Breach of Contract

[michelle1205]

What is the name of your state? MI

My husband and I signed a purchase agreement on a home. The seller of the home was also a licensed realtor in the State of Michigan. Due to a change in my employment we were not sure that we would be able to get pre-approval for the mortgage. The listing agent gave us the name of a friend of his in the mortgage industry that he said could "pull some strings". We went to this person and got approved for the mortgage based on the income from my previous employer within a week. (I had left this job 1 week before we signed the purchase agreement and was to start my new job in 2 weeks) The loan officer wanted it to look like I still worked at my previous employer so we wouldn't have to wait until my new job started to get an approval and thus speed up the closing date.

The week I was supposed to start my new job and 3 days before our closing was scheduled my new employer called and told me that position I had accepted was no longer available and a future date to start employment would not be known at this time. We were forced to call the bank that had approved us for the mortgage and stop the process because we no longer had the income to support the payment. We explained the situation to the loan officer and he said he would contact the realtor/seller because it was a friend of his. He explained that our earnest deposit would be forfeited to the seller because we changed our minds.

Because of the weekend I didn't hear back from the realtor/seller until the morning that the closing was supposed to take place. The realtor/seller left messages on my phone that were rude and very unproffesional. Basically stating that we better show up to the closing that was supposed to take place and if we did not he would be forced to file a lawsuit against us for breach of contract. He said that he wasn't letting us out of this contract that easy and it would be in our best interest to come to closing and sign the documents or things would get nasty. We tried to plead our case to the realtor/seller explaining the situation with my employment and he didn't want to hear it. He said that we were approved the first time and the fact that my employment fell through and we could no longer afford the payment wasn't his problem-we had a contract.

Just to be on the safe side we had the bank run our income figures again without my income to show that we would not be able to obtain a mortgage loan on just my husband's income. Having this denial letter we are hoping that it voids the original purchase agreement.

One week later we got a letter in the mail from the realtor/seller letting us know that he is in the process of filing a lawsuit against us for breach of contract and he plans to sue us for his losses, interest expenses, property taxes,etc**************

Please Help!!! I have never heard of this before and thought because of our denial letter(even after the fact) would void the contract.

[seniorjudge]

Did the written contract say that if you had no financing that the deal was off?

[lcannister]

Let me summarize, you went into this loan under less than truthful facts, in fact some may call it down right fraud, on YOUR part and the loan officers part, you knew the facts were no longer true. Then you go back to the loan officer and have them run the process through without your info to prove you could not get the financing on hubbys or was it wifes income alone.

IF there is a financing contingency in the contract you MIGHT have a leg to stand on and even then you might watch out for that FRAUD word.

[moburkes]

Originally Posted by lcannister

Let me summarize, you went into this loan under less than truthful facts, in fact some may call it down right fraud, on YOUR part and the loan officers part, you knew the facts were no longer true. Then you go back to the loan officer and have them run the process through without your info to prove you could not get the financing on hubbys or was it wifes income alone.

IF there is a financing contingency in the contract you MIGHT have a leg to stand on and even then you might watch out for that FRAUD word.

You took the word right outta my mouth. FRAUD.