Re real estate sales contract sub prime mortgage problems Re

							                     Re: real estate sales contract / sub−prime mortgage problems

Re: real estate sales contract / sub−prime
mortgage problems

Source: http://newsgroups.derkeiler.com/Archive/Misc/misc.legal/2007−04/msg00094.html



      • From: "_ Prof. Jonez _" <theprof@xxxxxxxxx>
      • Date: Tue, 3 Apr 2007 17:38:43 −0600

Rob wrote:

        Hi all − after signing the contract to sell our house, making all the
        necessary repairs to the house, and making all the arrangements to
        start our move, the buyer's financing fell through and we are now
        being pressured to sign


Pressured?

Like how spineless are you?


        the release form that will essentially break
        the contract, without any restitution for the money that we've put
        into the deal, or having some way of enforcing the contract. Right
        now we would just like to know what our rights as sellers
        are...


What's your contact spell out as far as breach of purchase
by buyers due to financing failure?


        seeing
        as we are the only one of the three parties involved (us, the buyer,
        and the buyer's mortgage company) that held up the contract, we feel
        that the others shouldn't be allowed to break the contract so
        easily...we feel like we're getting a raw deal.


What's the contract, the one YOU SIGNED, say regarding
failure by the purchaser to obtain financing?

You can read, can't you?




Re: real estate sales contract / sub−prime mortgage problems                            1
                     Re: real estate sales contract / sub−prime mortgage problems


        Here are the details:


        The buyer was pre−approved for $225000.


Utterly irrlevant and meaningless.




        The buyer viewed the house on 2/11/07, and the Purchase Agreement was
        prepared and signed by both parties on the same day. Final selling
        price was $196000. Closing was scheduled for 4/21/07.


        Home inspection occurred on 2/14/07. There were 2 repairs requested
        by the buyer which we did both at a total cost of $999. One on
        2/22/07 and 2/25/07.


        3/16/07 was the deadline specified in the contract that the buyer
        would obtain a commitment for the loan. Once this date passed, and
        our realtor did not contact us that the contract was in jeopardy, we
        started making arrangements to move out. Here is the exact wording
        in
        the contract: "Buyer shall make a written application for the above
        mortgage loan within 7−10 days after acceptance and shall obtain a
        commitment for that loan on or about 3/16/07. If, despite buyer's
        good faith efforts, that commitment has not been obtained, then this
        agreement shall be null and void.


Well, you do comprehend what "null and void" means, don't you?


        Upon signing of a mutual release by
        seller and buyer, the $1000 earnest money deposit shall be returned
        to the buyer without any further liability of either party to the other
        or to broker and their agents."


So don't sign the release and keep the earnest $ deposit.




        After that date, we spent about $250 in deposits and services for our
        move to the apartment we will be in while we search for our new house

Re: real estate sales contract / sub−prime mortgage problems                        2
                         Re: real estate sales contract / sub−prime mortgage problems
        (including storage units, which we have 3/4 of our stuff in, and are
        contracted at $230/month going forward).


        On 3/31/07, we received a call from our realtor that the buyer's
        financing was in jeopardy due to the problems with the sub−prime
        market. On 4/2/07, we received confirmation from our realtor that
        the
        financing fell through and the sale was off. Apparently between the
        time that the commitment was obtained and the final approval was
        processed, the mortgage company decided to not honor the mortgage
        pre−
        approval.



"pre−approvals" and "pre−qualifieds" aren't worth the paper their
are printed upon.


        The buyer's realtor told our realtor that the buyer had a
        "creative" conventional loan and that the first loan was not a
        problem; it was the financing of the "piggyback loan" that was the
        issue. The buyer's realtor also claimed that they had pursued
        several
        lenders and none would provide financing, therefore the transaction
        was off.


        This just doesn't seem right to us!


That's reality skippy.


        We feel like we're getting
        shafted and are being told "sorry, that's just how it goes".


Yep. Who said life was fair?


        After
        wasting 2 months and close to $1300 we sure are feeling disgusted and
        upset.


They have medications for that.




Re: real estate sales contract / sub−prime mortgage problems                            3
                      Re: real estate sales contract / sub−prime mortgage problems
         Do we have any valid legal grounds here...is there any way we
         could enforce the contract, or at least get our $1300 back from
         either
         the buyer or the mortgage company? Are we entitled to the $1000
         earnest money, since the only way the buyer should have gotten it
         back was if they voided the contract (for financial reasons) by 3/16/07?


You do know how to dial a telephone, don't you?
Well, then call a local real estate lawyer.




         I would imagine this is probably a very unique situation,


LOL! Happens 100s of times EVERY DAY across the U$.


         as a one−
         month swing in either direction and the buyer's original loan
         application would have either been approved without a problem or
         denied up front. The mortgage company backing out of the deal 19
         days
         before closing is decidedly inconvenient for us.


Oh my!




         Thanks in advance −
         Rob



.




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