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Loan delays

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FoUrIzOnly

Guest
What is the name of your state? California

I am in the process of purchasing a condo here in Diamond Bar, CA and the close escrow date (45 days) was on or before 9/27/02. Till this date I still haven't received my loan doc due to lender's processing error. I'm doing a 80/15/5 loan. My first loan will be issued tomorrow and second loan on Wednesday.

On 9/25/02, the listing agent asked me to sign an agreement stating I'll be fine $100 per day until date of escrow, which me and agent find unacceptable.

Today, the listing agent called and told my agent the seller and the LA want to cancel the deal. Is this possible?

What recourse can I take? Thanks in advance.
 


A

annefan1000

Guest
It appears that you breached your agreement by failing to obtain proper financing by the settlement date. Though fault was placed on the lender, you are still found in breach of the contract. Yes they can nullify the contract.
 

HomeGuru

Senior Member
FoUrIzOnly said:
What is the name of your state? California

I am in the process of purchasing a condo here in Diamond Bar, CA and the close escrow date (45 days) was on or before 9/27/02. Till this date I still haven't received my loan doc due to lender's processing error. I'm doing a 80/15/5 loan. My first loan will be issued tomorrow and second loan on Wednesday.

On 9/25/02, the listing agent asked me to sign an agreement stating I'll be fine $100 per day until date of escrow, which me and agent find unacceptable.

**A: unless there is an automatic extension clause in the contract, too bad if you and your agent don't agree to the $100/day.
Heck, you are getting 100% financing.
****************


Today, the listing agent called and told my agent the seller and the LA want to cancel the deal. Is this possible?

**A: read your contract for any extension to closing and time is of the essence clauses. And default clauses.
************
What recourse can I take? Thanks in advance.

**A: agree to the $100/day.
 
A

annefan1000

Guest
HomeGuru????

The way I understood the post, this person is saying that he/she will be FINED $100 a day until closing actually occurs. Personally here in Pennsylvania, I've never heard of such a thing as "fining" the buyer for failing to obtain financing in a timely manner for settlement. If the buyer defaults because of lack of mortgage commitment for closing, the agreement would become null and void.
 
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annefan1000

Guest
Also, the financing the poster indicated: 80/15/5 loan

This, to me, means the buyer is obtaining two mortgages: the first mortgage for 80% LTV and the other mortgage for 15% (with 5% down).

Correct me if I'm wrong.
 

HomeGuru

Senior Member
Re: HomeGuru????

annefan1000 said:
The way I understood the post, this person is saying that he/she will be FINED $100 a day until closing actually occurs. Personally here in Pennsylvania, I've never heard of such a thing as "fining" the buyer for failing to obtain financing in a timely manner for settlement. If the buyer defaults because of lack of mortgage commitment for closing, the agreement would become null and void.

**A: so understand that this is the further negotiation part. If the Buyer wants to buy the property, rather than the Seller declaring the transaction terminated due to Buyer's default, the Seller is asking the Buyer to pay for related expenses in connection with the delayed closing.
For example if theproperty closed by the contracted closing date, the Seller would have no continuing expenses. Once closing is delayed, the Seller is incurring daily mortgage interest on the underlying loan, hazard insurance, real property taxes, maintenance fee (if any), any maintenance contracts, utilities etc.
Thus, it would only be fair for the Buyer to pay for these expenses from the agreed upon contracted closing date until the actual closing date.
 
F

FoUrIzOnly

Guest
Hi HomeGuru and Annefan1000,

Thanks so much for your replies. Sorry if I didn't post clearly enough. I was under duress when I signed this agreement because the listing agent threatens to cancel the purchase agreement. My agent tried to negotiate with the listing agents, but they just hung up on him.

I think I'm going to take legal action against the listing agent, and my agent.

Here are the events~

8/3 Saw this condo and really love it. Made an offer with 3% deposit. Scheduled closing date 9/20. Since it's on Saturday, my agent gave LA till Monday before 5:00pm to reply.

8/5 No word from the LA.

8/6 No word offer from LA.

8/7 Counter offer from LA and accepted by me.

8/8~8/12 No word from LA.

8/13 Open escrow. Scheduled closing date 9/27. (45 days)

8/17 Began loan process.

9/9~9/20, the LA made numerous calls to my agent and loan broker inquring about the loan process. Asking why is it taking so long. Yelling at them and hanging up on them several times.

9/23 LA faxed the Amended Escrow Instructions demanding I pay seller a sum of $100.00 per day from Sept. 25 until close of escrow.

I didn't sign the agreement until the LA threatens to cancel the purchase on 10/01.

10/02 Signed loan doc.

10/07 Close escrow (hopefully).

I would appreciate if any of you experts can email me directly at [email protected]. Thanks.
 

HomeGuru

Senior Member
FoUrIzOnly said:
Hi HomeGuru and Annefan1000,

Thanks so much for your replies. Sorry if I didn't post clearly enough. I was under duress when I signed this agreement because the listing agent threatens to cancel the purchase agreement. My agent tried to negotiate with the listing agents, but they just hung up on him.

I think I'm going to take legal action against the listing agent, and my agent.

Here are the events~

8/3 Saw this condo and really love it. Made an offer with 3% deposit. Scheduled closing date 9/20. Since it's on Saturday, my agent gave LA till Monday before 5:00pm to reply.

8/5 No word from the LA.

8/6 No word offer from LA.

8/7 Counter offer from LA and accepted by me.

8/8~8/12 No word from LA.

8/13 Open escrow. Scheduled closing date 9/27. (45 days)

8/17 Began loan process.

9/9~9/20, the LA made numerous calls to my agent and loan broker inquring about the loan process. Asking why is it taking so long. Yelling at them and hanging up on them several times.

9/23 LA faxed the Amended Escrow Instructions demanding I pay seller a sum of $100.00 per day from Sept. 25 until close of escrow.

I didn't sign the agreement until the LA threatens to cancel the purchase on 10/01.

10/02 Signed loan doc.

10/07 Close escrow (hopefully).

I would appreciate if any of you experts can email me directly at [email protected]. Thanks.

**A: sorry, I do not email privately. Now you tell us that you already signed an agreement to pay the $100/day. Your post was an after the fact post since you already signed the agreement, did not reveal this information but instead lead us to believe that you did not agree to pay the $100 yet.
You have no valid claim against the 2 real estate agents.
 
F

FoUrIzOnly

Guest
Thanks HomeGuru.

Yes, I was reluctant to sign the agreement until the listing agent threatens to cancel the purchase.

At the time of my original post, I hadn't signed the agreement yet. I was only asking if such an agreement is normal.

I've already paid the estimated closing cost when I signed the loan doc on 10/03. The escrow officer added estimated $1,500 penalty for the delay, from 9/26~10/10.

I was told on Monday 10/07 by the escrow officer that close escrow will be today 10/08. Called her today and she told me she can't close today because she hasn't received the exact charges for title and other misc. fees.

I think she's delaying the process per the LA and seller.

How long does it take from signing loan doc to closing? The recording was done today 10/08.

This is the worst purchasing experience.
 

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