I've read several derogatory comments about my national builder. These comments even come from previous employees of the company. I'd like to keep my loan though (this loan company works closely with my developer) as the rate is excellent and my credits not that great. I think I've found a better built home that is a little larger. After I put in upgrades, my house cost a lot more (and I didn't go overboard). I'm nervous - I've signed all my paperwork except for closing documents - my house is in the process of being built. I'm not crazy about dealing with this company either.
2007-08-31 16:52:42 · 9 answers · asked by ButterflyeOne 2 in Business & Finance ➔ Renting & Real Estate
read the contract. seek an attorney for advise in housing. paid for the attorney or pay later.
2007-08-31 17:08:44 · answer #1 · answered by just hanging around 5 · 1⤊ 1⤋
I'm sorry to tell you this but the answer is no you can not back out of your contract just because your not sure you want it after hearing derogatory remarks. You signed a legal and binding contract and can be sued if you don't go through with the transaction. If it was a legitimate excuse then you could but not for the reason you just stated. You can be sued by the builder, lender and agent so I would think twice before doing anything. Besides, there are a lot of builders with bad comments against them so your not alone there. You won't be able to keep the lender either because you are pulling out of a contract and the lender will see that as a RED FLAG and will not fund a loan for you anywhere.
The closing documents don't have to be signed to make this transaction legal and binding.
2007-08-31 17:19:28 · answer #2 · answered by Anonymous · 1⤊ 0⤋
I was the accountant for a production home builder for five years, and we let people out of their contracts all the time. In fact, we always refunded them their earnest money even though it states in the contract that it is non-refundable unless they were unable to get financing.
However, that was us, and many other builders may not be so kind. We were the largest builder in our county and so we didn't want to risk any bad comments being passed around by word-of-mouth.
Another however, is the fact that you simply want to go elsewhere. That coupled with the down-turn in the housing market, and I can practically guarantee you that they will keep all of your earnest money.
And yes, the builder can sue for "specific performance", and make you purchase the house. However, it's unlikely they will, at least I've never heard of a builder doing that.
I don't see how the loan company could sue you though, since you don't have a contract with them. You may have paid a deposit to the lender to cover the appraisal fee, which you would forfeit. And certainly a real estate agent can't sue you - They only get paid if the sale actually happens. If you successfully break your contract with the builder, it's just tough luck for the agent.
2007-08-31 17:37:01 · answer #3 · answered by dkarlsenyh 3 · 0⤊ 1⤋
Yes, you can back out of the agreement, but only if the builder allows you to, as most of the paperwork has been signed. Know that this process is a large negative for the builder, as they have a partially finished home, to your specifications, which may or may not be attractive to other potential buyers. Be prepared for the builder to also try to hit you with several penalties, such as a loss of some of your initial deposit, and charging you the same level of interest on the construction loan they have taken out with their financial institution, until the home is sold. The builder may also find other fees or penalties which they are perfectly legal in doing. These may be mitigated by you staying with the same builder. Contact a lawyer in any case.
2007-08-31 17:06:04 · answer #4 · answered by Patti D 2 · 0⤊ 0⤋
You've signed a binding contract. If you back out now, expect it to get very expensive. At the least any money you have put up as deposit will be lost.
The time to do your due diligence on the builder was BEFORE you signed the CONTRACT! It's too late to just walk away now.
2007-08-31 19:13:03 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 0⤋
purely using a coarse guess... you are able to probable basically locate the money for $178K in a loan along with your each year earnings and destructive credit. reckoning on the place you reside, i don't be conscious of if it is likewise possible to purchase a house for that (you won't be in a position to in the Metro area I stay in). that could desire to affix the subject. And, it additionally relies upon on what the destructive credit is in. in case you have been on the foreclosed aspects that quite could have something to do with it. in any different case, examine the positioning below and fill on your extremely counsel and notice what you are able to locate the money for.
2016-10-17 08:54:01 · answer #6 · answered by abdulla 4 · 0⤊ 0⤋
I think you could, specially if you haven't signed the closing documents. In some states there's a provision called cooling time period. This is the time given to the buyer to review everything and to decide if He/she will go on with the deal. But you might not get back some or all of the deposit you already given the developer.
2007-08-31 17:17:17 · answer #7 · answered by Primetime 1 · 0⤊ 2⤋
After the home is finished, you have a 3 day right of recission. However, because you signed a contract, you may have to pay for the home. Speak to an attorney (quickly) about your concerns. Sorry i cannot be of more help.
2007-08-31 17:02:04 · answer #8 · answered by Local Celebrity 4 · 0⤊ 2⤋
You have to read your contract GOOD. There may be a way for you to get out and get your money back. If you are not happy with the company and you explain that to them and the reasons why you may be able to get out of it. If all else feels you can call your lawyer and her will help you.
2007-08-31 17:02:45 · answer #9 · answered by soldit4them 2 · 0⤊ 2⤋