Sellers Agent Threatening To Sue Me Because I Cannot Get Financing

HELP! I own a house in San Diego which currently is not being rented out right now because the property manager is preparing the house for rental.

I went ahead and made an offer on a 2nd house. I obtained a preapproval letter from a mortgage broker based on my income. My income was enough to pay for both mortgages at the same time.

Last week the mortgage company said that because I had so many deductions on my 2004 taxes, I will need proof that the house is currently being rented in order to obtain the loan. I cannot get proof of a lease yet because the house is not ready for rental. As a result, they refused to give me a loan.

The contract for the second house was contingent on me obtaining financing. The sellers agent was pissed that I was not able to obtain the loan and threatened to sue based on the fact that I knew all along my San Diego house was not being rented out. I NEVER tried hiding the fact that the San Diego house was currently not being rented out and I do not think my preapproval loan application ever asked me how much the San Diego house was being rented out for in the past, it only asked for my salary at my current job.

I do not think he has a case because I dont think I ever included my rental income as my regular income in my preapproval letter. This only became an issue with the mortgage lender after they saw I took a lot of deductions in my 2004 taxes.

Does the sellers agent or sellers have a case against me?

Comments(12)

  • cjmazur22nd July, 2005

    if you canceled w/in the time specified in financing contingency, I would say no.

  • alexcurtis24th July, 2005

    It sounds like the agent may have other potential buyers with less contingencies, so they may be trying to get you to walk away.

  • acuguy24th July, 2005

    Some purchase contracts will state that if you end up failing to qualify for a loan that the seller required you get preapproved for, the seller can charge you a penalty ( I am currently in escrow with such a contract). As long as your contract had no such clause, they have no grounds to go after you.
    [addsig]

  • davese26th July, 2005

    READ your contract. If the contingintcy was you being approved for a loan period and the mortgage company denied you then tell the RE agent to kiss your hide. There is nothing he/she can do.

    If you really want this house do what the others have said, go to another lender as they are not all equal, one will 2 wont, 3 more will give the loan etc etc....

    Again READ your contract and based on what is in it will determine if they can do anything (highly unlikely) or not.

    SOME RE Agents are (I said SOME) are just ignorant morons and want to make the sell at any cost even threating, scaring you with unfounded and misguided information. Oh did I say SOME......

  • Agape716th August, 2005

    If your credit is good above 660 fico, go to SIB Mortgage -80/20 N/O/O State Income or NINA and the
    Rent comp on the URAR-Appraisal is used not actual rental agreement. I have underwritten investor deals this way.
    Good Luck

  • knsv3rd May, 2005

    no one knows any other sites where people post properties????

  • InActive_Account3rd May, 2005

    Try, www.forsalebyowner.com

  • knsv26th July, 2005

    www.forsalebyowner.com is a commerican site selling all type of crap, does anyone know any other sites similar to this or buletin board classifieds where people are selling properties off the market or by owner?

  • knsv16th August, 2005

    Thanks

    i wonder why it didnt let you pust the other site you wanted to

    what was it?

  • knsv18th August, 2005

    well he posted a few links and the first one didnt show up and the second one did

    why is that?

  • InActive_Account18th August, 2005

    I guess the system administrator simply overlooked the second url.

  • knsv23rd August, 2005

    ok, So no one else knows any sites where people might post properties off the market, or classifieds.

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