Seller Threatening Not to Close (long) - Posted by Bob-Tx
Posted by Bob-Tx on February 07, 2000 at 18:20:46:
A couple of months ago I contracted to buy a personal residence with a scheduled closing date of January 9, 1999. During the inspections & evaluation process we learned that the house would need about $10k in foundation work and $7k in roof repair before any lender would lend on it.
This is a highly unique property built in 1900, about 25 years before the neighborhood around it was developed. The house sits on 4 city blocks, has two rent houses in addition to the main house and is just totally different than anything around it.
We began the process of qualifying for a 203K loan in order to roll these repairs into the loan thereby saving as much of our rehab money as possible for other stuff to be done.
Well, after 3 weeks of dealing with the fha 203k process we were informed by the appraiser that the house would not go fha and would not appraise for the requested loan amount.
The problem is the uniqueness of the property…no comps close enough to it that will support the increased price.
This answer came in last week at about the same time that the listing broker removed the “pending” status in mls and began to actively remarket the property. A call to the broker revealed that they believe we no longer have a contract because we failed to close as contracted.
The kicker here is that because of the complexity of the property, the survey did not come in to the title company until after they had removed the pending status and declared the contract null and void. When I suggested to the sellers broker that we did indeed have a contract because the contract reads - “The closing of the sale will be on or before Jan. 9 or within 7 days after objections to matters disclosed in the commitment or by the survey have been cured, whichever date is later.” He accused me of lying about my financing and stated that he would go to court to defend their right to cancel the contract…whew!
So now we have our funding in order going conventional, the lender is drafting a letter to the title company assuring them that we are approved and that docs will be ready along with funds in a couple of days…within the 7 day period stipulated in the contract.
My hope is that the seller will come to the table and close but what if they don’t? I’m hoping for some ideas here.
Any suggestions would be appreciated…we really want this old house. Sorry to be so long but felt the explanation was necessary. Again, thanks for your help.