Brand new home purchase gone horribly wrong

[Thanku4thehelp]

I live in the state of Nevada and on 3/31/13 I entered into a purchase
agreement to purchase a new construction home. The builder required me
to register and get pre approved with their in house lender to be able to
participate in the lottery required to purchase the home. At this time I was
given 30 days to submit underwritten approval so that home construction
would begin. I was also told that the lender would cover my closing costs.

After going through the process of giving/submitting everything requested
by my Loan originator of the builders lender, I was told by on 4/23/13 that
they would be unable to fund my loan.

I was told at this time that I could cancel and get a refund on my deposit,
but elected to exercise my right to extend the time period of the contract
for another ten calender days as allowed under the terms bringing the date
to 5/10/13 allowed for me to show proof of funding.

I was unable to provide the underwritten approval or (proof of funding) on 5/10/13
and have been called by the home builder daily to submit a cancellation
notice acknowledging losing my security deposit and allowing the lot I was
under contract with, to be placed back into the avalability pool
and that I could not follow through with the purchase due to
being unable to fund the loan required to begin construction.
I did not sign this document and ignored the builders phone calls.

Today, 5/17 a lender was able to submit full underwritten authorization
meeting the home builders requirements to begin construction.

Immediately afterwards, my sales agent emailed me letting me know that
I would have to come in and sign paperwork again at the current market
price which has increased $55,000 since I entered under contract on 3/31

What should I do in this situation? Of course I would prefer the home builder
to honor the contract at the market prices at time of purchase on 3/31.

I am expecting to meet the sales agent representing the home builder tomorrow.

Given the particulars of this situation. Does anyone have advice or guidance
they can offer? Thank you for reading all the way to the end and taking
time to add your insight into my situation!

 

[OHRoadwarrior]

The bad news is your contract expired. The good news, may be that you can negotiate a lower amount than 55k, based on home availability in the complex. I am highly suspicious that they had you enter a "lottery", yet you "won" but after your contract expired, instead of the default winner buying it, they kept calling you about an expired contract. Now that you have obtained funding all the mysterious buyers have disappeared and the price went up $55k. You appear to be a tail they are wagging.

If it looks like a duck and it quacks like a duck, it is likely a duck. Prepare an offer, in accord with the old contract. Remember you lost that deposit. Offer the same amount, subject to your current financing, giving a termination date soon enough your financing will be active. Put it on the table and refuse to negotiate on the basis you cannot afford a higher priced home. If you have the guts to walk away, I bet you get it for that price.

 

[LdiJ]

The bad news is your contract expired. The good news, may be that you can negotiate a lower amount than 55k, based on home availability in the complex. I am highly suspicious that they had you enter a "lottery", yet you "won" but after your contract expired, instead of the default winner buying it, they kept calling you about an expired contract. Now that you have obtained funding all the mysterious buyers have disappeared and the price went up $55k. You appear to be a tail they are wagging.

If it looks like a duck and it quacks like a duck, it is likely a duck. Prepare an offer, in accord with the old contract. Remember you lost that deposit. Offer the same amount, subject to your current financing, giving a termination date soon enough your financing will be active. Put it on the table and refuse to negotiate on the basis you cannot afford a higher priced home. If you have the guts to walk away, I bet you get it for that price.

I wonder if the argument could be made that had the builder not insisted on you using his lender, you could have met the terms of the contract. To be honest, this sounds very much like a scam to me. I would seriously consider running this whole thing by an attorney ASAP.

 

[justalayman]

a scam, maybe but don't ignore this:

After going through the process of giving/submitting everything requested
by my Loan originator of the builders lender, I was told by on 4/23/13 that
they would be unable to fund my loan.

I was told at this time that I could cancel and get a refund on my deposit,
but elected to exercise my right to extend the time period of the contract
for another ten calender days as allowed under the terms bringing the date
to 5/10/13 allowed for me to show proof of funding.

The terms of the contract may have made the deposit non-refundable in exchange for the extension.


thanku4



you need to read your contract very thoroughly. It controls any rights you may have to argue for the initial price. If there are none, then it is what it is.