Can I back out of a loan after closing?

jmac1818 · Joined: 29 Nov 2007 Posts: 2 1.66 Dollars($)

I am a first time home buyer, and I guess a stupid one at that. Is there a way to back out of a closing after the fact? I signed on the house today because the company who I purchased from said it had to be by the end of the month. Today I get on the internet, and find out why, the same home I purchased, in the same community was listed today as $30,000 less than what I paid. Are there any options or am I just SOL?

michelle · Posted: Thu Nov 29, 2007 7:20 pm Post subject:

Welcome to the forum jmac1818,

And congratulations on your first home purchase.

Unfortunately purchase transactions do not have any recission rights - meaning once the loan documents are signed, the deal is completed. It is not uncommon in today's real estate market to have homes priced differently. Some sellers are much more motivated than others due to a need to sell very quickly. Another reason could be the condition of the homes or ammenities and upgrades involved.

If it makes you feel better - even if you had discovered this other home prior to signing the loan today and cancelled your current transaction, you probably would have lost your earnest money deposit and the seller might have had recourse to make you purchase the home anyway (if all your contract contingencies were waived)

jmac1818 · Joined: 29 Nov 2007 Posts: 2 1.66 Dollars($)

Thats what I thought, thank you for responding so quickly. I guess you live and you learn.

michelle · Posted: Fri Nov 30, 2007 4:54 am Post subject:

It was my pleasure. Enjoy your new home.

livinginnky · Posted: Fri Nov 30, 2007 12:42 pm Post subject:

Are you sure it was the same? Just because it was the same shell doesn't make it the same house. I used to sell for a builder and we would have a model that started at $94,000. The average selling price after options on that model was $142,000. You could get it up to $200,000 with everything. So the upgrades etc. could have a drastic effect on the builder selling price.

0.10 Dollars($)

Some were actually nicer, we thought about buying one of the others, because they had finished basements and tile floors in the bathrooms. I have been in most all of the homes in the community because it is a brand new community, most homes are your ordinary spec homes, basic appliances, crappy carpet, one tone paint, etc... but they also had the higher end homes that were completely decked out, these are the ones that were cheaper. I'm upset, but I understand how the market is right now so I'll get over it. Its just one of those things that I just couldn't control. By the way we did get to upgrade alot of things and can still afford the house and I'm sure we'll be happy there, it just would have been nice to have been able to finish the basement as well and have a cheaper payment.

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

Hi,

The most important thing is satisfaction. You are happy and satisfied with your home and also have a cheaper payment- that is great. We wish all the best.

Thanks,
Larry

kpatrick · Posted: Mon Dec 03, 2007 8:43 pm Post subject:

Hi Jmac,

Another thing to focuse on is a point that you made..."I understand how the market is right now so I'll get over it". And I feel this is a major point.

It isn't that your house is really lost $30k in equity...it is just what the builder is having to do to compete in this market, AND get the houses to move so he can get out from under the debt he is drowning in.

As long as you plan to stay in that home for about 5 years, you will eventually regain that equity.

It was REALLY crappy timing, though...I'll give you that! Good luck and congrats on your new home!

Cheers!

candid_kris · Joined: 21 Dec 2007 Posts: 6 2.57 Dollars($)

Yeah just what they've said, think about the positive...it is not about the money it is about the satisfaction, the feeling of happiness when you purchase your new home...just think about that and forget what you found out...people have different strategy on their marketing...

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