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Old 10-01-2019, 03:05 AM
 
9,093 posts, read 8,331,037 times
Reputation: 19736

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It sounds like they have a higher offer in the wings, and are trying to freeze you out. Time to play hardball. Get the listing agent and builders attention. Get a Lis pendens form and file it at the court house, which says you are going to file a suit to enforce the contract, to buy the house. It can give you one year to bring it to court. The property, cannot be sold to anyone else for that year. No builder can afford to wait for a year to sell.

Recommended in university class for agents. Used it twice, and it worked real fast.
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Old 10-01-2019, 07:00 AM
Status: "Hard Money Lender " (set 9 days ago)
 
248 posts, read 53,418 times
Reputation: 490
Quote:
Originally Posted by oldtrader View Post
It sounds like they have a higher offer in the wings, and are trying to freeze you out. Time to play hardball. Get the listing agent and builders attention. Get a Lis pendens form and file it at the court house, which says you are going to file a suit to enforce the contract, to buy the house. It can give you one year to bring it to court. The property, cannot be sold to anyone else for that year. No builder can afford to wait for a year to sell.

Recommended in university class for agents. Used it twice, and it worked real fast.
In most states, you can’t file a Lis Pendens until after you file a lawsuit involving the title to the property. What state allows for a Lis Pendens prior to filing a lawsuit involving title to the property?

In the few situations where I have seen Lis Pendens filed, they are recorded the same day the suit is filled or shortly thereafter but never before. I think your advice to file a Lis Pendens without having first filed suit is completely wrong and if the OP follows it, they would be making a bad situation even worse.

Last edited by Spokaneinvestor; 10-01-2019 at 08:00 AM..
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Old 10-01-2019, 09:28 AM
 
Location: NJ
11,140 posts, read 21,737,996 times
Reputation: 9530
Hopefully the OP will come back and tell us what happened yesterday. I'm dying to know.
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Old 10-01-2019, 09:46 AM
 
11,417 posts, read 8,134,182 times
Reputation: 12392
Quote:
Originally Posted by Spokaneinvestor View Post
Uhh, right, a builder needs to “scam” a buyer out of their earnest money by going thru the process of selling only to pullback on the day of close? That’s why we have title/escrow companies or other neutral third parties involved.
It's been done before.
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Old 10-01-2019, 10:01 AM
Status: "Hard Money Lender " (set 9 days ago)
 
248 posts, read 53,418 times
Reputation: 490
Quote:
Originally Posted by LifeIsGood01 View Post
It's been done before.
Really? And the escrow company allowed the builder to scam the buyer? Do you have a citation or link to an an example?
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Old 10-01-2019, 11:49 AM
 
6,141 posts, read 1,585,915 times
Reputation: 4855
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Originally Posted by Roselvr View Post
Hopefully the OP will come back and tell us what happened yesterday. I'm dying to know.
Me, too!
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Old 10-01-2019, 12:44 PM
 
Location: Columbia, SC
9,190 posts, read 18,289,773 times
Reputation: 6876
Quote:
Originally Posted by Diana Holbrook View Post
I do think it sounds like appraisal was ordered very late. Not sure whose fault that is, but hopefully the 'no extensions' policy can be bent a little come Monday, but the appraisal better come back and the lender needs to pick up the pace.
Probably a scenario where the house has to be 95% complete for the final appraisal and the listing agent and builder weren't at the 95% mark yet. Rather than let the appraiser come out for an unfinished home they held off. I've seen that plenty of times.

The rest of it concerning, as far as the builder not being willing to extend. OP, what does the contract say about missing the close date?
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Old 10-01-2019, 12:46 PM
 
Location: Columbia, SC
9,190 posts, read 18,289,773 times
Reputation: 6876
Quote:
Originally Posted by Spokaneinvestor View Post
Ultimately the buyer has to make their dates or get an extension. If the seller doesn’t agree to extend and the closing date is missed, the deal is dead. ...
Actually, most resale contracts will allow a buyer to force specific performance if the seller is the source of the delay. However, with this probably being a builder contract they are generally builder friendly.
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Old 10-01-2019, 01:04 PM
 
Location: Denver CO
21,664 posts, read 12,307,443 times
Reputation: 33227
Quote:
Originally Posted by Brandon Hoffman View Post
Actually, most resale contracts will allow a buyer to force specific performance if the seller is the source of the delay. However, with this probably being a builder contract they are generally builder friendly.
Agree that the contract is almost surely builder friendly, and wouldn't allow the buyer to back out because of a delay. But I think that is also why some people are speculating that the builder has another buyer - one who is willing to pay a higher price - in the wings, and actually wants the deal to fall through. I'm not saying that is what is going on, but I think it's a least a more likely scenario than the idea that the builder gets houses under contract and builds them as part of a big scam to cheat a buyer out of their deposit.

Fingers cross that OP actually closed yesterday and maybe is busy moving today.....
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Old 10-01-2019, 01:15 PM
Status: "Hard Money Lender " (set 9 days ago)
 
248 posts, read 53,418 times
Reputation: 490
Quote:
Originally Posted by Brandon Hoffman View Post
Actually, most resale contracts will allow a buyer to force specific performance if the seller is the source of the delay. However, with this probably being a builder contract they are generally builder friendly.
True, there is the ability to sue for specific performance in the standard PSA if a SELLER doesn’t close on time. However, in this case, the BUYER was going to miss their date so the builder had two options. One is to extend the contract, the other is to declare the deal dead. S

One might argue that the builder was the source of the delay, but without any additional facts, it looks like the buyer is the party that missed their date. The reason they missed their date isn’t clear from the facts presented but it looks like a lender or appraisal problem. I think it would be problematic and expensive to sue for specific performance when the BUYER wasn’t ready to close. The builder evidently has a home ready to go on the day of closing. The BUYER can’t perform because their loan is held up for whatever reason.

I don’t think they are going to get very with that line of attack on a specific performance claim. All the builder has to say is “I was at the closing table ready to close and buyer’s didn’t perform”. Done.

Last edited by Spokaneinvestor; 10-01-2019 at 01:30 PM..
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