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  Canada Immigration Forum > About Canada > Real Estate & Mortgages > Can buyer walk away
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Can buyer walk away




One of my friend he offered in Gulph and offer is accepted then he realized that he bid too more because of his agent. He put the condition loan and home inspection
but he wants to walk away. He has not deposit 10,000 yet.

If he go to bank he will be denied by mortgage because of his low salary . Agent force him go to his 2 number mortgage specialist.

He wants to back out please what he should he do ? he is in nervous and called me for help.

Can he say his mortgage was not approved or does he need to show rejected approval ?


 
Last edited by: Panasonic on 15-05-16 10:13:36
Panasonic

Senior Desi
Member since: May 10
Posts: 147
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Post ID: 231372 15-05-16 10:05:39
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Full House
Senior Desi
Member since: Oct 12




Posts: 1943
Location:




DO NOT PAY ANY DEPOSIT/EARNEST MONEY.

Here is a story. (See Below) There are many more like that. Also go to your own Mortgage Broker. Get a letter with Mortgage declined, a very truthful one. Because you do not have sufficient income. Take your papers and produce it to the MB to prove it. (Also do not show your Bank account details- Not enough funds for DOWN PAYMENT!! Chop it down, pull out a few bucks for a car, or for an emergency expense.)

What are my options when buyer backs out last minute? I'm moving June 17, 2012.

We were to close on my house on May 31. We declined another offer to accept this offer since they came with a pre-approval letter from their mortgage lender and made no contingencies on their offer. Some repair requests were made after the inspection. While I had the repairs done, I was told by my agent that I should make arrangements to move since I would have to turn over the keys once the closing happened.

The repairs got done. Once the repairs were done I was told that the only thing that the lender needed to approve the loan was the report from the appraiser that the repairs were appropriately done. I voiced my concern to my agent regarding the tight timeline (since it was already the 25th and we were to close on the 31st) and was told that I would have to move out on the 31st even if everything was finalized 2 or even 1 day before the 31st. I sold everything (since i was downsizing from a 3 bedroom house to a one bedroom condo) and moved out on the 27th.

The appraiser came to re-inspect the home on the 28th. Then, the buyers asked for a contract extension to be signed since the appraiser hadn't turned in his paperwork on time. So I did. Then, I was told that the buyers had to change their loan type from a VA loan to conventional and asked me to sign another extension. I signed the extension. Then the next day, my agent called to tell me that the buyer's loan was not approved because they had included child support as part of their income and it was not a consistent income -

NOT because of anything having to do with the appraisal. The buyers signed a rescission forfeiting the earnest money of $3000. My agent says "sorry" and when requested to get copies of the lender's loan denial, she says she's not sure if she can because they forfeited their earnest money. Now, I sold EVERYTHING I own to downsize and already moved out on the advise of the agent. She led me to believe, unfortunately all on phone calls and only a few e-mails, that the lender had "assured" her that the loan was good to go as soon as the appraiser turns in his paperwork. I think it strange that the buyers were so easy on forfeiting their earnest money, especially if it was the loan that was not approved. I have a suspicion that they probably found another place that they liked better and wanted to back out of the deal. What rights do I have?

At this point, I want to sue my agent for her incompetence and the buyers for screwing up my house sale and financial situation - no furniture left to decorate the home, declining another offer, having to pay more mortgage until house actually sells, and having another lease that I signed that I cannot get out of. Am I entitled to get a copy of the loan denial and the reason? Can I get the appraiser's report? What documents am I legally allowed to obtain?

xx

There are so many cases like this and you can google and find one or two to your liking. But for heavens' sake do not put a down payment and lose the money. Tell them an emergency expense drained all your savings you had saved for the down payment. So, go and pull out a lot of cash and get a letter from home- an e-mail will do, a TEAR Jerker. Can your friend do that??

FH.


 
Post ID: 231374 16-05-16 02:15:43
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AshwaniG
Senior Desi
Member since: Jul 04




Posts: 1464
Location: Convinient


If your friend has a finance and inspection as a clause than there is nothing that can stop him to walk away from the deal.
IMO he should also walk away from the current RE agent.

Need not to be nervous at all . It will not be first nor the last time when people walk away.
Especially without a deposit in place there is nothing that can be done.


Quote:
Originally posted by Panasonic

One of my friend he offered in Gulph and offer is accepted then he realized that he bid too more because of his agent. He put the condition loan and home inspection
but he wants to walk away. He has not deposit 10,000 yet.

If he go to bank he will be denied by mortgage because of his low salary . Agent force him go to his 2 number mortgage specialist.

He wants to back out please what he should he do ? he is in nervous and called me for help.

Can he say his mortgage was not approved or does he need to show rejected approval ?




-----------------------------------------------------------------
Growing Old Is Mandatory ..Growing UP is Optional

 
Post ID: 231378 16-05-16 09:45:26
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lemon925
Senior Desi
Member since: May 15




Posts: 195
Location: Toronto


Even if you had deposited downpayment, you can walk away, deal is not firm until you sign mortgage and home inspection waiver. They ll refund downpayment without any issues. You don't have to show proof that your mortgage declined. Ball is in your court until you sign waiver.

 
Post ID: 231379 16-05-16 11:32:54
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Panasonic
Senior Desi
Member since: May 10




Posts: 147
Location:


Thank you all of you for your advices. Really appreciated.

 
Post ID: 231380 17-05-16 00:09:11
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Agent Raj
Junior Desi
Member since: Jul 09




Posts: 21
Location: Vaughan


Since you have not provided a deposit and have finance+inspection condition, there should probably be no issues as long as the listing realtor/sellers co-operate.

As to overpaying in a bidding wars, its a known phenomenon however buyers should always request their agent to provide recent sales data for comparison. This will not stop you from overpaying but at least you can work with a baseline price. Please understand the agent cannot make you overpay, unless you are willing to.

Scenario's where deposit has been provided, it may not always be possible to get deposit (or full deposit) based solely on mortgage/inspection condition waiver.

I'll share a recent experience with a buyer "walking away" (I represented the home seller in both cases).

In April 2016, I sold a 3 year old luxury home conditional on finance and inspection. During the home inspection, the inspector identified 3 minor issues totaling less than $200. The finance condition was waived after 3 days and on 5th day, the co-op agent advised the buyers were not happy with inspection results and wanted a mutual release. I requested a copy of inspection report and further details on the buyers' "unhappiness". The co-op agent refused to provide either and sent a mutual release via their lawyer. Sellers lawyer responded by requesting same info that I had requested earlier. After many calls between both lawyers and both realtors, the buyers admitted they did not want to proceed with purchase and agreed to give the seller 50% of the deposit.

The example above just for emphasis that while mortgage and inspection condition may provide a way out, there can always be times when they do not.

Always proceed with caution and good intentions


 
Post ID: 233709 07-01-17 12:32:24
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