Selling House

[wade3504]

Just had to vent a little and ask a question. A year ago we put our house up for sale because of my kidneys failing so we could move closer to my parents for help. A friend of the family wanted to buy the house and was going to make the house payment until he bought it. It had damage from two hurricanes that hit one after the other. He agreed to buy the house "as is" and said he would fix the damage done himself. He eventually put down a $10,000 down payment. Well, it ended up being over a year and he still hadn't bought it and we got several warnings from the county that the place was not being kept up to code on the outside. He finally fixed that at the last minute before we had to go to arbitration with the county. So, we sent him a letter saying he had to close on the house as of December 15 or move out as of the same date. That date came and he said he was moving out but would need a few extra days. I agreed and even gave him to the end of the year, but he would have to pay rent through the 15th. He finally got out as of January 9 and has not paid the rent for December that we agreed to. I went to look at the house yesterday and it's a mess. Only one thing is fixed that he said he was going to fix and now my dad is telling me that because the hurricanes caused the damage that the money should not come out of his 10,000 that he had put down and that if we tried it he would probably take us to court, and that we should be thankful that he didn't buy it :new_shocked: . We also got a letter from an attorney today saying that waste pickup has not been paid and a lien will be put on our house if it's not paid. Since he was going to buy the house "as is" and said he would fix the damage done shouldn't the money come out of his down payment and he get the remainder back. I just want others opinions as I feel this is not something we should have to pay for.

Amanda

 

[mcharr36]

I think you'd better talk to an attorney.

 

[Miniv]

It's very much like the horse business.... did you have ANYTHING in writing???? Even in notes or e-mails?

You may need an attorney.

MA

 

[wade3504]

We have some things in writing.

 

[wade3504]

Sorry, double post.

Amanda

 

[wade3504]

We have it in writing that he would get his $10,000 back minus any damage done, but my dad says the hurricanes caused the damage. Damage that he should have fixed and that we shouldn't even be having to worry about because the house should have been sold. We also have the contract that he signed originally with the money he was putting down and how much he would still owe at closing. We can make more money off of selling the house now but since he had said he would fix the place and didn't it should come out of the money he is to get back. He ended up not being able to buy the place because he didn't qualify for a mortgage.

Amanda

 

[Miniv]

Sounds like you still may want an attorney to help you spell out what monies the guy is getting back and NOT getting back and why. The attorney can put it in letter form in a very short time and it won't cost you a whole lot and save you future headaches......

Next time, when you plan to sell -- especially privately, have a legal contract drawn up.....okay??? This is why realtors make commissions, Title Companies are in exsistance, AND real estate lawyers come in handy too.

We've sold property privately a couple of times....In other words, we didn't have the property officially on the market. The first time we hired a real estate attorney who worked with the Title Company. The second time we had a real estate agent that we hired to represent us AFTER the buyer was located to handle the paperwork and deal with the Title Co. Because he didn't have to work at selling, he agreed on half his commission.

Just a thought.

MA

 

[Horse Hugs]

I would talk to a lawyer but it wouldn't seem like he should have to pay for the hurricane damage out of his deposit. Since he didn't qualify for the mortgage it really isn't his fault that he didn't go through with the purchase.

I would take rent out of the deposit, though. Whatever the fair amount would be for all the months that he lived there plus a cleaning and damage deposit. These would only be fair and would help you get the place fixed up for sale.

 

[whitney]

I'd call the county and make sure the property tax has been paid too.

 

[kdtexas]

Amanda, real estate laws are often different from one State to another State. I can only tell you about Texas. I am a mortgage loan underwriter and if a borrower does not qualify for the mortgage then the seller must refund any earnest money/deposit that was paid. The seller usually request to see a copy of the denial letter that the borrower received from the lender. the lender can't give the seller a copy of it, but the buyer can.

Many times a buyer will go and get pre-approved before shopping for a home to avoid the "not qualifying" experience and wasting seller's time and theirs. Realtors in our market almost always want to see a pre approval letter before they will start showing a buyer homes on the market.

Getting pre approved does not cost the buyer anything. If a lender wants to charge a fee then the buyer should shop for another lender. At least that's the way it is in our market. Again, many regions in the USA are different. You should check with a reputable real estate attorney; get a referral from your local title company or reputable Realtor.

Good luck; this probably isn't going to be easy; but perhaps ya'll can get a mediator and work out an agreement all parties can accept.

 

[Miniv]

KDTexas makes a good point regarding the earnest money/deposit. Oregon has a similar law.....however, what muddies the water is that the potential buyer was LIVING on the property RENT FREE until it was discovered he didn't qualify for a mortgage. Under those circumstances, I agree with a previous poster that RENT should be pulled from the deposit. Again, this is where an attorney needs to be involved.

MA