At then end of last year, I received a phone call. ” We are looking for a home. Can you help us? I am afraid because I don’t have a good credit score,” pleaded the voice on the other end of the line.  I replied, ” don’t worry, I would love to help you find your home.”

The first step for them was to consult with a lender who I know. Even though, as he told me initially, his credit score was not very good, he was still able to apply for a home loan. We usually met once a week to search for their perfect home, but it took a long time to find it. Finally, after three months, we found the ideal home within their budget. It was a foreclosed two-story home owned and renovated by Fannie Mae, which is the Federal National Mortgage Association. The price was $159,900, which was $5000 to $6000 higher than other similar houses available. Nevertheless, because there were so many competitors for that house, I suggested my client submit an offer $5100 higher than the list price.

My plan was to first have an appraisal done. Then, based on the results of the appraisal, we could renegotiate the price with the seller. We were both confident that the appraisal price would be lower than the offer that we had submitted. According to Fannie Mae’s rules and procedures, if the contract price is equal to or higher than the appraisal price, the seller would have to adjust the price.

After the contract was executed, an inspection revealed problems with the electrical wiring and with the water pipes. Both of these issues were repaired with no additional charge. However, there is a rule that prevents foreclosures to be repaired. Fortunately, I was able to have someone with a lot of experience in buying foreclosed homes get these problems resolved.  At the end of April, the bank appraisal priced the house at $149,000, which was significantly lower than the price that I had expected. The offer we had submitted was $165,000, which is $16,000 higher than the appraised value. So, I sent the appraisal report to the seller’s agent, but they said they would not adjust the price of the house. Instead, they gave us the option to either reapply for the loan with another bank, or pay the full price of $165,000. On top of that, Fannie Mae told us that the home price would be going up very soon.

By now, the buyer had become very nervous. He kept calling me and telling me that he really wanted to buy the house. I told him not to worry, and assured him that I had a plan of action. First, I instructed the buyer to contact the office of Texas Congressman Gene Green, as well as the office of both Texas Senators, to explain the situation. Next, I contacted the seller’s real estate office to explain the right of the buyer to choose his or her own lending institution. I also explained how Fannie Mae had violated the law, and that the contract price must be equal to or lower than the appraisal price. Despite this, the seller’s agent still insisted that we pay the full price.

The following day, the seller’s agent received an email from the office of Representative Gene Green regarding this issue. Consequently, they finally yielded, and the buyer was able to purchase the house for the price of $149,000. Although this whole ordeal took almost two months, it stands out as one of the defining moments of my entire Real Estate career. It was well worth the wait along with the extra efforts to help my buyer make his dream home come true.

I am so appreciative that my client had patience, stuck with me and had faith in me as an agent and my plan. This is truly an example where experience pays off. I must also give a heartfelt thanks to Texas Congressman Gene Green for promptly responding to my inquiry, and for getting actively involved in resolving this issue.


Contact Amazing Kim today and find out how he can help you get into the home of your dreams by filling out the contact form or calling (713)725-1703 now.