Brian and David talk home sales in the time of Coronavirus, how we’re helping our clients, and how to avoid having second thoughts about your home loan.
This week’s highlights:
- The Coronavirus pandemic is affecting the real estate status quo
- Face-to-face closings have been temporarily suspended
- You don’t have to back out of your loan agreement, even if you’re worried
Accunet can offer a rate of 4% on 30-year-fixed mortgage, with 25% equity, an APR of 4.05%, and $1,350 in total loan costs.
How is Accunet helping to slow the spread of COVID-19?The safety of our clients and staff is priority. Accunet knows that closing on a deal still requires a face-to-face interaction, so we are working with our partners at Lakefront Title to temporarily put a stop to closing on-site in people’s homes. We are asking that buyers come to our office in Waukesha, where we will issue a health and travel screening. We will ask questions such as:
- Have you been outside of the country within the last 14-days?
- Have you or anyone you know been in contact with someone exposed to the COVID-19 virus?
- Have you had a fever or flu-like symptoms within the last 14 days?
Contact a loan expert today, and we will help you safely navigate every step of the home-buying process.
COVID-19 virus meets the real estate worldBrian spoke with a seller this week who did not want to put his house on the open market to avoid the COVID-19 virus being brought into his home during showings. The seller decided to put the listing out within their brokerage, forgoing public offers and narrowing his choices to a mere 3 people competing for the listing! Brian spoke about another wary seller who was still agreeing to walk potential buyers through his condo but would not allow them to touch anything, open doors or peer into cabinets or closets without his assistance.
When can you breach a loan contract?Brian says many buyers often have “structure remorse” on their new home after receiving bad news during their inspection. The more issues that are discovered, the more buyers wish to back out of their loan. If black mold, a cracked foundation, or other defects are found, traditionally it is written into the agreement that the seller has the “right to cure” any damages at least 3 days before closing. While buyers may complain and worry about the results of the inspection, since the seller is contractually obligated to remedy the issues, lenders do not have a legal reason to deny the loan based on defects. Brian urges buyers and sellers to come to a resolution before closing agreeing on how defects should be cured so no one is left worrying if they should have backed out sooner. Usually, contracts are breached due to financial obligations. If a preapproval letter is conditioned on, say, a receipt from gift money constituting half of the down payment, and then that down payment never comes through, lenders then can legally deny a loan for insufficient funds.
Breaching loan contract due to CoronavirusBrian had a pre-approved buyer desperate to breach his loan contract after closing because he was afraid he was in danger of losing his job to the virus shutting down markets. This buyer had just put all his savings towards a downpayment, and was about to take on a large mortgage payment, but was facing a probable layoff in the near future. While this is a tough situation to be in, Brian urged him to get an attorney. One cannot back out of a loan contract on “what if” scenarios alone.
Learn more about managing your mortgage during times of change.
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