In the process of buying a home. Having lender problems and second thoughts. Made earnest money deposit. What do I stand forfeit in fees?

Asked by journey135, Helotes, TX Fri May 3, 2013

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Vino Alonzo, , San Antonio, TX
Sun May 5, 2013

Before you back out, please contact me. I've been down this road before.

Switching lenders and possibly financing the cost of all of the repars is an option.

Let's do a through review of your file before you make any decisions. If it's best that you stay with your current lender, I'll tell you. If we have to tweek your scenario a little bit, I'll give you options.

Vino Alonzo, Loan Officer
NMLS# 184279
Castle & Cooke Mortgage
1 vote
, ,
Sat May 4, 2013
Sorry to hear about all the problems on your home loan especially with idiot Loan Officer who don't have the guts to communicate with their clients. Good, bad or ugly it is the responsibility of the LO to stay in direct communication with their borrowers.

Now, I can tell you this, I had a similar situation happen where during the escrow process a water pipe broke and the carpet was destroyed and of course the seller's property was NOT in the same condition as it was when the buyer offered on it. Since the lender most likely, has property condition requirements, unless the home is brought back to the same condition, you won't get funded.

But of course who do you look to? The seller most likely isn't going to dig into their pocket to cover those repairs cost, so if want to back out, there's a really easy way to do it. You just need a Buyer's Agent who is not coward and of course you need a LO who calls you back. Hopefully this will all work out, but if not, please find another LO to work with! This is certainly not the norm, but it appears that is getting more common that some LOs out there aren't conducting themselves in a professional manner.

Best of Luck!
0 votes
journey135, Home Buyer, Helotes, TX
Fri May 3, 2013
Thanks everyone. Wanted to evaluate all options. I should have expounded on my question earlier. Just missed the extra space.

Home is a foreclosure. Inspection completed. Lender has been dragging their feet and have not answered emails. Additionally, paperwork has several discrepancies not corrected. Shopping for another lender or person on existing staff. Have not signed all paperwork. MAY have to pour in $10-12K to fix items.

Currently within 2 weeks of closing. After realtor consultation, more than likely lose the earnest money (ok) and have to pay the appraisal fee. All other fees are internal.

Another question. Since the house is technically not mine until closing. House received damage from a storm. Is seller obligated to pay for these and if refuses can I back out of the deal. Assuming seller would concede to rectify said damages. Please advise.
0 votes
Dallas Texas, Agent, Dallas, TN
Fri May 3, 2013
Everything is governed by your executed sales agreement. Review those terms and conditions.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111 100's of Dallas homes listed for sale or lease

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0 votes
Jennifer Dua…, Agent, San Antonio, TX
Fri May 3, 2013
Typically the contract stipulates that if you can not aquire adequate financing you are not obligated to perform in the contract. Additionally, your realtor should have written in an option period for you to do all your due diligence?

Feel free to reach out if you need assistance.

All the best,

0 votes
Christine He…, Agent, New Braunfels, TX
Fri May 3, 2013
Did an agent represent you or an attorney prepare the contract if it was a for sale by owner purchase? If so, you should ask them to review the contract with you. There are time frames in the contract for when a deposit would have to be forfeited for "second thoughts" and that can't be answered generally without knowing the details of the agreement. Other questions would come into play as to what items were done on your behalf - repairs, appraisals, inspections, title reports, etc. These items are costs that need to be paid for. All that is in the contract as to who owes what and when.
0 votes

After careful review I don't have recourse at this time according to the way the contract is written.
Flag Fri May 3, 2013
, ,
Fri May 3, 2013
Hi Please give me a call. I help multiple buyers every month close on their home after they experience lender problems. I will be quick and honest with you. I am available right now.

Jon Nichols
Nichols Home Lending
0 votes
Luis C. Beyer, Agent, San Antonio, TX
Fri May 3, 2013
Agree with both Deborah & Laila, all depends on what stage of the contract you are, I asume you did not gires a Realtor, but if you did ask him .
0 votes
Deborah Espi…, Agent, Helotes, TX
Fri May 3, 2013
You stand to loose your earnest money and option fee and any fees that are non refundable by the mortgage company like origination fees etc
0 votes
Laila Abdulla, , San Antonio, TX
Fri May 3, 2013
The third party financing addendum protects you for a certain number of days based on contract to allow you to get 100% earnest money back in case the financing falls through. After that period has expired, you have option of really contacting the seller to request to allow to release the earnest money based on a lender decline letter issued by mortgage company. As far as second thoughts, after option period, you have minimum to zero flexibility interms of cancelling the contract.
I wish you best of luck. If i can be of assistance in maybe providing you with mortgage options, please dont hesitate to contact me. Best regards,

Laila Abdulla
Loan officer
Keystone Mortgage
0 votes
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