purchase agreement contingencies

[yooperfly]

I am so frustrated. I have been pre-approved for a home mortgage loan of up to 148,000 through Rural Developement. All of my paperwork has been verified, and I have actually spoken to my loan officer twice by phone regarding the next step. I was told by her that my credit was above average for this type of loan, my income was more than suffiecient, for this type of loan, and that I had been accepted. The only thing hindering my completed paperwork is her "case-load." She also infomed me that paperwork routinely gets completed and issued much faster if there is a signed purchase agreement submitted as well. Now the frustrating part: Because of this year's "tax rebate" to home buyers, 2 of the properties that I chose to submit offers on were already gone just minutes before I could make a purchase offer. I have fallen in love with another home and property. It is a foreclosure. Because I work in County Government, I have access to all pertinent paperwork regarding real estate. This property was foreclosed for $125,000. It's SEV is $47,000. The home is under 15 years old, is structurely sound, and has some acreage to go with it. The mortgage company has now let the asking price plummet to $32,000. The reason being: When the previous owners knew of the upcoming foreclosure, they removed the furnace and the water heater, and took it with them when they left. The owner of this property has not been willing to replace these items at their cost, and no other potential buyers have been able to acquire a mortgage on it because it did not pass their inspection. (Because of the no-heat, no-hot water issue.) I know that the only thing that will not pass Rural Developement's inspection standards is the absence of both of these necessities. The home and property is worth much more than this "asking price." My intent is to offer the full asking price to the holder of the property. I would like to borrow from Rural Developement the sum of $60,000. (The asking price, plus additional money to have both the above items replaced, and to build a garage on the property.) I realize that the purchase agreement should have the contingency of receiving the financing, (because I do not actually have the finalized paperwork in front of me), but is there some way that I can include a contingency which refers to the additional costs and replacements? Would I, or should I need to get actual signed bids from these contractors to present both to my buyer's agent, and to my loan officer? (To be attached to my purchase offer so as she will know that I have every intent on bringing this home up to their code.) And if so, would I need some type of contingency in the contractor's contract because I am not actually the owner of the property at the time the contract would be signed? There is another party who is showing quite a bit of interest in this property right now, and I don't want to lose out on this 3rd home as well. Of course, everything seems to transpire over the weekend.....I am not able to contact my loan officer to get her advice.

 

[jharris352]

I don't know if you can, but can you please edit that post to include some paragraph breaks. I think I understand your question but as I get down to the bottom my eyes begin to cross. I need to study it a bit. If you will add some breaks I can help you.