I need some advice, and I will greatly appreciate any assistance provided.
I've been in contract to buy a home for about 5 months, and I have done everything on my end to buy the house, including paying for the seller's appraisal, my appraisal, and the inspection. The guy will not move out and just keeps making excuses while his agent gets him extensions. It all seems to be coming to an end now (we were told that the contract between us and the bank was ending because we can not agree on terms, the seller wants us to rent back to him and we will not because we do not trust him) and we are going to lose the house. Looking back, I can't seem to help feeling like I was used. I was told to pay his appraisal because he couldn't afford it and it was necessary to move the process along. Since I was an approved buyer, the bank continued to grant him extensions, allowing him to live for free. etc. etc.
1. His agent said we had to pay for his appraisal since no one else could. Was this legal?
2. Does this all sound like a scam? I'm thinking that at the very end, since we could not "agree on terms" the agent will just sell it to someone he knows, or possibly the 2nd will swoop in after foreclosure (he happens to do business with the 2nd) and buy it and flip it for a huge profit?
3. What if anything can I do? Is there any legal recourse? The seller is bankrupt. Is there somewhere that this can be reported to?
Thank you in advance.
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Fred,
First of all I would like to wish you well and hope you get the home, however doesnt sound like it, and the refirgerator is the least of you propblems! It saddens me that consumers continue to get hurt in these transactions! There is an article in the REALTORS(R) Code of Ethics ( I believe? Article 11 not sure but you can "google it" ) Where agents must work within the scope of their knowledge. So you may be able only to persue an "Ethic Complaint" For one or both agents.
Keep in mind, most short sales addedums allow that the terms from the lender are acceptable to the seller, and will include the second if there is one! You should have not been required to pay for an appraisal unless it was related to your mortgage application! So I am confused there! If you are taking a mortgage on a primary residence, you cannot agree to rent it back! Further, in a short sale, you cannot have an agreement with the seller to do so! SO dont do it, unless you want to take the chance and sign an "arms lenght agreement" and subject your self to Fraud!
Just think about it, you sign and attest that you have no ageements to allow the seller to remain in the property, Maybe out of the goodness of your heart, you try and accommodate the seller, seller does not get out, you need to seek an attorney,(oh this woudl never happen, yeh right0 etc. etc. etc. Two wrongs dont make a right!
Hopefully soon Listing agents will not list short sales without qualifying the seller, and say no thanks to the ones that want free rent and whatever else they can get. Hopefully, buyer's agents will take more care to qualify the "listing agent" before involving their buyer in a "crappy" short sale deal!
Sounds like your best bet is to eat the costs and run as fast as you can to a qualified agent! This statement is not intended to directly comment adversely directly on the practices of, another agent or agency. This is not in any way ment to be legal advise. As, always, you should seek legal council in this matter!
I agree Smitty... in Florida, a refrigerator is not considered a fixture, it MUST be specifically asked for on the contract, there is a box to check.
Fred, you say that there are 2 mortgages, have BOTH lenders approved the short sale? Please don't be offended but the only thing that probably makes you feel like this is shady is that your agent is not experienced enough to either know how a short sale works or not experienced enough to have a BS meter with the listing agent. Your agent needs to get with the listing agent and listing broker to get your answers
Fred, I'm little curious about this situation myself. This may not matter but, did your pre-approvals documents submitted by your agent to the seller's agent and their lenders list this new home as your proposed primary residence if purchased?
On another property I was interested, I was asked to furnish an appraisal and inspection for the seller. I responded that I would...with ADEQUATE assurances. Well, the seller and their agent weren't interested in that approach. I moved on.
I do have an agent, though he does not have much experience with shorts, so I am looking for some info here on my own. The bank approved the sale and there is a 2nd lender involved.
I understand that I can not force the seller to sell. If he simply will not move out, that is part of the risk I took. However, if there is something else shady going on, that is a different story.
The terms that were not agreed to are that the seller wants me to rent back to him, and I refuse to PLUS it is in the addendum that I am not supposed to. Additionally, the seller wants to take the fridge, we were told originally that it was staying, it is built in. So based on this, we were told we can not agree on the terms. Maybe we were not told that the "contract" was canceled between me and the bank, but we were basically told that we were no longer going to be able to buy it because we could not agree on "terms."
Fred, you already have some good advice here.
One thing that you need to change your mindset on is the fact that you dont have a contract with the bank, you have a contract with the seller. The selle owns the home and the bank is just there to release their lien on the home so you can buy it.
To answer your appraisal question, there are some lenders that require the seller to pay for the appraisal so this could be the case.
What 2nd are you referrring to? Is there a second lender involved?
Most important question.... WHERE IS YOUR AGENT?
Fred, did the bank ever approve the sale? Did they approve and then the seller just resisted moving? Usually the bank pays for the appraisal on the seller's side.
If the seller was unmotivated to move the listing agent should NOT have listed the property. I don't think it's a scam as I don't think they listed the property INTENTIONALLY knowing that the seller didn't want to sell, but you are in a very difficult situation. You need more information.
Exactly WHAT TERMS were not agreed to? If it was price, then there is not much you can do. If the lender didn't like the offer, that is out of the sellers control. However MOST agents will push to get the offer through because the alternative if the house isn't sold is likely foreclosure.
At this point, you need someone representing you to fight for your interests, however it could be to far gone at this point.