Home Selling in Eugene>Question Details

Jean, Home Seller in Eugene, OR

seller in Eugene, OR. We signed on Sunday. Buyer didn't pay Earnest Money until Thurs-contract said 3 days. Can we now change terms we regret?

Asked by Jean, Eugene, OR Thu Mar 3, 2011

Terms: we carry contract, 6% now 12% in 6 mo another 12% in 1 yr. Pymts amortized at 30 yr rates with final balloon in 5 years. Interest rate 5%. We are now very concerned that down is too small. Should we be worried? Can we now demand larger down since Earnest Money was a day late? Buyer income is rental income-how do we verify? How do we verify value of rental property? We do have contract with a realtor who presented terms, but not feeling comfortable. Buyer is married but doesn't want spouse on purchase. This sounds like what brought on the mortgage crisis.

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You have posed many questions that YOUR real estate professional should be able to answer for you. If you’re entering into an agreement without the help of a Realtor or have questions that are unanswered, you should ask for the assistance of your Realtor’s Principal Broker and/or seek legal advice from an attorney. These matters can be costly to fix later if you don’t have representation and/or the knowledge to go forward on your own. It is my opinion, if the Buyer was given 3 business days to provide their Earnest Money, and the period of time between Sunday and Wednesday did not include a holiday, the day to remit the EM would have been by midnight Wednesday. Not following the terms of the contract is a breach. If this is the case, the ball, so to speak, is now in your court. All of your questions and concerns can now be addressed, and new negotiation with the Buyer can begin. From what you do forward, is up to you and the counsel of a legal expert. Best of luck!
0 votes Thank Flag Link Fri Mar 4, 2011
You can change terms but don't expect the buyer to hang around if you do and changing the terms after you received earnest money will breach the contract anyway and the earnest money goes back to the buyer.
0 votes Thank Flag Link Fri Mar 4, 2011
I am sorry your agent is not representing you as you feel you need. Please call and or email them asking for a set down chat to make sure you can understand all that is going on and that these are people you can work with. If not, maybe the Broker/principal can set down and work this out with you and the agent. If that does not work - the best bet is to see a real estate attorney but only after you check out the first two.
0 votes Thank Flag Link Fri Mar 4, 2011
Added info (not sure how else to do this) Realtor is supposed to be representing us as we signed contract with him 5 months ago. Buyer came directly to him and they wrote up offer. We got carried away and made no changes to offer. Immediately after, were worried about the low down and value of property buyer owns appears much lower than we expected when looking on zillow. We know zillow isn't always that accurate but don't know how to get more accurate value. We have been expressing our concerns and trying to get more info from agent (called night of signing and again next morning and several times since) but he says "buyer isn't stupid" and he is checking things out. He isn't meeting with us or sharing much info so far. It sounds like only income is rental income so how do we verify-don't want to just take word of buyer. Jean (seller)
0 votes Thank Flag Link Fri Mar 4, 2011
Jean;
If you are interested n changing the terms or backing out you should consult with a Real Estate Attorney.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Fri Mar 4, 2011
You need to communicate with your realtor first and you might need to get a lawyer's opinion on the terms, if you still want to proceed this deal.
0 votes Thank Flag Link Fri Mar 4, 2011
Jean,

Technically, the terms of the contract weren't fulfilled but talk to your Realtor and tell them your concerns. I can tell you that statistically down payment has very little to do with performance. Programs like UDSA don't require any down payment but have lower foreclosure rates than other programs.

It's more important to assess the borrower's ability to repay the debt and their credit worthiness. Can they pay and will they pay are the real issues. Skin in the game feels like it should be important but not as much as you may think.

Speak to your Realtor then make your decision. If you're early in the deal then people will be disappointed but probably won't force you to sell your home. Talk to your Realtor.
0 votes Thank Flag Link Thu Mar 3, 2011
Was Monday a Holiday? Was the 3 days business days or calendar days? Read lines 22-24 on the first page of the sales agreement and then lines 202-205 on page 5 of sales contract. If all this fits you can make an argument that they did not follow the terms of the contract and terminate.

You need to tell your Realtor your concerns as soon as possible. They represent you.
0 votes Thank Flag Link Thu Mar 3, 2011
It sounds as if you were representing yourselves and the buyers had the realtor representing only them? A great argument here for why good representation for both parties is worth paying for. That said, you seem to have signed a contract. Realtors are not legal advisors, so I recommend consulting a lawyer specializing in real estate. That said, in my experience, a late performance by a party MAY give you the right to terminate, but not change the terms. I can't offer much more, ( the legal restrictions), but a lawyer should read the full agreement and advise you about your stated concerns. They can explain the responsibiities and liabilities of all parties to the contract.
Web Reference: http://www.bennettdean.com
0 votes Thank Flag Link Thu Mar 3, 2011
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