Home Selling in Gainesville>Question Details

Cinammon Girl, Home Buyer in 20155

What are my options if buyer's mortgage loan is not approved the day before closing?

Asked by Cinammon Girl, 20155 Tue Apr 17, 2012

I accepted an offer in the beginning of March on the sale of my house and need its' proceeds to buy the house I'm to close on in two days.
Closing for the house I'm selling was to be tomorrow. Yesterday, I was told by my realtor that due to the buyer working in another country as well as here, his credit report needs to be translated into English,which hasn't been done. Also, the buyer's wife had her identity stolen a yr ago and there is a problem getting their 1040 from 2011. If loan is not approved, what recourse do I have, besides keeping the $5,000 check deposit? Help!!!

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The chance the buyer signed a contract to purchase your house, and waived the financing contingency is practically zero. Especially if there is a buyer's agent involved in this transaction. Sorry. It's not the answer you want to hear. The buyers(s) are not obligated to go forward after exhausting all financial obligations to purchase, and they are entitled to the funds paid through the earnest money deposit.
0 votes Thank Flag Link Tue Apr 17, 2012
If your buyers agent included a finance contingency with their offer then you may not have any recourse against them and they may be able to get their $5000.00 back. You really need to look through everything in the offer that you accepted and see what it says. I would suggest maybe trying to extend the closing dates if everybody will agree to that.
0 votes Thank Flag Link Tue Apr 17, 2012
Hopefully your contract to buy was made contingent on your home closing. If not, you're unfortunately in a jam. Assuming your purchase is contingent, I can tell you that lending is so tight right now, primarily driven by the government witch hunt going on against lenders - that many, many closings are getting delayed. Last month 30% of mortgages across the country were denied. So, the key to being successful and keeping deals together is to keep a cool head, don't let emotions run wild, don't assume anything - ask questions and make sure all parties involved are informed as to exactly what is going on. As long as everyone understands the dynamic and is committed to working through the issues, you can make the process much less stressful or painful. If you get one party that acts irrationally or starts demanding things, deals tend to fall apart very quickly. I know its a general answer but without knowing the specifics or details, its the best "big picture" advice I can give.
0 votes Thank Flag Link Tue Apr 17, 2012
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