O.K. everyone, I really need input! I posted a week or so ago about trying to decide whether to buy a house or not that my husband and I wanted so badly. Well we decided to finally do it by applying for a bridge loan. The bank approved the loan on the basis that the appraisals of our present home and the new home came back close to our asking price of our present home and close to the asking price that we offered for the new home (it is not completed yet). I feel like I am living a nightmare because our realtor is now upset saying that the deal is not closed because there is a hidden "contigency" in our approval. According to the bank, they typed a form letter and they cannot provide a loan yet for a house that has not been finished or appraised. Our realtor has stopped working with us and does have a full-cash buyer. Can she break our contract when we have been approved for a bridge loan that will be given the day of the house closing because she has a cash buyer? We are devestated and confused. I hope I can forget all this when I get back to school and teach because this weekend has not been a good one!
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Selling/Buying new home nightmare!
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needed
Guest
legal help
You should consult with a lawyer regarding this.
You should consult with a lawyer regarding this.
Tiffany
Senior Member
Did you put in a purchase offer on the house? Was the purchase offer accepted by the owner? If not, I don't think there is much you can do. However, if you do have a signed purchase offer, she cannot sell the home to someone else. You should have a certain amount of time to get everything together so you can close on the house. I agree with the first poster - consult an attorney.
attorney
Thank you so far for your replies. This is just really difficult for me. As of now, the bank is working on appraisals for our house and the uncompleted one. If our appraisal is way off on either house, I am hoping to be able to break the purchase contract. You are both right, we are thinking of consulting an attorney. At this point, I just want out. I have never been involved in anything like this and the stress level is so high!
Thank you so far for your replies. This is just really difficult for me. As of now, the bank is working on appraisals for our house and the uncompleted one. If our appraisal is way off on either house, I am hoping to be able to break the purchase contract. You are both right, we are thinking of consulting an attorney. At this point, I just want out. I have never been involved in anything like this and the stress level is so high!
bamateach
Senior Member
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I would say that this real estate agent needs a lot of word of mouth advertisement from you! No I am pretty sure that if you made an offer and you have a contract it cannot be broken. I don't know that I would want to continue doing business with someone like that either though. Does she work for someone or is she self employed? I would definelty make sure that someone knows what happened. I am sure they have a code of ethics and she is probably breaking that code. Call the better business buraeu.
I would say that this real estate agent needs a lot of word of mouth advertisement from you! No I am pretty sure that if you made an offer and you have a contract it cannot be broken. I don't know that I would want to continue doing business with someone like that either though. Does she work for someone or is she self employed? I would definelty make sure that someone knows what happened. I am sure they have a code of ethics and she is probably breaking that code. Call the better business buraeu.
What I Think
I am not a real estate agent... yet, but I AM a mortgage loan consultant (as well as a teacher). From my experience, the agent is right in saying that the bank cannot finance a house that is not finished yet and has not received a letter from the city stating that it is fit for occupancy. None of this is unusual though. We finance new construction all the time so the real estate agent should be used to it. There is often a contigency of some kind that needs to be worked through. For example, the bank often wants to see your house sell first although you can be pre-approved to buy a house in the meantime.
If the seller took "earnest money" from you and wants to back out, LET THEM but insist that you get your money back since you aren't the one breeching the contract. You don't want to be in this deal and no house is irreplaceable. Don't get an attorney. Get out of the deal and get a new agent that is on your side.
Let me know if you need any more help.
Paul
psaaty@buenavistafunding.com
I am not a real estate agent... yet, but I AM a mortgage loan consultant (as well as a teacher). From my experience, the agent is right in saying that the bank cannot finance a house that is not finished yet and has not received a letter from the city stating that it is fit for occupancy. None of this is unusual though. We finance new construction all the time so the real estate agent should be used to it. There is often a contigency of some kind that needs to be worked through. For example, the bank often wants to see your house sell first although you can be pre-approved to buy a house in the meantime.
If the seller took "earnest money" from you and wants to back out, LET THEM but insist that you get your money back since you aren't the one breeching the contract. You don't want to be in this deal and no house is irreplaceable. Don't get an attorney. Get out of the deal and get a new agent that is on your side.
Let me know if you need any more help.
Paul
psaaty@buenavistafunding.com
C
Connieg
Guest
Get a different agent
Hi,
I'm not sure, but are you using the seller's agent as your agent too? That is always a bad idea as she needs to look after the seller's interests first. Find a good agent that will represent your interests.
Connie
Hi,
I'm not sure, but are you using the seller's agent as your agent too? That is always a bad idea as she needs to look after the seller's interests first. Find a good agent that will represent your interests.
Connie