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allIwant
Love my crazy life!
Member since 1/10 9170 total posts
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Buyer backing out after hurricane sandy
I really can't complain because there are people in much worse situations but I can't help but being a little upset.
We are in contract to sell my long beach apt (which we have had at least 4 deals fall through already)
We were getting close to closing, just waiting for a few things from bank.
Thankfully no damage was done to my apartment itself but the lobby is destroyed and the ocean broke through the cement wall into the parking garage in many spots.
Rightfully so, the buyer is scared and doesn't want to proceed.
Does she have a right to just walk away?
I have no idea what we are going to do because NO ONE is going to want to buy in long beach for a long time! We were underwater before the hurricane now I can't even imagine.
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Posted 11/5/12 7:59 PM  |
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Jenhos
Maeve
Member since 6/05 3273 total posts
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Re: Buyer backing out after hurricane sandy
I would think she loses her downpayment that they gave at contract.
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| Posted 11/5/12 8:56 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
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Re: Buyer backing out after hurricane sandy
Posted by Jenhos
I would think she loses her downpayment that they gave at contract.
This is what I think
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| Posted 11/5/12 9:33 PM |
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MCD0524
LIF Adult
Member since 4/10 1199 total posts
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Re: Buyer backing out after hurricane sandy
What kind of loan on they using? Most mortgage companies will require a new appraisal after a hurricane. If the appraisal isn't the same, they will not get their mortgage and you will need to read in your contract if you have a mortgage clause. If they do, they DO get their downpayment back. I am using a VA loan, buying in Seaford and this was a huge fear of ours. Turns out our new home didn't have damage but if it did, our mortgage company would drop us therefore we would back out of our contract without penalty.
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| Posted 11/5/12 10:23 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Buyer backing out after hurricane sandy
Posted by MCD0524
What kind of loan on they using? Most mortgage companies will require a new appraisal after a hurricane. If the appraisal isn't the same, they will not get their mortgage and you will need to read in your contract if you have a mortgage clause. If they do, they DO get their downpayment back. I am using a VA loan, buying in Seaford and this was a huge fear of ours. Turns out our new home didn't have damage but if it did, our mortgage company would drop us therefore we would back out of our contract without penalty.
This
A friend is waiting for a re-appraisal. Was suppose to close on the hurricane.
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| Posted 11/6/12 7:20 AM |
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Re: Buyer backing out after hurricane sandy
On all of my sales that are in contract, the banks are doing inspections for damage, but not reappraisals. So that is most likely the case for you... they want to see the property, but I doubt they will do another appraisal for value.
As far as whether the buyer can back out without penalty/being in breach of contract, it really depends on what your specific contract says and what contingencies were built in. Have you talked to your attorney? He can give the best advice. But if for some reason they can't get a mortgage loan to buy, then they can back out (there is always a standard mortgage contingency clause).
If there was any damage to the unit, which you said there isn't, you would have to repair it... you still own it and the buyer is entitled to get the unit in the same condition it was in when you guys agreed on price and terms and went to contract. As far as damage to the common areas, presumably your condo/co-op was insured and will be making repairs?
Sorry you have to deal with the stress and uncertainty! I would definitely consult with your attorney asap, because we are in some unchartered territory for real estate in this area.
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| Posted 11/6/12 9:38 AM |
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allIwant
Love my crazy life!
Member since 1/10 9170 total posts
Name:
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Re: Buyer backing out after hurricane sandy
Posted by Century 21 Dallow - Christine Braun
On all of my sales that are in contract, the banks are doing inspections for damage, but not reappraisals. So that is most likely the case for you... they want to see the property, but I doubt they will do another appraisal for value.
As far as whether the buyer can back out without penalty/being in breach of contract, it really depends on what your specific contract says and what contingencies were built in. Have you talked to your attorney? He can give the best advice. But if for some reason they can't get a mortgage loan to buy, then they can back out (there is always a standard mortgage contingency clause).
If there was any damage to the unit, which you said there isn't, you would have to repair it... you still own it and the buyer is entitled to get the unit in the same condition it was in when you guys agreed on price and terms and went to contract. As far as damage to the common areas, presumably your condo/co-op was insured and will be making repairs?
Sorry you have to deal with the stress and uncertainty! I would definitely consult with your attorney asap, because we are in some unchartered territory for real estate in this area.
Thank you for your response!
My buyer is an all cash buyer so her bank isn't the issue.
My circumstance is a little more complicated. I unfortunately had to do a short sale and I am working with an attorney that works specifically with short sales. So he said if I want to fight for the $ I have to hire another attorney to do so. At this point I don't think it is even worth the effort.
The co op is making repairs and has started gutting it already, however my buyer is a single woman in her 60s and now she is scared. I don't blame her but this really just stinks!!
Thanks again for all your help...you always take so much time to help others!
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| Posted 11/6/12 11:38 AM |
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