Mortgage company blocked sale (non foreclosure) - Posted by Breeze Dyer

Posted by Tommy T on September 12, 2007 at 22:30:37:

Have to totally agree with RTPG… no seller signature on the purchase
agreement, no deal, game over.

Although this thing plays like one of those tv show preview teasers…
just enough facts that don’t add up to make you wonder what the heck
is going to happen… will the rest of the story be revealed when you
tune in?? How much was owed on the mortgage? If it wasn’t in
foreclosure, how could the lender possibly have any say in the sale as
long as they were getting paid off? What bizarre thing could have
happened to cause the offer to get sent to the PMI company??? Does
the realtor actually have a license? How could anyone expect to close if
the sellers left town and vanished? Will the escrow officer give back the
earnest money, or did the janitor steal it? Will Fred and Marsha get
back together? This thing makes little sense with the lack of detail and
relevant, pertinate info needed to actually analyze it… so many
questions unanswered, so much drama, so little time…

Mortgage company blocked sale (non foreclosure) - Posted by Breeze Dyer

Posted by Breeze Dyer on August 07, 2007 at 06:39:39:

Hi, I need some help w/ a situation. I need an idea of my rights. I found a house and submitted a contract on a home for $100,000. I put down $2,000 earnest money and signed the contract. I kept getting the run around from the Prudential agent listing the home. She has been very unprofessional throughout. Well after a month or 2, I was told the sale wasn’t going to happen b/c the mortgage company (Homebanc) blocked the sale. The house wasn’t even a foreclosure. Well after going round and round for nearly 4 months, they offered me the house for $120,000. Can they do this? What are my rights?

Thank you,

Breeze Dyer

Mortgage company blocked sale (non foreclosure) - Posted by Bill H

Posted by Bill H on August 09, 2007 at 20:05:30:


I agree with Rick, I might also add that there are TWO very LARGE RED FLAGS waving here.

NO Disclosure and NO termite…both can be very very expensive on down the road.

What you are trying to do is buy the house “AS-IS–WHERE-IS” a very dangerious situation for even an experience investor.

Follow Rick’s advice and move on.

Good Luck,
Bill H

Why would mortgage company object? - Posted by Rick, the Probate Guy

Posted by Rick, the Probate Guy on August 08, 2007 at 07:09:53:

Somehow, I feel like there’s significant information that’s missing here.

Was your contract a signed deal between you and the owner(s)? Also, is you contract sufficient to pay off the lender? Or, was this a “subject to” deal? Lastly, was this a shortsale deal with some wishful thinking?

I ask these questions because I don’t see why the lender has much of a say in you deal if they are not parties to this and would be paid off in full. Did I miss something? Perhaps something obvious?

Re: Mortgage company blocked sale… - Posted by Rich-CA

Posted by Rich-CA on August 07, 2007 at 13:50:50:

Sounds like a load of crap. Tell them to honor the contract or face a breach. For the RE agent, file a complaint against her with the state licensing board.

In reality, if you go to court over a breach of contract, you’ll have expenses and you might end up with the house and it might get trashed if they are mad enough about the whole thing. You’d probably win, but in my opinion if you can’t get them to move with just the complaints, it won’t be worth it.

Re: Why would mortgage company object? - Posted by Breeze

Posted by Breeze on August 09, 2007 at 06:31:58:

K, I see the house on FMLS for $98000. I offer $100,000 and put down $2,000 earnest money. The house needs some work ofcourse. So, I’m notified that they accepted my offer. I went ahead and got an inspection and a termite check done on the home since the seller didn’t provide a disclosure or termite letter. Which I knew they weren’t going to. Now I wait for the home owners to sign. Nothing. Call the agent and when she finally got back to me she said sorry, they were out of town. Wait another week or two. Nothing. Call and was told they accidently sent the contract to the PMI company and were waiting to get it back. A week or so call. PMI lost it and finally found it. Closing date pushed back 2 weeks. Then my agent called and said that the PMI company decided to have the house appraised and was going to decide if they were going to rehab it themselves. Appraisal comes in $130,000 current condition (bad shape). I sent a letter to the company stating everything that was brought to my attention by the home inspector and that it wasnt worth their time. So after arguing back and forth, it’s been about 4 months since the offer has been accepted. One hell of a way to start out trying to buy your first home.

I’ve researched some since I work for the tax assessor’s office doing appraisals. The $98,000 it was listed for breaks down to 80% of what we have listed as their purchase price.

So to answer your questions, I never got the actual signed contract. However, I was told it was signed by the owners but the PMI company was holding it. Their purchase price was $122,900. This is exactly what was listed on FMLS (NICE WOODED LOT. FULLY FINISHED BASEMENT. HARDWOODS, FP IN LIVING ROOM.PRIVATE FENCED YARD WITH DECK. TONS OF POTENTIAL. NO DISCLOSURES OR TERMITE PROVIDED BY SELLER.)

I hope that clears things up.



Re: Mortgage company blocked sale… - Posted by Breeze

Posted by Breeze on August 08, 2007 at 05:04:49:

The owners are fine with the sale. They moved out shortly after I signed the contract. Supposively (somewhere) they signed the contract but it never made it back to me. So I just have my half of the contract. I guess I just need to go talk to a local lawyer.

Re: Why would mortgage company object? - Posted by Rick, the Probate Guy

Posted by Rick, the Probate Guy on August 09, 2007 at 06:49:20:

Still a muddled answer in my opinion.

If you don’t have a contract signed by both parties, then you don’t have a deal. If your deal is predicated on a lender agreeing to accept a lower payoff amount than is owed, and they haven’t agreed to it yet, in writing, you don’t have a deal.

What it sounds to me is, you’re trying to assemble a deal and it’s not a deal yet. And, you’re expectations are that this SHOULD be a deal because you want it so bad. Now, your attached to the notion that you really, really want this property because, hey, you’ve been waiting for four months for this thing to come together.

The reality is that this may not now, or ever be, a deal. That’s the tough part of real estate is that each property and transaction is unique with it’s own facts and circumstances.

You keep focusing on the things that ought to have happened however, if not all parties whose performance is required are in agreement, in writing, there isn’t a deal.

Personally, I’d keep shopping for other homes. In this market, well-qualified buyers are getting harder to find. My motto is, it’s ok to be a panic seller, but never a panic buyer.

I sincerely hope it all works out for the best for you.