Sellers Agent Saying Not A Binding Agreement
Hi to all! I am a newbie with a quesstion. I originally posted this in the short sale forum. We put in an offer on a house that is listed for 159500 on the MLS in Sept.
There is nothing in the listing that states that it is a short sale or subject to third party approval. We offered full asking price with sellers paying closing costs, no other contengicies.
We waited for a response and did not hear anything. We called him and he stated that he sellers has accepted our offer but it needed bank approval. So we said ok, please send something in writing letting us know this etc.
He sends us an amendment to the contract (with the sellers signature) giving them an extended period of time and changing the closing date. About six days before the expiration of time he sends us another amendment (with sellers signature) that states that the first lender will get this amount minus the fees and the second would get this amount minus the fees.
We signed this and sent it back to him immediately. We began the process of inspection even though it is sold "as-is" and the loan process since the 2nd amendment had the banks agreements on it. We had the file ready to close so the attorneys office calls him to ask for the payoff so they could have the transfer ready for the closing.
He tells them that the banks are still in negoiations. SO we wait. We call him and he is now not returning calls etc. I only got a call back after I threaten to call his broker. He calls back within 5 minutes to state that there is no binding agreement on the house.
WHAT? why are you sending us amendments if the offer is not accepted. I then to contact his broker and send her a copy of all paperwork that I have on the file, the broker states that " there is no binding agreement due to the fact the the intial offer did not have a signature and even though there are admendments with signatures we dont have a binding agreement because "WE" do not have a copy of the intial contract with a signature.
What this sounds like to me is a cover up because he probably does not have an actually agreement amount from the bank! I have had several contracts go through like this. This is because we have to have a clean set with signatures at closing. I have talked to several co-workers who has also have closing with the admendments signed.
What do you think?
We have submitted another offer on the house to the bank and was countered verbally by the banks with them not paying closing costs and saying that theya re still in talks with the 2nd mortgage lender. What can we do?
We are willing to pay closing costs but it is now Nov 18 and we still do not have anything or feel as if we are any closer to closing on this house.
Do you feel as if the first contract is enforceable, I mean if the offer was presented to the bankl doesnt that mean that the seller accepted the offer?
We have been ready to close since mid Oct and we really want this house
[ Edited by JohnLocke on Date 11/18/2007 ]
good question. Does the lack of signature really mean that ammendment was a counter offer?
What does your attorney say?
How badly do you want the property?
Quote: but I can offer them tips for success with managing debt and improving their credit to help them get the best rates available. As for the emergency fund and retirment plan, if they can invest the cash provided to them...they could have both. Just a small $20000 invested at 12% would yield $700000 in 30 years
You want to give people money to help them save for their future. Let us cut the baloney.
Either you want to give people money back to help them purchase your houses, or you want to gain partial ownership so that you can have control over the house and make money. So are you trying to use this for marketing to help you sell houses, or are you trying to gain control of houses for say people who are possibly in financial trouble ..... say possibly foreclosure??
not to dis you, but I have always heard of 10% being the average return of the stock market.
I have looked at similar financial structure, and the propblem that I found was that the whole this could/would colapse if the 12% return was not made.
Hats off to you for looking to create a win-win financing structure.