Home Buying in 85253>Question Details

Madisonavenu…, Home Buyer in 85253

Seller lowered the MLS list price below our contracted purchase price while in escrow with earnest deposit paid. Lender turn down loan. what next?

Asked by Madisonavenuetrust, 85253 Fri Nov 19, 2010

The seller lowered the MLS list price lower than contracted purchase agreement price with the earnest deposit paid and in escrow.

We found out from our lender that the seller lowered the price below the our purchase price. The lender did not turn our loan down they just wanted an adjustment.

We had paid $100,000.00 earnest deposit . In addition to the earnest deposit we have direct expenses related to the purchase of the property. We paid Legal fees, lender fees, inspection and other expenses.

What can we do if anything?

Help the community by answering this question:

Answers

9
Jeff Star’s answer
Is it a short sale property? If so the reason could possibly be when the listing agent was submitting the short sale package lowered the price so it would reflect on the plano. Then it looks like to the bank that the offer is more then the asking price. Also when the bpo is being done the agent doing the bpo says "hey the buyer is paying more then the list price." The bpo gets done at the purchase price. Just a thought.

P.S.
Why would the lender request a price adjustment? If your willing to pay the price and it appraises what difference does it make to the lender.
0 votes Thank Flag Link Wed Nov 24, 2010
What can we do if anything?

Most of the answers are in the contract you have with the seller that are best interpreted by your own Realtor and or attorney. Your statements are not clear and leaves many items out that might prevent a forum such as this from providing a quality answer. This is a great group with tremendous knowledge in general, sometimes the questions are so specific that we are limited.

Do you have a Realtor representing your interest?

Legal Fees, do you have an attorney? Attorneys are not that often used in most standard residential real estate in Arizona?

$100,000 is a significant earnest money deposit and may be the reason an attorney is involved as it may be a very large transaction?

Seller lowering list price: I have seen Bank Owned listings in which they had price reduction strategies in place that still occur even when the property is under contract. One property I was involved with had this happen and it was explained to me that the bank process is just so rigid and slow that the price change occurred even thought the property was under contract.

Many of us are willing to help you out if you can provide more clarity.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Sat Nov 20, 2010
I'm sorry to hear about your situation. It is out of the norm and I'm not sure why a listing agent would want to do that either.

Your exact answer would depend on many factors. However, you agent and/ or real estate attorney should provide you with the most accurate advice and information. We can assist with general advice, tips, suggestions, options, etc, but without knowing the facts we can't be of much help.

Best of luck!
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Fri Nov 19, 2010
Your issue is very complicated. You need to talk to your agent about this and if the listing agent isn't able to help, perhaps talk to the Listing Broker. You may have to consult with an Attorney again to get this issue resolved. It is much to complex a problem to deal with in this public forum. Good luck.
0 votes Thank Flag Link Fri Nov 19, 2010
Madison Avenue,

Ask your agent. Since you're asking the real estate community in a public forum, that leads us all to believe you don't have any confidence in your agent and if that's the case, maybe you should talk to their broker given that no one here has all the relevant facts and even if we did, we're not to comment anyway because you're already being represented (client-agency relationship thing). Good luck!
0 votes Thank Flag Link Fri Nov 19, 2010
Dear Madison:

Unfortunatelly, in this public forum we do not have all of the facts. Your attorney and your Realtor are in the best position to give you advice.

We are not looking at your contract. Assuming this is a short sale? In a short sale the seller sets the price, their bank does not have to accept that price. Has your lender done an appraisal? This may be the reason that they want an adjustment.

Really advise you to talk to your advisors that know the details.

May I wish you the best.

Jeff Masich
Arizona Homes and Land
http://ArizonaHomesLand.com
0 votes Thank Flag Link Fri Nov 19, 2010
Jay is spot on. In addition to the advice you've already received, you mentioned that you've "paid legal fees." I'm assuming you meant you consulted with an attorney regarding the transaction, so I might want to seriously consider consulting with your attorney regarding the current situation.

And to reiterate, definitely consult with your Buyer's Agent/REALTOR.

All the best!
0 votes Thank Flag Link Fri Nov 19, 2010
would the lender approve your loan at the new price? Get your agent to negotiate that for you.
0 votes Thank Flag Link Fri Nov 19, 2010
Is it a short sale? I would think the listing agent should have put it in pending, but I would assume that it is a short sale and they are lowring to try and get back up offers, but with 100K Earnest Money, I would think you are pretty serious. Have the seller tell the listing agent to put the price back where it should be or else lower the contract price to match the new list price. Good luck!! You may want to call the Listing Agent's broker and get them involved as it sounds like things could get a little dicey.
Web Reference: http://www.SearchAZmls.com
0 votes Thank Flag Link Fri Nov 19, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer