Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In the Short Sale Addendum (the last thing we and the seller signed), it states that "No Guarantee of Lender Approval: Purchaser and Seller acknowledge that Lender is neither required nor obligated to accept a short sale, and that Lender's approval may be revoked at any time prior to Closing, even after previous approval. In addition, the Parties acknowledge that Lender may require that as a condition of approval some terms of the Contract be amended. Neither purchaser nor seller are obligated to agree to any of Lender's proposed terms; in the event that any Lender's terms are unacceptable to either party, the Contract shall be void and purchaser shall be entitled to a refund of the earnest money deposit and the parties shall execute a mutal release as set forth in the Contract..."
Well, after this we received an Addendum stating we were to pay the discrepancy for agent's commissions, we declined the counter-offer. Nothing has been signed since.
Let me get this straight.. The sellers brokerage is suing you for "specific performance". That means they want you to continue with the purchase. But they changed the terms of the contract which becomes automatically a counter offer which you have not accepted. Anyone can sue anyone for anything. I would demand to see the specific issues they have IN WRITING before I would do anything. They may be bluffing!
In this market, they feel they have a hot one on the hook and they'll do or say anything to squeeze you. Oh and another thought, have you done the inspection yet? If not, you can do an inspection and NOT approve it, That would get you out of this mess also. Hope this helps.
Brad
Quote:
Originally Posted by Ching
In the Short Sale Addendum (the last thing we and the seller signed), it states that "No Guarantee of Lender Approval: Purchaser and Seller acknowledge that Lender is neither required nor obligated to accept a short sale, and that Lender's approval may be revoked at any time prior to Closing, even after previous approval. In addition, the Parties acknowledge that Lender may require that as a condition of approval some terms of the Contract be amended. Neither purchaser nor seller are obligated to agree to any of Lender's proposed terms; in the event that any Lender's terms are unacceptable to either party, the Contract shall be void and purchaser shall be entitled to a refund of the earnest money deposit and the parties shall execute a mutal release as set forth in the Contract..."
Well, after this we received an Addendum stating we were to pay the discrepancy for agent's commissions, we declined the counter-offer. Nothing has been signed since.
We hired a lawyer and he says he doesn't see the seller has a leg to stand on, since he is nearing foreclosure he can't declare damages, but just wants to push to try for her deposit. This is really good news. We were afraid there was really something wrong with the residence and seller was trying to dump it on us. Of course we would have had an inspection if we had been given time for getting loan and for inspections but they wanted us to do all inspection in 24 hours. We have a lawyer's fee and are offering them what it would cost to travel to MB to settle this matter. More of the continuing sage after we get a reply from lawyer's letter. I just found out the magistrates in SC were only recently required to have a high school education!!!! Wow, that is scary.
Wait a minute...this is a short sale? If so then the contract will need bank approval to be ratified. Your seller has no money to pay an attorney anyway. Just walk away.
The seller is an attorney, not a bankrupt attorney, but bankrupt. They are jerking our chain and the realtor's broker is dancing to the small claims court with him. They won't return earnest money deposit.
On monday, call the Horry county DA's office (district attorney) and tell them you suspect the crime of theft by fraud is going on. That should start an investigation by the DA's office into the situation.
Quote:
Originally Posted by Ching
The seller is an attorney, not a bankrupt attorney, but bankrupt. They are jerking our chain and the realtor's broker is dancing to the small claims court with him. They won't return earnest money deposit.
Ching,
You have been scammed. How do you know the seller is an attorney?
Is that what you were told?
Push for criminal action with the local District Attorney.
How do you even know if the person representated as the "seller" actually owns this house?
You broke Rule number 1 for money investing.
Don't invest in anything that you DO NOT Understand.
Short sales are long, drawn out procedures, they take at least 4-6 months to complete.
The bank legally owns the home, and pays the real estate commission.
You stated they wanted an inspection in 24 hours, that should have raised a red flag.
People who scamm have to do it quick. The longer it takes, the greater risk of getting caught.
At least they didn't get tens of thousands of dollars from you anyway.
If you want to buy a home in South Carolina, sell your home, rent an apartment down here on a month to month basis, go to a good reputable real estate company and look for homes.
No short sales or foreclosures, because you don't understand them.
There is a lot of fraud in anything, especially "bargain homes".
Good luck to you, it's a hard lesson to learn, isn't it?
P.S. Keep us posted as to what happens, will ya?
The earnest deposit would not go to the seller anyway in a short sale.The bank gets it all except for the very little they give the agents.Your realtor did something very wrong....commissions are NOT suppose to negotiated on the contract.That is between the broker companies and is usually done by guidelines set forth by their board.And finally they broke the law when they deposited the check....the check is not suppose to go into the earnest account(99% held by the brokerage that wrote the contract) until a deal is reached.No deal was reached if your account of the situation is true.
I hear what you are telling me but we have been bombarded by threats from Prudential (the listing broker). My husband has been afraid they will sue us for more than the earnest money by their threats because the seller's lender agreed to our price but cut the agents' commission which they wrote an Addendum for us to pay. We refused.
We've had three lawyers involved and the seller really is a lawyer. They give us an edge on going in front of the magistrate but none will say we will get our money back but that it is a magistrate's call. I don't get it. But our lawyer suggests we split the earnest deposit money which we are agreeing to in order to avoid law suits of specific performance. We signed a contract, a short sale addendum and declined the Addendum asking for commission. They wore us down with their threats. I really feel ripped off but these are SC brokers and lawyers, not just a FSBO. We had a buyer's agent who I feel is responsible for this mess. He didn't tell me the Addendum was for his commission, my lawyer had to order the Lender's approval so we could find out that information. These people are hungry and will do anything for a commission as far as I'm concerned. The final straw was when we had 24 hours to do all inspections after trying to continue on when seller's lender extended our time. That was unconsciousable. While I do feel there is scheming involved I don't see how it could be a scam. It is just a sleazy broker trying to get our earnest money deposit for whatever reason. Our buyer's agency won't release us from buyer's agreement we signed to use their agency so we won't be buying in SC. These are the worst sharks I've ever been up against and all for only $2500.00!
Anybody can threaten anything....it is your responsibility not to give in.I have been a realtor a long time and in my former state none of this would fly.....interesting my state is a reciprocal state with SC...so they are pretty much the same.I would file complaints with the state. So what if a magistrate goes the other way? Sue them in regular court...then sue "your agent".
I am concerned with this story because you are saying two different things...that you didn't sign addendum,but you weren't told what the addendum was....which is it?Why would do an inspection on a house that you didn't sign a contract on? And why would it be 24 hours unless you signed it on the original contract?
As far as buyers contract it is for a specific amount of time not forever and they would have to sue you to uphold it....plus how would they ever know in this whole big area if you used someone else?
Too many questions not answered for my taste....personally I think you need to take a break and NOT sign anything for awhile.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
