We did a trade in program for our house to buy a new home. We are getting close to the end of the build but the lender's available programs are less than when we started and the mortgages available are costing more payment wise. We told the builder we must cancel because we can't afford what they want us to pay. The builder said they would not cancel and sue us if necessary.
2007-11-07 07:07:23 · 5 answers · asked by brownsugarsme 1 in Business & Finance ➔ Renting & Real Estate
This is a very serious legal issue.
You need an attorney who specializes in Real Estate.
Unfortunately the market for houses has been headed down nationwide.
It will be almost impossible for the builder to mitigate his damages by selling the house to someone else.
The builder will take a large loss if you do not complete the transaction. This will make the builder very difficult to deal with.
You will need to have your attorney review all of the documents that you have involving this transaction.
Sometimes your attorney can find defects in those documents that will permit you to cancel the transaction.
2007-11-07 07:21:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Think about what you would do if you were in the builders shoes.
Buyer's come walking through the door and say they want to buy.
Builder says Ok, we'll start to build.
Buyer says "Lenders programs cost us more than we anticipated" so now we don't want to buy.
What does the lender's programs have to do with the builder?
That's the risk you took when you wanted a new home built.
The builder has no control over what the lenders are offering.
They are in the business of building homes.
Good grief Charlie Brown
2007-11-07 18:59:30 · answer #2 · answered by Terry S 5 · 0⤊ 0⤋
You should have put terms in the contract stating that if the lender changed their terms you can get out. It usually says something to the effect of the contract is contingent upon obtaining financing up to x% and no higher, for a term of 30 or more years no less, and you pay up to x points and no more. Does your contract say this? If not, why? Where is your Realtor? they should have put this in there. I put this info in all my clients contracts so if the lender does change the terms and they do not like them, they have a way out. I would be all over my agent if he did not do this.
RE Agent,
Remax
I bet in those spots he put prevailing instead of an actual number for each. Its called laziness, and it just cost you big time.
2007-11-07 19:36:11 · answer #3 · answered by frankie b 5 · 0⤊ 0⤋
This is what happens when you sign on a contract. You are expected to honor it, even if it ends up costing you more than you expected. The time for you to have obtained financing was shortly after you signed the contract.
Now, the builder has a house built for YOU which you do not want. What is HE supposed to do with it ? If you refuse to consummate the deal, expect to show up in court being sued for any losses incurred by the builder due to your default.
2007-11-07 16:07:49 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
You had better read your contract and probably even talk to an attorney.
2007-11-07 15:14:20 · answer #5 · answered by tone 6 · 0⤊ 0⤋