Contract A changing financing is grounds for cancellation? i have a higher cash back up contract (mortgage, mortgage)

[bigtexan99]

Originally Posted by AZJoeD

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.

^ This

[johngolf]

I am not nor do I play a lawyer.

So let me get this straight. You play outhouse lawyer and write a contingency in the contract. They accept. Now along comes another offer and you are asking how can I break the first deal (which you wrote up) as I want the 2nd deal?

Do I have it correct?

Never mind you. Were I the 1st offer and you pulled this crap, I would be taking legal action against you the outhouse lawyer (yourself) with a real lawyer, mine.

Also is not days, business days? Maybe this is a question for another outhouse lawyer.

I suggest get a real lawyer before the original offer does and sues your butt.

[flashprash65]

Originally Posted by FalconheadWest

And that's the only type of letter anyone gets. What kind of letter do you want? Something that states, "Based on this buyer's information, I would give my first born if they can't buy this house." or maybe something like "Based on this buyer's information, I promise to buy your house if they can't."

All any letter ever states is they're willing to lend $X. You can't control the amount down or the type of program they qualified for. Many buyers want 3% down, but only qualify for 5% down. Some only qualify for FHA financing. You, as the seller, cannot control what the buyer's financing is nor what type of letter their lender decides to provide, and as long as it doesn't say they're denied, they get to move forward.

And, YES, the deal cold still fall apart on day 59, as that sometimes happens... Getting a commitment letter isn't going to ensure that doesn't happen.

The written notification/letter i wanted was that full underwriting has been done and all finance contingencies have been met ( POF, income verification, appraisal, credit, seasoning of funds etc.... ). I was a mortgage broker years ago and once i got full underwrting approval with all stipulations and requirements met, it was a done deal. instead i have an 8th grade style letter from, a couple out of state saying they commit to lend.

[flashprash65]

Originally Posted by Ted Bear

Your deal says financing of 80% based on a 20% down payment, does it not?

That doesn't sound like the deal you are now being offered. That, to me, is a HUGE difference. It 'sounds' like 95/5 is a better deal, but certainly not for you. To you it screams that these people are unable to get reasonable financing, and therefore are unlikely to get a deal to closing.

Talk with your attorney first thing. Curious to know what he says, and what the final resolve will be. I would at least like for him to press the lending party for a demonstration that they have the liquid funds and are willing to underwrite this transaction with those funds. Otherwise it sounds to me like your buyer found a neighbor who was willing to write a letter so your buyer could buy time to secure 'conventional' financing. Would not surprise me at all if this buyer either folded by closing, or came back with an 80/20 deal, and asked for more time--the exact thing which you were trying to avoid to begin with.

I agree. I will call a few lawyers in the morning.

[flashprash65]

Originally Posted by johngolf

I am not nor do I play a lawyer.

So let me get this straight. You play outhouse lawyer and write a contingency in the contract. They accept. Now along comes another offer and you are asking how can I break the first deal (which you wrote up) as I want the 2nd deal?

Do I have it correct?

Never mind you. Were I the 1st offer and you pulled this crap, I would be taking legal action against you the outhouse lawyer (yourself) with a real lawyer, mine.

Also is not days, business days? Maybe this is a question for another outhouse lawyer.

I suggest get a real lawyer before the original offer does and sues your butt.

I said i would prefer the second offer. And if party A changes the game to a weaker 95/5% financing not 80/20 with no proo f f of funds isnt that screwing party B somewhat? They are waiting and hoping party A screws up.

[flashprash65]

Originally Posted by bigtexan99

^ This

The banks will approve financing upto 30 days in advance if the contract calls for it. However, POF, income verification and credit will have to be pulled again within 10 days of the closing

[kww]

Originally Posted by johngolf

I am not nor do I play a lawyer.

So let me get this straight. You play outhouse lawyer and write a contingency in the contract. They accept. Now along comes another offer and you are asking how can I break the first deal (which you wrote up) as I want the 2nd deal?

Do I have it correct?

Never mind you. Were I the 1st offer and you pulled this crap, I would be taking legal action against you the outhouse lawyer (yourself) with a real lawyer, mine.

Also is not days, business days? Maybe this is a question for another outhouse lawyer.

I suggest get a real lawyer before the original offer does and sues your butt.

not typically, unless stated as business days. most contracts (atleast the one I use locally), outlines it in the contract itself so that everyone is on the same page.

I would hope contracts for residential purchases in other parts of the country also include this verbiage

[MikeJaquish]

Originally Posted by kww

not typically, unless stated as business days. most contracts (atleast the one I use locally), outlines it in the contract itself so that everyone is on the same page.

I would hope contracts for residential purchases in other parts of the country also include this verbiage

Yep.
Here, every day that ends with a "y" is a "day." We have 365 of them a year. 366 in a leap year.

[manderly6]

Originally Posted by flashprash65

I said i would prefer the second offer. And if party A changes the game to a weaker 95/5% financing not 80/20 with no proo f f of funds isnt that screwing party B somewhat? They are waiting and hoping party A screws up.

Party B is not being screwed. I know you want to this to somehow be true to justify things, but they just aren't.

[kww]

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

only speaking for my direct area, AND I AM NOT A LAWYER NOR OFFERING LEGAL ADVICE , but if your contract has verbiage similar to below, the new lender has until the agreed upon date to remove the financing contingency and provide a commitment letter

#3



if the new lender cannot offer that in the timeframe left, and the buyer is not willing to remove that contingency early (hoping the new lender will eventually be able to approve them), then you should be able to void the contract.