Realtor wrote contract incorrectly - anything I can do? (contingencies, agent, mortgage)
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So, when I applied/got approved for our mortgage, the LO said he wanted the contract written up so that the seller would pay their traditional closing costs as well as $3K in additional closing fees...if the sellers didn't like it, they could counter. In the pre-approval letter he re-stated the way he wanted the contract written.
Well, my realtor didn't write the contract that way even though I pointed it out to her and wanted to make sure that's how it was written. She said, "Oh yeah, it's written correctly." Well, my LO called and said it was not written that way at all, and we have to pay the difference.
So, now the contract is signed and we are out $3,000 in up front costs, plus the additional amount we are going to have to roll into the loan because that 3K that is going into closing costs is decreasing the amount available for our down payment. I want to f'n scream!!
Is there anything I can do/request to fix this????
As with Georgia, The Texas contract has a line written in it with a blank to fill in with closing costs. If your contract has something like this, it's your own fault for not noticing a $0 or an n/a or just a blank. If your agent was supposed to actually "write" it into the contract, why did you sign something that didn't have those words?
The contract is between buyer and seller, not buyer and agent or seller and agent. You would need to talk with the seller since you guys executed the contract.
Your contract probably has a financing contingency. If you can't get approved for a loan without the seller's $3K contribution, you'll need to get proof of this from your LO and then go back to the seller. Tell them they need to either renegotiate or lose you as a buyer.
I don't understand what happened with your agent but you said you knew it was wrong but signed it anyway. I think you still have a complaint with your agent's broker but your position is somewhat weakened.
Your contract probably has a financing contingency. If you can't get approved for a loan without the seller's $3K contribution, you'll need to get proof of this from your LO and then go back to the seller. Tell them they need to either renegotiate or lose you as a buyer.
I don't understand what happened with your agent but you said you knew it was wrong but signed it anyway. I think you still have a complaint with your agent's broker but your position is somewhat weakened.
I agree with this. Talk to your loan officer about getting a denial letter from your lender.
I'm not going to criticize you for signing it. As agents we are suppose to look out for you and your agent told you it was right when you did ask about it. Yes, everyone should read their contract, but you are suppose to be able to trust your agent also.
2 questions regarding your post:
1-Why do you need an extra $3000 in closing fees? Is the lender ripping you off in some way because that is what it sounds like.
2-Why do you need $3000 in up front fees? Is the lender ripping you off or doing something fraudulent, because that is what it sounds like.
Or if the 3k is to cover a funding fee for an FHA or VA loan, is their not just 1 place on the contract to write in a total amount? For that matter, would the total contribution exceed the allowable costs for the loan? I think you need to have a serious group discussion with your agent and lender in the same room, or at least a 3 way call. I've met some stupid lenders and some stupid agents, so I hope that someone in your deal has a clue because I see much to be potentially concerned about from both sides. (As an agent, I hate when lenders think they know real estate and are trying to dictate the transaction. Not necessarily the case here, but just throwing it out there.)
2 questions regarding your post:
1-Why do you need an extra $3000 in closing fees? Is the lender ripping you off in some way because that is what it sounds like.
2-Why do you need $3000 in up front fees? Is the lender ripping you off or doing something fraudulent, because that is what it sounds like.
Or if the 3k is to cover a funding fee for an FHA or VA loan, is their not just 1 place on the contract to write in a total amount? For that matter, would the total contribution exceed the allowable costs for the loan? I think you need to have a serious group discussion with your agent and lender in the same room, or at least a 3 way call. I've met some stupid lenders and some stupid agents, so I hope that someone in your deal has a clue because I see much to be potentially concerned about from both sides. (As an agent, I hate when lenders think they know real estate and are trying to dictate the transaction. Not necessarily the case here, but just throwing it out there.)
I don't think you understand the OP.
The contract was suppose to be written with the seller giving back 3000 for the buyers closing costs(in other words the buyer wants to wrap the 3000 into the loan rather than pay it up front.) The agent forgot to include it or didn't understand how to write the contract correctly. The buyer saw the mistake, questioned the agent, but was told everything was fine and to go ahead and sign it. The agent screwed up, not the lender. The seller doesn't want to change it now because it would mean 3000 less dollars to them.
I just think it's funny how so many of you blamed this buyer and now you blame the lender?
What are the additional $3,000k on top of traditional closing costs? I'm kind of with Brandon that this sounds dubious to me. Typically you ask for closing costs which includes prepaid property taxes and insurance, lender and escrow fees. What other closing costs do you have that aren't included in that and why do you need to line item it with two different amounts?
What are the additional $3,000k on top of traditional closing costs? I'm kind of with Brandon that this sounds dubious to me. Typically you ask for closing costs which includes prepaid property taxes and insurance, lender and escrow fees. What other closing costs do you have that aren't included in that and why do you need to line item it with two different amounts?
That wasn't the way I understood it. I thought it says the seller was to pay their own closing costs, plus 3000 for the buyer.
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