Message Boards


  • Please be sure posts are category appropriate.
  • No off-topic or off-color postings.
  • Postings may be deleted at the discretion of HGTV Moderators.
  • No advertising is allowed.
  • Be Nice. No name calling, personal attacks or flaming.
  • Certain words will trigger moderation of the post. These words mostly cover political and religious topics, which are OFF the topics covered by HGTV.
  • For general message board help, click the tab labeled "Tools," and choose "Help" from the dropdown menu.
Full Guidelines
New and Confused Sign In/Join 
Hey all,

So, a week ago today was my 25th birthday, and my fiance and I were supposed to celebrate in what should have been our new house.

We had contacted a real estate agent a few months ago, recommended to us buy one of our co-workers who had purchased a house from him, after we were pre-approved for a NIFA HBA loan.

For those of you who may not know what this program does, we took advantage of this because we're a couple of "broke kids" who can make a house payment, but don't have tons of money for a down payment on a house. We currently pay $850 per month for rent. We are getting married in October and thought maybe we should invest this money, rather than spending $10,200 a year in rent.

With a NIFA HBA loan, the buyer needs $1000 down for a house. Long story short--we put in an offer on a house, and the seller agreed to it right off the bat. We were going to pay full price for the house, while she paid for closing costs and we would also pay for half of the roof that needed to be fixed. Six days before our closing date, everything hit the fan. It turns out that the house assessed for $1,600 less than what the purchase price would have been, so our bank is unable to finance it because of that. And here's another catch--after we paid for an inspection, as well as an assessment, our realtor informs us that the house is in pre-foreclosure and it's also a short sale. So her bank/company is refusing to come to a negotiation and we were told that if we walk away, we won't get anything from our $1000 back. Our realtor mentioned to my fiance that neither agents (both are from the same company) knew about the house being a pre-foreclosure/short sale and to me this is outrageous. Had I known this information I definitely would not have even bothered with this house. Im sorry for the long book, but can anyone tell me what I can do/where someone went wrong? I feel like someone stole money from me Frown
Posts: 1 | Registered: Jul 14, 2013Reply With QuoteReport This Post
Picture of Charming
posted Hide Post
Not knowing where you are located, I would suggest going to their broker with this info and request they contribute towards the inspection and any other expenses you have had to this point because the seller's agent did not do due diligence in researching the property.

Don't give up. Keep looking and you will find the right house. I would also suggest interviewing other agents to represent you - this person did not do a very good job with comps. Unless it is a super great deal I would not contribute towards replacing anything major!

Fun and Info
Posts: 3563 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of rubyruby
posted Hide Post
I am so sorry you and your fiance have been through this. I know Real Estate Lady, Charming, Idaho Resident will chime in here asap. They know their stuff. Something that hit me funny is the fact the the Seller had no clue that he was in PRE Foreclosure? Huge redflag. Not sure if you have any recourse as far as the 1k down. But if people would do the right thing in life....they'd make it right and reimburse you for what I deem "false advertising on the sale of a home" But I don't know squat about legalities in the industry...sorry gal.

"In the spring, at the end of the day, you should smell like dirt"
Posts: 1177 | Location: Houston, Tx Zone 9 | Registered: Jul 13, 2004Reply With QuoteReport This Post
posted Hide Post
Oh, wow, here for you with moral support. Very frustrating.
Posts: 6086 | Registered: Feb 08, 2006Reply With QuoteReport This Post
Picture of real estate lady
posted Hide Post
Always when selecting an agent, hire them as a buyers agent. This is an agent that is working for you only.

It is important that you find out from the agent what "agency you signed" -agency meaning representation disclosure. Transactional, buyers' agency or what. Not sure what agency(ies) is law in your state as far as disclosure. You should have been explained agency by your Realtor. Your Realtor can not be a "buyers'" agent with the subject home listed by the same office, as their office would represent the seller. That is the law here - check your state.

Another point, "short sale disclosure in MLS" is law here - check your state.
While you are using the verbage assessed - I think you may have meant "appraised" for less, therefore you should be able to get you deposit back based on the financing contingency. Get a copy of the appraisal and submit as evidence with your request for refund of deposit. That offer/contract should have explained to you in full detail.However **Important that you check to make sure you had a financing contingency in your contract.

It sounds to me that there** may be** questionable disclosure" and "representation", and I would call the broker (usually the Owner of the office), be direct, and nicely demand your deposit back along with the inspection fees. You would, as you say would never have spent money for an inspection if you knew it was a short sale.
Think about giving them a time limit to return your funds, or you will consult an attorney. The reasons it sounds to me ...-non disclosure of short sale status and property didn't appraise.

There is a local Board of Realtors in your town who can help you. Usually starts with the name of the town or city "XXX board of Realtors." Go to them if you need guidance.

Often times, you can call the agent and tell them your plan and that will get the ball rolling because no agent wants possible trouble "in the law".

This message has been edited. Last edited by: real estate lady,
Posts: 9269 | Registered: Aug 14, 2007Reply With QuoteReport This Post
posted Hide Post
If you are looking for professional opinions on this you could also use RESAAS, a platform where only official realtors answer questions. Give that a go here:

Hope it helps! Smile
Posts: 13 | Registered: Aug 08, 2013Reply With QuoteReport This Post
  Powered by Social Strata    HGTV Message Boards  Hop To Forum Categories  Real Estate  Hop To Forums  Buying & Selling Homes    New and Confused