chilton1

Problems with NSP program

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Hello everyone,

I need some advise my fiance and I have been working with an NSP program in Michigan to purchase a foreclosed home. We decided to work with them because the home needed some repairs.

Long story short they approved him for the program and told him to find and house get a mortgage and they would basically take care of the rest. well its been more than 3 months and it has just been one roadblock after another. Everyone associated the the program kept telling him to just hang in there and it will work out.

well we have had to ask for extensions on the closing date 2 times and the 3 time it was denied. the problem is they, NSP, was very very slow at submitting information to the banks. and it turns out that the NSP program never intended to assist us with the transaction/purchase.

When my fiance went to see them a few days ago they informed him that they were planing to buy the house themselves. This is the said house that we place a bid on and won and was in contract with fannie mae.

While we were in contract with fannie mae they were behind the scenes brokering their own deal to purchase the house ( nsp program administrators told him they plan to make the house we put a bid on their flagship house.

So the last extension was denied but who can blame fannie mae?? We changed banks so that we can do the 203k FHA loan program to repair the house but now we have to redo the entire process to get get the house again without the NSP program.

Now we have to start over. This can't be legal. any advise would be appreciated. We will be resubmitting a bid this week.

But I do believe that the NSP program should not be allowed to get away with this.

Edited by chilton1
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The NSP program will allow them to purchase these homes, and use them for the undersrved community as emergency shelter. I think the fact that you asked for extensions for closing, and evidently switched lenders, would let them void your bid.

Get your mortgage approval first, subject to property conditions, appraisal, and clear title.

Foreclosures are a slow process on the seller side, and at times can be very annoying to the point of wanting to pull out altogether. Be ready to close, when they are ready to close next time.

In the meantime, if you feel you have been mistreated, you can use this link to get an answer from HUD:

http://hudnsphelp.info/index.cfm?do=viewaskquestion

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Amortgageman thanks for your response.

The problem is they, NSP, were working with us to do the repairs on the house. Now they are trying to buy the same house the one we bid on. Also the seller was aware that we were ready to close it was the NSP program that needed the changes in closing date. Anyway I will try that link. Thank you.

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