Posted by Rommel on July 12, 2005 at 11:52:44:
Thanks for your advise Randy. I guess it’s lesson learned.
What happens if I back out of a sale? - Posted by Rommel
Posted by Rommel on July 12, 2005 at 10:10:17:
I think I’m backing out of a sale on a new home. Can I get my money in escrow back? What will happen if I back out?
I was planning to buy a new home on 100% financing since my credit was really good(720). Then when it was time to close six months later my credit drop to 619. Now in order to qualify for a loan I have to put up 10% down with high interest (9,25). Now the number don’t work for this home to become an investment. What will happen?
Re: What happens if I back out of a sale? - Posted by Randy (SD)
Posted by Randy (SD) on July 12, 2005 at 10:31:53:
Was “suitable financing” a contingency in your offer? Most every real estate purchase agreement contains a contingency regarding financing, for example “subject to the buyer qualifying for 100% financing” if that contingency cannot be met you are entitled to a refund of your escrow deposits. If no such contingency exists you have a problem. It is there any contingency regarding financing?
Re: What happens if I back out of a sale? - Posted by Boyd (MA)
Posted by Boyd (MA) on July 12, 2005 at 10:29:08:
The wording in your Purchase and Sale Agreement will determine what happens if you back out of the sale. What does it say?
Re: What happens if I back out of a sale? - Posted by Stan
Posted by Stan on July 12, 2005 at 10:28:46:
What happend to cause your score to drop 100 pts in six months? You should have financing contegencies in your contract that states (at least in all of mine) this the contract is dependent on me getting a fixed interest rate of X% with a X% downpayment. If these parameters vary at closing, I would not have to close. Now you would need to look to your contract for these clauses. Kinda hard for us to comment without actually seeing the wording ourselves. Check with your attorney.
Now having said that, a lot of builders have in their contracts that you forfeit your earnest money, as it will go directly to his operating capital. Under these circumstances, the only way to recoup is if the builder fails to perform his duties as described in the contract. This is for the builders protection in that he may be putting in custom products that you had requested. Again, this should be stated in the contract as well.
Hope this helps.
Re: What happens if I back out of a sale? - Posted by Rommel
Posted by Rommel on July 12, 2005 at 10:50:03:
I’m not sure what my contract states but who would you seek to get your money back? Would you go to the title company(seller’s chose this company)?
Re: What happens if I back out of a sale? - Posted by Rommel
Posted by Rommel on July 12, 2005 at 10:46:16:
My score dropped after failing to pay a mortgage on my rental property. The automatic bill paying service I was using weren’t very automatic. Lesson learned.
Thanks for letting me know, I think I’m willing to lose the earnest. I’d rather lose $2000 now than lose more later. To top it off the broker I was working with tried to slip an extra point without telling me. I only found out after receiving the papers from the titile company.
Re: What happens if I back out of a sale? - Posted by Randy (SD)
Posted by Randy (SD) on July 12, 2005 at 11:45:40:
Don’t you have a copy of your contract? I hope so! You’ll need it to enforce your claim. If you do not have a copy of your contract, get a copy from your Realtor, the sellers Realtor or the escrow company… then yes you would submit a written withdrawal of your offer due to financing contingencies. You do this through the Realtor or sales office (if no Realtor was used) with whom you submitted the original offer.
Re: What happens if I back out of a sale? - Posted by rdlazo
Posted by rdlazo on July 13, 2005 at 23:31:45:
On your deposit money the builder
developer most of the time return
your deposit on situations like this.
They don’t want bad publicity about
person like you.
Talk to the top person of the development
co. They are very reasonable on things
like this and it is not good image for them
to make money with people like in your
situation. $2,000 is big amount to forfeit.
Give it a try. Tell them your story what happened.
Re: What happens if I back out of a sale? - Posted by ski
Posted by ski on July 12, 2005 at 19:19:19:
Check with the mortgage company and explain the problem with the auto pay. Most will work with you if it was not your fault. Get a letter form them stating that you have been a good boy up until that particulr time. Foward this to the closing company and the credit agencies and everything should be cool.