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Old 03-16-2010, 04:16 PM
 
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Default If a real estate contract is withdrawn because of a claim of lack of financing

And part of the contract was a third party financing condition addendum. If they cant produce proof that they made a good faith effort to get financed can you win a judgment against them in court?
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Old 03-16-2010, 04:59 PM
 
Location: central Austin
4,598 posts, read 6,668,667 times
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Possible but unlikely! I feel your pain, I had a buyer whose financing fell through but she didn't tell us, she was going to come to the close with a lease! My blood boils at the memory.

"Financing" is usually the get-out-of-jail free card! Especially right now, in the current credit climate, people who could get a loan when they started looking for a house, can't qualify when they are ready to close.

I'm sure a realtor here will have a better answer.
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Old 03-17-2010, 11:16 AM
 
Location: Austin, Texas
544 posts, read 888,695 times
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there are places in the contract where a good buyer's agent will attempt to protect the interests of the buyer via qualification parameters -- a good listing agent will attempt to limit those parameters -- a good buyer's agent won't allow a client to contract for something they can't complete but, in all candor, as centralaustinite says, in the current credit climate, the old standby line is sooooo true -- "THE DEAL AIN'T DONE TILL THE LOAN FUNDS" --
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Old 03-17-2010, 11:39 AM
 
Location: Austin
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If every seller sued because a buyer backed out, the courts would be way too busy and you would never sell your house because you can't sell it with it tied up in a lawsuit waiting for a courtdate.
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Old 03-17-2010, 01:56 PM
 
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You can sue in small claims court. Presumably they have to produce documents that proves they tried to obtain financing. Otherwise its a full proof way for them to keep the seller hanging and give them a foolproof out. That doesnt make sense. Why would anyone sign a contract with a Third Party Financing Addendum? They have signed a contract to purchase the house contingent on them securing financing. If they dont make a good faith effort to secure financing and cant prove it in court that they did I can collect the earnest money.
In this particular case my realtor nailed down the mortgage company they would be working with so presumably it will be easier to see if he attempted to obtain financing or not.
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Old 03-17-2010, 02:21 PM
 
Location: Southwest Austin
4,926 posts, read 9,581,605 times
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Quote:
Originally Posted by orbius View Post
And part of the contract was a third party financing condition addendum. If they cant produce proof that they made a good faith effort to get financed can you win a judgment against them in court?
You are essentially asking if you can enforce specific performance and force the buyer to complete the transaction, even though the buyer says the financing fell through. A real estate attorney could answer the specific legal points regarding that. From a practical standpoint, if you really want to sell your house, it's not worth the effort. Move on and find a buyer who wants to buy it and can/will complete the deal.

Good luck,

Steve
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Old 03-17-2010, 02:28 PM
 
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I'm not that type of person. If some guy doesnt come to court or doesnt produce documents that showed he tried to obtain financing. I dont see why the Judge wouldnt award me the earnest money.
The more I research this however the more I realize why Agents are telling me not to bother. The home has to be taken off the market while the matter is adjudicated. Understandably agents dont want that to happen but its not my concern frankly.

Last edited by orbius; 03-17-2010 at 02:44 PM..
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Old 03-17-2010, 02:48 PM
 
Location: Southwest Austin
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Quote:
Originally Posted by orbius View Post
I'm not that type of person. If some guy doesnt come to court or doesnt produce documents that showed he tried to obtain financing. I dont see why the Judge wouldnt award me the earnest money.
The more I research this however the more I realize why Agents are telling me not to bother. The home has to be taken off the market while the matter is adjudicated. Understandably agents dont want that to happen but its not my concern frankly.
Two words: Kenny Rogers.
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Old 03-17-2010, 03:47 PM
 
130 posts, read 227,748 times
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Decide what u want? Sell house to a person whose finances are good or haggle with the court/law to get ur earnest money. Long story short, you are in $hit. Better move on with another buyer.
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Old 03-17-2010, 03:57 PM
 
Location: Austin, Texas
544 posts, read 888,695 times
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Quote:
Originally Posted by austin-steve View Post
Two words: Kenny Rogers.

got it -- "ruby don't take your love to town" -- or is it "coward of the county"

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