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Old 09-22-2008, 09:03 AM
 
Location: Charleston, SC
397 posts, read 986,831 times
Reputation: 65

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I am a Broker in SC, and I have an agent that works for me, and we have recently had this issue that I have never had before...so....brokers out there - give me what you would do from this point forward. Her client is a DISTANT cousin. Agent gets a ratified contract for a home, has a pre-approval from Countrywide, day of closing Countrywide can't close because of some issue (I wasn't actively involved at this point)....so, delay closing and agent and Buyer choose another Lender....this lender says he can do the deal as long as the Buyer escrows $5,000 to pay a charge-off.....Seller has now been delayed 2 weeks from original closing date. We re-do a contract for more money towards closing costs paid by seller (it appraised out ok)....Buyer states that check is "in the mail" for the charge-off.....it's been 1-1/2 weeks and Agent, Lender, nor myself has heard from Buyer and no check has arrived. Sellers agent is on my case, Sellers are furious....what do I do???
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Old 09-22-2008, 10:17 AM
 
Location: Houston-ish, TX
1,099 posts, read 3,469,036 times
Reputation: 398
Sounds like all you can do is tell the seller's agent the truth and that you are doing everything you can, but at this point, if you are out of contract time, they can walk away. They can walk or wait, what do they want to do? Yeah, it might not close, but nobody has ever died from a real estate transaction that I know of. Course, I haven't been in it for too long.
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Old 09-22-2008, 11:51 AM
 
Location: Salem, OR
14,795 posts, read 35,891,376 times
Reputation: 14813
Sounds like the buyer is in breach of contract. I would tell the listing agent that you are doing your best but can't locate the buyer. I would leave a message for your client letting them know that they might be in breach of contract and could be subject to legal action. In this day an age there is no need for a check to be in the mail. Wire it.

There isn't anything you can do, but remind them of what they need to do. If they choose to risk losing all of their earnest money, their choice. It's their money.
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Old 09-22-2008, 01:37 PM
 
Location: Charleston, SC
397 posts, read 986,831 times
Reputation: 65
We have told him that he will not only lose his earnest money (big deal, only $500) BUT the Selling broker is going to go after him for commission, and the Sellers will go after him for out of pocket expenses incurred for the past 2 months, as well as the appraisal, inspection and title work need to be paid (was going to be paid by Seller at closing)...so you're right - it's his money...as long as I have nothing to do with the situation. It's just terribly embarrassing at this point. It's the first time a client has just checked out with no responses!
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Old 09-22-2008, 02:16 PM
 
Location: Columbia, SC
9,906 posts, read 19,443,447 times
Reputation: 8250
You should post this on the real estate professionals forum and not here (or not at all). Then you should discuss the issue with your BIC because you may have some other issues to work out such as the earnest money and possibly some legal issues b/n the buyer/seller.
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Old 09-22-2008, 05:02 PM
 
Location: Salem, OR
14,795 posts, read 35,891,376 times
Reputation: 14813
Brandon she is the BIC.
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Old 09-23-2008, 08:06 AM
 
4,146 posts, read 9,715,873 times
Reputation: 3323
I've got a similar problem going on with a MUCH more expensive home and MUCH more earnest money. My sellers are suing the crap out of the buyer for either performance or damages. Might not make sense on a smaller deal, but if the buyer breached contract, they may need to be notified that the sellers can easily sue and win. Sometimes the threat of that may get them to start thinking clearly and go through with the deal.
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Old 09-23-2008, 07:14 PM
 
Location: Charleston, SC
397 posts, read 986,831 times
Reputation: 65
Quote:
Originally Posted by Brandon Hoffman View Post
You should post this on the real estate professionals forum and not here (or not at all). Then you should discuss the issue with your BIC because you may have some other issues to work out such as the earnest money and possibly some legal issues b/n the buyer/seller.
Mr. #5 in the country, what makes you say that? you are too funny to offer your opinion but evidently you never even read the post!
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Old 09-23-2008, 07:26 PM
 
Location: Salem, OR
14,795 posts, read 35,891,376 times
Reputation: 14813
I think Brandon was trying to express his concern that you were discussing an active transaction with a legal problem with it in a public forum. These forums are open for all to read including, potentially, the buyer and seller involved in the transaction.

There are two forums here, the real estate forum and the real estate professionals forum. This thread it better suited to be in the professionals forum, since this is the general forum where many consumers hang out.

Also, in Brandon's defense (not that he's not perfectly capable of defending himself) the manner in which you wrote your post was not the easiest read. Complete sentences and thoughts would be a little easier to follow. Hit the enter button every so often to break it up. I know I had to read it a few times to figure out the events.

Also, nastiness doesn't go very far on this forum. Brandon worked hard for his #5 status and if he wants to promote it, then he can do that. I'm not a fan of those kind of things, but I respect other people's right to market themselves as they see fit.

Me...I'm striving for MikeJ's ARP designation.
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Old 09-23-2008, 07:29 PM
 
Location: Cranford NJ
1,049 posts, read 3,732,352 times
Reputation: 403
Most contracts have a mortgage contingency. It sounds like the buyer could not get a mortgage. This should have come up long before closing, that is why you need to use reliable lenders and get REAL pre-approvals. IMO the sellers (seller's agent) should have looked a little closer at the credit reports and/or pre-aprovals and required to have buyer pre-approved through a reliable mortgage co and/or lender. I think buyer may be off the hook. Check with the attorneys, You do have an attorney???
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