Help: House closing issue....need a internet lawyer! LOL

[SmokeShow]

I'd be done, Walking, period. They could offer to take $5k less at this point & I'd still walk! If for no other reason, to spite these douches trying to screw her!

Besides, if she's only getting it for $4k less than appraised value, I'd venture to guess there's better deals to be had right now anyway!

Do like Patsy Cline (I think :spit: ) & put on them boots made for walking.

 

[MACKIN]

We're all assuming a lot here. We don't know what type of loan she received,Conv,FHA both have different allotment of seller closing cost contribution. We also don't know if the Agent knew which loan she received. For all we know she just went there with a Pre-Approval for X amount. If she went there with a Pre-Approval we don't even know if the lender discussed this aspect.

NOW once the deal was struck ,house found,price negotiated, and the lender is writing up the deal says Oh O this cannot fly! So she approached the Agent don't know if the buyer was contacted stating that. So whats at beef here IMO is that the seller is now trying to renig on the amount of closing costs agreed on now wants the money in her or his purse.

So I'd push it call their bluff and say pony up the difference so I don't have to come out of pocket on the purchase price of the home or I'm going to walk. IMO there is no fraud ,if I'm reading this correct,just that the seller wants the money and of course the higher the selling price the more commission the agent receives.

The rest of the mess ,still in the home,is mute,not important unless they come to a agreed purchase price now. I'm sure the seller wants the money ,who wouldn't ,but they need to weigh the option of having to start all over again and lets this buyer walk.

 

[Smokin LB7]

He said its a conventional loan

 

[MACKIN]

OOPS guess I typed that while it was being explained :thumb:

 

[MACKIN]

He said its a conventional loan

I see that now ,I was typing and working while he explained what was going on but I do believe that the more you put down (over 10%) the more a seller can contribute in closing costs.
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Good Luck Josh glad your getting a lawyer!

 

[Josh2002cc]

Yes, it is a conventional loan and the law only allows up to 3% when your down payment is under 10% of the selling price. With that said, I found that out in 2 minutes of google searching so the agent can say they didn't know but I don't buy it.

The loan type was never in question, Jessica said upfront to the agent she was doing conventional even after the agent tried her best for some reason to get Jessica to do a FHA loan. Jessica has the money to spend after years of savings and putting herself through 2 B.S degrees and currently going through a master program. She has the right to do a conventional despite the agents wants. So to clear it up, she never used the FHA words, it was a wet dream in the agents mind.

Also, not one of the agents or even the loan officer herself caught this issue. Someone above the loan officer at the bank caught it. Makin you are correct, we believe the seller and two agents know someone messed up but they don't seem to care because they had no problem telling Jessica to bring $1300.00 to the closing. Even after Jessica asked the agent point blank in email all these questions, the agent ignored them and rambled on about other pointless shit.

 

[smarquis]

OK, the Seller is not "free" to walk away. Your girlfriend could actually sue for specific performance so long as that is not prohibited by the contract. However, that is usually an expensive option that really isn't worth it to either side because you will end up spending far more than $1300 on attorneys fees. I would tell your girlfriend to call up the seller (or go to her house), and try to agree to just split the difference. She may still not be happy, but it is probably the best option at this point. Otherwise, unless she is really, really in love with this house, just walk away. (And, I am a real estate attorney in Nevada. Good luck.)

 

[Josh2002cc]

I see that now ,I was typing and working while he explained what was going on but I do believe that the more you put down (over 10%) the more a seller can contribute in closing costs.
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Good Luck Josh glad your getting a lawyer!

Thanks Makin. For reference I have found the following to be true.

Seller can contribute up to 3% when a down payment is under 10% of the value.

Seller can contribute up to 6% when a down payment is between 10% and 25%.

Seller can contribute up to 9% when a down payment is above 25%.

See, I found that out and I am a parts guy not a real estate agent.

Another fun fact is, when we first met her she so happily told us that she loves working with first time home buyers under the $150,000 price point and that is all she does. She even goes on to tell us she only sold one house over $180,000 but that it was a fluke deal. So, whatever we like what we hear. Well now that all this has gone down, the agent tells Jessica's dad that she doesn't normally deal on houses this low on the scale and that she is helping Jessica out. She also says that she has never done a conventional deal at this price point($123,000) and that is where the mix up came from. Well, the price point we find out is irrelevent as the down payment determines the final seller contribution. So, even if she dealt with million dollars homes, the 3% is standard on down payments under 10%. Just more lies we keep catching her in.

 

[jrkrace]

I can tell you one thing, I can't stand real estate agents period. Here's a situation of a first time buyer earnestly trying to buy her first home, and gets the shaft by her own agent. In my opinion, if she really like the house, she should convince the seller to take responsibility for the costs. Splitting it down the middle is an option and should be looked at if the 650.00 is going to have any effect on a home she's going to stay in for a long time. If the house makes her happy, the 650.00 is small in the scheme of things.

On the other hand, if she is looking it more of a temporary thing, she should tell her agent that she can shove the house and move on to a new agent (or not) and another house. If she does that, stand back and watch the emails start flying and the phones start ringing....Especially in this market....

 

[Mike L.]

Under no circumstances let the seller stay in the home. They can tie up the house for 6 months rent free and it will cost you to get them out. I had a similar problem with my house with the woman wanting to stay for a couple of weeks. I had the escrow company hold back a bunch of money and stipulated that it would cost her 1500.00 per day to stay. She left before the close of escrow.:thumb:

 

[MACKIN]

I thought so Josh I bought my house a long time ago so my memory is fading.

Also my lawyer (who pisses me off gave up his private practice over a divorce the bastard) is a good friend of mine ,we go riding bikes (Harley's) together has taught me a lot. There are SOME good lawyers out there.

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Who said the seller could walk away? Not me. I wouldn't negotiate IMO in todays market you have a pre qualified individual that is ready to sign ,they have moved out and in a rent they don't want to start over. Stick to your guns bet they come around !

 

[jon5212]

Can I ask what state you are from OP? My wife is a mortgage processor I'll see if she knows anything else that would help.

 

[MACKIN]

Under no circumstances let the seller stay in the home. They can tie up the house for 6 months rent free and it will cost you to get them out. I had a similar problem with my house with the woman wanting to stay for a couple of weeks. I had the escrow company hold back a bunch of money and stipulated that it would cost her 1500.00 per day to stay. She left before the close of escrow.:thumb:

I believe it I wouldn't either no fricken way! You'll end up having to evict them! Then IF they leave shit behind you dispose of it then they will sue you for it's value! UNLESS you evict them legally! When I took over this building I'm in for my business and I did the previous guy a favor and let him slowly move out long story short I had to evict him to get him out! I don't know about in your area but housing court is a bitch! Learned my lesson mister couple grand later!

 

[Josh2002cc]

OK, the Seller is not "free" to walk away. Your girlfriend could actually sue for specific performance so long as that is not prohibited by the contract. However, that is usually an expensive option that really isn't worth it to either side because you will end up spending far more than $1300 on attorneys fees. I would tell your girlfriend to call up the seller (or go to her house), and try to agree to just split the difference. She may still not be happy, but it is probably the best option at this point. Otherwise, unless she is really, really in love with this house, just walk away. (And, I am a real estate attorney in Nevada. Good luck.)

Thank you for chiming in. No one on this side of the fence wants to sue anyone for anything. Jessica is so upset because this has been playing out since November 18 and has not been a "exciting" and happy time for her. While she does like the house, she is ready to walk if she can clear and free without fear of being sued.

I can tell you one thing, I can't stand real estate agents period. Here's a situation of a first time buyer earnestly trying to buy her first home, and gets the shaft by her own agent. In my opinion, if she really like the house, she should convince the seller to take responsibility for the costs. Splitting it down the middle is an option and should be looked at if the 650.00 is going to have any effect on a home she's going to stay in for a long time. If the house makes her happy, the 650.00 is small in the scheme of things.

On the other hand, if she is looking it more of a temporary thing, she should tell her agent that she can shove the house and move on to a new agent (or not) and another house. If she does that, stand back and watch the emails start flying and the phones start ringing....Especially in this market....

If someone wanted to stop ignoring her concerns and actually try to solve this problem it would be a non issue. Jess would happily pay half to keep this moving forward. The problem lies in the lack of communication and absence of values on the agents part.

Can I ask what state you are from OP? My wife is a mortgage processor I'll see if she knows anything else that would help.

Omaha, Ne

 

[Smokin LB7]

It all depends on how the contract is written but you can ALWAYS get out it. Have you done the inspection yet? Did you already clear the inspection?

Jessica will not be sued. There is no way for her to be sued. How much earnest money was put down? There should be a clause in there that says if financing cannot be secured then buyer can walk. Depends on how the contract was written though. If you walk just because you changed your mind, then you lose the earnest money. If you walk because there is an issue (inspection, financing, ect.) you get your earnest money back and only out of pocket expense is the appraisal, inspection, and whatever else.

By the way, I am not a real estate attorney in any state.

 

[smarquis]

OP. Contact the seller directly. The agents may be screwing up the deal, and the seller may have little to do with it.

 

[Josh2002cc]

OP. Contact the seller directly. The agents may be screwing up the deal, and the seller may have little to do with it.

Is this common practice or not very common? We thought about it and it seems like a good deal. The issue at hand isn't something she did but rather the agents and bank. I wonder if she is even aware of it?

 

[TheBac]

Agents work for their own interests as their commission is a % of the sale price. They will do whatever they can to assist the seller to get the most out of the sale, even screw up a legitimate sale because they have another fish on the hook who'll pay more.
Never, ever trust a "buyer's agent"...thats a complete lie. They still get paid based off home price.
Never, ever trust a "home inspector" hired by the seller or seller's agent as they "work" for the seller and are not liable for anything they may "miss" in their inspection. Hire your own.
Always have your own real estate attorney who works for you.
Make sure there is no conflict of interest beforehand with any of the parties.

Dont ask me how I know this. Lets just say I was very naive back in 1993/94. Wish I would have had advice like you are getting from the guys right now, the best being "walk away".

 

[smarquis]

Is this common practice or not very common? We thought about it and it seems like a good deal. The issue at hand isn't something she did but rather the agents and bank. I wonder if she is even aware of it?

It probably isn't that common, but probably should be done more. When everything sounds too unreasonable to be true, it is often best to try to get it directly from the other party if you can. Probably as often as not, there is a problem with someone else that blows any issue between the two contracting parties out of proportion.

Good luck.

 

[Josh2002cc]

It probably isn't that common, but probably should be done more. When everything sounds too unreasonable to be true, it is often best to try to get it directly from the other party if you can. Probably as often as not, there is a problem with someone else that blows any issue between the two contracting parties out of proportion.

Good luck.

Jessica's dad got his lawyer involved and he has told Jess what to do. She told them what the lawyer said which was pretty much "come up with the money or put your house back on the market" and the first thing the agent said is "well, they are going to sue you" and they left the conversation with the agent going to the selling agent with Jessica's final offer.

Jessica's lawyer said if they threaten to sue after this point one more time, that he will be the one talking from then on. Jess told me that after she told "her" agent all this, she has been texting non stop telling jess that she is "on her side" and all this bullshit. Jess said her only reply was, I don't care, just fix this! Good for her, I am so proud that she has hit her limit and isn't standing by anymore!

So, we will see.