Ran into an issue this week - wanted to see if anyone else has ran into it and what happened.
Had buyers, we found the home, knew that it was a short sale, made an offer and it was accepted. During the offer to acceptance, we found out that an investment group had successfully negotiated a short sale and that they would be closing on May 19th, 2010. They would be the ones selling the property to us. Thought okay, we got a good price on a good home, works for the buyers. Buyers had been approved for a FHA loan. We found out all the details several days later, when the listing Realtor called the buyer's mortgage company. What happened was that everyone we have talked to has stated that they can not close the loan until 90 days after the investment group has closed. Most all of the lenders said that even though FHA has waived the 90 day rule at this time, it doesn't apply in cases where investors have bought a short sale property. One lender has said that they would close it, but their debt to income ratios are much lower and the buyers didn't qualify.
My question is: with the number of short sales out there, has anyone else ran into an issue where they have the buyer and the property is now owned by an investor. And if so, have you had financing issues and how did you get around it. In our situation, it appears next to impossible. We have been told that we could go conventional with either 10% or 20% (depending which lender), but the buyers don't have that kind of money. Are we now going to end up with a surplus of investor owned homes that they can't sell for 3 months due to financing restrictions.