Loan Cimmitment

[colobuyer]

What is the name of your state? CO
I was informed via telephone at 3:18 p.m. on the day of the loan commitment by the bank that the loan did not go through because it did not meet their criteria (a-typical property because it is 20.23 acres - it does not meet the bank's criteria because it is .23 acres over what is considered typical for the area). The bank had the appraisal prior to the appraisal completion deadline. The bank waited until the last day in the afternoon to inform me that the loan was a "no go." It just happened to be a Friday. I called our realtor right after I hung up with the loan processor. Thee realtor did not get back to me until 4:56 p.m. Too late to get anything in writing. Because we did not get something in writing from the bank stating that the loan did not go through, we are now in default of the contract to purchase the home. Is the bank at all liable for the lost earnest money because they waited until almost the last second to inform us that the loan did not go through?

[JETX]

Originally Posted by colobuyer

Is the bank at all liable for the lost earnest money because they waited until almost the last second to inform us that the loan did not go through?

Nope. The obligation was on YOU to watch the clock.... and if it looked like it was going to be close (nothing in writing with 2 or 3 days of the deadline) to have contacted the seller and arranged for an extension.... or termination.

[HomeGuru]

I agree. Read the actual entire loan commitment.

[colobuyer]

After reading and re-reading the contract to buy the home, multiple times and two days too late, I understood it to read that the buyer (us) were the ones who needed to provided written notification to the seller (them) of the loan not going through by the loan commitment date, NOT the bank notifying us in writing. I spoke with our realtor (buyer's agent) and I was told that we were in default of the contract and the only thing that we could do was ask for an extension or lose our earnest money. I thought that a buyers agent represents the buyers best interests (???). He allowed me to believe that it was the banks responsibility to put something in writing for the seller. Never once telling me that I was misunderstanding what the contract stated. If we canceled he obviously would lose his 3%, which I am sure was what was behind him allowing me to believe it was not us who needed to notify the seller in writing. He did volunteer a name and phone number of someone who more than likely could get a loan fast and even close on the same date. Is there any recourse? Doesn't the buyers agent have an obligation to the buyer to do what is in the buyers best interest? Is the buyers agent at all liable for the loss of the earnest money?

[JETX]

Originally Posted by colobuyer

After reading and re-reading the contract to buy the home, multiple times and two days too late, I understood it to read that the buyer (us) were the ones who needed to provided written notification to the seller (them) of the loan not going through by the loan commitment date, NOT the bank notifying us in writing.

We already knew that... and YOU failed in not providing the seller with WRITTEN notice of no loan committment. That is what we have said all along.

I spoke with our realtor (buyer's agent) and I was told that we were in default of the contract and the only thing that we could do was ask for an extension or lose our earnest money. I thought that a buyers agent represents the buyers best interests (???). He allowed me to believe that it was the banks responsibility to put something in writing for the seller. Never once telling me that I was misunderstanding what the contract stated. If we canceled he obviously would lose his 3%, which I am sure was what was behind him allowing me to believe it was not us who needed to notify the seller in writing. He did volunteer a name and phone number of someone who more than likely could get a loan fast and even close on the same date.

Sorry, but the buyers agent is not YOUR agent. They have no obligation to hold your hand and walk you down the path. It was YOUR obligation to comply with the contract that YOU signed.

Is there any recourse?

Yes.
Recourse #1: You comply with your contractual obligation.
Recourse #2: You breach your contractual obligation.
Recourse #3: You negotiate an extension on your contractual obligation and obtain financing, or
Recourse #4: You negotiate a termination of your contractual obligation.

Doesn't the buyers agent have an obligation to the buyer to do what is in the buyers best interest?

Yep.

[quoteIs the buyers agent at all liable for the loss of the earnest money?[/quote]
Nope.

[PghREA]

Originally Posted by JETX

Sorry, but the buyers agent is not YOUR agent. They have no obligation to hold your hand and walk you down the path. It was YOUR obligation to comply with the contract that YOU signed.

The OP is the Buyer and he said his Realtor is the Buyer's agent. (Which, I'm assuming a Buyer Agency contract was signed by the buyer.)

While the Buyer is ultimately responsible for what is stated in the contract he signed, part of the Buyer Agent's responsibly IS to hold the Buyer's hand and WALK him through the buying process. The agent should have kept watch on the dates listed in the contract and made a phone call to the bank and/or had an addendum extending the time for the bank commitment signed by the buyer and seller.