back out of loan (for sale by owner, real estate, lawyer)

[ccerwonka]

can i back out of purchasing a home that is for sale by owner if appraisal was below selling price

[chet everett]

Do you have a qualified real estate agent representing you? Did your purchase agreement include standard finance contingencies? If so you ought to be covered and your earnest money, held in escrow by a third part, returned.

If you had no representation, allowed the seller to write the contract and hold the earnest moneymodds are strongly against you...

[sunnyandcloudydays]

Sure seems to me if a home was agreed at a price and then the appraisals dont support the market value you could bail out easy.

Not familiar with the real estate laws concerning this but wouldn't think it would take much to talk your way out of that one.

Not like you can forsee what the com parables would have been like
but then again who knows.

we had a house under contract and did not know they had aggressive animals next door and backed out full refund.

Point being there is all kinds of way to get out of a contract legitimately

[linicx]

I had a house under contract that had mold issues inside and out. I was released and the escrow was returned.

On the other hand if you agreed to X dollars and the house is undervalued it can get messy because a house can not be sold on handshakes and verbal promises. This is why real estate contracts must be very specific about every little detail.

Contact a lawyer before you do anything else.

[sunnyandcloudydays]

Originally Posted by linicx

I had a house under contract that had mold issues inside and out. I was released and the escrow was returned.

On the other hand if you agreed to X dollars and the house is undervalued it can get messy because a house can not be sold on handshakes and verbal promises. This is why real estate contracts must be very specific about every little detail.

Contact a lawyer before you do anything else.

Yes but in this case what bank will lend money to a house that is actually way above market value? (none)
If the bank pulls the financing it leaves the borrower to loan
no loan and no sale , not the borrowers fault but the actual market itself

sounds like the house was over priced to begin with and the borrower knew in advance to leave plenty of negotiating room.
the mold issue would blow as that is a health concern and i know for safety reasons that would not fly
the only way that loan probably would go thru would be to get a mold removal certificate of somekind
and even then i would imagine its very sticky.

[linicx]

The banker will loan X dollars. The buyer agreed to pay Y dollars. The house appraised as Z dollars. If the buyer wants the house, then he has to be willing to pay the cash difference between Z and X to an amount that equals Y. Then both parties are happy and the bank carries the balance of the mortgage.

Buyers 'remorse' may get him out of the ontract, but it could also cost the buyer his escrow money. We can speculate into the next year, but the fact remains it is all written in a contract, the contents of which we are not privy to.

if the buyer intends to back out fo the contract then the lawyer should see the terms of the document first. There are cases where sellers have enforced the terms of the contract in the courtroom.

Originally Posted by sunnyandcloudydays

Yes but in this case what bank will lend money to a house that is actually way above market value? (none)
If the bank pulls the financing it leaves the borrower to loan
no loan and no sale , not the borrowers fault but the actual market itself

sounds like the house was over priced to begin with and the borrower knew in advance to leave plenty of negotiating room.
the mold issue would blow as that is a health concern and i know for safety reasons that would not fly
the only way that loan probably would go thru would be to get a mold removal certificate of somekind
and even then i would imagine its very sticky.

[sunnyandcloudydays]

If the buyer wants the house then yeah he may have to pay the diff
but the bank is not required to lend any money on the home

In the contract somplace i am almost certain a clause exists spelling out the financing of the home.


The borrower would not be responsible for the Ernest money
If he or she is then that is totally unfair
even if its buyers remorse
I too would feel for the agents involved because of the time spent
on the other hand if they did the research they would have known upfront the house wouldnt support the asking price
unless it was a total cash transaction and in that place the the bank is not even in the pic.


I would speculate the realtor would have a duty to know market value
of the home both buyer and seller


please take my opinion as someone who is not a realtor i am just trying to apply what makes sense to me

any realtors out there?