seller let escrow expire, did not meet appraisal, and wants to cancel

[mra367]

i started escrow 2/22/00 seller was late geting his pest reports. i voiced concerns that seller had not done his disclosure statements in the contracted time and then the listing agent put the house back on the multiple listings.i have never wanted out of the deal. now the appraisal is under what i offered, and the agent refuses to submit comps to the lender to justify the price. this transaction is in california, usa. now the seller wants to cancel the sale. i am approved for an fha loan. and letter of approval was submitted with the purchase offer. broker is representing both buyer and seller.agent wants me to qualify for a conventional loan with 10%down to keep deal going. i have asked for a challenge to the appraisal. it is a rising market, and appraisser used 3 R-2 lots with duplex to compare subject property sitting on R-1 lot. subject is a 996 sq. ft. 3br/1ba detached garage w/ guest cottage. agent says seller does not want to wait for challengeto fha and will cancel if i dont get conventional financing in 2 days. i have earnest money deposit in escrow and have paid for home inspections and appraisal.erscrow was to close 3/31/00. can the seller back out now? do i have to get conventional financing? can i require the seller to wait for the fha challenge?is it over, and there is nothing that can be done as agent implies?

 

[msattorney]

Go to one of the questions right below yours titled "Deposit on Purchase" The reply from I am always liable is really good about what kind of damages a seller can collect if the buyer fails to fulfill the contract.

What does your contract says about financing? Does it require you to get conventional financing? Do you think you can get it in a short time? If so, see about a compromise with the seller. Or is the seller hoping you will fail so he can turn around and sell it for more in the crazy CA housing market?