I recently signed a contract to buy a new home from the builder, previous contract fell through, the home is ready for move in, I was told closing costs would be paid by the builder. The contract is contingent upon me financing thru the builders mortgage company. I paid a pretty large earnest fee, 8k. I was reluctant to pay this without talking to the lender first but of the course I was told their mortgage co would be able to provide any other rates that banks quoted me. As it was, I had a preapproved loan, and yes it is at a much better rate. Now it looks like I am stuck with this deal. The papers provided by the mortgage co don't reflect any closing costs being paid by the builder, they actually have my earnest money listed in this block. Am I being taken for a ride here? Any help out there?
2006-07-03 09:40:27 · 7 answers · asked by JustinJax 1 in Business & Finance ➔ Renting & Real Estate
Call a local real estate company and speak to an agent. This is why you needed an agent to represent you.
2006-07-03 09:44:23 · answer #1 · answered by erin7 7 · 0⤊ 0⤋
I work for a title company, $8k is not an insane amount of earnest money.
Find out where the builder is closing, have someone at that title company answer some of your questions...they'll be handling the receipt and disbursement of funds and are probably very familiar with the builder, as most are pretty loyal to their title companies!
2006-07-03 17:03:05 · answer #2 · answered by benny 2 · 0⤊ 0⤋
As soon as they asked for $8k in earnest money, the alarm bells should have been going off inside your head. You should have had the agreement reviewed by an attorney before you signed anything and handed over the $$$.
Consult an attorney for advice specific to your situation.
2006-07-03 16:58:19 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It sounds like you may be out money w/o legal pursuit. Did you have a signed offer to purchase accepted with all the details of your transaction? If not, you're going to have a hard time proving any kind of fraud.
Review your paperwork and contact the mortgage company. And remember the old saying, if it isn't in writing, it didn't happen.
2006-07-03 16:45:10 · answer #4 · answered by Trazom28 2 · 0⤊ 0⤋
If you have in writing that the closing costs would be paid for by the builder, then you have grounds to nullify the contract you made and get your money back. I would talk to a lawyer.
2006-07-03 16:44:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think that the developer may have difficulty tieing the sale of your home with a specified lender. I believe that such arrangements may be a violation of RESPA. Go see a real estate lawyer about this, pronto.
2006-07-03 18:33:39 · answer #6 · answered by David G 1 · 0⤊ 0⤋
JustinJax, why are you asking for answers from a forum like Yahoo Answers? Do you expect to get good legal/real estate advice from the people who read or respond to this forum???
Find yourself a lawyer to read your contract and take his/hers advice and go from there.
It sounds to me like you got ripped off and you must feel the same way otherwise you would not be asking for advice, so see a lawyer.
2006-07-03 16:44:53 · answer #7 · answered by white61water 5 · 0⤊ 0⤋