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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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They accepted our offer, but the contract is unreasonable...Need help!
Last week we made an offer on a house, and we were the first accepted offer. The engineer came the following day ($450), and the contract was delivered to our lawyer a few days later.
Our lawyer started looking over the contract, and in the contract it stipulates that should anything happen to our mortgage/mortgage co. before the estimated closing date, and we lose our mortgage, we forfeit the entire binder (our lawyer estimates $36,000). He advised us not to sign. The lawyers are now going back and forth trying to compromise, but we will not agree to sign under these conditions, so we may lose the house if they refuse to take that out.
Does anyone have any experience with this in the contract? If they refuse to take it out, can we sue them for the cost of the engineer report? 
Message edited 1/18/2009 8:56:12 PM.
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Posted 1/18/09 8:16 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: They accepted our offer, but the contract is unreasonable...
hmmm... I thought that was standard
I remember my DH telling his client recently not to put the money down on the house until he got the approval on the loan- it wasn't going to be an easy one- and he didn't want him to lose the money
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| Posted 1/18/09 8:57 PM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: They accepted our offer, but the contract is unreasonable...Need help!
Posted by Beth1210
hmmm... I thought that was standard
I remember my DH telling his client recently not to put the money down on the house until he got the approval on the loan- it wasn't going to be an easy one- and he didn't want him to lose the money
We got a preapproval, but it didn't go to the underwriter yet--our lawyer said he'd never advise a client to sign it just in case something happened with the bank.
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| Posted 1/18/09 9:21 PM |
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Jackie24
~We Did it~
Member since 7/06 6718 total posts
Name:
Jackie
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Re: They accepted our offer, but the contract is unreasonable...Need help!
When we bought our house we put it in the contract, the only way we could get our binder back is if we did not get approved for the loan. We were also pre approved but the process was still much more grueling after the that, getting the mortgage is crazy
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| Posted 1/18/09 9:26 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: They accepted our offer, but the contract is unreasonable...Need help!
Posted by Beth1210
hmmm... I thought that was standard
I remember my DH telling his client recently not to put the money down on the house until he got the approval on the loan- it wasn't going to be an easy one- and he didn't want him to lose the money
Standard is a 30 to 45 mortgage contingency. this seems to be more then that. If for some reason they were to get their mortgage and then the bank they got it with were to go under...they could forfeit their deposit if they did not obtain another mortgage. Without knowing the exact wording I can't tell you if it is standard or not.
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| Posted 1/18/09 9:30 PM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: They accepted our offer, but the contract is unreasonable...Need help!
Posted by Jackie24
When we bought our house we put it in the contract, the only way we could get our binder back is if we did not get approved for the loan. We were also pre approved but the process was still much more grueling after the that, getting the mortgage is crazy
Exactly-- Our lawyer just said things are changing so quickly with the banks that there is still a chance (albeit very slight!) that we could get turned down even though we were preapproved. I'm not willing to gamble $36,000 on getting approved, though I am sure we will be!
It's just so frustrating. The past week has been such an emotional rollercoaster--one day we have the house, the next they'll go to the back up offer if we don't sign immediately.
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| Posted 1/18/09 9:31 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: They accepted our offer, but the contract is unreasonable...Need help!
We signed our contracts before even getting preapproved, but that was a year ago...and we were putting a lot of money down, so we weren't too worried about getting approved.
I agree with your lawyer...times have changed. Banks are turning down people even with good credit. I wouldn't gamble with $36K either. I say, stand your ground. I doubt they'd be willing to let a buyer walk away over this.
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| Posted 1/18/09 9:43 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: They accepted our offer, but the contract is unreasonable...Need help!
Posted by Jackie24
When we bought our house we put it in the contract, the only way we could get our binder back is if we did not get approved for the loan. We were also pre approved but the process was still much more grueling after the that, getting the mortgage is crazy
that sounds much more reasonable
I am sure you will get approved- but I wouldn't sign that either
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| Posted 1/18/09 10:42 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: They accepted our offer, but the contract is unreasonable...Need help!
Posted by Jackie24
When we bought our house we put it in the contract, the only way we could get our binder back is if we did not get approved for the loan. We were also pre approved but the process was still much more grueling after the that, getting the mortgage is crazy
that's what we had written as well..
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| Posted 1/18/09 11:22 PM |
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