Default by buyer - what constitutes it? - Posted by Anna

Posted by JohnBoy on December 06, 2000 at 20:01:22:

Some lenders will require to have their own appraisal done and will not except another one that was done by someone else regardless! If that turns out to be the case with the buyers lender then you’re out the cost of an appraisal!

I had one lender that required their own. Even if it turned out the guy they end up using was the same guy I had the appraisal done through, they still required a new one and would not except mine being recertified!

Default by buyer - what constitutes it? - Posted by Anna

Posted by Anna on December 06, 2000 at 11:01:11:

I have a signed contract from a buyer, who is not cooperating in getting an appraisal done. When does buyer behavior cease to be just “pokey” and become default? I want to sue - the deal was lousy - the earnest money was only $100 - I agreed to pay all closing - I’d probably make out better from suing this person, if I could get damages. I bought the property to flip, with money from an individual, who’s impatient. What can I do?

Earnest Money - Posted by Jim LaVerdi {Phx_Az}

Posted by Jim LaVerdi {Phx_Az} on December 06, 2000 at 20:16:49:


When getting earnest money I always ask for a minimum of $1000.00 (firm) That way there it makes them think. If they Default they are losing a nice chunk of change, therefore making them think before they even give you the deposit. If they’re serious you’ll have no problem getting this amount. If they are game players, they’ll back away quickly.

Having only $100.00 at risk is not much security for you. When my monthly payment comes due and they have been screwing around for some time deciding and or whatever, where do you think I get the cash to pay that monthly? From my buyers earnest money! and all of my payments are well over $100.00 per month!


Hope this helps.

Jim LaVerdi {Phx_Az}

Next time… - Posted by Paul_MA

Posted by Paul_MA on December 06, 2000 at 14:28:48:

…buy the appraisal yourself and get the title work done. Then the key elements are in place and the cost can be passed on.

The appraisal can usually be recertified to the lender on or near the closing date. Use a local nationally certified appraiser.

Re: Default by buyer - what constitutes it? - Posted by JPiper

Posted by JPiper on December 06, 2000 at 13:04:31:

Even if there has been a breach (and it’s impossible to know without seeing the contract), by the time you figure out the legal fees, and compare them with any damages you may have, my guess is that a lawsuit is not worth it. You’re understandably upset over the buyer’s actions…but it’s time to move on. Put the property back on the market…and get the buyer to sign a release.


Re: Default by buyer - what constitutes it? - Posted by Rob FL

Posted by Rob FL on December 06, 2000 at 11:51:05:

You have to follow what the contract says. Have they breached the contract in any way? If there is a breach, then the contract might be able to be rescinded. If no breach has occurred, you may just have to wait until one does.