U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-18-2008, 02:20 PM
 
995 posts, read 3,778,295 times
Reputation: 361

Advertisements

Here's the situation.

1. My seller is a medical surgeon with a job. She has more outstanding mortgage debt than the listing/purchase price. She told her agent that she has no problem bringing her money for closing. So they didn't advertise it as short sale.

2. We signed a P&S contract a month ago and the closing is set in 2 weeks. But out of blue, seller says she doesn't have money to close and applied for mitigation process without consulting with anyone last week. Everybody including the seller's agent is furious now.

3. I asked my attorney (the seller doesn't have her own) to convince her that she has zero chance of mitigation. Even if she has, it will become a short sale and the bank comes into play and may delay the closing, which is a breach of contract.

I'm willing to seek legal action, if she breaks the contract. But ideally, we want to avoid this scenario. I hope the seller does too.

FYI, my rate is locked for another 2 weeks after the closing.

Any advice?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-18-2008, 02:39 PM
 
Location: Great State of Texas
86,068 posts, read 79,417,771 times
Reputation: 27671
Sounds like she pulled a quick one on you. I don't see what seeking legal action will accomplish if she doesn't have the money..you'll still be in the same place as before.

Legal action will take a bit longer than 2 weeks though so that won't help you any at all either towards your closing.

Why not just take back your money and continue shopping ?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 02:45 PM
 
1,949 posts, read 5,668,151 times
Reputation: 1288
I agree...move on. Any litigation is going to take a long time. Your rate lock will expire anyway and you'll be tied to this house until it's resolved.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 02:52 PM
 
Location: Out there somewhere...a traveling man.
42,289 posts, read 55,750,142 times
Reputation: 119491
Buyer can sue for specific performance. Sounds like she deserves to lose the house one way or the other.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 02:57 PM
 
995 posts, read 3,778,295 times
Reputation: 361
Thanks for the advice.

Moving on is not a good option because

1. If I shop now, I'll be the one breaking the deal. Seller gets a free pass.
2. I'm out of state.

More likely, I'll be renting, if I have to move on. So I wouldn't mind legal action taking 6 months. Of course, I'll have to shop for another loan, which is less of a concern.

The seller is a surgeon. Her fiancee is also a surgeon. Most likely, they make $400k a year. I am sure they can come up with $95k to close. I think they are bluffing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 03:03 PM
 
Location: Out there somewhere...a traveling man.
42,289 posts, read 55,750,142 times
Reputation: 119491
I bet your instincts are right...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 03:09 PM
 
1,949 posts, read 5,668,151 times
Reputation: 1288
I just wouldn't want the hassle. I didn't mean to move on now...I meant if she tries to break the contract and you can't get a lawyer to convince her to go through with it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 03:10 PM
 
Location: Great State of Texas
86,068 posts, read 79,417,771 times
Reputation: 27671
Yeah..that's what I meant too..let the seller breach the contract so you get everything back.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 04:04 PM
 
Location: Salem, OR
15,065 posts, read 37,241,819 times
Reputation: 15834
My .02 cents worth....Whether or not she has any money depends on where she is in her residency, or if she is practicing on her own.

What is concerning is her representation that she said she had the funds to close. Our Oregon contracts address this in the contract. I don't understand why your attorney is encouraging you to wait for her to fail to perform to "get your money back." She already breeched the terms of the contract by stating that she could clear title, when she in fact could not. That seems to be a clear case of misrepresentation to me.

If you feel that she is bluffing why not have your attorney write her a letter stating that you will be seeking damages in the amount of ______ due to fraud if she fails to close on time. If you think she is bluffing, call her bluff.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2008, 04:36 PM
Sco
 
4,259 posts, read 4,641,355 times
Reputation: 3366
Get your earnest money back and move on. Legal action will take a long time and you will be out of pocket thousands in fees and after investing the time and expense, even if you win, you will have gained nothing. You would in essence be spending your money to fight for their mortgage lender's benefit. Do you really think that they are going to continue to make the payments and keep the home maintained while you fight it out in court? If they are already in a short situation and you press the issue, they will quit making payments and the bank will foreclose and take possession of the house long before you can win your case. You would end up with a large bill from your attorney, a judgement that forces someone to sell you a house that they no longer own, and an award for damages from someone that has no assets with which to pay.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6. The time now is 05:30 PM.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top