We submitted a contract to buy home that my wife and I really liked. In
order to come up with the down payment for our new house we were
planning to sell our existing home. We submitted a no contingency
contract to buy the new house.

Later our lender informed us that we would not be able to carry two
mortgages together and that we would need to supplement our income with
some sort of a rental/lease agreeement on our current home. We came up
with a rental agreeement a few weeks ago, however our rental agreement
fell through. Our loan was approved based on the lease agreement and we
are supposed to close on the new property in a few days.

We really think we cannot afford to hold two large mortgages at the
same time, and we dont have a lease agreement and neither is the market
conducive to selling. Any ideas on how we could get an out? I am afraid
we will be in default and lose all our earnest money. Our sellers are
not willing to give us an extension either.

writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.

If you dont' sign on the dotted line at closing, that house won't be
purchased. And if you have decent real estate attorney
representation, I imagine you stand a relatively good chance of
getting your earnest money back. Or worst case, chalk it up to "don't
make a no contingencies offer if you don't have the wherewithall to
see it through, especially in a market as ****ty as this.


--
--
Todd H.
http://www.toddh.net/

On 26 Sep 2006 20:56:58 -0700, wrote:

We submitted a contract to buy home that my wife and I really liked. In
order to come up with the down payment for our new house we were
planning to sell our existing home. We submitted a no contingency
contract to buy the new house.

Why????


Later our lender informed us that we would not be able to carry two
mortgages together and that we would need to supplement our income with
some sort of a rental/lease agreeement on our current home. We came up
with a rental agreeement a few weeks ago, however our rental agreement
fell through. Our loan was approved based on the lease agreement and we
are supposed to close on the new property in a few days.

We really think we cannot afford to hold two large mortgages at the
same time, and we dont have a lease agreement and neither is the market
conducive to selling. Any ideas on how we could get an out? I am afraid
we will be in default and lose all our earnest money. Our sellers are
not willing to give us an extension either.


You do a stupid thing like no contingency and then when things go
wrong, you want us to help. I hope you lose your earnest money so you
learn a GOOD lesson.

In article .com,
wrote:

We submitted a contract to buy home that my wife and I really liked. In
order to come up with the down payment for our new house we were
planning to sell our existing home. We submitted a no contingency
contract to buy the new house.

The only three options that I see a

1) finding the magical price where your existing house will
sell. If you drop the price low enough, someone will bite.

2) find some short term loan from a relative that will allow
you to close on the new one.

3) do a deal with a friend or relative to buy your existing
home, thus allowing you to close on the new one. You settle
up with the 3rd party when the house finally sells.

You take a bath on the first one, and the other two border
on loan fraud. The question is how badly you want to get
the deal done.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708
Newave Communications http://www.johnweeks.com
================================================== ====================

Better to get out of the deal now and lose the money than the be stuck with
two payments which you can't afford. You should have sold the 1st house
before even looking at another house. (Then put everything in storage and
live in apartment while looking for another.)

Chalk it up to a lesson. But again best to get rid of this problem as soon
as you can. Talk to an attorney about possibly backing out of the deal and
maybe getting your money back. Maybe things will work out better than
expected...

wrote in message
We submitted a contract to buy home that my wife and I really liked. In
order to come up with the down payment for our new house we were
planning to sell our existing home. We submitted a no contingency
contract to buy the new house.

Later our lender informed us that we would not be able to carry two
mortgages together and that we would need to supplement our income with
some sort of a rental/lease agreeement on our current home. We came up
with a rental agreeement a few weeks ago, however our rental agreement
fell through. Our loan was approved based on the lease agreement and we
are supposed to close on the new property in a few days.

We really think we cannot afford to hold two large mortgages at the
same time, and we dont have a lease agreement and neither is the market
conducive to selling. Any ideas on how we could get an out? I am afraid
we will be in default and lose all our earnest money. Our sellers are
not willing to give us an extension either.

And you screw the buyer by claiming no contingincies and they lose out
on real buyers cuz of you

gimme wrote:
On 26 Sep 2006 20:56:58 -0700, wrote:

We submitted a contract to buy home that my wife and I really liked. In
order to come up with the down payment for our new house we were
planning to sell our existing home. We submitted a no contingency
contract to buy the new house.

Why????


Later our lender informed us that we would not be able to carry two
mortgages together and that we would need to supplement our income with
some sort of a rental/lease agreeement on our current home. We came up
with a rental agreeement a few weeks ago, however our rental agreement
fell through. Our loan was approved based on the lease agreement and we
are supposed to close on the new property in a few days.

We really think we cannot afford to hold two large mortgages at the
same time, and we dont have a lease agreement and neither is the market
conducive to selling. Any ideas on how we could get an out? I am afraid
we will be in default and lose all our earnest money. Our sellers are
not willing to give us an extension either.


You do a stupid thing like no contingency and then when things go
wrong, you want us to help. I hope you lose your earnest money so you
learn a GOOD lesson.

In a market like this, making a purchase offer without a contingency (or a
ton of cash) is very, very foolish.

Talk to some more mortgage brokers. This sort of thing happens all the
time, if your lender gets difficult with you find another one.

A good lawyer can get you out of the purchase contract with minimal damage,
but the longer you wait the less he'll be able to do for you.

S

Todd H. wrote:
writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.


Then those real estate agents don't know what they are talking about.
I personally kept the deposit from a buyer that tried to get out of a
deal. And especially now, with prices rolling over, there is plenty
of incentive for the seller to play hardball.



If you dont' sign on the dotted line at closing, that house won't be
purchased. And if you have decent real estate attorney
representation, I imagine you stand a relatively good chance of
getting your earnest money back. Or worst case, chalk it up to "don't
make a no contingencies offer if you don't have the wherewithall to
see it through, especially in a market as ****ty as this.


--
--
Todd H.
http://www.toddh.net/

mrsgator88 wrote:
In a market like this, making a purchase offer without a contingency (or a
ton of cash) is very, very foolish.

Talk to some more mortgage brokers. This sort of thing happens all the
time, if your lender gets difficult with you find another one.

A good lawyer can get you out of the purchase contract with minimal damage,
but the longer you wait the less he'll be able to do for you.

S

Another good example of why you should have an attorney review
contracts before they are signed. Was this one reviewed? The OP says
there was no contigency. Just to be clear, that means both no
contingency covering the sale of the existing home and no financing
contigency either? Any decent attorney would have cautioned you of
the major risk exposure you were taking on.

The big unkown here is how much is the deposit and what is the sale
price? If the deposit is only a few thousand dollars, then your are
likely going to lose all of it. The seller is entitled to it as
compensation for your default. If it's more than that, then the seller
is only entitled to as much as they can prove covers actual damages due
to your default. For example, if they sell the house 2 months later to
someone for the same amount, the damages should be small. I say
should be, because we don't know what other deals on the seller's side
your default may have impacted. For example, if they had a deal to
buy somewhere else and lose their deposit because you didn;t close,
then that can be added to the damages. Worst case, they could have
damages for more than your deposit, but that is rare.

The other big unknown is who is holding the deposit? If it's a third
party, ie real estate agent, lawyer, etc, as is usually the case, then
you are in much better shape than if it's the seller. The third party
usually can't just release the money, even if you default, without your
consent or a court ruling. And that's the incentive for the seller to
negotiate a quick and fair settlement. As Mrsgator says, you need a
lawyer. The strategy should be to offer to settle quickly, without
litigation, with the seller keeping a reasonable amount. Failing that,
you can wait and see what happens when and if they sell the place. If
they sell it quickly for the same amount, then you should have a good
case to minimize what they can keep. If they sell it for less, then
they have a great case for actual damages and you're outta luck.

writes:

Todd H. wrote:
writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.


Then those real estate agents don't know what they are talking about.
I personally kept the deposit from a buyer that tried to get out of a
deal. And especially now, with prices rolling over, there is plenty
of incentive for the seller to play hardball.

So you can speak to these Realtors' experience in a state in which
you're not licensed (IL)?

Damn Dmitri, you must be _really_ good. Perhaps even a legend in your
own mind!

--
Todd H.
http://www.toddh.net/

In article , Todd H. wrote:
writes:

Todd H. wrote:
writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.


Then those real estate agents don't know what they are talking about.
I personally kept the deposit from a buyer that tried to get out of a
deal. And especially now, with prices rolling over, there is plenty
of incentive for the seller to play hardball.

So you can speak to these Realtors' experience in a state in which
you're not licensed (IL)?

Damn Dmitri, you must be _really_ good. Perhaps even a legend in your
own mind!


Huh? I didn't write any of the above.


Dimitri

First of all, I am not an attorney.
What if you default? They can't take your money if you have it in
escrow. They must get your approval.
It can get nasty where you can put a lien against the house if they
don't give your money in escrow back (as far as I know). I guess an
attorney can get a lis pendens on the house. Basically they could not
sell the house till it is settled. This can take 2 to 3 years. If you
know the sellers situation (i.e. are they buying a house) it might be
easier for you to decide what you want to do (litigate or pay).
But this can cost you a lot of attorney fees. Many attorneys might try
to start the bluffing game with this stuff. Depends how much money you
are talking about.
Talk to an attorney (This might be some $$$ but well worth it).
If the sellers are not in a rush to sell they should be more
forgiving. If they are in a rush you might be able to negotiate a
"midway" (I recommend to do this through an attorney). Keep in mind,
if you litigate it will cost them lots of $$$ as well and they might
not want to do this.

On 26 Sep 2006 23:27:05 -0500, (Todd H.) wrote:

writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.

If you dont' sign on the dotted line at closing, that house won't be
purchased. And if you have decent real estate attorney
representation, I imagine you stand a relatively good chance of
getting your earnest money back. Or worst case, chalk it up to "don't
make a no contingencies offer if you don't have the wherewithall to
see it through, especially in a market as ****ty as this.


--

(D. Gerasimatos) writes:

In article , Todd H. wrote:
writes:

Todd H. wrote:
writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.


Then those real estate agents don't know what they are talking about.
I personally kept the deposit from a buyer that tried to get out of a
deal. And especially now, with prices rolling over, there is plenty
of incentive for the seller to play hardball.

So you can speak to these Realtors' experience in a state in which
you're not licensed (IL)?

Damn Dmitri, you must be _really_ good. Perhaps even a legend in your
own mind!


Huh? I didn't write any of the above.

My bad--my apologies Dmitri.

trader4 ya anonymous goof, the comments were aimed at you.

--
Todd H.
http://www.toddh.net/

Todd H. wrote:
(D. Gerasimatos) writes:

In article , Todd H. wrote:
writes:

Todd H. wrote:
writes:

Any ideas on how we could get an out?

Talk to a real estate attorney asap. They're reasonable.

I am afraid we will be in default and lose all our earnest
money. Our sellers are not willing to give us an extension either.

I've had lots of real estate professionals tell me that they have
hardly ever seen earnest money get forfeited even in cases much like
this.


Then those real estate agents don't know what they are talking about.
I personally kept the deposit from a buyer that tried to get out of a
deal. And especially now, with prices rolling over, there is plenty
of incentive for the seller to play hardball.

So you can speak to these Realtors' experience in a state in which
you're not licensed (IL)?

Damn Dmitri, you must be _really_ good. Perhaps even a legend in your
own mind!


Huh? I didn't write any of the above.

My bad--my apologies Dmitri.

trader4 ya anonymous goof, the comments were aimed at you.


You obviously don't even know who you are talking to, much less what
you are talking about, and yet you once again choose to follow it up
with name calling? BTW, figuring out whether the OP lived in IL
didn't stop you from making your comments, did it?

I hope the OP let's us know how his case turns out. Because in this
market, with inventory growing and prices sagging, when he defaults on
his purchase, it's very likely he is going to lose his deposit,
regardless of what you claim.




--
Todd H.
http://www.toddh.net/

The question no one here has thought to ask the OP:

WHY did you put an offer on a house? Aren't you living in one now? Is
it not doing it's job, providing shelter, keeping the rain out the
soup, etc?
Houses aren't meant to be regarded like bathtowels; swapped out becuase
you're tired of the design or decor. What was your thinking in the
process?