We accepted an offer to purchase our condo. The buyer has still not secured financing and we are now paying the mortgage on two homes. How can we force the buyer to honor the contract and continue the purchase and to what extent can we recover out of pocket costs? Frankly, this whole transaction has ruined all of the excitement of moving into a new place and has certainly stressed out my wife. I think that pain and suffering are legitimate damages in this instance. By the way, this was not a "by owner" transaction.
2007-06-14 08:09:04 · 6 answers · asked by icatfishman 2 in Business & Finance ➔ Renting & Real Estate
Actually, the buyer was brought to us by our realtor and the preliminary credit report and prequalification showed them to be capable of securing financing. We will be contacting an attorney. There is a contract, they are qualified and they need to perform.
2007-06-14 08:28:40 · update #1
Your real estate agent should send a "Notice of Buyer to Perform" to the buyer to comply with the terms of the contract and its time requirements. As far as recovering any expenses, if the deal falls apart, depending on circumstances, you may be able to keep the buyer's deposit even if they back out of the deal.
2007-06-14 08:24:34 · answer #1 · answered by capellancf 3 · 0⤊ 0⤋
Are you sure you have the guy hooked? Many agreements for home purchase have provisions that allow the buyer to back out under certain conditions. One is the inability to secure financing. If the buyer cannot get financing then how do you expect them to purchase the house? Are you just planning on giving it to them if they cannot get the money to pay you? Another provision is one that allows for a home inpsector to check the place out first. If anything bad is found then the buyer can back out or renegotiate the price.
If the guy cannot come up with the money, you will be stuck paying a mortgage on two homes. Simple as that. I do not see how you can force someone to buy your home if that person cannot get the money for it. Squeezing blood out of a stone is an applicable phrase here.
2007-06-14 15:15:36 · answer #2 · answered by A.Mercer 7 · 0⤊ 0⤋
You cannot force someone to perform if they are financially incapable of doing so. Even if your realtor crossed all the "T's" and dotted all the "I's", it happens on occasion. You can contact an attorney if you wish, and obtain some sort of judgment, but don't expect these folks to end up buying the place if they can't come up with the money.
As far as 'pain and suffering' are concerned, you won't get anything on that premise. The best you can hope for is a monetary judgment to recoup your lost money.
Just last year, I was engaged in a transaction which went smoothly right up to the closing table.......when the buyers got cold feet and failed to show. In spite of our best efforts to contact them, they refused to answer any calls. Eventually, we got a letter from them forfeiting their security deposit, with a weak apology. The sellers moved on, quite angry, and worked with us to find another buyer for the property.
I recommend that you immediately put the property back on the market and ask your realtor to aggressively work to find you another buyer as quickly as possible.
2007-06-14 15:34:48 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Get your realtor to hound those buyers everyday. I attended 50 closings over the last two years as a builder's rep and I cant tell you how many times this happened to us. People with lousy credit shop around until they hear mortgage numbers they like. If you want to take the home off the market, tell your agent you are disgusted, you want the phone number of the mortgage company they are dealing with and offer to return their deposit. Your realtor should be dealing with this daily. Good luck.
2007-06-14 15:16:26 · answer #4 · answered by hirebookkeeper 6 · 0⤊ 0⤋
Pre approved or not, the contract states that if they cannot get a loan, they can get out of the contract. Unless they waived their right to a mortgage, they can back out because of financing. Why did you close on the second home before the first home closed? You will not win this case in any court if the purchase was subject to a mortgage.
RE Agent,
Remax.
2007-06-14 18:00:22 · answer #5 · answered by frankie b 5 · 0⤊ 0⤋
I think that pain and suffering are legitimate damages in this instance. ...of coarse you do . You messed up and picked the wrong buyer and now your suffering from it. You really should call a Lawyer.
2007-06-14 15:19:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋