Hi all,
I bought a new house from a home builder in Arizona back in April. I was pre-approved and got in @ $198K. The house is one level, 1675 sq ft, 4 bdrm, 2 bath. I have now found out that I have been denied the loan. The house has roughly 65K of equity in it. My question is: can I transfer this to another buyer to get some of the equity or am I SOL and just have walk away from this house? Altho, the home builder said they would refund my earnest money, I would like to get something for my trouble. Please give me some advise and let me know if I have any options…
If you are saying that you can get the house for 198K, then i would highly suggest pointing the house out to an investor, who would pay you for giving them the opportunity. Or, if it is a resale and not a brand new home, you could possibly get the seller under contract and then turn around and assign the contract to another investor for a fee.
Sounds like you tried to buy a new build from a builder and could not get financing. You could ask that the builder substitute a new buyer. However, the market in AZ is blazing and most builders will not agree to this. If there is an additional 65k in equity, the builder is not going to let that go. He will just wait for someone to come into the sales office and sign them up for the new market price and get the equity themselves.