Buyer is an co/owner of $200,000 property (financed property). We were told she wanted to purchase our $100,000 home, but only approved for $95,000 therefore we entered a contract for that amount. We now know buyer is a person who does not claim tips she makes to IRS & therefore her debt to income ratio is probably the problem. During the time of the mortgage being made, she purchased numerous amounts of furniture and pool table for the house which could also be the reason she did not get financed. I can't seem to get the who story from realtors to know what is what. (both realtors are within same agency) Is this a hopeless situation? I have lost lots of time 2.5 months & money, as we've moved as mortgage company told us it was approved & we were definitely closing. This information can go with previous question written about this today. thanks for any help
2007-06-27 05:14:59 · 6 answers · asked by memyselfi 2 in Business & Finance ➔ Renting & Real Estate
We have had a real estate sale pending for nearly 3 months. The buyer was preapproved, but can't get financed
Help. We were told that the buyer of our home was preapproved before we agreed to a contract with her. After giving extensions for more time to buyer & 2 1/2 months the home is not financed. What recourse do we have? This is costing us lots of time & money as we vacated the home when we were told it would close by the end of May. Is our only recourse to file suit?
50 minutes ago - 3 days left to answer. - 4 answers - Report Abuse
2007-06-27 05:16:48 · update #1
There was no problem with the home appraisal & the home inspection was good.
2007-06-27 05:26:14 · update #2
Find out if the loan contingency is still in effect. If the Buyers Agent did check the box that states the loan contingency to stay in effect until loan is funded, or if your agent made sure to specify a certain amount of time for the loan, you may have a right to their deposit. That is liquidated damages. WHat I'd do if I were you....ask your agent to have the Buyer release the deposit in escrow to you and make her put more money into escrow. Make her prove she still is planning on working things out on getting the home. And you're probably right...her purchases are what probably killed her because you can be pre-approved at the beginning of the transaction and then not qualify when they pull your credit a few days prior to closing. Your agent should be helping you a long a little more I'd think. You also probably shouldn't have moved. Your agent could be up a creek if this deal fell through and you decided to take it to court. Resale transactions are always iffy and you never want your Sellers to move out before the close of escrow. It sound like it could still work out though. Ask your agent to get direct answers from the Buyers lender. Sometimes it is difficult to get answers from lenders, but it's not impossible.
Good luck!
2007-06-27 05:29:26 · answer #1 · answered by Michelle 4 · 0⤊ 0⤋
You made the error trusting a pre approval. In about ten minutes, I can get a pre approval letter for a ham and cheese sandwich. And that's all the weight a pre approval holds.
If she was marginal to start with, her purchases probably doomed her chances of getting financing for your property.
You need to speak to a THIRD person, and that person is the managing broker of the agency involved here. You deserve answers and a clarification. Sad to say, I agree with others that you are waiting for nothing and should immediately and aggressively seek another buyer. Sounds to me like the two agents involved are dragging this out as long as possible, in hopes that this woman will find financing and salvage their commission checks.
2007-06-27 16:27:21 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Your contract specified a date by which the transaction must close. Once that date has passed you are not required to extend it. If you have already signed an extension then don't sign another one and put the home back on the market.
2007-06-27 12:21:56 · answer #3 · answered by mazziatplay 5 · 0⤊ 0⤋
No more extensions. If she can't come up with the financing put it back on the market. I hope she put down a security deposit that you can keep.
I would also report her to the IRS for not reporting her tips. They just love that kind of stuff.
Don't mess with me unless you can handle the repurcussions of your actions.
2007-06-27 12:24:16 · answer #4 · answered by Tim 7 · 0⤊ 0⤋
put the property back on the market with a first right of refusal
2007-06-27 12:19:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
this is almost like a bad boyfriend question. you can squeezed blood out of a rock. you will have to move on or wait around for her. good luck.
2007-06-27 12:19:49 · answer #6 · answered by Ida 5 · 0⤊ 0⤋