Cancel purchase - Posted by Beth Stiles

Posted by River City on August 26, 2005 at 07:07:36:

First of all, I am not an attorney, however, I do work in the mortgage industry in Compliance with federal regulations (not state).

Your answer depends on a couple things. First, most purchase offer agreements state how much of a loan buyers will be obtaining and also the amount of the monies due at closing. Yours HOPEFULLY stated that the purchase was subject to loan approval. In addition, your realtor should have given you a document that stated your estimated closing costs, which would have included the $8000. If you cannot find this document, ask her to show it to you. Your signature would most likely be on the bottom of the document, as they generally do have signature lines. If there are signature lines on the document and she produces one without signatures, I would say that she never gave you the figures and made a BIG booboo.

When you met with the mortgage company representative you should have received a “Good Faith Estimate of Closing Costs.” This document would have explained what your requirements were as far as monies due at closing. This document would also have signature lines, however, sometimes it is prepared and mailed within 3 business days of application to the applicants (which in my opinion is a terrible injustice to an applicant)and does not require a signature.

Keep us posted on the outcome. Good luck.

Cancel purchase - Posted by Beth Stiles

Posted by Beth Stiles on August 25, 2005 at 15:10:17:

Everything has been completed, inspection, appraisal, homeowners insurance, mortgage financed. The day before we were to close which was yesterday we were informed that we were only 95% financed and had to come up with $8,000 for closing, which we don’t have. Our Realtor claimed she told us this in our first meeting. It’s heartbreaking, we’ve already given notice at our rental & invested $500 in earnest money, $300 for the appraisal & $250 for the home inspection. We have less than perfect credit and cannot get a loan anywhere for the 5% down that we did not realize we had to have. We have until next Wed 08/31/05 to come up with this $8,000 or we can’t purchase the house. What are the legal reprecussions of not being able to buy this house due to a misunderstanding regarding the down payment? Are we likely to be sued, is there any legal action that we can take?