Help quick.....friend's stuck in a purchase contract - Posted by scott SC

Posted by PBoone on May 08, 2000 at 12:32:53:

Tell your friend next time to use the terms "financing acceptable to buyer"
w/o seeing the agreement the only other thing I can say is look for another out such as “professional inspection clause” or something similar. Every low life with no money says “I will Sue”, well big deal, go pay the 10 grand and call me is my theory. It never happens on small transactions/
Pat

Help quick…friend’s stuck in a purchase contract - Posted by scott SC

Posted by scott SC on May 08, 2000 at 12:21:35:

I have a friend who has a contract through a realtor to purchase a home contigent to her getting financing. Well, she got financing but the only thing she could get was a loan with an over %14 interest rate, in other words TERRIBLE financing. She tried to tell the realtor she didn’t want the house because of the ridiculous financing terms and he got very upset and said she’ll probably get sued. Is this true? Is there anything my friend can do to get out of the contract?

Liquidated damages - Posted by Bert G

Posted by Bert G on May 08, 2000 at 21:35:22:

First, try to find somewhere in the contract to weasle out.

Failing that, hope to heck it has a “liquidated damages” clause. Breaching the contract would cause you to loose the earnest money deposit, but it would be unlikely the seller would seek another remedy.

Anyone can sue anyone for anything. The seller Could sue you, but it probably wouldn’t be worth his time and effort. Most would just keep the earnest money and say “oh well”.

BG

Re: Help quick…friend’s stuck in a purchase contract - Posted by Steve C., Houston-Remax

Posted by Steve C., Houston-Remax on May 08, 2000 at 17:25:26:

If your friend didn’t put an interset rate cap (such as 9%) in the contract, she may indeed be stuck. In Texas, she could be sued for specific performance, but the realtor and seller should questiion whether it’s worth it.

Re: Help quick…friend’s stuck in a purchase contract - Posted by DD

Posted by DD on May 08, 2000 at 12:56:26:

Anyone who tenders an offer with no stipulations on acceptable financing doesn’t know what they are doing----as someone previously said—find another “out”----then learn how to prepare a contract BEFORE making any more offers.

Doesn’t it say… - Posted by Terry (Dallas)

Posted by Terry (Dallas) on May 08, 2000 at 12:35:16:

in the contract that finance is not to exceed x%? I would look at the contract and where it says contigent to financing it usually says the max % to the financing. If it does state that I would blast the realtor for making that statement.
Hope that helps.
Terry