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Started By
Message
Purchase Agreement /legal questions
Posted on 11/9/15 at 8:15 pm
Posted on 11/9/15 at 8:15 pm
Short Version:
Buyer makes offer on our house.
We accept offer.
Buyer provides pre-approval letter.
Buyer delays closing because of an "old debt" issue on his end, which we were assured would be resolved.
We extend contract for another week.
The "old debt" turns out to be some sort of legal judgement that won't be resolved.
The contract expires, and we now have to re-list the house. I'm being told we can't keep his deposit because it was an "inability to obtain financing".
It seems to me the buyer witheld information from the mortgage company, and got called out on it at the last minute. Sounds like "bad faith" to me, but I'm no lawyer....
Buyer makes offer on our house.
We accept offer.
Buyer provides pre-approval letter.
Buyer delays closing because of an "old debt" issue on his end, which we were assured would be resolved.
We extend contract for another week.
The "old debt" turns out to be some sort of legal judgement that won't be resolved.
The contract expires, and we now have to re-list the house. I'm being told we can't keep his deposit because it was an "inability to obtain financing".
It seems to me the buyer witheld information from the mortgage company, and got called out on it at the last minute. Sounds like "bad faith" to me, but I'm no lawyer....
3
Posted on 11/9/15 at 8:17 pm to dragginass
It sucks, but is not worth pursuing, move on
Posted on 11/9/15 at 9:07 pm to dragginass
Was it a pre-approval letter or a pre-qualification letter? A pre-approval should have sniffed out the old debt.
Posted on 11/9/15 at 9:39 pm to Tigerpaw123
quote:
It sucks, but is not worth pursuing, move on
This.
Posted on 11/9/15 at 10:00 pm to LSUFanHouston
It was indeed a pre-approval. I still don't know exactly why this guy had a lien/judgement against him. Whatever it was, it was not found until the loan underwriter discovered it a week before closing.
Sounds like it's not worth pursuing financially....honestly I'm just pissed at this idiot and want to keep his money. He wasted 6 weeks of time my house could have been on the market, and caused a clusterfrick on the house I'm purchasing....which now I'm just writing a personal check to close on.
Sounds like it's not worth pursuing financially....honestly I'm just pissed at this idiot and want to keep his money. He wasted 6 weeks of time my house could have been on the market, and caused a clusterfrick on the house I'm purchasing....which now I'm just writing a personal check to close on.
Posted on 11/9/15 at 10:09 pm to dragginass
Assholes try to hold onto the earnest money. Your problem was with a shitty mortgage broker who shouldn't have given him a preapproval letter in the first place. It's not the buyer's fault if someone filled his head with false promises about magic they could work with his credit report.
Posted on 11/9/15 at 10:13 pm to GFunk
quote:
a-holes try to hold onto the earnest money
He was lied to. That's what the deposit is for
Posted on 11/9/15 at 10:13 pm to GFunk
That's not what happened. His realtor told us, upon asking for a contract extension,that he had an old debt which had been paid, but not cleared.
After another week it came out that it wasn't a resolved debt, but an active judgement. Dude lied.
A-holes try to tell people not to keep the earnest money when it's warranted. Get out of here with your O-T bullshite.
After another week it came out that it wasn't a resolved debt, but an active judgement. Dude lied.
A-holes try to tell people not to keep the earnest money when it's warranted. Get out of here with your O-T bullshite.
This post was edited on 11/9/15 at 10:15 pm
Posted on 11/9/15 at 10:25 pm to dragginass
quote:
The contract expires, and we now have to re-list the house. I'm being told we can't keep his deposit because it was an "inability to obtain financing".
It seems to me the buyer witheld information from the mortgage company, and got called out on it at the last minute. Sounds like "bad faith" to me, but I'm no lawyer....
Are you willing to withhold your house from the market while you fight to keep his deposit? I have seen this happen. A broker will make sure the money stays in escrow until it is signed off on by all parties or a ruling is made on it and you may not be able to re-list until it is.
Posted on 11/9/15 at 10:26 pm to dragginass
Definetly a crappy situation but financing is one of the contingencies of a standard contract. If you can't close the mortgage, everyone walks away.
You could not accept a contract with that contingency in the future, but that will severely limit your buyers.
You should do us a favor and reveal the mortgage company so we can all stay away from them. The whole point of a pre-approval is that entire financial underwriting is done. Depending on how long has passed, they may do a quick re-check at the end. But with a good pre-approval, there should be no way an underwriter is catching something that close to closing.
You could not accept a contract with that contingency in the future, but that will severely limit your buyers.
You should do us a favor and reveal the mortgage company so we can all stay away from them. The whole point of a pre-approval is that entire financial underwriting is done. Depending on how long has passed, they may do a quick re-check at the end. But with a good pre-approval, there should be no way an underwriter is catching something that close to closing.
Posted on 11/9/15 at 10:27 pm to dragginass
quote:
He wasted 6 weeks of time my house could have been on the market, and caused a clusterfrick on the house I'm purchasing
You fighting to keep his deposit will only drag this out longer and he might even try to get a judgement/lien against you for it and make you prove in court it's unjust.
ETA: And again, the broker isn't just going to give you this guys money. An escrow release has to be signed off on by all parties. At best, you wouldn't get his money but rather keep it tied up.
This post was edited on 11/9/15 at 10:29 pm
Posted on 11/9/15 at 10:31 pm to dragginass
I've signed my name on more mortgage documents than you will in 10 lifetimes. But you go on thinking I'm here with OT bullshite.
You are being an a-hole. Petty on top of that. If you're cutting a check for the entire amount of a purchase or down payment and begrudging a few hundred bucks just because your panties are in a twist? Well then you sir are acting like a rectum.
I've seen more twists and turns and total BS come up at the last second than you can imagine. Some the fault of the buyer. Some the seller. Some the fault of overzealous professionals who are so overeager to bump commission totals they spend too much time trying to polish turds.
When it happens to you, just walk away. Don't. Be. An. a-hole.
You are being an a-hole. Petty on top of that. If you're cutting a check for the entire amount of a purchase or down payment and begrudging a few hundred bucks just because your panties are in a twist? Well then you sir are acting like a rectum.
I've seen more twists and turns and total BS come up at the last second than you can imagine. Some the fault of the buyer. Some the seller. Some the fault of overzealous professionals who are so overeager to bump commission totals they spend too much time trying to polish turds.
When it happens to you, just walk away. Don't. Be. An. a-hole.
This post was edited on 11/9/15 at 10:33 pm
Posted on 11/9/15 at 10:34 pm to stout
quote:
Are you willing to withhold your house from the market while you fight to keep his deposit?
I'm closing on my new place without selling this house first, so I'm not currently in a time crunch. I haven't even re-listed the house yet.
For anyone wondering, GMFS is who the idiot was using for the loan.
Posted on 11/9/15 at 10:34 pm to LSUFanHouston
quote:
Was it a pre-approval letter or a pre-qualification letter? A pre-approval should have sniffed out the old debt.
Might not have pulled all 3 reports until right before the final checklist to obtain funding and it was only reported on one.
Posted on 11/9/15 at 10:35 pm to GFunk
You're still missing the part about the buyer LYING to get contract extensions.
Posted on 11/9/15 at 10:36 pm to stout
quote:
ETA: And again, the broker isn't just going to give you this guys money. An escrow release has to be signed off on by all parties. At best, you wouldn't get his money but rather keep it tied up.
Thanks for the information. As much as I would like to tell the buyer to go pound sand.....sounds likes it's just not worth it.
Posted on 11/9/15 at 10:37 pm to dragginass
quote:
sounds likes it's just not worth it.
Not at all.
Posted on 11/9/15 at 10:38 pm to dragginass
Used them before and had unsavory experience fed with them myself. I went with them for some savings in closing costs and was fibbed to by the realtor representing the builder.
Luckily I built in language into the PA that allowed me to walk away without any issue, but they told me it wouldn't matter anyway.
But it's not the lender. It's the loan officer. The person may represent the company but it's a person who screwed the transaction up.
Luckily I built in language into the PA that allowed me to walk away without any issue, but they told me it wouldn't matter anyway.
But it's not the lender. It's the loan officer. The person may represent the company but it's a person who screwed the transaction up.
Posted on 11/9/15 at 10:38 pm to stout
quote:
Might not have pulled all 3 reports until right before the final checklist to obtain funding and it was only reported on one.
From the hearsay I got from the agents involved, it was some form of legal judgement he didn't disclose. They referred to it as a "title" issue rather than a credit issue.
Posted on 11/9/15 at 10:41 pm to dragginass
You're such a goofball. Do you think the customer asked? The realtor asked after talking to his mortgage loan officer. The buyer isn't there twisting a handlebar mustache and plotting to screw you.
All due respect: this thread isn't your finest hour here on TD. stout's been involved in more RE transactions than I've ever dreamed of and I've closed more than a few.
Just. Walk. Away.
All due respect: this thread isn't your finest hour here on TD. stout's been involved in more RE transactions than I've ever dreamed of and I've closed more than a few.
Just. Walk. Away.
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