Local Realtor does not make it work

My client worked hard to attend classes, improve their credit report, obtain section 8 voucher, and then obtain financing from a local bank. Terms on the loan were set to allow it to conform for resale to Fannie or Freddie. Client has worked hard to qualify and bank has adhered to conservative lending procedure.

Client contacted me to help find property that would satisfy their requirements and provide a home for the coming years.

Three bedroom, two baths are needed due to family size and near term needs for privacy. Garage is needed for security and logistics. A full basement is needed for storage. A fenced yard is needed for existing pets. A brick home is desired by the client and is practical for lower maintenance. There are additional interior amenities that will make a difference. Such as hardwood flooring, main floor laundry, fire place and family room or recreation room. This also needs to be a ranch style building. This is a fine description of a home that will suit their present and future needs.

One requirement is that the house be in move in condition so that it will pass Section 8 inspection. This is a rational requirement to insure that folks actually receive housing that is livable. In my clients price range this house is only available in one part of the metropolitan area. This creates a travel problem for work, school, and family. To obtain a little more house in the price range the client chose a HUD home that was in reasonable insurable condition. We were able to obtain an FHA approval with a 3% down requirement. Our offer was not the best offer so we needed to look again.

This area of town really needs to have an influx of home owners that will be able to afford the homes, and have pride in the neighborhood. Market value of many of the houses we looked at would have been 150k to 200k three years ago. We are shopping at 70k. Since the property has been unoccupied property tax is low, however the monthly escrow will rise nearly 200 a month next year. Most people like my client can not afford that increase. With the costs of services rising as fast as they are the county will have to raise tax higher which will cause a continued downward spiral in the affordability of housing in this area. My client wants to go back to the bank loan thinking that the cost of the money was less. However, that loan required much more than the 3% down for FHA and would more than deplete my clients savings that are needed as a fallback position.

Well now unemployment has cost our economy one more homeowner. My client has lost her job.