we want recourse!

[lamarsc1]

p i t a buyer

What is the name of your state? nevada
we recently sold our house to an investor who took 31 days beyond the close of escrow to sign because he couldn't get pmi insurance. as a result we lost over $1500 of proceeds due to penalties and interest. how do we recover this money and who's to blame?

 

[JETX]

"how do we recover this money"
*** I doubt that there is any remedy for your situation as you should have brought up this issue at the time of the seller not signing.

"and who's to blame?"
*** Simply, you probably are. When you first realized that the BUYER was going to be late in signing, you should have negotiated a settlement for his breach.

(Note: I corrected this after it was caught by Souix. Me Bad!! Simply, too many real estate windows open at the same time and got the 'players' mixed up.)

 

[Souix]

I agree with JETX except for I would replace the word "seller" with "buyer". You should have known the delay was going to cause you to lose money, therefore you should have done an Addendum providing for this loss and had the buyer sign it before closing.

 

[lamarsc1]

well now here's where it gets tricky (and thus the question who's to blame). we instructed our realtors to do just that: write a letter addressing the situation. they didn't. can we go after them for negligence? go after the broker maybe? how about the realty group?

 

[HomeGuru]

well now here's where it gets tricky (and thus the question who's to blame). we instructed our realtors to do just that: write a letter addressing the situation. they didn't. can we go after them for negligence? go after the broker maybe? how about the realty group?

**A: has this transaction already been closed and recorded?

 

[lamarsc1]

yes, today as a matter of fact. at this point we needed to take what we could get.

 

[Souix]

well now here's where it gets tricky (and thus the question who's to blame). we instructed our realtors to do just that: write a letter addressing the situation. they didn't. can we go after them for negligence? go after the broker maybe? how about the realty group?

**What do you mean you instructed them to write a letter? They should have prepared an Addendum while you were in escrow when the buyer asked for an extension. There are numerous creative ways to handle this, and yes, I do not think your realtor was looking out for your best interests, because they should have handled this for you. However, I am not an attorney, I cannot tell you who to go after.

What type of loan did you have on it? Was it an FHA or Conventional. You could have asked the buyer to compensate you for the extra interest you were going to have to pay on your loan payoff by not closing on time. I just had one where my client had an FHA loan. FHA loan interest accrues on a monthly basis instead of per day like conventional financing. We had the buyer's pay the additional interest since their lender was the one holding up the transaction.

 

[lamarsc1]

boy what's that kind of consideration like? loan is conventional, and we did ask for the interest but the buyer not only refused but threatened to sue us if we pulled out because he is claiming our property on a 1031. we're pretty sure he has no recourse because he was in default but, like you i'm not an attorney.

 

[HomeGuru]

yes, today as a matter of fact. at this point we needed to take what we could get.

**A: then it is too late. You should have addressed these issues prior to closing as Souix suggested.

 

[lamarsc1]

that's why we're wondering if we can go after our realtors and broker. we instructed them to write a letter and not only did they not do it but they told us they did. i just can't believe we could be s. o. l. just like that.

 

[HomeGuru]

that's why we're wondering if we can go after our realtors and broker. we instructed them to write a letter and not only did they not do it but they told us they did. i just can't believe we could be s. o. l. just like that.

**A: yes, by all means tell them that "this is Bullsh*t and that they should have to pay for your losses due to their negligence and fraud.

 

[JETX]

"we instructed our realtors to do just that: write a letter addressing the situation."
*** And I predict that will be your next problem. I will almost bet that the realtor won't remember your instruction, or will remember it a different way. So, you do have a copy of your WRITTEN instruction to them, don't you??

 

[HomeGuru]

I guess not then.

 

[Souix]

boy what's that kind of consideration like? loan is conventional, and we did ask for the interest but the buyer not only refused but threatened to sue us if we pulled out because he is claiming our property on a 1031. we're pretty sure he has no recourse because he was in default but, like you i'm not an attorney.

***You could have asked the realtors to chip in for the extra interest you were going to have to pay. Now it looks like maybe they'll be paying after closing instead of during. I have had transaction where the buyer has refused to pay the extra interest and I have asked the selling agent to help me cover it. But unfortunately for you, it doesn't sound like your realtor was very concerned about you. There is lots of realtors out there like that.

 

[HomeGuru]

So writer, what did your real estate agent tell you?