There are 2 phases to the financing process: 1) Loan Commitment and 2) Clear to Close. If you are able to furnish a loan commitment letter (even with conditions) this is typically acceptable to a seller until your loan is fully approved by underwriting.
Read your contract - do you have 3 days to provide loan commitment after receiving notice from the seller?
Escalate this to your agent's broker immediately for a 2nd opinion.
All my best,
Lisa Moroniak | REALTORÂ® | Service360Â°
SFR - Short Sale & Foreclosure Certified
Keller Williams Realty
Licensed in VA
1. I had received a letter from the seller's realtor asking for confirmation for financing, and I provided them the email from my bank i had received stating I have formal approval. So i thought that would be enough.
2. I did not need an extension on the 30 day financing clause as I had completed my financing and my closing was for 60 days so I was actually planning to close this coming week (this all happened friday) around 33 - 34 days well ahead of the schedule
3. The seller was trying to back out on the deal for what ever reason, and the seller's realtor had accidently sent me a email that was also going to his agent saying "we might have a way out of the contract please prepare the void contract" that morning. (my contract was voided later that day) I tried to clarification through my realtor and even up to 10 min before we got the void contract notice, the seller's realtor was still telling us oh, our seller is just nervious about closing and want to make sure we can close on time. nothing to worry about.
I read through the realtor code of conduct and there is a lot about providing misleading communication / mis-representation. I feel that this was the case... is it not?
Legally, your seller had the right to ask you to remove the financing contingency as per contract terms.
This is why good old fashioned communication is the key - had you and your agent communicate more effectively, I'm sure the seller would have given you an extension.
I'm not a lawyer, but I do not think you can force the seller to agree to anything that is outside of the terms of the contract. It seems the seller asked at least TWICE for proof of financing. At this point, it is entirely up to the seller to agree to a delayed settlement - which most likely will cause a financial harm to the seller and an inconvenience - or void the contract and sell the property to someone else.
Unfortunately and fortunately, contract law at work :-)
However, you mentioned that you think the seller may not want to sell. If this is true - Matt raised some good points - it is worth finding out if there are conditions of the deal that the seller is not happy with and if there is a slightly modified agreement he would be happy with. However, if maybe they decided to stay in the house or something, then it may not be possible to purchase the house. I have heard of a situation like this where the buyers got awarded some damages b/c the seller breached the contract - but since seller didn't want to sell, buyers did not get the house.
I would like to emphasize that what you have is a legal question. So although I have read the paragraph and have heard stories, I am not an authority on this. In order to have the best result, you should consult a real estate attorney with the specifics of your situation. Your title company may have an attorney that you can speak with informally. If not, there are many title companies that have real estate attorneys.
The best advice that can be given is to talk with a real estate attorney asap, assuming of course you would still like to close on the property.
There is a specific notice that you should deliver to the seller's agent (and seller, if needed) that essentially says "the purchaser hereby removes the financing contingency." You would want to sign that, along with any other purchasers listed on the contract. Typically speaking, an email from the lender - such as the one you forwarded - would not suffice, at least contractually. Your agent should have known this and communicated the formal financing contingency, along with any required lender documentation if the contract called for it, to the seller's agent.
I would advise the counsel of an attorney in this case, and I would also ask your agent to reach out to seller's agent to determine the real cause in the change of the seller's position to no longer want to sell this property under the terms you've already agreed. There could be an easy fix (such as the seller needing more time to close, or perhaps a slight increase in sale price) that you might be willing to offer that, although not originally requested by the seller, and perhaps contractually not necessary, it may also be another option vs. going the legal route, which may or may not ultimately be successful.
Good luck; if I can help further feel free to call or email. (Your agent should be giving you similar advice. )
All my best,