Opinions about a faulty MLS listing and contract offer in Denver
Help! Advice please... After 4 offers, I have finally won a bid on a small condo in Arvada. Turns out, the listing was for Conventional or Cash loan. Also turns out that the small condo association has 34 units - 22 of which are rental which creates a "non-warrantable" situation from the lender's point of view. We had requested HOA docs in advance and didn't get them. (OK... so we should not have made our offer without them). This is on top of the fact that we offered an escalation clause that beat out another offer. That offer was with only 10% down - and most likely that person didn't know the condo was non-warrantable, either. (They also should have asked). However, it was the offer from this person that jacked up the selling price $14K over asking price. Who knows if they would have qualified for a higher interest rate or the terms required for a lender willing to do a non-warrantable property.
Anyway, the conventional lender I was using has to back out under these circumstances. I am scrambling to find another lender. But, it sounds like all this invalid anyway because the non-warrantable business was never stated anywhere upfront. Should that have been in the listing on the MLS?
Looks like this needs to be a complete do-over - in whatever form that may take.