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12-08-2013, 11:00 AM
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Location: Cary, NC
41,477 posts, read 72,258,694 times
Reputation: 43200
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Quote:
Originally Posted by flashprash65
Its Sunday and i just got the letter. So if they dont have funds in escrow by day 35 ... breach?
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Again, get your attorney's opinion if they have breached the contract. |
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12-08-2013, 11:02 AM
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Location: Riverside Ca
22,147 posts, read 30,748,658 times
Reputation: 35394
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Quote:
Originally Posted by flashprash65
Its Sunday and i just got the letter. So if they dont have funds in escrow by day 35 ... breach?
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Who wrote that clause? You or the agent?
I personally would say yes breach. If they had to meet that 35 day condition but didn't that's a breach. But it could be something out of the buyers hands. Your agent needs to get on the ball and see what that letter actually means. Go contact a lawyer Monday morning. Or have your agent call their agent and get a exact what does this mean answer |
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12-08-2013, 11:11 AM
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13 posts, read 21,147 times
Reputation: 17
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Quote:
Originally Posted by Electrician4you
Who wrote that clause? You or the agent?
I personally would say yes breach. If they had to meet that 35 day condition but didn't that's a breach. But it could be something out of the buyers hands. Your agent needs to get on the ball and see what that letter actually means. Go contact a lawyer Monday morning. Or have your agent call their agent and get a exact what does this mean answer
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I wrote the clause in the contract . My agent said to just ask for more money down. But as i understand it on day 59 financing could crash and the buyers get a full refund and I'm out 60 days of marketing time. I wanted no contingency contract within 30-35 days if i had to wait 60 days to close |
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12-08-2013, 11:19 AM
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Location: Austin
7,238 posts, read 20,886,297 times
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A seller cannot control what type of financing a buyer obtains. You might want more down, but why do you care? You don't get that money. Financing is between the buyer and their lender, and as long as you get your money at closing, why do you care?
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12-08-2013, 11:26 AM
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13 posts, read 21,147 times
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Quote:
Originally Posted by FalconheadWest
A seller cannot control what type of financing a buyer obtains. You might want more down, but why do you care? You don't get that money. Financing is between the buyer and their lender, and as long as you get your money at closing, why do you care?
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I care because all i have is a letter that a 8 year old could type up saying we, Mr & Mrs ****** commit to lend $******* to Buyer xyz. Its not an official email from a banks underwriting dept that all stips have been met and they are clear to close. |
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12-08-2013, 11:28 AM
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13 posts, read 21,147 times
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Furthermore my back up contract expires on day 37 and i lose them.
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12-08-2013, 12:23 PM
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Location: Berkeley Neighborhood, Denver, CO USA
17,280 posts, read 27,648,065 times
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Read your first post
Quote:
Originally Posted by flashprash65
Its not an official email from a banks underwriting dept that all stips have been met and they are clear to close.
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Your first post makes no mention of a bank or any financial institution |
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12-08-2013, 12:24 PM
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2,068 posts, read 3,871,832 times
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Sounds dicey. Did contract A present a pre-approval and proof of funds up front?
I doubt contract B wants to be wrapped up in a potential legal battle if contract A was to press the matter.
Not sure how your contract reads, but standard contracts in my jurisdiction you need to tell the buyer they are in breach and they get an additional 24 hours to remedy once you notify of the breach before you can unilaterally cancel the contract.
Quote:
Originally Posted by flashprash65
Its Sunday and i just got the letter. So if they dont have funds in escrow by day 35 ... breach?
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12-08-2013, 12:48 PM
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Location: Scottsdale, AZ
2,144 posts, read 4,884,618 times
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Like all contracts and clauses added to contracts, this is up for interpretation. In fact you are obviously unsure of the very clause that you wrote which is why you are posting here. In other words, you are going to get several differing opinions.
I won't bore you with my opinion, but I think trying to cancel this contract could cost you more in legal fees than you will get from contract B should the buyers wish to put up a fight. Chances are they won't, but who knows.
In my opinion you accepted an offer and were happy with it until you got a better one. If you were unsure of the buyer A you should not have accepted their offer. The truth is very few banks will approve underwriting and final approval for a close 25 days away (most wait until the last minute). Your initial contract was flawed in that regard.
Only you can decide which way to go, I doubt even an attorney will advise you on this choice.
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12-08-2013, 01:55 PM
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3 posts, read 4,120 times
Reputation: 10
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Quote:
Originally Posted by flashprash65
What is the standard in real estate contracts regarding buyers changing financing to less down and conventional to private?? Its Sunday so i cant call a layer and just wanted to throw this out there as I'm a little stressed and wanted some opinions.
Thanks
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I was in a "somewhat" similar position when selling my home.. I had Contract A that included financing etc and Back Up Contract B that was cash, higher offer, and ready to go at a moments notice. The end of the story goes like this: Back Up Contract B closed BECAUSE Contract A failed to meet the requirements (never paid the deposit) BUT (and this is HUGE) the attorney looked it over - consulted another attorney - sent Contract A a letter giving them 24 hours (AFTER failing to meet the contract) to get in compliance .... when we received no response THEN we went with B. It was stressful, risky (to some degree- didn't want to get sued!!), and a LEGAL matter. Please talk to an attorney. I imagine (as mine did anyway) your RE Agent wont cancel one contract and go with the other without an attorneys involvement ....
As for your financing question, I used to work for a mortgage company. Conventional vs Private isn't what you are thinking. Conventional simply means NOT subprime NOT FHA not VA ... it can refer to private or cooperate lending .... so they are not "not in compliance" over that. Also, the change from 80 to 95 financing probably doesn't matter as long as they can secure the loan. Perhaps you can ask for additional proof? Such as bank statements from the lending party to prove there is funds available?
Be on the phone with the attorney first thing Monday and good luck ... You probably wont close any sooner with B (and may even close later) but if its worth it to increase the sale and have less of a headache ... it might be worth it.
Just a note though ... if you did get sued, and you went in saying you wanted Contract B b/c of its higher price tag - youd loose. This should be about A failing to meet requirements and you fearing the sale would not go through. The reality is you made a contract with A ... so you cant cancel it just to get more money from B. Otherwise the RE world would be a huge mess... |
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