Hello BP. I've got a weird situation that all of my mentors are struggling with a little bit. Decided to post it here to see if anyone's been in the same situation.
I have an accepted offer and am under contract with the VA here in Delaware (VA Foreclosure). In Delaware state transfer taxes are waived if you buy a home from the government. The first question I asked my agent was if I would have to pay the transfer tax. "No" was the answer. About two weeks after signing the contract I was contacted by my agent and loan officer to disclose to me that the VA is going to "push" the house to the bank so I need to sign an addendum. I asked about the transfer tax and was told "yes", you'll have to bring an extra $2K to the closing table to cover it. I decided to let it sit for a while, while I tried to find out more info. Selling broker said they don't know who the owner really is...(huh?). Selling agent never got back to me as to who the bank closing agent is going to be. I was then sent another addendum changing the seller from the VA to the bank. I didn't sign it and said my intent was to uphold the contract I have set in place, which is with the VA. The attorney said this happens about half the time and that's where the advise seemed to stop. Since this has been dragging out for quite sometime now, I was just sent yet another addendum tonight stating that the only change to the contract is that the closing date needs to change. Oh, but at the top it now states the seller is the bank.
I feel as though the selling broker dropped the ball during the initial contract and has been a little deceiving in trying to get me to sign something to show I know about the soon-to-be bank ownership, which in turn will cost me $2,000 more than what I originally planned with my offer.
Am I on the wrong page here? Do I have any other options? Thanks for everyone's time. Hopefully this was clear enough.
sounds a little messy, and no one has been clear from the get go. Or at least know exactly what's going on....
Unless it's a super deal and or you really want it, Perhaps you can drop the deal and use a real professional to help you find your next one..
The agent has no control over this, and can't predict when they'll do these kinds of things. You can either accept, or walk. The bank is not "stuck" with your original contract....their addendum lets them cancel the contract altogether for little, or no, reason. On an odd side note, here the seller typically pays the 0.7% transfer tax, and when an exempt gov't agency is the seller they are exempt, but the buyer then has to pay it!
While this isn't a super deal, it does work. It even works with the extra cost. It is a house I want in the location I want. I just threw out an offer with little confidence that it would get accepted. Since it works, I'm going to eat the cost so I don't lose the deal...since it's still a deal.
I'm glad to know that the selling agent doesn't know what the government or the banks will do or can do. This sits a lot better with me.
Thanks again fellas.
@Blaine Brown , from what I understand, the VA can pass the property back to the bank.
I was under contract on a property and the VA passed it back to the bank due to some title issue.
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