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CrazyInDebt
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0.10 Dollars($)
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 Posted: Fri May 18, 2007 3:03 pm Post subject: Foreclose or sell with a hit of $200K |
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I bought a model-lease-back at $980K with appraised value of -$150K below selling price. The loan was done through the builder's lender so this transaction completed with no glitches. My RE AGENT got his BrokersCoOp fee and left me working with the Builder's sales rep through the transaction.
My understanding is that my RE Agent's responsibility is to tell me the purchase price is way over the market price.
**Do I have legal rights to take take him to court for not fulfilling his RE Agent responsibility?
The build has moved out, I'm left with an empty property, mortgage close to $6K monthly. I can't refi because the appraised price is below mortgage balance and no lender will process the loan. If I sell, I'm taking a min hit of $150K - $200K.
**Should I foreclose or try to sell even with the substantial $$ hit?
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Jablon
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0.10 Dollars($)
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| Posted: Fri May 18, 2007 5:08 pm Post subject: |
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| Quote: | | The build has moved out |
How long was the lease for?
the builder leased the house back from you for a predetermined amount of rent, didn't he? |
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 helping_user
Joined: 31 Mar 2006
Posts: 786
Location: Hawaii
146.34 Dollars($)
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| Posted: Mon May 21, 2007 1:48 am Post subject: RE: role of real estate agent |
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Welcome Guest.
I think you can bring about a legal action against your real estate agent. The agent is supposed to help you get the best possible price and terms. But in your situation, you are paying much higher than the appraised value. Your agent should have negotiated with the seller or the seller's agent to help you avail better terms and conditions.
It will be better if you do not go for a foreclosure; rather you can sell the property and pay off the loan on it. But do inform the lender or the loan company about your plans.
Thanks. |
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mikeshapiro
Moderator
Joined: 04 May 2007
Posts: 67
Location: Phoenix, AZ
27.21 Dollars($)
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| Posted: Mon May 21, 2007 10:00 am Post subject: |
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Did the builder or your agent inform you that the appraised value was 150k less than the purchase price?
It sounds to me like your agent is held liable. Was the agent working for the behalf of the seller or you? I'd go to a lawyer before you do anything.
Honestly I'd only take advice from lawyers in this field. Sounds like you got taken advantage of and both the lender/builder and agent knew it.
Go straight to a lawyer and get their help.
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Serving Appraisal needs in Arizona
www.4realvalues.com |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1442
Location: florida
242.41 Dollars($)
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| Posted: Mon May 21, 2007 9:53 pm Post subject: RE: appraisal issues |
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Yes Mike, I too feel that the agent may have known about the low value of the appraisal. May be the builder's lender and the agent had some sort of dealings. I'm not sure though.
It is better at this situation to consult an attorney and take some legal advice. CrazyInDebt, just make sure that you can manage to pay the costs of any legal action taken as advised by the attorney. This is because you'll have to pay off the mortgage also. And, if you sell, there are costs associated with it.
Good luck |
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mikeshapiro
Moderator
Joined: 04 May 2007
Posts: 67
Location: Phoenix, AZ
27.21 Dollars($)
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| Posted: Tue May 22, 2007 9:19 am Post subject: |
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| Quote: | Yes Mike, I too feel that the agent may have known about the low value of the appraisal. May be the builder's lender and the agent had some sort of dealings. I'm not sure though.
It is better at this situation to consult an attorney and take some legal advice. CrazyInDebt, just make sure that you can manage to pay the costs of any legal action taken as advised by the attorney. This is because you'll have to pay off the mortgage also. And, if you sell, there are costs associated with it.
Good luck |
Or it could be that the builder/lender got the appraisal back and didn't say anything about it to the realtor & owner because the owner was putting down enough downpayment where they could fund without informing them.
Either way Caron is right, an attorney is your best option. Please let us know how this works out, it will be interesting to see who knew what and who is held liable.
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Serving Appraisal needs in Arizona
www.4realvalues.com |
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