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Really, you think the current buyer and both agents would be estatic to hear I have gotten out of the contract and got a better deal elsewhere? Really? Then why are they all on the train if they can jump off at any time and I am the one who is stuck?
I always wonder why you take such nasty jabs at people who post questions on the forums.
The inspection period has passed.
You've entered in a contract for a sale of a property. That contract has certain rules stipulations and rights attached to it. For buyers and sellers. I'm not taking nasty jabs at you. You simply don't like reading what I'm saying because I'm not agreeing with you or giving you suggestions how to reneig on your contract and walk away. A contract which you agreed to. I'm sorry you feel that I'm attacking you
I guarantee that if you go through with the canceling of the sale, you'll be doing ALL the work. Realty business is a small world. ALL agents talk amongst themselves. Especially brokers. I think you're gonna have a hard time the second time around. Agents may steer buyers away too. But good luck to you
Quote:
Originally Posted by WorldKlas
I thought and think selling the house is the right thing. And I do believe I can get more money next time around because I will sell it myself instead of using the very bad realtor I used. I picked him because my former realtor has stage 4 cancer. But the compelling issue is we learned something very disturbing for us, who have always been so very diligent about our business dealings and want no part of this deal now.
The buyer is lying to the mortgage company and getting a loan based on living in the house but in fact he plans to rent it out and next year when his son moves to the area to attend grad school having his son live there. We learned of this deceit and also learned our own realtor consipred with the buyer & his agent about all this. They are apparently all buddies. I don't want to be a part of this mortgage fraud. Our listing agent is a broker. I made a huge mistake using this broker and want out. However, I don't want advise on this forum about anything regarding this fraud situation or the comments some posters seem compelled to be attacking the OP out of sheer meanness. Maybe I should mind my own business, but I simply don't want my property involved in mortgage fraud. Bottom line, the whole thing stinks and we want out. My only hope is that the mortgage company gets wind of it and refuses to give a loan to the buyer at the 4.5% his 3rd party finances indicate on the contract we signed.
So why did you not state this info in your initial post as your reason for wanting out? Initially you said you want to let the listing expire then relist for more with another agent. Now you want to FSBO because you can get more and you want to back out because they are committing mortgage fraud.
What they want to do with the property after the sale is on them. Has nothing to do with you.
About the only way you'll get out is if their financing falls through or you're willing to put your money where your morals are and tell them you're not selling due to their fraudulent scheme. Or calling the mortgage company and telling them your suspicions. I'm not sure what liabilities that comes with.
Last edited by Electrician4you; 03-07-2015 at 02:01 PM..
I really didn't want to dreg up all these details because my question stands. Just like you say what the buyer is doing is none of my business, MY reasons for wanting out are really none of your business....right??? You can bash my thinking when all I asked was a simply question if there is an easy out. I guess not!
FWIW, We know for a fact that the buyer is already advertising the property for lease. In fact the buyer was wandering in the house all alone last weekend when my DH went to check on it. When my DH demanded to know what he was doing there he told my husband the agent had let him in and would be coming by to lock up. He said my agent was ok with it and told my husband he was looking it over to prepare it for renting it out. We immediately phoned both agents and no one has responded regarding this matter to voice mail, email or text.
We have no intention of telling the mortgage company, I just hope they get wind of it and financing falls thru.
We would not have gone under contract with the buyer if he'd revealed that he intended to rent the house out and presented the financing being the conventional loan rate and down payment of an owner occupied because we would have known he couldn't get such a loan on an investment property. It is, in fact, mortgage fraud.
I would use a flat fee broker next time. The house is in a hot area and houses get snapped up fast, I am not worried at all about agents refusing to engage with the house.
I thought and think selling the house is the right thing. And I do believe I can get more money next time around because I will sell it myself instead of using the very bad realtor I used. I picked him because my former realtor has stage 4 cancer. But the compelling issue is we learned something very disturbing for us, who have always been so very diligent about our business dealings and want no part of this deal now.
The buyer is lying to the mortgage company and getting a loan based on living in the house but in fact he plans to rent it out and next year when his son moves to the area to attend grad school having his son live there. We learned of this deceit and also learned our own realtor consipred with the buyer & his agent about all this. They are apparently all buddies. I don't want to be a part of this mortgage fraud. Our listing agent is a broker. I made a huge mistake using this broker and want out. However, I don't want advise on this forum about anything regarding this fraud situation or the comments some posters seem compelled to be attacking the OP out of sheer meanness. Maybe I should mind my own business, but I simply don't want my property involved in mortgage fraud. Bottom line, the whole thing stinks and we want out. My only hope is that the mortgage company gets wind of it and refuses to give a loan to the buyer at the 4.5% his 3rd party finances indicate on the contract we signed.
I think you can get yourself into a lot of trouble trying to police the financial morals of every buyer. What he does with his financing is, frankly, none of your business -- that's the job of the mortgage company. If he lies to his mortgage company, that's between the mortgage company, him and his God. How do you know he applied as a primary occupant, instead of an investor? Mortgage companies are wise to this sort of thing -- i.e., a big red flag when an applicant's current home isn't up for sale, or if there is a large discrepancy between the buyer's current housing and the proposed housing. People's plans and lives change all the time.
And pardon my cynical observation, but the fact that you are thinking you'll get more money for going FSBO tends to color my opinion of your rationalizations.
Personally, I think you are cruisin' for a world of financial hurt if you try to wiggle out of the contract now.
If you decide not to complete sale and back out, expect a Lis Pendens to be placed on your property and you cannot sell it till that is cleared. The buyer can that way keep you from selling the property to someone else, and hold off even starting to sue you for a year or so depending on state. Then the suit can tie your property up for years.
Do you really want to go through all that and just hang there for a long, long, time?
I spent years in commercial real estate brokerage. I have seen sellers suddenly not want to sell as they as you figure they could get more money from someone else. In the state I lived in then, all you had to do was file a copy of the purchase contract to tie the property up for one year, before you had to take any further steps. This filing the contract, became a Lis Pendens meaning notice of legal action will be taken against you. At that point, you cannot sell the property to anyone else. You cannot borrow money on it, or anything else. It can show up on your credit rating that you have a suit pending, and you will be unable to get financing or borrow money for any reason.
Once you sign a contract to sell, if the buyer wants to close, you are stuck, unless you want to wait out a Lis Pendens filing and ready to fight a suit where the judge can force you to not only sell, but even pay the buyers attorney fees in many states.
In decades in the business (from 1972 till retirement), I and people I have known never lost a sale if the seller wanted to back out. In addition if you can get the buyer to let you back out, you still will owe the Real Estate Brokers involved, the commission for the sale they produced, you signed the contract, and then you refused to close.
Example: I once sold a commercial property and the grocery store that went with it. The sellers son was managing the business as his own business, but the seller wanted to force the son to go to work for her and sold the store out from under him. The son said if the store was sold he and his family were leaving the state, so the seller refused to close. The buyer did not want to fight so walked away for their deposit back. The seller still had to pay me a full 10% commission on the commercial property and business as that is what they agreed to, and the seller was the biggest Realtor in that small town. The commission was something like $42,000.
If you try to back out there are consequences, as long as the buyer will be able to close and wants to.
Nope, Oldtrader, I don't want that kind of pain. That's why the thread is asking if there's an EASY out. Thanks, tho. I'd like out because we don't like the dealings of the buyer, and the agents and I think I can make more money selling it myself using a flat fee broker.
But I'm not crazy so that's why I was wondering if there's an easy out....
dablackgy, I can tell you that investors don't get conventional mortgages at 20% down and 4.5% rate.
I really didn't want to dreg up all these details because my question stands. Just like you say what the buyer is doing is none of my business, MY reasons for wanting out are really none of your business....right??? You can bash my thinking when all I asked was a simply question if there is an easy out. I guess not!
FWIW, We know for a fact that the buyer is already advertising the property for lease. In fact the buyer was wandering in the house all alone last weekend when my DH went to check on it. When my DH demanded to know what he was doing there he told my husband the agent had let him in and would be coming by to lock up. He said my agent was ok with it and told my husband he was looking it over to prepare it for renting it out. We immediately phoned both agents and no one has responded regarding this matter to voice mail, email or text.
We have no intention of telling the mortgage company, I just hope they get wind of it and financing falls thru.
We would not have gone under contract with the buyer if he'd revealed that he intended to rent the house out and presented the financing being the conventional loan rate and down payment of an owner occupied because we would have known he couldn't get such a loan on an investment property. It is, in fact, mortgage fraud.
I would use a flat fee broker next time. The house is in a hot area and houses get snapped up fast, I am not worried at all about agents refusing to engage with the house.
Well that's pretty pertinent information, if you're gonna make such post its probably a good idea to include the why you want out. Instead of I want out because I can sell for more later. Sorry but in your initial post you sounded like you are emotionally attached and have major sellers remorse sprinkled with a dash of greed on your plate.
No there is no easy out for you this far in the sale process. Your out was back in the due dilligence/seller demands period. Well I should say there is no way out without a cost. You can say no I'm not selling and fire everyone. So you CAN get out as long as you're willing to pay for it. If you don't want to sell you can simply not sign the sale paperwork. You'll pay whatever to whomever, maybe litigation etc. But to get out with no penalty sorry.
At this point barring the buyers go crazy and start buying cars and furniture changing their DTI before loan is funded you're pretty much stuck but nothing is done till its signed.You may have a out on the fraud. If they specifically stated to you that they are committing fraud I strongly suggest you contact a lawyer and stop proceedings on those grounds. Get a copy of that advertisement of the lease. That's pretty good proof of fraud. And I'm pretty sure the underwriters will like to know this info. And so would the agency that regulates RE agents and brokers in your state. Your agent has a fiduciary duty to protect you the client. How big a can of worms do you want to open?
They can't easily make you sell. yes they MAY be able to legally make you, but there's a lot of ground between then and now. Id just say no and let them sue. I doubt they will if it was people looking for a home. If it was an investment buyer, maybe. Sure they may puff up and threaten, but when it comes down to spending the time and money to sue you, I doubt they will. Remember, they want a new home, not a prolonged fight in court. And all the time you are in court is time they can't commit to a new deal as they likely wont have the cash to buy both if they win. I would probably offer them maybe $500, depending on the sale price, contingent on a full release of course. Now your Realtor is another story she/he is owed money and has real damages if you don't move forward. They also probably have the means and interest to sue you. be prepared to pay the full commission due. Just another reason to never use a Realtor IMO.
Yakscsd-----It is simple and easy, to tie the property up for a year or so, without sueing you, and it is a lot easier than your realize. The question is, does the seller want to tie up his property being unable to do anything with it to sell it to someone else for a long period of time. Does the seller want a notice of suit pending to enforce the sale showing up on his credit report starting on day 1 when he refuses to close. And sometimes these bad reports are hard to get expunged from the credit report and takes considerable time on occasion.
I have been down that path when sellers suddenly changed, and I know from experience what can and does happen every day when the seller does not want to close.
OP-----There is no easy way to get out of the contract, if the seller does not want to close and the buyer does.
Well, that's different. Your original post indicated that you were primarily concerned about getting more money.
Still, the options I listed for you in post #13 still stand. There is no easy way out for you since you've already signed a contract. Given your new reason, if legitimate, I'd include an option #4...but since you don't want any further advice I'll leave it at three.
STT -- what have I mis-read? Still see the same response
CSD -- Its not just the money, there are reasons I have developed destain for some of the players in this deal but I don't want to disclose the specifics of that information in this post
The fact that you don't like someone involved in a business deal is not a valid reason to back out of said deal.
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