I wrote a post about a friend of mine who moved into her new home before closing. Here’s an update to the story. My friend had qualified for her loan and was very anxious to move from her ex’s house. She and the realtor decided that they would take a chance and have her move in.
She was very anxious and moved in-even cleaning the carpets, paying the movers and painting the place! Last week she heard from the bank; the loan had not been approved, there were problems with the HOA. The bank discovered that the HOA had several financial problems. The swimming pool has a crack in it and has not been open for 3 years!! She was devastated to say the least.
Not to beat a dead horse but this is exactly why you never want to move in before the close. Here’s another interesting phenomenon that is playing out in this rough economic climate-people are saving money by not paying their HOA fees. This really is a scary development. All the HOA can do is to put a lien against your property forcing you to pay it off before you can sell your property. However, in the meantime the dues go uncollected and all the deferred maintenance does not get done.
My friend is moving out this month to a rental while she regroups. I’m glad she is taking this step so as to avoid more problems-but what a mess.
Have you ever seen something like this? What would be your advice?
Would you risk moving into your new home before closing? Here is the situation: a friend of mine separated from her husband and needed to get into something rather quickly. She was fortunate to be able to move in with family members while the dust settled. She lives in Denver, Colorado and quickly realized that decent rentals were very pricey. In fact, she literally could buy a home for less money than the current prices of rentals.
She found a condo that was ready to move in without any major renovations necessary. The owner was very motivated as he was moving out of the country to be with his new love….that’s another story!
He allowed her to move into his condo and paint to her liking before the actual closing of the house. I’m sure you can see the inherent risks in my friends moving into this condo before closing. For instance, the seller could change their mind and she would be out in the cold. All the improvements she is making could be all for naught and I’m sure there may be other things that haven’t even been thought about!
Well, she moved in today and the closing is scheduled for the end of this month. To complicate matters-she found out last week that her employer is going to cut everyone’s salary in the next 30 days. Fortunately, she is already pre-approved for the loan but this factor could really make it a tight squeeze for her. She desperately wants the safety and security that a home can provide but she remains cautiously optimistic.
Would you move into a home before closing? Do you know others that have made the move before closing? Please share your thoughts!