Bank of America Hasn't Responded to my 203K Loan – Help!

203K rehab loans are designed for you to buy a fixer and have the money available to get the house ready to move into.  It is a home improvement loan, allowing you to purchase a home and rehab it.  If you are considering purchasing San Diego real estate with a 203K loan, know that they are tricky.

First of all, a loan officer that I work with, began working primarily with clients looking to obtain a 203K loan.  After 6 months of submitting offers with 203K financing, not one offer had been accepted.  The banks, although they offer these loans, are afraid to actually accept an offer that has that financing.  Any of the loans which have more restrictions such as FHA, VA, and 203K are accepted much less by the bank which has foreclosed on the home.

Coupled with the difficulty of getting an offer accepted with this type of financing, the banks are often late in paying the contractors that do the work, in some cases contractors have threatened to walk away unless they were reimbursed.   To see case by case scenarios of how the 203K loan is working around the country, click here.