Home Buying in 75038>Question Details

Sumitra, Home Buyer in Dallas, TX

We were in contract to buy a house, and wanted to close early. We asked BOA to do a rush process and they

Asked by Sumitra, Dallas, TX Mon Feb 23, 2009

denied it. We went with another lender, and paid for appraisal, were the appraisal came 5000 less. We cancelled the contract saying that appraisal came 5000 less and demanded the release of earnest money which seller denied. But in the mean time, Bank of america send his appraisal and appraised to the value and loan also got approved. The seller is asking us to sign the release form for earnest money($3000). Seller has listed the property in the contract period. What can i do now?

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You will probably want to get your real estate broker involved or hire a real estate attorney to look at your timeline and correspondence. That is assuming you still want the house.

If you don't want it, then you can sign the release and get your earnest money back.
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1 vote Thank Flag Link Mon Feb 23, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
Sumitra, this is a hard one because we don't know where you are in the time frame of the contract. Are you still within the option period? Secondly, was your contract contingent upon you getting financed? If so, it appears that you can get financing, but you've had a change of heart regarding purchasing this home. Remember that an appraisal is an opinion of value based upon the day it was completed. It can change based upon the usage of different comps that might have sold recently. The key word to remember is that it is an OPINION of value. What advice is your REALTOR giving you?
1 vote Thank Flag Link Mon Feb 23, 2009
Seems to me like you ought to be able to resubmit the offer you made originally or a new offer with the previously agreed upon provisions applying the earnest money to the new offer and providing proof that your loan has been preapproved for that amount. Of course, it depends upon how much time has elapsed throughout this entire project.

If the sellers have a done deal, I would think they'd move forward unless they have other offers on the table. However, your phrase "seller has listed the property in the contract period" confuses me. Was it previously a for sale by owner, or are you saying that the property remained listed on the MLS while under contract? If the latter, property do stay listed on he MLS, but their status changes from Active to Active-Option to Pending to Sold depending upon the progress of the contract towards closing of escrow.

Unfortunately, it seems your first mistake was asking BoA to rush to closing. Lenders are extra cautious about making good loans these days. It takes as long as it takes to get it through underwriting. Loan originators and realtors don't like to use up their hard earned brownie points to push the loan through unless there is a compelling reason to do so.
0 votes Thank Flag Link Tue Feb 24, 2009
I does sound like you and the seller were operating without the assistance of a Realtor. You do have the assistance of the Title company but they can not advise one against he other. You need to go to a Real Estate atty.. You probably did not use the contract Cindie is referring to if you did this on your own as that contract is not for non agents.
I would really question if this house is a good purchase with the difference of opinion on the appraisal. If you don't have a buyers rep I would get one now. The seller seems to have learned that they need representation, but I bet you are a named exclusion on their contract as to their paying the listing agent if you purchase.

Good Luck

0 votes Thank Flag Link Tue Feb 24, 2009
Was this a For Sale By Owner or with a Realtor? Depending on what your terms are in the contract i.e. loan type etc if you did not but some special conditions in paragraph 11 then you might find it difficult.

If you have a Realtor they should be able to get this fixed for you? If not then honestly you have bigger problems and with out getting an Attorney to help you honestly.

Sorry this is happening to you and the pieces don't seem to fit correctly.
0 votes Thank Flag Link Mon Feb 23, 2009

What would you like to do now? Do you still want the house? Do either of you have representation?
0 votes Thank Flag Link Mon Feb 23, 2009
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