the kabuki said:
In the contract it states- "If a firm commitment for mortgage cannot be obtained within 20 calendar days from the date of Acceptance, at Sellers' option, (upon written notice) this agreement can be declared null and void and deposit shall be returned. If Purchaser is rejected for the mortgage, Purchaser shall furnish the Seller with the lenders' written verification of mortgage denial. Upon Seller's receipt of such denial this agreement shall become null and void and the deposit shall be returned to Purchaser"
So I take from that, since she did obtain financing within the 20 calendar days and did not furnish a notice of lenders' denial , then default would apply here?
Sounds like it to me. The wording of that, is very similar to our financing addendum. You snooze, you lose.
Not that I have anything against agents, most are very good at what they do, but I am curious at this point what could an agent have done differently? I don't think it's a matter of letting things slip on by. Our deal was not contignent on her home selling, so legally one had nothing to do with the other. I've used agents in the past and the only time they ever received any info regarding the buyers' current home sale is when our offer is contingent upon their home selling first.We don't have the laws about property contingencies like they do in Texas. I personally spoke with her mortgage officer ( a local office) and financing was all set. Again, not to be snippy, just wondering what I could've have done differently.
You mean you don't have anything against agents??? Man, you're an odd one, aren't you? Just teasing! Considering we ranked one below used car salesman and one above lawyers, in the "least trusted" category of a Gallup poll, I'd say a lot of people think we get paid for a whole bunch of nothing. The money may be great, but let me tell you, this is no easy job. The stress can be a killer.
First, when I posted that, I thought the sale had a contingency and she failed to follow up on her end of it. Since it wasn't contingent on the sale, then there wasn't much an agent could do. She is in default, plain and simple. Agents can do a lot of things, but we can't predict buyers who're going to walk. What we can do, is offer advice based off of real estate law. The very questions you're asking on here, as a matter of fact.
Since I don't know how real estate works in your state it would be hard for me to justify you using an agent. I can tell you that in Texas, we have very strict contracts and there is a lot to keep up with. 90% of my job kicks in
after an offer is accepted. I have to handhold the contract the whole way. If something happens to it, either I, or the listing agent, can be held liable. We actually have to carry what is called E & O insurance, which is basically like malpractice insurance.
So, to answer your question, there wasn't anything anyone would have been able to do in your case. Nobody could have prevented this, but your buyer. No attorney, no agent, no seller. However, this isn't always the case and an agent can be a very valuable asset. I've had deals almost blow to smithereens, and they only held together because I busted my rear doing what I do and knowing what I know.
How about this one...her deal fell through due to what may be fraud. At least it sounds like it may be. Her buyers' were both bank employees'. They sent an appraiser , one that I'm sure was well known to them being in the banking/mortgage industry. Evidently, the appraiser valued the home at $70,000 less than purchase price, which coincendentally was about the same amount less they had put in their original offer.
This kind of fraud is rampant right now. Appraisers and lenders are getting in trouble left and right. My husband is a Professional Real Estate Inspector, as well as a career Firefighter. Even he, as an inspector, has gotten snarled in one of these deals. And the buyer was a minister of all things!
If you suspect mortgage or appraisal fraud, go to the FBI. They're all over this stuff right now.
Of course, they start bringing up to the agent (yes both buyer and seller had agent's) that they think the home price should be lowered. Obviously the seller (my buyer) didn't agree with this and had an independent appraisal done, which came back correct to the purchase price.
Well, somehow this 2nd correct appraisal never made it's way to the underwriting dept of their bank, just the one valued at $70,000 less and underwriting would not approve the loan. Of course, this only was brought up the day before closing, when the buyers' are well aware that she has already purchased a home, packed up belongings, and is anxious to move, especially because her divorce is being held up by the sale of this home. I guess they figured she'd be so desperate to close that she'd accept $70,000 less. When my buyer told me about it, it all sounded rather fishy to me. A month later, neither party could agree and get this-She ended up keeping their deposit. Yes, the buyer who is now demanding I give her back her deposit, kept her buyers' deposit!!
I am sitting her shaking my head. Something stinks. I say take it to a lawyer. It sounds like your deal busted, because her deal was rotten to the core. What a mess!
I paid $399 for a 6-month MLS listing, although it was only in there for like 2 or 3 weeks before the deal was closed and we had it removed. Maybe it can be used as a comp then? I think that we're very lucky that we didn't have to have it appraise out, because I seriously don't think that it would have.
Actually, I did think you were talking about meAm_I_There_Yet said:
