Home Buying in Altadena>Question Details

Gayle, Home Buyer in 90042

Can broker change listing after you are in escrow? What was advertised is not what it is. Now listing has changed and they refuses to fix anything?

Asked by Gayle, 90042 Sat Sep 4, 2010

I recently went into escrow on a house that had been advertised as a HomePath Mortgage with Heat and Air. After the inspection, found health and safety issues inoperable that were contrary to what was advertised on the HomePath Mortg. website. The website says that the house should be delivered with all systems working. This was not the case. Brought to the attention of the FNMA representative and he refused to repair or credit for repair.

Instead they have pulled the HomePath Mortg. sticker and replaced it with a HomePath Renovation sticker and refused to take my approved HomePath Mortgage(because the house does not qualify under these conditions) .

Now I have to increase my mortgage amount by the amount of the repairs in the HomePath Renovation loan.

I don't like the HomePath rates, so going FHA 203K streamline. Can they refuse to meet the FHA requirements, as well. I have to pay for the appraisal and start from scratch. Too bad I really like the house or I would just walk. Help

Help the community by answering this question:


You should threaten Home Path & their listing agent with Court Action. Find out which board of Realtors the listing agent belongs to & file ethical complaint or file an arbitration. If you deposited funds (earnest money) into an escrow account, refuse to sign cancellation instructions until the matter is solved.

562-430-3053 cell
0 votes Thank Flag Link Sat Sep 4, 2010
Dear Gayle,
You need a lawyer at this point, if you still want to go after this home. IF you can walk away without a monetary loss...my advice is to do so.
0 votes Thank Flag Link Sat Aug 13, 2011
If I understand your question, the seller advertised that the home was APPROVED for a HomePath Mortgage, but deficiencies were discovered that make it unacceptable for a HomePath Mortgage, so Homepath "unapproved it". If the deficiencies were not known (or reasonably expected to be known) by the seller you don't have any recourse other than choosing another mortgage product or backing out. If the problem was one that the seller knew about or could reasonably be expected to have known about, then the SELLER should come up with something to make up for the additional cost to you. The seller can't force Homepath to accept it of course, but they could pay for one or more repairs to help with the additional cost. I would ask for that and threaten to walk without it. Threatening to sue probably won't get you anywhere, but threatening to back out might be effective in getting either a price reduction or a repair made. It's a buyers market so you probably have a real advantage in negotiating a better price.
0 votes Thank Flag Link Sat Aug 13, 2011
If u were in escrow and the deal was scrapped because of non-diclosed defects; I would think this would be 100% a violation of CA disclosure laws. If it was purchased from a government entity thru a broker I'm pretty sure that regardless if it's a bank or an individual putting a house up for sale without disclosing known defects they are liable for repairs, u have recourse if you were given a signed disclosure form during transaction attesting to he condition matching the ad, if only ad is produced I don't think u have a case. On the 203k front, based on your comments u won't be able to use a streamlined 203k, thisk loan type tops at $35k, it sounds like u need a full 203k loan. I'm a 203k consultant, if u need help figuring things out or would like a feasibility study completed to weigh your options let me know?
Thanks Neil Lubell
Good luck
0 votes Thank Flag Link Sat Sep 4, 2010
Hello Gayle,

It sounds like you had the rug pulled out from under you. I would read the fine print and also go to home paths website so see what the fine print is in terms of if they can do this. It's more up to the Home Path program then the listing agent. If you can make it work stay in if you like the house. If it's not worth it to you then you may want to walk. I would ask the broker/lender to assist you with the appraisal fee if you need to pay it twice because of an error on their part, that is just not fair.


Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
(323) 899-2900
0 votes Thank Flag Link Sat Sep 4, 2010
Of course, they are claiming they had no prior knowledge. Just think it is irresponsible for them to 1-advertise and accept an offer on property they have no prior knowledge of; 2-not work with me the buyer to make it right. There is absolutely no give and they have now told me that the HomePath Mortg won't go through because of the health and safety issues.

Feel like I am caught in a maze. Now they are steering into a HomePath Renovation, so I can pay for all of the health and safety issues. That sucks. Seeking FHA streamline K loan. Not sure if they will accept that since those restrictions will really require they step up.
0 votes Thank Flag Link Sat Sep 4, 2010
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