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Old 10-27-2007, 06:03 AM
 
Location: Ohio
125 posts, read 713,508 times
Reputation: 79

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Ohio house was on the market from March until July; got buyers right before we moved to Florida. 11th hour the buyers lender went belly up (American HOme Mortgage). We did a quick lease contract (gotten off line, and notarized) before we moved where they agreed to purchase the house once they got loan approval, and they are moved in and paying the mortgage (as of August).

I now get word that the mortgage lender they were working with can't get a hold of the buyers to start the loan process again - they won't return phone calls and won't answer the phone.

What are my options? I can't afford to pay the mortgage if they don't purchase the house; and I can't afford a lawyer to enforce the lease contract. Any ideas?
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Old 10-27-2007, 02:08 PM
 
105 posts, read 379,083 times
Reputation: 57
they agreed to buy the home as in you have a signed contract that is in force saying they are buying it.....OR they verbally told you they would buy it. Is there any money they put down to hold the house when they put in their initial contract? If you let them out of their purchase contract and had them sign a lease instead and their promise was verbal I dont think you can do anything. How long was the lease for?
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Old 10-28-2007, 09:41 PM
 
Location: Ohio
125 posts, read 713,508 times
Reputation: 79
Default signed

We have a signed contract/purchase agreement AND we have a lease (for 1 year) that states that they agree to purchase the home upon loan approval; but if they aren't taking the steps necessary (getting with their mortgage guy) they aren't going to get loan approval......
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Old 10-28-2007, 11:19 PM
 
69,360 posts, read 59,842,024 times
Reputation: 9374
Quote:
Originally Posted by 12paws42 View Post
Ohio house was on the market from March until July; got buyers right before we moved to Florida. 11th hour the buyers lender went belly up (American HOme Mortgage). We did a quick lease contract (gotten off line, and notarized) before we moved where they agreed to purchase the house once they got loan approval, and they are moved in and paying the mortgage (as of August).

I now get word that the mortgage lender they were working with can't get a hold of the buyers to start the loan process again - they won't return phone calls and won't answer the phone.

What are my options? I can't afford to pay the mortgage if they don't purchase the house; and I can't afford a lawyer to enforce the lease contract. Any ideas?
If you have a lease option and they are paying the rent.. live with it for a little, now is not the time to be sitting with an empty house. If they arent paying the "rent"... get rid of them asap. You can go to small claims court for about $80 to start evictions, a lawyer shouldnt cost you more then a couple hundred to show up on your behalf..

Get a neighbor to look and see if they even live there. Sometimes people just disappear..
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Old 10-28-2007, 11:40 PM
 
69,360 posts, read 59,842,024 times
Reputation: 9374
Quote:
Originally Posted by 12paws42 View Post
We have a signed contract/purchase agreement AND we have a lease (for 1 year) that states that they agree to purchase the home upon loan approval; but if they aren't taking the steps necessary (getting with their mortgage guy) they aren't going to get loan approval......
How far into the year are they?
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Old 10-29-2007, 06:48 AM
 
Location: Ohio
125 posts, read 713,508 times
Reputation: 79
Default Fishy

They are paying the mortgage; and I do have a neighbor next door that is keeping tabs on them. November's mortgage paid on the 15th will be 3 months into the lease.
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Old 10-29-2007, 06:50 AM
 
Location: Ohio
125 posts, read 713,508 times
Reputation: 79
Default Fishy

Aren't they legally bound by the purchase agreement? Not to mention the lease? I understand that people do break leases, but isn't it harden to break a purchase agreement?
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Old 10-29-2007, 10:41 AM
 
3,763 posts, read 11,605,780 times
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They need to be taking steps to get loan approval. If they don't you may be able to take them to court on "good faith" issues. Failing to be approved for a mortgage is the only way out of my build contract I just signed, but it has to be legitimate (like I lost my job). I can't just go out and charge $100K on credit cards and then say *Oops, looks like I can't be approved*. If I do that, they can take my deposit.
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Old 11-04-2007, 03:36 PM
 
Location: SE Florida
9,368 posts, read 23,889,362 times
Reputation: 9426
You could take legal action. Another thought is that is the lease is for a year, if you think the market will be better in a year, just wait it out, so long as they are paying on time, and then sell it when the year is up.

The legal action will take time and money and if they don't have anything to lose, you could prevail and have them evicted, but you would not get your legal fees back. On the other hand, if you let them stay the year and they don't take care of the place, you could be out $ as well.

You're between a rock and a hard place. Keep us posted what action you take and how it turns out.
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Old 11-04-2007, 07:44 PM
 
Location: North Raleigh
820 posts, read 2,655,932 times
Reputation: 475
You may be able to sue for damages if you can prove negligence but you need to consult legal counsel ASAP on the laws in your state. As far as the thought that you have a legal purchase contract... even with one in some states, while a seller can be "forced" to sell a buyer can't be forced to buy; There are only concessions like earnest money and maybe having to pay a buyer's agent commission depending on the agent's contract for representation. It may hurt to pay the money up front but better to consult a lawyer and get whatever process you need going now rather than waiting and eventually having to do it anyway. Best of luck to you.
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