Virginia Beach Home Loans: Seller's Remorse?

Seller's Remorse?

I wrote a blog yesterday (http://activerain.com/blogsview/287283/Do-you-want-to) about a loan that I've completed that the sellers will not close on. I spoke to the seller's attorney yesterday after I wrote the blog to find out what is going on.

He told me that he really doesn't know. He said that the seller came into his office in the morning and kept going around in circles about why he could not close on the deal. His attorney told me that he was not making any sense. He says that the guy is living in an upstairs apartment in the garage and cannot move his stuff out till Jan.15th. I proposed that a short term lease be drawn up.

The seller's attorney advised me that "if I were you, I wouldn't waste any more time on this." This to me is unbelievable.

This is pretty disappointing. There really were no indications that I'd run into issues on this loan. The buyer is highly qualified. The sellers side came to me in a rush like this is something that needed to be done ASAP! I did my job and now unless this seller gets his act together my client is going to walk away from this dealm, the listing agent is going to lose the sale, and the seller will not get a better price than he has right now.

If I can offer any advice to any potential buyers out there I'd say DO NOT PROCEED WITHOUT A BUYERS AGENT!! A buyers agent will negoiate the contract and make sure that there are provisions in place to penalize a seller who does not comply with the terms of a contract.

I did not realize until recently just how important it is to go to a buyers agent for representation. A listing agent is representing the sellers interests, a buyers agent represents the buyers interests.

In this case I believe that if a buyers agent were involved that something could be done.

I really think that threre should be some sort of legal ramification for the seller who is not complying with the terms of the contract.

Is there anything that can be done legally to force the seller to adhere to the terms of the contract? Or is there anything that can be done legally to penalize the seller for not complying with the terms of the contract?

Any advice on what can be done will be greatly appreciated. I'd like to hear from any of you who may have been in a similiar situation and what you did about it. Thanks!!

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)

www.plattsburghmortgage.net

chris.ohlsen@guaranteedrate.com

 

 

Comment balloon 15 commentsChristopher Ohlsen • November 28 2007 09:58AM

Comments

I've never been in this situation, but within the contract (if there was one?) the buyers and sellers would have agreed to either mediation, or arbitration to resolve any possible disputes.  If the buyers decided to sue the sellers for specific performance, that would also be an option.  Any of these options take time, however, and the buyers may not want to hassle with it.  They may just take their deposit back and move on to another home instead.  On that note it would behoove the seller's agent totry and get their client to see the light, or as you say the entire deal will go south. 
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

Seems like there should be something that could be done to work out this deal if the seller still wants to sell at all.  If not, in our contracts in South Carolina we have a clause where the agents and the buyer can go back against the seller for actual costs incurred.  A short term lease should work out for the tenant. 

Something sounds very strange.  Heck, you might even postpone closing until January 15th, but not completely walk away.

Posted by Kim Peasley-Parker (AgentOwned Realty, Heritage Group, Inc.) about 10 years ago
In some states the seller would also be responsible for the commission to the agent as having produced a ready, willing and able buyer.  Maybe that would clarify the seller's thinking.
Posted by Bill Gillhespy, Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos (16 Sunview Blvd) about 10 years ago
Why would you put buyers in this type of situation.  Please get chummy with a real estate agent and refer your buyers to them.  You get paid, they get paid and the buyer gets a home.
Posted by Denise Allen, Realtor@ Chesapeake, Hampton Roads (Resh Realty Group) about 10 years ago

Dennis - I am pretty chummy with quite a few Realtors. I did not put this buyer in this situation. This deal had already been in progress when I got involved. All of the players were already on the field and they came to me because they were mislead by an unscruplulous lender. Being the kind person that I am I took them on and I got done what needed to be done, done quickly. When they came to me they said that there was an emergency deadline and that I needed to be done by such and such a date. I took all of the details down and put them together. I do refer those who come to me first to my Realtor partners.

Bill - I do not believe that is the law by default here in NYS. I believe that that is sometimes the case if it is written into the contract. Unfortunately this contract was negoiated with the listing agent and the buyer. I have revied the contract for such a clause and have not found one. I wish I did have this kind of leverage in this situation. It is my job to advocate for my client and that is what I am doing ...Working in his interest.

Kim - I'm sure that something could be worked out under most circumstances. In this case the buyer has said that he will walk because the date has already been extended by the seller a couple of times and the buyer feels like he has no recourse if after a couple of months the seller is still not prepared to attend a closing.

Linda - I really don't think the interested parties will go to such lengths as to sue each other. I don't really want to see that happen anyway. What I would like to see is the seller come to his senses and honor the contract.

Thanks for the comments guys, I like the dialogue. Keep the comments coming. I would like some advice ... maybe even legal advice if we have any attorneys on here that could help me lend some expertise when it comes to writing the details of the contract.

 

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
It's not too late for your client to consult an attorney. In our part of the state attorney representation is required for seller and buyer.
Posted by Rosario Lewis, GRI, SRES - DDR Realty - Orange County, NY (DDR Realty) about 10 years ago
Christopher I was thinking if the seller was made aware of the potential consequences of his actions he might see that going through with the sale would be a GOOD thing.  I do not advocate suing anyone, but the possibility of it does seem to make people a little more aware of their actions.  They must remember that is why we use a contract.  Good luck with this.  I guess if the buyer doesn;t buy this home, hopefully he will use your services on the next one since you have taken such good care of his needs. 
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

Rosario - My client has consulted with his attorney. It seems his attorney does not know what to do. I have spoken to the sellers attorney who is also upset with his client. He says that he has advised his of the consequences of his actions and the seller said "I don't care". Also I spoke with the listing agent who says that he feels that the seller is trying to kill the deal, but he does not know why. He also said that he advised him that these actions could cost him a lot of money and he got the same response as the attorney. I have advised everyone involved that the rate lock expires on the 8th of Dec. and that to extend it will cost a half point. I have told the sellers attorney that the seller will have to pay for the rate lock extension if I utilize one. Still the seller does not care. This is an unfortunate chain of events. This is the first home my client has ever tried to buy. I have done everything that I can to make this a smooth transaction for my client but he definitely has not had a smooth transaction thus far. I personally have never witnessed a seller backpeddle like this either. I've seen people who weren't quite out of the house when the closing date rolled around who needed a week or two to get things together, but never a 180 like this.

Linda - The seller has been made aware of the risks in not moving forward and as I understand it he simply does not care. I hope that he has some kind of a sudden change of heart, but if not hopefully I can help direct my client in the right direction toward finding another nice home. If he does I am confident that I will be handling the financing.

Thanks for the comments.

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
Christopher it sounds like you have certainly been doing your part to make this all come together.  So sorry the seller is doing the 180 thing.  Godd luck to you and your client.
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

Linda - I am trying everything I can think of. I have not given up on this deal yet, but it is on thin ice unless the seller makes a decision quickly. For obvious reasons I am leaving the name and specific details out but here is a part of an email that I recieved from my clients attorney

"We could sue the seller for specific performance.  However, that is time and money consuming.  We are giving the seller a day or two to think - he is receiving a letter from the broker tomorrow telling him that they will pursue their commission if he does not close.  

I will keep you posted.  I think the "snow storm" excuse is just another attempt to slow/kill the deal.  He surely knows that he does not need to be there."

in response to an email that I sent to him inquiring about whether or not we can get a closing for next friday (last day of the rate lock)

The guy just seems to have lost his bearings. I can't understand why someone would list their property, let the transaction get this far, then do a complete 180 like this.

I do have an idea of why though and I could be wrong. This seller had a huge parcel of land. He seperated it into 4 parcels and built a house on each one. He has already sold 3 of the houses for a total of around $500k and he is around senior age. I am thinking that this may have been his retirement plan and he may feel that after the sale of the other 3 homes he has enough to live, and this one is the nicest of the 4.

He is currently living in an apartment that is situated upstaris above the garage. I think he may just want to take the money from the sale of the other homes and keep this one for himself. I think that if that is the case that he certainly should've thought about this before putting the home up for sale and allowing it to progress to this point.

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
Christopher - It's interesting to see another point of view (opinion) on this transaction.  I repeat, it seems like you have handled everything in a very professional manner and have done all you can do to make things happen.  Too bad it's not always in our control.............LOL  Good luck to you and your clients.
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

Linda - LOL, I agree with you about it being too bad that things are not always in our control. Yes I have done everything that I can to get this closed. The rate was scheduled to expire on the 8th of Dec. I just called in and got a free 30 day rate lock extension that will bring the expiration date to the 7th of January.

I also recieved a letter from the real estate brokers office. They CC'd me on a letter that they sent to the seller along with a bill close to 10k. In the letter they state that they have produced a buyer ready, willing, and able to purchase the property that was under contract. As such they believe that they are due the commission for the sale regardless of whether or not he closes because they have fulfilled their end of the contract.

I also spoke to the sellers attorney who told me he is doing the same. Hopefully the money due on this transaction will be enough to convince the seller to complete the transaction. There isn't really much that I can do about it at this point except cross my fingers and hope for the best. I appreciate you comments and your words of encouragement. Thank you.

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
Christopher way to go!!!  I'm so glad to hear about the no charge rate lock.  That buys you valuable time.  The letters from the broker and the attorney are exactly what this seller needs to see.  I think that will put a little fire under his you know what........I love a happy ending so keep me posted.
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

Linda - This transaction is still in limbo but at least we have till the 7th of next month to let this seller think about his actions and hopefully cooperate with his legal obligations. There has been some indication that he is starting to be a little more flexible and this may close soon, It is in the attorney's hands now. I will definitely update you on here as soon as I know the final outcome. Thank you for your kind words and for your interest!

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
So happy to hear some positive changes coming your way Christopher.  Hang in there!
Posted by Linda Sanderson (Coldwell Banker Solano Pacific) about 10 years ago

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