How to backout from toll brothers contract (Fairfax: foreclosure, loans)

[pa76]

Folks,
We have tried our best to sell or rent the current house,no luck till now.The closing of the Toll house is in another one month.We also have got denial for the loan from our lenders as well. Any info to come out of this situation would be helpful.Is there any option for back out?
thanks.

[McScootch]

Can they keep your down payment if you cant qualify for the loan to purchase their house? Logic tells me they cant, but logic and law are often times at odds.

Just so that I understand correctly, YOUR lender didnt apporve you, what about Toll Bros lender?

Have you tried to list your current house for rent on Craigs List or WWW.Militarybyowner.com ? I had some luck with CL this past summer regarding a rental.

[Yankeesfan]

What does your contract say? Are there any contingency clauses? Did you have a real estate agent representing you?

[mojo_1979]

Originally Posted by pa76

Folks,
We have tried our best to sell or rent the current house,no luck till now.The closing of the Toll house is in another one month.We also have got denial for the loan from our lenders as well. Any info to come out of this situation would be helpful.Is there any option for back out?
thanks.

I believe you said that your home had been on the market for 8+ months. Has it occurred to you that the price is most likely too high? Without knowing the specifics of your home and neighborhood, you may try slicing 10-15% off the selling price. This should put your list price below the comps and below the competition. This is the only chance you will have of selling. If you bought pre-2003 you should still, at the very least, break even on this house. Good luck!

[pa76]

Originally Posted by mojo_1979

I believe you said that your home had been on the market for 8+ months. Has it occurred to you that the price is most likely too high? Without knowing the specifics of your home and neighborhood, you may try slicing 10-15% off the selling price. This should put your list price below the comps and below the competition. This is the only chance you will have of selling. If you bought pre-2003 you should still, at the very least, break even on this house. Good luck!

our sale price is 50K below the market value.We have tried for rental options as well.

[pa76]

Originally Posted by McScootch

Can they keep your down payment if you cant qualify for the loan to purchase their house? Logic tells me they cant, but logic and law are often times at odds.

Just so that I understand correctly, YOUR lender didnt apporve you, what about Toll Bros lender?

Have you tried to list your current house for rent on Craigs List or WWW.Militarybyowner.com ? I had some luck with CL this past summer regarding a rental.

I think hey can keep our deposit and come back after us legally for the remaining amount of the 10% of the base price.
none of the Toll Bros lenders have contacted us so far.

[mojo_1979]

Originally Posted by pa76

our sale price is 50K below the market value.We have tried for rental options as well.

Maybe you should define "market value". Let's be honest, that term means different things to different people at this point. If your neighborhood is like most neighborhoods in Northern VA, there are probably multiple homes for sale in your subdivision, possibly even on your street. You absolutely have to be the lowest priced house to stand a chance (excluding any real dumps).

[SmartMoney]

MARKET VALUE: The value at which a home will receive offers of intent to purchase.

I hate to say it, but you are most likely 50K below everyone else, but still too high to move the property. We are seeing this every single day (mortgage lending). Foreclosures represent between 60% to 80% of sales in today's market, where banks are willing to write down tens of thousands in a single swipe of the pen.

And as you are most likely finding (sorry, I didn't read all of the posts), the Toll home you bought is no where near worth what the contract states. I had one buyer in a Ryan development that was down 35K from contract date this time last year. Settlement is suppose to take place this month. I think the buyer is going to walk away The quote I heard losing 12K makes more sense than losing 35K

Talk to an attorney, shell out the money if you haven't already. Many buyers are being released - especially in subdivisions that are advertising way below contract price in the newer sections. The attorney may tell you to go to Toll's lender, because guess what? Chances are they won't be able to do your loan. It's hard to judge w/out knowing the specifics, but our area has been ruled a declining market. This means lenders will take 5% off the value right off or require the borrower to put 5% more down. Appraisers are catching so much flack for bowing to pressure to bring in falsely high appraisals, I would be real noisy about you wanting to see the Toll Bros lender's appraisal. Financing we had last week no longer exists, let alone what we had 6 months ago.

If your heart is telling you not to close, get into a REAL ESTATE (not divorce) attorney for help. This could easily go your way. It has for others. Ignore the site agent. She already got paid 1/2 her/his commission the day you signed on the dotted line. If you don't close, not only does the other half not get paid, the first 1/2 must be paid back to the builder (ouch!). I think the motivatation to keep you on track to close is pretty high.

Good luck - I don't think anyone is going to question backing out - it's doing it w/out being in debt to the builder for life.

[patti47]

has anyone gone through the backout process with Toll?If so did you lose all of the deposit>'

Waiting for reply.

Thanks.

[SallyMG]

People fail to realize that situations have changed in the past 7 months. Market conditions were not like this. The comps for my home were 470-480k back in August,
now with all the foreclosures and new builder incentives, HOW CAN YOU COMPETE?
When Toll brothers tells you your home will be ready in May and then suddenly it's ready, they just force people into default, so they can keep the money and sell the house with your deposit. The more I read about that company, the sicker I get.