Deposit is not being given back

Although we clearly told the salesperson, Niki, that we would need to obtain a mortgage the agreement that was faxed to us did not state this.   We never read the faxed agreement and just signed it and send it back assuming that the financing contingency was there and how hard would it be to get a mortgage?     Guess when she told us that we don't use lawyers in Florida to close real estate, I should not have listened and had a lawyer reveiw it. 

In fact Niki now tells us in an e-mail after we can not get financing "Our standard contract is a cash contract-it does not vary if one needs financing or is paying cash."    Let me get this right even if we tell them we need to get financing the contract that they fax will be a cash contract ?   Buyer beware!!! 

Although we have never been denied a mortgage in our life, we can not get a mortgage at City Palms and now have lost $5,000.   I want to caution anyone looking at this development to not sign their "standard contract" if they need financing.  

Mortgages at City Palms

One thing I have learned is that it is very important for the condo project to be FHA approved.   If the development does not meet certain standards; for example, 51% of the units have been sold by the developer, then the project is not FHA approved.  There are other standards that must be met to be FHA approved but this seems to be the biggest stumbling block.

City Palms is not FHA approved and it does not look like they will reach the 51% milestone until next summer.   What does this mean to the consumer?  If you are not a cash-buyer, your financing options are quite limited.  In fact it is typically up to the developer to find a bank that will keep the mortgage in-house that will provide mortgages to any potential buyers.

In this case, City Palms has lined up two banks: 1) Region and 2) TD Bank.    Regions is excellent and responsive, but they will not give you a mortgage if your credit report already shows 4 mortgages.   In our case, we own some rental property, had more then 4 mortgages on our credit report and were rejected by Regions.

TD Bank is the complete opposite of Regions when it comes to customer service.    After three months, we were able to determine that TD Bank has a unique way of looking at your schedule C income that decreases from one year to the next.   Here is a multiple choice question.

If your Schdeule C income decreases from one to the next, irregardless how long you have been in business they:

a) count the lower income
b) average them
c) do not count any of your schedule C income

ANSWER;; C

Since our Schedule C income dropped from 2009 to 2010, none of our Schedule C income could not be counted, our ratios were driven up and we were rejected.     Where do you go after this for a mortgage?   No where......

TD Bank

Running into some road blocks, trying to fix, may have to go with my local mortgage broker that has a home office in Florida, Mackinac.http://www.mackbank.com/ 

Kensignton Condos

What you don't want to invest in?

Story here, from the Sun Sentinel  or the Palm Beach Post.

Sales at City Palms

Six (6) units in the last last two weeks.  Considering the volatility in the stock markets, low interest rates, low housing prices and strong rental market--could we be at a turning point?

FInancing-- TD Banknorth

Working with TD Bank and Arthur Mitchell in Florida.     Very smooth process all the documents on-line that we sign on-line, while a few documents we need to print and sign.    Very very easy process???  Let's hope the approval is as easy, we get a good rate and we close timely.   

Closing Agent

After our offer was accepted, I asked the salesperson, Niki Piersall, for the name of a lawyer that I could use?  She proceeded to tell us that they do not use lawyers in Florida for real estate transfers, but instead closing administrators?

In this case, Felberbaum & Associates.    Will let you know how it goes and what I think..