t seen before.
Our borrowers asked the sellers about the spots. The sellers claimed they didn’t know what they were.
The home inspector didn’t note anything about floor spots in their report.
So it’s the day before closing on a house they really want, and all of a sudden there are spots on the floor which may or may not be water damage!
What would you do?
Worst Case Scenario
In this case, our borrowers decided to ignore the warning signs and close on the house. They REALLY wanted this particular house.
But 3 weeks after they closed, they found out there was a MAJOR water leak in the house which was going to require MAJOR amounts of cash to fix and repair. Cash that our borrowers really didn’t have after just closing on their new home.
What’s worse? It turns out the sellers might have known about the leak, but didn't disclose it!
Don’t Be Afraid to Walk Away
So many of our customer stories have a happy ending. But this one doesn’t.
Yes, our borrowers have some legal recourse with the seller due to non-disclosure.
But it doesn’t change the fact that in the short term, they’ve found themselves in a major financial crisis (out tens of thousands of dollars in repairs), plus they’re facing a legal battle if they hope to recoup some or all of that money.
The lesson I hope everyone learns from this is that ff something doesn’t feel right, address it BEFORE you sign on the dotted line.
Trust your gut and remember - you should feel GOOD about your loan after it closes!