Seller needs additional financing

[Speel]

What is the name of your state? Ohio

In the contract, the buyer stated that they have financing "now" instead of will have with in (X) days, This is an Ameridream mortgage, the agreed upon price is higher than the house appraised for due to buyers including their downpayment They do not have the funds to make up the difference. Is this grounds for voiding the contract now that they do not have adequate financing?

[pojo2]

To adequately answer your question one would need to read your contract contingency section and since we can not see the dates involved there is no way to answer your question.

This is an Ameridream mortgage, the agreed upon price is higher than the house appraised for due to buyers including their downpayment

HUH!?! What does price and appraisal and their down payment have to do with the price of beans? You had a sales price, right, then the house appraised for less than that, right, so where does their downpayment come into those equations and be the reason for the difference between asking price and appraisal?

Maybe I just need a nap...

[Speel]

OK wise ass, here you go:

Sale Price 185,000.00
Included in that is the following,
Financed Downpayment - 6050.00
Closing Cost - 2000.00
Net Sale of the property - 176950.00

House appraised 181000.00

= $4000.00 short......


Better?

The wording in the contract, and I'm not lawyer obviously, I would think is pretty standard. They attached an addendum that stated they were qualified up too 185000.00. The property only qualified for financing of 181000.00. I'm not sure if you are familiar with the Ameridream mortgage (I wasn't), but it allows up to 97% financing of the value of the loan. The Buyer has to put down 3% + $500.00. They are trying to finance the 3% as well.

I guess the real question is, "What rights does the seller have at this point?" if any? Do we have to ride the wave to the beach, regardless of whether or not they acquire additional financing?

Thanks for you attention, Did you get a good nap?

[pojo2]

Well it sounds like some hanky-panky is taking place with those figures and might even involve borderline FRAUD!

or

The house simply is not worth the asking price based on that appraisers opinion, now einstein you tell us which it is, monkeying with the numbers or over pricing?

[Speel]

All this is being done on the buyers end, I don't care how they get their financing done, just get it done.

The asking price is 179,900.00
appraisal - 181,000.00
Contract offer from buyer 185,000.00


They are still willing to buy, buy having problems getting all their money in order.

[John Se]

this is one of those infomercial buying techniques, buy with 100% borrowed money and walk away from the closing with a check in your pocket. I have never figured out how that works. Maybe if the owner carries back something, very hokey deal, You should give this buyer a chance to give up and find a real buyer, like one who HAS MONEY!!!!

[Speel]

l'd like nothing more, but we did sign a contract unfortunately..... I did speak with their lender, we should have this circus wrapped up this week. This process has tought me a lot!!! Key phrases: "Time is of the essence", "As is" and have addendums that clearly spell out time tables and penalties.

I appreciate your time, and sounds as though some level of entertainment was provided for you....