I have contacted the seller to let them know I will release 1k if they extend the closing date, otherwise I will walk. I am amazed at how my agent still thinks that I will automatically lose my escrow money within three days after the closing date passes and refuses to believe what I am telling him. Thanks everyone for taking the time to answer and your insights.
Read the last sentence of paragraph 6 of Form 22A, and this piece I wrote when that sentence was added: http://blog.seattlepi.com/realestate/2010/01/30/statewide-fi
Again though, this really requires an attorney to review your specific contract and facts.
Finally, a bit unclear what you mean "there are no comps for this place." Do you mean at the price you are paying? I'm not sure how a lender would know that. It is not typically their area of expertise.
I hate to say it but it does sound as if you have a legitimate beef with your agent who according to what you've written has jeopardized your earnest money deposit by their failure to prepare and distribute the appropriate documentation when you initially changed lenders. I would suggest to my broker if what you have written is true that should you lose your earnest money you'll be filing a complaint against them and will pursue them to get reimbursed. (They have Errors and Omission insurance) and suggest they do everything in their power to make sure your money is protected.
I would ignore what your current lender said, they may or may not be correct. I would try to work with the Seller's suggested lender and would require an extension not only for the mortgage approval, but for the settlement date and the period your escrow is protected, if you're unable to get all of the above I'd immediately terminate the contract, request the return of your escrow and contact an attorney if necessary.
I hope things work out and you can in fact close on the property.
Best of Luck,
I'm sorry for your predicament. You are in that area where we have two choices, pretend to be lawyers and give you our unlicensed legal opinion or refer you to a lawyer.
Step one would be for you to carefully read the financing addendum, 22A in your NWMLS contract. Your understanding will not trump an attorney, but by understanding what is written, you'll be in a better position to ask the questions necessary should you speak with one.
Applying with the seller's preferred lender may not be the worst thing. A lenders job is to get the loan funded and if by applying with them, you get the extension and you could preserve the sale and still get the house. If your first lender still comes through, you may be able to revert back to them in order to close sooner, which it sounds like something the seller is interested in.
Unique properties do present issues. Log cabins, large acreages and others are hard for appraisers to comp. If this is the case, ask your Realtor to find some comparables to provide the appraiser, this could help your case with either lender.
1. Did you remove your loan and/or appraisal contingency yet? If you had an appraisal contingency in place and the property didn't appraise for the expected value, then you are entitled to cancel the escrow (with mutual written consent) and recover your earnest money deposit. This should be done before the due date for contingency removal. If that date has passed, then there are a couple of other factors to consider, i.e. did the seller present you with a notice to perform?
2. Did you instruct your agent to file the necessary addendum? If you did, and your agent was negligent, you may have a case to recover those funds from your agent if the seller wins them in arbitration.
As for your lender, I always recommend getting a second opinion. I would be happy to refer you to a trusted loan banker I work with. As always, it won't cost you anything to have a conversation, and it sounds like you could use a little more outside advice.
Please feel free to call or email me. I would be happy to help you resolve this issue, and I can refer you to a reliable and professional lender so you can best understand all your options.
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