Home Buying in 19119>Question Details

Stylzs, Home Buyer in 11230

What are the grounds for a seller default?

Asked by Stylzs, 11230 Thu Jan 22, 2009

ok i was suppose to go to settlement but it was postponed, I was given an extension , but I need another one. My lender has just merged with another bank and things are in a slow move, the buyer agent wants to dead the deal since our contract is now up he's saying that I broke our agreement and wants me to release my funds. How can I stop the bleeding on this it's not my fault of the merge and I still want the property : (
How can this happen when it's no fault of mine I'm not backing out of the deal, the mortgage broker is working hard to get things moving but another extension.is needed .What are the grounds for a seller default?

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Ok, I understand now. Your agent is trying to work on your behalf to get the seller to agree to the extension necessary for you to secure your financing.

If I were the sellers agent, I would counsel my seller based upon how well you performed as a buyer through this point. Were communications timely? Did you meet other deadlines?

The other issue on the table is the possiblity of another buyer. If there is another buyer who can perform, the seller may favor terminating the exisitng contract.

it really bottom lines at ......if the seller believes that you will close and does not have another buyer at a higher price, the seller will work with you. It's up to you to provide the support to increase their confidence. If, indeed, you have failed to make the deadines, they might be able to terminate the deal. I cannot say that to be the case since I am not an attorney, am not your agent and have not reveiwed the contract or history.

Sellers want to sell. If you can buy, unless there is a better buyer on the hook, then do your best to convince them it is in their best inetests to work with you.
0 votes Thank Flag Link Fri Jan 23, 2009
Deborah Madey, Real Estate Pro in ,
you must consult an attorney.
0 votes Thank Flag Link Sun Nov 25, 2012
The seller may feel entitled to the escrow funds to compensate him for keeping the house off the market for this length of time.
0 votes Thank Flag Link Sun Feb 22, 2009

Without knowing why the seller wants to terminate your deal, it is really hard to provide you with solid advice.

If the final date of the agreement has come and gone, the agreement is no longer in force, and new agreements would need to be drawn (though frequently extensions will be used to do this - even though it is not the best way to make the agreement tight and legally binding). In fact, the seller is not killing the deal - the deal is already dead since you didn't perform (whether its your fault or not, the non-performance is a fact).

As far as being in default goes, the broker holding the funds has to retain the funds until either the parties agree to its disposition or a court of competent jurisdiction determines who gets the money. If that happens, you would just go to court and explain your position. You could bring an attorney or represent yourself -Pro Se - a choice that might be made based on the amount of money at risk and the cost of the attorney to represent you.

If the seller is reaching out to you , you might want to call them back with your agent present. Just be clear on what they might be proposing and careful that it doesn;t put you in a more difficult position than you already find yourself in.
0 votes Thank Flag Link Sun Feb 22, 2009
I would like to Thank everyone who responded I thank you all so much , I'm at total wits end and not sure whose at fault my agent, the mortgage broker or myself for not being educated more on what I sign on the dotted line and it's after affects on what could go wrong.

I thought the worst thing that could happen would be not approved for the loan but this is murder. I've received my committment letter and was looking forward to closing but and this merge is killing me,

To hear that I can be in default and lose my funds in escrow has left me with a stomach ache and one big ole headache asking why.

I got a call late tonight and didnt recognize the number so I sent the call to voicemail. I was shocked to find out it was the seller he left a message for me to give him a call directly tomorrow. I've never spoken to him before. My agent and i dealt directly with his agent.

Would this be wise to return his call, from what I've been learning on this board I need to make sure that I'm protected. My heart is saying talk to the seller let him know that this merge thing is beyond my control and I'm still interested in his home and closing out this deal ASAP. But my head is saying be extra careful my deposit is in Escrow.
0 votes Thank Flag Link Fri Jan 23, 2009

Our recommendation is for the best and most reliable information, consult an attorney.
0 votes Thank Flag Link Fri Jan 23, 2009
For your protection the extension woulod have had to include extending the date for your mortgage committment as well as extending the closing date, if not you can be in default not the seller. You will want to include a letter from your mortgage broker and along with a specific amount of time you will need. most sellers will not sign any extension with an open date not knowing if it will be a week, month or more. you may want to see if the broker can place your loan file with another lender immediately. your first step is getting the extension, without it you are dead in teh water. good luck in working things out
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jan 23, 2009
Sorry to hear about your situation. I believe it is possibl to get the bank to write a letter and fax it to the sellers agent with the explanation of the merge. If you qualified for the mortgage this would be of great value
Keep me posted
0 votes Thank Flag Link Fri Jan 23, 2009
oh wow i made a mistake with the question I should had said What are the grounds for a buyers default. I'm the one purchasing a home. The seller agent wants to end this deal since an extension was given on the settlement date which came and went.

My agent is asking for another extension due to the lender has merged with another bank.ays its a breach of contract.

The seller wants to dead this deal , since the deal is unable to close on set time. But this is due to the lender . There has to be some way not to dead this deal I need honest advice.

The Funds in Escrow is my savings for my new home am at at total lost of words right now regarding my agent, the mortagage broker, and the lender : ( i do not want to dead this deal as well as lose my savings that's in escrow .
0 votes Thank Flag Link Fri Jan 23, 2009
A seller defaults when a seller is unable or unwilling to close and deliver title in breach of the terms in a contract.

A buyer defaults when a buyer is unable or unwilling to close and has no contingencies or terms of the contract which allow him/her to terminate the contract. From your description, it sounds like you are the buyer and are having mortgage company challenges. Is your buyer agent working exclusively for you, or is the agent a dual agent for both the seller and the buyer.;

Before you terminate a contract when it is against your wishes, and/or forfeit deposits, I recommend you get legal advice.

I am not an attorney and this is not legal advice.
0 votes Thank Flag Link Fri Jan 23, 2009
Deborah Madey, Real Estate Pro in ,
Hi Stylzs,

Sorry to hear of your issue. Ok, so I have some questions for you. You are the seller? I am a bit confused because your question is "what are the grounds for seller default?" But then you say the "the buyer agent wants to dead the deal since our contract is up now"

Are you the seller or buyer?

If you are the buyer and your bank needs a bit more time, you could simply extend the AOS by addendum if the seller still wants to sell it to you and there are no other issues with your mortgage. If the seller wants to back out because settlement date came and went, I do believe that they can do that if no extension was agreed upon but my question would be why didn't your buyer agent extend it to protect you? If you have a buyer broker agreement with your agent and that contract is up, I'm sure your agent wants to be paid for all of his/her hard work so he/she can extend your contract.

Seller default would occur if the seller backed out of the sale.

If it is getting very complicated, you may be wise to seek out a Real Estate attorney.

If you could provide some more details about your situation that would be more helpful.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
0 votes Thank Flag Link Fri Jan 23, 2009
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