Can I get a contract to buy a house when the bank refuses to finance?

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Wife and I buy a house in Virginia and signed the contract, signed on the endorsement for inspection and then were eventually banned both the mortgage insurance and mortgage problems in the value of your home ( The bank said the property was overvalued, in spite of the evaluation will agree on the purchase price). We talked to vendors, we are no longer wanted to buy a home is the value of problem (3 dfft before the house was very different from the figures). seller’s lawyer sent a letter implied contract, and we must try to get another loan. The agreement provides for “a buyer must diligent efforts to obtain a loan lender (not the lenders). When we tried to get a loan, and it was forbidden, the seller does not have to use against us? Sales Agent Earnest debate that says we can not cancel the contract, simply because we do not want to buy a house, which stipulates that the bank has been wrongly assessed. We have reminded them that we were denied a bank loan. They argue that because my wife knows a professional loan officer (there is also a realtor), we need to try another lender loan difft. vendor’s lawyer says that because he spoke directly to the assessor if the bank had raised the value of insurers, there is collusion hindaja.Oleme become a lawyer, but he did not have the answers for us. We panicked b / c we sold our current house that we were really in love with other property and closed quickly. We do not currently live at home, and maybe go to the apartment of our baby girl! Seller lawyer warned us not to get another contract kodus.Emissioonikorraldaja denied funding based on property values that they believe the price was too high. We are writing to the bank, and the refusal of a certificate of mortgage insurance co. before the refusal of the insurer and the property unaffordable. That’s what we told the salesman, “the bank and insurance is a problem with the value of” vendor financing offer, need more money down, we were not satisfied with the supply and has dropped, we do not have enough attny raha.Müüja argues that we are not satisfied with care, looking for another source of another loan, even if we went, even though the bank and the bank refused the loan because sellrKui approved, I do not understand how you can contact the seller. They argue that using my wife’s house in the mortgage people are imperfect and do not care. Are they forcing us to consider another loan? Brokerage (office represented the seller and woman!) Recommended that the selling agent to sign the release. They ignored the request teda.Tänu much!

5 Comments
  1. Reply
    Expert Realtor
    February 7, 2011 at 1:39 am

    Yes and no, depends on what was written into the contract.

    Generally speaking, most sales contracts call for the type of loan (fixed, ARM, FHA or VA) and a range of interest rates…in other words, if you state in your contract that you’ll take an interest rate of “up to 7%” and a bank will only approve you at 8%, you have grounds that you cannot meet loan conditions and you get your earnest money back.

    The reason those conditions are put into the contract, is it prevents the buyer from applying for unreasonable loans that they would never qualify for in order to get out of a purchase contract.

    If you have no such condtion, well, that ain’t good because it puts the seller more in the driver’s seat than you.

    So, not only MUST you provide a WRITTEN letter of LOAN DENIAL from your bank to the sellers (which is a required element to prove you cannot obtain financing) you must attempt at least one other lender and possibly even FHA.

    Now, on the appraisal.

    The BANK orders the appraisal on YOUR behalf and can CHOOSE to accept that value or not…the underwriter has the final stamp of approval…this prevents loan fraud and the sellers finding out who the appraiser is and influencing the appraisal.

    If the bank is not going to accept the appraisal, then they need to provide you with something in writing stating WHY they cannot accept and provide evidence for that decision.

    The seller’s attorney is NOT a licensed appraiser and therefore IS NOT qualified to make a judgement on whether or not the appraisal is over-valued or not…in the end, it doesn’t matter what the seller’s opinion is on the appraisal…the denial of financing alone will get you out of the contract.

    Email me if you have further questions.

  2. Reply
    Patrick Lea, A Cincy Realtor(R)
    February 7, 2011 at 2:13 am

    You need to contact an attorney. I am NOT an attorney and nothing I say should be construed to be legal advice.

    Your contract should have a contingency for financing which enables you to get out if financing does not pan out. Also, most contracts will have an appraisal contingency.

    In addition to a simple contingency, most good Realtors(R) will define the loan type, term, and rate. This is more to protect the buyer than it is to prevent the buyer from going after a loan for which they do not qualify. In Cincinnati, our contracts have a spot where an agent can check “at prevailing rates and terms”. This is so nebulous that it could be construed to mean pretty much anything. For example, if you were turned down for PMI, then you could be a high risk loan. What are the prevailing rates and terms for a high risk loan? Could be off the charts high.

    Sellers’ agent may be practicing law without a license, if legal advice is being offered. Dangerous territory there.

    Again, I am NOT an attorney and you should NOT construe anything I say to be legal advice.

  3. Reply
    Realtoratheart
    February 7, 2011 at 2:51 am

    No you obviously do not qualify to by this home. Read your contract, especially the financing addendum. Most states require verbage that states if the buyer is denied a loan, the contract is null and void and any monies be returned to buyer. I get red flags when an agent or lawyer tells you to try another mortgage company. Keep in mind the seller’s agent is working for the the SELLER not you the buyer.

    THIS IS A GOOD REASON FOR ALL BUYERS TO HAVE THEIR OWN REALTOR REPRESENTING THEM AND NOT USE A SELLERS AGENT.

    You need to hire an attorney of your own to straighten this out before you can proceed.

  4. Reply
    Landlord
    February 7, 2011 at 3:49 am

    Your wife should have known better, being an agent. There is no way in the world she should have said a single word to that appraiser. Your wife screwed up, the appraiser would never have approached a buyer and initiated contact. This is where your contract getting you out of the deal is hosed, illegal interference with the loan process.

    You need to attempt another loan, this time following all of the rules, especially with the buyer being an agent, she is going to be risking her license by interfering. She knows better then this.

  5. Reply
    Mr Placid
    February 7, 2011 at 4:36 am

    It all depends on how one interprets “diligent effort.” If you fail to make a “diligent effort” to obtain a loan, then you are indeed in breach of contract. The question becomes, what is a “diligent effort?” Does that mean you must apply with only one lender, or at least two, or more than that. (The fact that the contract states “lender” as opposed to “lenders” is unimportant. What’s important is “diligent effort.”) So, what does “diligent effort” mean? It means whatever the judge (the one presiding when the seller sues you for breach of contract) says it means. If the judge believes that, given the facts you just mentioned, you did not make a “diligent effort,” then you lose. You kind of did not help your situation by using “there are problems with value” as a reason for canceling your contract. Kind of implies that you want to back out because you didn’t get a rock bottom price, as opposed to failing to qualify for a loan.

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