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Location: The place where the road & the sky collide
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Quote:
Originally Posted by Sleep2drmd
My boyfriend and I are in the process of purchasing a home. We were approved a conventional loan from Bank Of America back in February, but a week after our approval we were issued a different loan specialist (not sure why but my boyfriend and I thought the first specialist was fired). The new specialist was in charge of our loan for 3 weeks. We were scheduled to close on March 26, but we were told on March 25 that we can't close because the first loan specialist had the condo association complete the wrong survey. Two days later BOA tells us we are denied the loan. WTF! BOA told us the reasons are because we are in a declining market, the house was appraised for $248,000 and we're purchasing it for $247,000, and we're only putting 10% down payment. BOA knew all of this up front though.
My boyfriend and I are looking for a new bank to issue us a loan. The sellers have already moved out and would like for my boyfriend and I to pay for the mortgage. Our attorney told us if we don't close by April 16 then the sellers plan to sue us. I feel they should sue BOA, but our attorney says they cannot since the sellers have a contract with us. Is there any recourse for us? This is our first time purchasing a home and it's been a horrible experience so far.
Go to the Charlotte NC board & search on mortage BOA. This is apparently commonplace with the bank. (Don't post on the Charlotte board, just read the threads.)
Actually a majority of contractors (new home builds) and relocation companies will consistently use Time Is Of The Essence. I'm surprised to hear it was in a regular closing. (or was one for a new home?)
I guess I also forgot about the kill switch version of the clause: "unless an unconditional commitment is received by due date then the contract is automatically null and void". That's on the contracts used in South Jersey, right? Most South Jersey transactions typically close without attorneys anyway.
Both of my were for regular closings. I did not have that kill switch version on my South Jersey contract. Mine gave a date and then said it woudl extend automatically 7 days and then it was up to the seller.
It sounds like you should be sueing BOA, they commited to you, then admitted they couldn't keep the commitment because of a mistake one of their OWN employees made.
This whole thing is a mess! The contract stated that we were supposed to close March 1, but since we didn't receive the committment from BOA (by Feb. 1) the sellers asked to push it back (8 weeks from the day we got the committment...which would bring us to April 30). We received a letter from the seller's attorney stating the closing will be pushed back, which we agreed upon. BOA said they cannot keep the rate of the loan for that long, so we will have to pay $1,100 penalty fee if we want to lock in at the rate we got. Our attorney wrote a letter to the seller's attorney saying if they want to close April 30, then they will have to pay that $1100 fee. The sellers agreed to close on March 26. March 25 we find out from BOA we cannot close on the 26 because the first loan specialist had the condo association complete the wrong survey. Two days later we are denied the loan, and here we are looking for a new bank!
The seller's attorney drew up a letter yesterday stating TIME IS OF THE ESSENCE which states if we don't close by April 16 then the sellers can sue us. I'll have to review the purchase agreement to see the exact terms of agreement. Thanks for everyone's help!
Don't sign the letter. If your original contract does not include a TIME clause it can only be amended if BOTH parties (you and the seller) agree. Otherwise the original contract stands.
Is the issue that you want the house or that your are worried about being sued? Because if it is the later they can threaten all they want but if you do not agree in writing to the TIME clause it doesnt count. If its the former and you are trying to get approved for a mortgage then maybe you should offer to pay for the mortgage as a gesture of good faith, since BOA dropping your loan approval literally had nothing to do with them.
Time of Essence means nothing in NJ.... In legal jargon it is considered a reasonable amount of time and it can be easily argued that you need reasonable time to find a new mortgage company. I am not an attorney but I am a Realtor in NJ. Please let us know what town or county the deal is taking place in?
Your attorney doesn't sound like a Real Estate Attorney. Any attorney can legaly close a real estate deal but a real estate attorney will actuall get the job done 100% in your best intrest every time. If you are in Central Jersey send me a pm and I can reccomend several attorneys that deal in real estate only. They have always written and looked out for the best intrest of my clients.
Your case sounds to me as if you and your boyfriend are trying every reasonable means to obtain a new mortgage. You need proper legal advice and a Realtor that cares more than leaving you worried enough where you seek legal advice here. Call your realtors office and ask to speak to the Broker or office Manager your agent is in over their head and they are afraid to ask for some. When a law suit is mentioned the Broker needs to be contacted to rotet his agent and you the client they typically have years of experience and have seen it all.
This is the biggest purchase of your life It is 30 Years of your money. Tread cautiously and sign NOTHING unless your attorney explains it to you and you are satisfied. you need to fight for yourself. Good Luck
If your contract has a Mortgage Contingency and your bank BofA declined your application = YOU CAN WALK AWAY SAFELY. But instead of getting out safely you want the house, and even if you went with a different specialist closing on april 16 will not be possible and they WILL use Time of Essence clause against you, so my advice is to just KILL DEAL due to DECLINED MTG as PER MTG CONTINEGENCY ! any competent Atty can do this!!!!!
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