Buyer won't close - Posted by Anna

Real Estate Investing
#1

Posted by Anna on December 23, 2000 at 11:33:19:

Your flip brush-off is no help - will someone kinder PLEASE answer my questions? I PLAN to seek another buyer - am advertising & showing the house - and I KNOW, you can’t beat a dead horse, but this one AIN’T DEAD YET, and I NEED TO USE IT WHILE I CAN. I DON’T plan to sue - I can’t afford it AND I KNOW that only the lawyers win. But, I DO plan to tell buyer that if she wants out of this contract, she MUST pay me a fee, or I will notify the credit companies that she has defaulted. She NEEDS her good credit - she is actively seeking to buy other investment houses AND a personal residence. If I just let her out of the contract, I’ve just walked away from some bucks I NEED. Credit card companies threaten to report late payments to the credit bureaus - so I assume I can report this default. I have leverage now, while I have her locked in - my question still is - IS THERE ANYTHING ILLEGAL WITH THIS?

#2

Buyer won’t close - Posted by Anna

Posted by Anna on December 18, 2000 at 15:24:18:

I have 4 related questions. FIRST QUESTION. Is the Buyer in the following situation in default? A Buyer/Investor signed a contract for my house. Target closing date was 8 days ago. Buyer has not cooperated with the Mortgage Broker, in 2 ways, to get the loan - has not returned Broker’s calls for several weeks - has written a check for the appraisal, BUT has asked Broker NOT to schedule the appraisal. SECOND QUESTION. What is the Mortgage Broker’s responsibility to me? He doesn’t want to anger either me (the Seller) or the Buyer, because he hopes for future business from us. Must he order the appraisal? If not, is anyone responsible for ordering it? Can I order it? Is the Broker in violation of any ethical or legal code? Does he have a conflict of interest? THIRD QUESTION. Must I sell to this Buyer? If so, do I have to wait til she’s good and ready? The Broker wrote the bare-bones contract, and it is silent on almost everything. Can I legally make the Buyer an offer - that, for a hefty fee, I’ll let her out of the contract and agree not to ruin her credit? Is this blackmail or extortion? FOURTH QUESTION: Can I sue the Buyer now? If not now, when? Should I? What could damages or a remedy be? Keeping the earnest money doesn’t help much - it was only $100. Am I limited to my holding costs (loan payments, utilities, taxes, insurance?). Can I ask to be reimbursed for damages that occurred from a break-in during the time that Buyer was refusing to cooperate? Can I seek “foregone income” - the rent or profit that “might have been” if the Buyer had not tied up my property? Can I seek punitive damages? If so, how would they be figured? Is any of this worth it? If not, what is a good alternative? FINAL REQUEST. Please don’t tell me about NEXT TIME - I need to know what I can do now.

#3

Re: Buyer won’t close - Posted by dewCO

Posted by dewCO on December 18, 2000 at 16:42:35:

Didn’t we just go through this 2 weeks or so ago??? Same buyer I assume?

The lender works for the buyer NOT you, period. Doesn’t the contract state if it’s specific performance or liquidate damages at least?

You can’t ruin buyer’s credit just because they won’t close. What the heck are going to sue for? IF you want to sell this, as the other responses said weeks ago, go find another buyer. IF you want to make lots of money for your lawyer, go start the lawsuit. I’d just tell the buyer if the contract is silent on everything(!) that you’re keeping the earnest money and the contract is void because they haven’t gotten their loan and haven’t met any of the other dates in the contract, I presume. Get on with your life!

#4

Re: Buyer won’t close - Posted by Tom

Posted by Tom on December 18, 2000 at 16:03:12:

Anna, what does your contract say? All real estate laws go back to the contract. Who wrote the contract? You refer to a broker; did the Mortgage broker write the real estate contract? ( I would take the contract to a lawyer, which you should have done to start with.) I can’t imagine that you have any recourse against anyone, write a letter to the buyer terminating the contract, keep the earnest money and find a real buyer. Next time get a real contract and real earnest money (NO NOTES, NO POST DATED CHECKS, REAL CASH.)