Screwed out of $5000 by our real estate agent? or standard practice?

Question

We found out a week before closing on our house that we qualify for a $5000 interest free loan from the city housing dept because we are in a low enough income bracket. If we stay in the house for 10 years we don't have to pay it back. Our real estate agent said that we have to close on Friday because that is how the sellers are going to pay the contractors who put in the new HVAC system and to pay for tenting the house for termintes. The sellers agreed to pay for all that. I don't see why we have to loose the 5000 loan/gift because the sellers don't have the cash to pay the contractors, even though our contract says it is their responsibility to cover those costs. It would only take 3-4 weeks to get this loan through.

My husband and I decided to just close on Friday but I am sick about it. I am not excited about owning our first house anymore and If we walk away from the house we loose $1200. help me feel better about this!!

Answer 1

While it is a nice "service" to tell prospective buyers of all the different loan programs and down payment assistance programs that might or might not be available to you it is NOT the job of the real estate agent to do so.

That was YOUR job before looking for a home.  

Look at it this way...  You were able to get into the house without a handout from the government.  Now someone who actually needs that $5000 will be able to benefit.  Those programs are not bottomless pits of money.  And we need to stop looking to the government for handouts.

Congradulations on your new home.  Be happy, be healthy, and enjoy.

Answer 2

"the HVAC because it had NO heat or air and that isn't legal"

You can sell a house with no roof...yes, it IS legal to sell a house with no heat or what ever, just as long as you tell the buyer up front.

If I had been you.. I would have walked away and gotten a different house..  

NEVER buy something under stress.

Answer 3

Well, you're stuck with the terms of your agreement, and those terms require you to close by a certain date.

But, the terms of a contract can always be modified by agreement of the contracting parties.  If you really want this $5000 loan, then make an offer to the sellers.  Tell them that you will give them $1500 (or whatever) in exchange for changing the closing date to August 20 (or whatever).

Answer 4

What does you purchase agreement say?  If you've got a "must close by" date in there, and it's soon, you may loose more if you close late.

Answer 5

Yeah I agree, your agent can tell you about diff programs and lenders, but today the banking programs change so frequently even the loan officers dont know whats going to change tomorrow. If anything blame your mortgage broker, but its up to the seller to accept any changes on the contract. Govt loans are harder to get and sometimes do not go through Thats loss off time for the seller and they might have their deadlines to meet. If your new house has electrical, heating, plumbing,( etc). problems you probobly would not get  qualified for an fha loan

Ok I think the bottom line is this im guessing that the house had termite problems, not too atractive to me however hey it might be a good deal. However the more time you have the more time you have to back away from the deal and find something comp, in today's market that is really a possibility, and from the sellers point its not always about collecting the earnest money its the loss of deal alltogether. Look at it this way you got a good deal anyhow, they fixed the problem so you dont have to deal wit it and lawsuits that would arise. Real Estate goes up in value over time Enjoy the home Refinance? You will make up the losses and then some

Answer 6

You might not even live in that house for 10 years. Most people sell in 7 years and move to another city or location.

Answer 7

Well stop moaning and blaming everyone else.

YOU TWO didn't do your research and find out about this loan BEFORE you put in an offer on the house, which is what a prudent buyer would have done.  It's not the realtor's job to tell you about financing programs available, for which you might or might not qualify.  You screwed yourselves!

YOU two signed a contract agreeing to close on this date.  Just because it might be convenient to you to close later doesn't mean you can or should.  That would violate your contract, your word.  It would cause financial hardship for the seller and the the contractors.  You are legally bound.

$1200 is an extremely low earnest money payment.  If you're so sick and unexcited now, maybe you're just not cut out to be home owners, and you should walk.  Of course you could then be sued for specific performance.

Your Sellers are spending a LOT of money to get you to buy this house with putting in new HVAC and tenting the house for termites.  And after they've gone to all this extra effort for you, you want to stiff them and not honor your agreement.  They've honored their side of it.  It's none of your business how the sellers are paying for all this work, but it is very common for it to come out of the sale proceeds.

Answer 8

I'm going to answer here, but it's not going to make you feel any better.  Who is responsible to find out the best loan for you as well as any subsidies for which you may qualify ?  That would be YOU, my dear.

And now you think the sellers should simply wait another month to close because you just discovered this ? And now you want to blame the REALTOR because you were told to stick to the deal which you signed ?

Has it occurred to you just how much inconvenience you are asking for ?  Next time do your homework BEFORE you get to class.

And yes, it IS legal to sell a house without heat or air.  There is nothing illegal about selling 'as is'.  Furthermore, it's none of your business if the sellers are 'turning over for a gain' or not.

If you were my kid whining like this, you'd have a size 10-1/2 planted firmly in your backside.  If anyone is to blame, it's your lender who missed this deal.  And it's not HER job either to discover whether or not you qualify for such subsidy.

Answer 9

Sorry, but I have to agree.  HOWEVER, if you say you are backing out, then see what happens.