Comments on: Zero Down, Zero Closing– Restrictions Apply http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/ Thu, 24 May 2012 01:57:19 +0000 hourly 1 http://wordpress.org/?v= By: uuuthe http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12633 uuuthe Tue, 24 Jun 2008 05:31:24 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12633 Twist- I agree with the builders keeping at least $1000 of the deposit. I feel it's unfair to tie up property, then back out. It happened to me, and I did it as well in CA, because there is usually no penalty. I think it does vary market to market. Twist-

I agree with the builders keeping at least $1000 of the deposit. I feel it’s unfair to tie up property, then back out. It happened to me, and I did it as well in CA, because there is usually no penalty.

I think it does vary market to market.

]]> By: twist http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12632 twist Mon, 23 Jun 2008 05:47:14 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12632 uuuthe- Until the past couple of years, it was easy to get a deposit back in Phoenix. Recently though, you will often see signs in sales offices that say you WON'T get your money back, and I've heard from several folks that did in fact lose their deposit. As much as that's lousy for the buyer that needs to cancel, I can see that from the builder's perspective- the security deposit is supposed to be their security that you will buy it. They've been stuck with a lot of cancellations. When the spec is just sitting there however, it doesn't seem like the deposit should be forfeited. Phoenix is not the only area that builders have been doing that, but the policy may differ market to market. uuuthe-

Until the past couple of years, it was easy to get a deposit back in Phoenix. Recently though, you will often see signs in sales offices that say you WON’T get your money back, and I’ve heard from several folks that did in fact lose their deposit.

As much as that’s lousy for the buyer that needs to cancel, I can see that from the builder’s perspective- the security deposit is supposed to be their security that you will buy it. They’ve been stuck with a lot of cancellations. When the spec is just sitting there however, it doesn’t seem like the deposit should be forfeited.

Phoenix is not the only area that builders have been doing that, but the policy may differ market to market.

]]> By: uuuthe http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12631 uuuthe Mon, 23 Jun 2008 04:45:22 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12631 Twist....that was over 15 years ago, but when I "sold" my home here in CA a couple of years ago, the buyers backed out and my real estate agent said that I had to give the money back. He said that I could try to fight it in court, but nobody does that because I wouldn't likely win, and I couldn't sell my home until I paid the buyers back because they had legal rights to purchase it if I kept their money. It was 4K or about 1%. Before I bought my last house, I went to buy a new home from a builder, but I later found a better deal, and bought elsewhere. I received all of my money back from the first home that I put a down payment on. I know this blog is primarily referring the PHX area, so that may have something to do with it. Twist….that was over 15 years ago, but when I “sold” my home here in CA a couple of years ago, the buyers backed out and my real estate agent said that I had to give the money back. He said that I could try to fight it in court, but nobody does that because I wouldn’t likely win, and I couldn’t sell my home until I paid the buyers back because they had legal rights to purchase it if I kept their money. It was 4K or about 1%. Before I bought my last house, I went to buy a new home from a builder, but I later found a better deal, and bought elsewhere. I received all of my money back from the first home that I put a down payment on.

I know this blog is primarily referring the PHX area, so that may have something to do with it.

]]> By: zazzu http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12630 zazzu Sun, 22 Jun 2008 21:56:57 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12630 There's always a certain amount of risk when buying into a new development. But these days, you'd have to be a die-hard gambler to buy into one. And the cleanup in Surprise, AZ? What - there isn't enough heatstroke going around this time of year? I never understood why these towns do their annual cleanups when it's 110 in the shade. I smell some lawsuits brewing. There’s always a certain amount of risk when buying into a new development. But these days, you’d have to be a die-hard gambler to buy into one.

And the cleanup in Surprise, AZ? What – there isn’t enough heatstroke going around this time of year?

I never understood why these towns do their annual cleanups when it’s 110 in the shade. I smell some lawsuits brewing.

]]> By: twist http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12629 twist Sun, 22 Jun 2008 16:20:01 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12629 uuuthe- How long ago was that? uuuthe-

How long ago was that?

]]> By: uuuthe http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12628 uuuthe Sun, 22 Jun 2008 15:44:50 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12628 Hmmm....I wonder how much the "deposit" money is. When I bought my last home, I was able to reclaim my deposit amount 100% if I backed out. Hmmm….I wonder how much the “deposit” money is. When I bought my last home, I was able to reclaim my deposit amount 100% if I backed out.

]]> By: twist http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12627 twist Sat, 21 Jun 2008 23:47:55 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12627 Aaaaudio- What I thought was interesting was the hoops that folks now have to jump through for these programs. I knew YOU wouldn't be surprised, but a bunch of us didn't know what all was required. I was particularly surprised that the deposit could be forfeited on a quick move inventory home. It's one thing to back out when you had a house built for you, but if a builder holds a home for you for a few weeks and it doesn't close, it's not like they don't have others available for sale. Aaaaudio-

What I thought was interesting was the hoops that folks now have to jump through for these programs. I knew YOU wouldn’t be surprised, but a bunch of us didn’t know what all was required.

I was particularly surprised that the deposit could be forfeited on a quick move inventory home. It’s one thing to back out when you had a house built for you, but if a builder holds a home for you for a few weeks and it doesn’t close, it’s not like they don’t have others available for sale.

]]> By: aaaaudio http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12626 aaaaudio Sat, 21 Jun 2008 21:17:48 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12626 6%seller contributions is nothing new here folks. It has been around with FHA for sometime. Why does this come as a surprise to anyone? Fannie and Freddie are 97% with 3% seller contributions... No more soft market reductions either. FHA is changing the funding fees July 14th and Mr Bush took away the anti flipping rule last week. Let's not forget about the rural housing loans (USDA) that offer 100% no MI AND your VA loans at 100% with no MI (Both have funding fees that do not require you come out of pocket for )So you see there are still plenty of 100% loans. I myself have purchased several homes with 3-5% down and never had a problem. (Knock on chicken wire) 6%seller contributions is nothing new here folks. It has been around with FHA for sometime. Why does this come as a surprise to anyone? Fannie and Freddie are 97% with 3% seller contributions… No more soft market reductions either. FHA is changing the funding fees July 14th and Mr Bush took away the anti flipping rule last week. Let’s not forget about the rural housing loans (USDA) that offer 100% no MI AND your VA loans at 100% with no MI (Both have funding fees that do not require you come out of pocket for )So you see there are still plenty of 100% loans. I myself have purchased several homes with 3-5% down and never had a problem. (Knock on chicken wire)

]]> By: wcvarones http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12625 wcvarones Sat, 21 Jun 2008 20:16:44 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12625 OT, but National Review Online just got an internal BofA memo that shows that BofA essentially wrote the Dodd-Shelby lender bailout bill. <a href="http://corner.nationalreview.com/post/?q=ODJkN2Q3NTY0MjAwYjJlNTY0NTJmMWEzZTI1OGZjZTg=" rel="nofollow">linky</a> OT, but National Review Online just got an internal BofA memo that shows that BofA essentially wrote the Dodd-Shelby lender bailout bill.

linky

]]> By: Russ http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12624 Russ Sat, 21 Jun 2008 16:03:06 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12624 Yes, another hidden cost is possibly living in an unfinished subdivision for many years. Piles of dirt, construction debris, views of some dumpsters for the foreseeable future. Maybe some squatters. Fun stuff. Did you see this one? The Mayor of Surprise (a realtor, BTW) has organized this today: "The City of Surprise is launching an effort to clean up around vacant homes that are in foreclosure. Residents are being asked to get their hands dirty to beautify their neighborhoods. 'Weeding, raking, trash pickup and such,' said Mayor Lyn Truitt. ``We're expecting quite a few volunteers.'" http://www.ktar.com/?nid=6&sid=873367 Yes, another hidden cost is possibly living in an unfinished subdivision for many years. Piles of dirt, construction debris, views of some dumpsters for the foreseeable future. Maybe some squatters. Fun stuff.

Did you see this one? The Mayor of Surprise (a realtor, BTW) has organized this today:

“The City of Surprise is launching an effort to clean up around vacant homes that are in foreclosure.
Residents are being asked to get their hands dirty to beautify their neighborhoods.
‘Weeding, raking, trash pickup and such,’ said Mayor Lyn Truitt. “We’re expecting quite a few volunteers.’”

http://www.ktar.com/?nid=6&sid=873367

]]> By: Mark in San Diego http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12623 Mark in San Diego Sat, 21 Jun 2008 14:46:28 +0000 http://housingdoom.com/2008/06/21/zero-down-zero-closing-restrictions-apply/#comment-12623 Of course like some of the cheap airlines, they may go belly up and leave you stranded. . . .buyer beware!! Of course like some of the cheap airlines, they may go belly up and leave you stranded. . . .buyer beware!!

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