Home Buying in Sherman Oaks>Question Details

Ana Michelson, Home Seller in Los Angeles, CA

Buyer on my house was not able to get loan, she did not declare one of her assests. We had on the 7th first closing date, then the 21st, the 19th I ga

Asked by Ana Michelson, Los Angeles, CA Sat Sep 22, 2012

I gave her Demand of closing escrow, have not heard from the buyer as yet.
Brokers wants me to continue until she gets a new loan. I want to cancel the sale, I have moved out of my house as per the request of my broker, I have incurred in expenses that were not necesary. Can buyer still buy my house and if I do not want to sell can she go to court???

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If you are the seller, there is no sale if the deal was contingent upon financing. If the Buyers agent and the buyer is non-responsive, and there has been no strong indication that the buyer has approval and the funders are just tying ends then you can cancel. I have been in this business for a long time and in the last year this is a more common situation. It can take a funder about 60 days to fund because a good company has strong qualifications. Funders have a regulation that they are to fund within 30 days unless parties extend due to funding.The funders must disclose their intent to you if they were the original funder from start of escrow and the escrow is not closed on time due to funder. You should have answer from sellers agent of an update. My suggestion is if you have a good house to start placing your home back on market for backups or just cancel escrow and move forward. It appears you need an agressive agent and get your home sold. The market is now hot and it should sell if priced right because there is extremely limited inventory. However, Holiday time is near and you do not wish to risk finding a buyer in Nov-December. I am not trying to give legal advice but the buyer can't sue as your purchase documents state sale contingent to a loan. For friendly advice contact me (310) 288-0482 Jessica Russell JR Group Keller Williams Beverly Hills.
1 vote Thank Flag Link Tue Oct 2, 2012
I agree with Jennifer, you are obviously represented by an Agent/Broker from the information in your question. You must seek thier advice. They work for you, nobody else. Ask them to explain anyhting you don't understand, tell you what happens with each option that you have and understand what may happen with each. As Jennifer stated, it would be unethical for us to give advice, when you are already represented by an agent.
Best of luck, please update us as to how it all works out!
1 vote Thank Flag Link Sat Sep 22, 2012
You need to serve buyer with notice to perform.
Also if buyer wish to ask for escrow closing date extension you may ask buyer to pay per deem. Per deem can be dollar amount that is similar to your expences or more as you see fit - this is what you charge daily untill your escrow closes and it is to be paid by the buyer.

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1 vote Thank Flag Link Sat Sep 22, 2012
Your broker should have provided you a Notice to Perform to sign and send to the buyer. This gives your buyer a specific deadline to perform or you have the legal right to cancel the contract.
It depends on exactly where you are at in the process or the likelihood of still closing whether your broker will recommend this or help you continue with the current buyer. If the buyer has already signed loan docs and is just working out some issues, the broker might recommend giving the buyer a few extra days. If the buyer cannot get a loan, then the Notice to perform would give them a few days to provide proof of a firm loan committment or you can cancel.

Allyson Haim
The Giving Tree Realty
1 vote Thank Flag Link Sat Sep 22, 2012
What was the expiration of the Notice to perform sent on the 19th?
Do you have confirmation that the Notice was delivered to the buyer or the buyer's agent? Those will be the legal questions asked. Beyond that, what is your reason for changing your mind about the sale after already moving out of the house? Please feel free to email me directly at allyson@thegivingtreerealty.com as replies to this thread don't always come directly to me.
Flag Sat Sep 22, 2012
Hello Ms Haim:
I did sent a Notice on the 19th, and still have had no asnwer. Buyr is seeking another loan, but I do not want to sell the house anymore, my contract with the agent has expired as of the 9/10/12, I am out of te house and want to return. agent tells me that buyer would sue me to get the house. What to do but get a lawyer???
Flag Sat Sep 22, 2012
I believe you can cancel the sale, but check with a real estate attorney for specifics on your situation
0 votes Thank Flag Link Thu Mar 7, 2013
It would be unethical for me to interfere with your current transaction. You should seek the advise of an attorney. Short of that, consult with the Broker/Manager at your Realtor's firm and also ask to speak to their Company's in-house Counsel. Good luck.
0 votes Thank Flag Link Sat Sep 22, 2012
What the agent below is trying to say is Per D I E M not per "deem".

The bottomline is the buyer is in "breach of contract", so you don't have to sell your house to that buyer anymore no matter what your broker says.

If this buyer still wants your house & of course it sounds like your broker would still like to sell & to this buyer, you have the opportunity at this point to Amend the purchase contract or redo it altogether. Tell this buyer, they can still close, but now the purchase price is $3,000 more or something like that, which covers your unnecessary expense. You should define what that is because you would have moved out anyway, therefore the buyer shouldn't be paying for your moving costs.

Working it like this may require a new appraisal, however depending on what type of financing the buyer is getting, like NOT FHA, the buyer Could pay monies towards Your closing costs VS actually increasing the purchase price which would require a new $450 appraisal. It's possible, if the buyer is using the same lender the existing appraisal could be amended for less.

These are all possibilities you can explore if you're going to continue to allow the current buyer to close. Normally an additional 'asset' doesn't kill a deal, unless that additional asset has now Thrown Off the buyer's Debt Ratio calculation, which may be the case.

I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
0 votes Thank Flag Link Sat Sep 22, 2012
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