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.
Recap.
Appraiser appraised the house and added two value's "as is and after repairs" . The Citimortgage underwriter place in the commitment letter the "after repairs" appraisal amount as well as the FULL loan amount ( i was borrowing extra to cover the repairs). Now they've come back and said that the I had to go back to the sellers and negotiate the purchase down to the "as is amount".
The sellers are refusing of course and worst yet, the've said that the terms in the contract for the "commitment letter" was complete (again commitment letter has the wrong amount) and that I have to either go forward with the sale or I'm responsible for all of the sellers cost (i.e attorney, realtor the time the house was off the market).
My attorney is saying that I really do not have a legal leg to stand on. How can this be happening. Shouldn't Citimortgage be responsible to hold to the commitment letter? I'm really stressing out over this.
Recap.
Appraiser appraised the house and added two value's "as is and after repairs" . The Citimortgage underwriter place in the commitment letter the "after repairs" appraisal amount as well as the FULL loan amount ( i was borrowing extra to cover the repairs). Now they've come back and said that the I had to go back to the sellers and negotiate the purchase down to the "as is amount".
The sellers are refusing of course and worst yet, the've said that the terms in the contract for the "commitment letter" was complete (again commitment letter has the wrong amount) and that I have to either go forward with the sale or I'm responsible for all of the sellers cost (i.e attorney, realtor the time the house was off the market).
My attorney is saying that I really do not have a legal leg to stand on. How can this be happening. Shouldn't Citimortgage be responsible to hold to the commitment letter? I'm really stressing out over this.
Wasn't the contract contingent upon the appraisal & inspection though? Can't you get out through that loophole?
Wasn't the contract contingent upon the appraisal & inspection though? Can't you get out through that loophole?
Thats the problem. Instead of the bank coming back and saying NO we can't commit to the loan because of the "as is value" they sent the commitment letter with the value AFTER the repairs are completed. Now they realize the error and want me to go back and renegotiate.
The sellers aren't having it and I just received a "time of the essence" letter. We were suppose to close TODAY...so I pretty much have 2 weeks to get this rectified.
Recap.
Appraiser appraised the house and added two value's "as is and after repairs" . The Citimortgage underwriter place in the commitment letter the "after repairs" appraisal amount as well as the FULL loan amount ( i was borrowing extra to cover the repairs). Now they've come back and said that the I had to go back to the sellers and negotiate the purchase down to the "as is amount".
The sellers are refusing of course and worst yet, the've said that the terms in the contract for the "commitment letter" was complete (again commitment letter has the wrong amount) and that I have to either go forward with the sale or I'm responsible for all of the sellers cost (i.e attorney, realtor the time the house was off the market).
My attorney is saying that I really do not have a legal leg to stand on. How can this be happening. Shouldn't Citimortgage be responsible to hold to the commitment letter? I'm really stressing out over this.
It probably be difficult to get the seller to make concessions at this point. If you can't come up with the additional funding to close the gap, the contract will probably be void because you can't fund the deal.
Alternatively, you could try to finance through another lender, but since you received a time of the essence lender, it sounds like the seller is getting impatient and you may not have the time to do that.
In any and all cases you are the buyer are responsible for the funding of the loan.
Did the committment letter include "conditions" ...generally there are always conditions - sometimes very simple and obvious - check in there - the fine print - to see if the underwriter put the condition about the appraisal.
Did the committment letter include "conditions" ...generally there are always conditions - sometimes very simple and obvious - check in there - the fine print - to see if the underwriter put the condition about the appraisal.
No the commitment letter clearly stated the wrong appraisal amount. I have to try and shop around for another bank, they will not fund the deal because of the value of the home
If I ended up paying sellers' costs as per this situation, I would sue the bank, perhaps the attorney too, though I don't know if you can successfully argue a case against the attorney.
Your attorney sounds fairly useless. If you can't get a mortgage they should be able to get you out of the contract.
Not only useless but i believe he's afraid. The sellers relative is a NJ Judge so it makes it a even more difficult situation, because his partner is handling the legal side of the deal.
If I ended up paying sellers' costs as per this situation, I would sue the bank, perhaps the attorney too, though I don't know if you can successfully argue a case against the attorney.
Yeah, not sure what case I would have against the attorney, but the bank I may have a case. Their renaging on their commitment. Its their own fault that they put the wrong appraisal amount in the letter. But I'm the one that's paying for it.
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.
