Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I need some advice. I am in South Carolina and our home is under contract being sold as a short sale. We happen to know the buyers thru mutual friends.
The sale as gone very well till now. We have had full approval from our bank & it is now up to the buyers & their bank to get to closing. It was supposed to close by December 16th, but still has not. The only person in communication with the buyers mortgage company is the husband that is buying our home & we feel that he is lying to his wife, realtor, closing attorney & to us. Their lender will not respond to anyone else or update us as to why there is still not a closing package. We have been told by the buyers agent (in writing several times that the loan is APPROVED, but have seen zero paperwork or anything from their lender to support this.) We have also been given no reasons why the closing package is not done.
We have a terrible feeling about this. My family has moved into a rental house right before Christmas & has turned our life upside down. We are months away from foreclosure if this sale does not close. We have little time to find another buyer.
My question is... if the buyer has been lying to us all along & this loan never closes, can we keep earnest money AND/OR would we have a legal case against him?
Check your contract or ask your agent to show you where in the contract the financing contingency is discussed and how it impacts on the buyer's default. It should all be in there and, if it's not, you might want to have a very serious discussion with your agent's broker.
I hate to say it but most of the time the transaction is contingent on the buyer being able to get the financing. Pre-approval isn't the same thing. You never know if they really qualify until the house is in escrow and things can go to the end and fall apart. Read your contract and call your agent. Without seeing the contract I can't tell you anything for sure, but if it is due to them not getting financing they usually get their earnest money back.
Wow, Sad to hear you've been screwed over. Reinforces that in RE, trust no one except what's black & white on paper.
This OP's situation doesn't mean they are being screwed over.
Underwriting is difficult these days. If the buyers were slow to get documents to the lender that will cause a delay. Maybe the buyers went loan shopping, not thinking of the consequences of changing lenders. If the buyers are on the edge of their financial range, the underwriter is often extra picky. If the buyers changed their loan program or terms at all, the required waiting periods kick in. There was a holiday in there which delays things.
Where is YOUR agent in this? Why aren't they getting the answers you need? I know in Oregon it is written in our contracts that the buyers release the seller/listing agent to be able to call the lender and get status updates. Does your contract have a clause like that?
Thanks for the input. The buyers have only gone thru one lender. And my agent, buyers agent & closing attorney have all tried repeatedly to get in touch with their bank to get reasons for their not being a closing package issued. Buyers agent is only going off of what the buyer is telling them. Buyers agent has had us sign 2 separate addendums stating that the loan is approved & will close by such & such date.
We think the buyer has told their lender only to speak to him. Also think he is lying to his wife, his agent & so on. If he can't obtain financing but lying to us that he can & says all docs are approved, can we get earnest money & possibly have grounds to sue him for deceit?
Our agent is not real familiar with the legal side of all this.
If you want legal advice, you need to take your contract to an attorney. Look at the contract or ask to discuss it with your agent's broker. The info you want is probably all in the contract. Who is holding the escrow?
Curious to find out what happened on this? We are in Tampa, FL trying to close a short sale. Our buyer has been promising that they were working thru credit report issues to allow for automated underwriting approval. After 3 months, we have finally talked to the buyer's mortgage broker, and found out that the buyer has a stipulated approval, but refuses to meet the stipulations required, and has prolonged and extended the process in hopes that he can reduce the amount of collections he will have to pay. Both buyer and buyer's agent have told us they did not have an approval. We are investigating our legal options. Anybody have suggestions about what we can do for their failure to perform?
...We are investigating our legal options. Anybody have suggestions about what we can do for their failure to perform?
It all depends on what your contracts says. Read your contract and if you don't understand it, talk to your agent, and/or review with an attorney.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
