Is this Legal?

sergio_huerta · Joined: 17 Jan 2008 Posts: 1 1.53 Dollars($)

this might be more of a real estate question but I thaught Id try here as well.

Buyers were working to qualify for first time assistance program with a lender, Found a newly built home. Initially the builder said they could not allow sale to these buyers becuase of the duration of first time assistance programs. OK.

Later recieved a call from the builders lender stating they too are a qualified lender to offer this program and stating if we use them, they have asked for and were granted permission by management to allow the buyer the time needed to qualify for this program.

Decmber 15 contract is signed by buyer to purchase home with Jan. 31 as COE. Escrow barely opened Jan. 14 a month later and we get a call on 15th stating that we must close by Jan. 31 or they will not allow us to use the first time assistance program buyer will have to qualify for another loan or lose their deposit.

Is this right on behalf of the sellers?

Does buyer have any way of getting out of this without losing their deposit.

Any advise is appreciated.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi sergio_huerta,

Welcome to the forum.

I think whether you will loss the deposit or not depends upon the contract. If it is written on the contract you will loose the deposit.

"a qualified lender to offer this program"
Now if the lender offered you the mortgage and you were ready for it, what is the problem now?

Best of luck,
Larry

Guest 0.10 Dollars($)

this first time home buyer program can only be processed by approved lenders.

The problem is that we were told we were going to be given the opportunity to apply for this program knowing it could take a 45 to 60 day Escrow as this type of government program ususally requires. Escrow took 30 days to open, a loan cannot be processed without an escrow open if not mistaken. Now we are only being given 15 days, appose to the 45 to 60 days we had been given permission for.

15 Days to process a loan that they acknowledged would take 45 to 60 days. That is the problem that I am having.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Sherta,

I think you should talk to the seller and try to negotiate with him to extend the time period.

Usually it is a 30 days period required to close after opening the escrow but it may vary with the sellers. But you should clearly talk to the seller stating your situation and see if he is willing to work with you.

jheard · Posted: Fri Jan 18, 2008 8:10 am Post subject:

It all depends on what your contract says. Consult with an attorney to review them and assess your options based on the facts.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

It is illegal for a home builder witb an affiliation with a mortgage company to deny sale of a home for using another mortgage company. They probably signed an affiliated arrangement agreement with the application, etc. Fed gov't has made this a mandatory form when dealing with a company that has affiliations as this one does. This form outlines the rights that the buyer/borrower does have. It also states that the buyer has the right to shop for other services. It sounds like they might have a case since they were forced into using the builders mortgage company.

As far as getting into the home, I think someone needs to play hard ball with this builder since that is what they have done to get the buyer to use their mortgage company. There are several governing agencies that would appreciate knowing what kind of practices this builder/mortgage company are up adhering to (or not adhering to in this case).

As far as just getting into the home, is it possible for the buyer to close at the end of the month. If they are, and they really want the home, I would suggest that they close. Just because they close this loan with this lender, doesn't mean that they would give up their right to pursue anything legally. I would certainly notify the governing agencies of these practices regardless of what the outcome is.

Also wanted to note that the purchase agreement should be subject to financing so if they are turned down because of the loan not closing by the end of the month they would be entitled to their deposit money back as well as the right to buy another home without penalty.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

You might find this article interesting: http://www.real-mortgage-quotes.com/real_estate_affiliations.htm

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