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Old 12-08-2013, 11:38 AM
 
13 posts, read 20,915 times
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Please help I'm down to the 9th hour. I have 2 contracts on my house. The 1st called contract A, and a higher cash back up lets call contract B.

Contract A is for 60 days closing with 80% financing, 20% down and conventional financing. To make sure i wasn't tied into contract for 2 months and then financing failed at the end, this clause was added. "full underwriting to be completed within 35 days of effective date of contract. Futhermore buyers lender grants final approval to buyer for financing and buyer to provide such proof to seller in writing on or before the 35days. At this point all the contingencies have been met and the only thing remaining is for time to elapse till closing". Now on day 33 the buyers on contract A sent a copy of a generic letter head from a private party saying the private party has committed to lend 95%. I have no idea who this "private"is. Note: My realtor is clueless on what to do. He wants a larger deposit and not address contract B's position and rights. Naturally i'd like to go with contract B's contract without a lawsuit.

Here's the problem: contract B is a cash contract with proof of funds and substantially higher. Is this change within contracts A's right? If i accept contracts A's non conventional 95% private is this hurting contracts B's contract they entered into in good faith? Do i even have a say in this?
Is party A in breach of contract?

Last edited by flashprash65; 12-08-2013 at 12:17 PM..
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Old 12-08-2013, 11:48 AM
 
Location: North Idaho
30,928 posts, read 42,553,169 times
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I suggest that you don't take legal advice from a forum. You need a real estate specialist lawyer, especially since a lawsuit about this could be very costly.

You don't want to make a mistake in this situation.
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Old 12-08-2013, 11:49 AM
 
12,376 posts, read 18,559,203 times
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What did your attroney say when you explained all this to them?
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Old 12-08-2013, 11:50 AM
 
Location: NJ
17,578 posts, read 44,548,778 times
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Quote:
Originally Posted by oregonwoodsmoke View Post
I suggest that you don't take legal advice from a forum. You need a real estate specialist lawyer, especially since a lawsuit about this could be very costly.

You don't want to make a mistake in this situation.
Exactly. Talk to a lawyer first thing tomorrow morning.
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Old 12-08-2013, 11:51 AM
 
Location: Riverside Ca
22,148 posts, read 30,349,373 times
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As long as the contract A buyer meets the must have financing complete by day 35 and you're on day 33 he has not breached anything yet. His financing does not need to come from a bank. He could of gotten a private loan or he got a HELOC. Did you stipulate a specific on that clause as financing must be from a well known bank? As long as he has that letter showing financing is complete on x day and the funds are in escrow there isn't much you can do.

As everyone said did you get a lawyer to look everything over?
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Old 12-08-2013, 11:52 AM
 
13 posts, read 20,915 times
Reputation: 17
Quote:
Originally Posted by oregonwoodsmoke View Post
I suggest that you don't take legal advice from a forum. You need a real estate specialist lawyer, especially since a lawsuit about this could be very costly.

You don't want to make a mistake in this situation.
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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Old 12-08-2013, 11:53 AM
 
Location: Cary, NC
41,299 posts, read 71,648,999 times
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Attorney Time.

FWIW, I don't see anything in the language you quote which you had included indicating that Buyer A has breached, or that you have grounds to terminate.
But, you need your attorney to look at your agreement and the big picture.
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Old 12-08-2013, 11:55 AM
 
Location: Cary, NC
41,299 posts, read 71,648,999 times
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Quote:
Originally Posted by flashprash65 View Post
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

There is no "standard." Your specific contract and local laws comprise the governing principles for the transaction.
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Old 12-08-2013, 11:57 AM
 
13 posts, read 20,915 times
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Its Sunday and i just got the letter. So if they dont have funds in escrow by day 35 ... breach?
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Old 12-08-2013, 11:58 AM
 
Location: Riverside Ca
22,148 posts, read 30,349,373 times
Reputation: 35379
Quote:
Originally Posted by flashprash65 View Post
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

It's not usually done. Most tend to use the broker, escrow and the lender the agent uses/recommends/has a relationship with. Unless you buy a lot of houses the average consumer is clueless on what to do where to go. Most likely the contract A buyer could not secure a conventional loan and they had to go to a private loan. Or they got stupid and bought a new car it did something to change their DTI and the underwriters didn't like it.
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