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Canceling a Real Estate Bid

jwstewar

Active member
I can't believe the mess my in-laws have gotten into. A couple of weeks ago they were out test driving a car (because they don't like their 2008 Grand Marquis because it is RWD - duh we told them). Well they found a house "they fell in love with." Put a bid in on it right then and there. I know stupid...stupid. Anyway, the people accepted the offer. They were putting a fair amount down and then hoping to sell their house and all but pay the new one off. The bank approved the loan with no problems. They were to have closed around Wednesday. All of a sudden they find out Fannie Mae won't back the loan because they say the house isn't worth what they are paying. Then this gets the inlaws to thinking they are going to get out of there house what they thought they would. I could've told them that. Finally 5:00 Fridaycomes around, Fannie Mae finally says they will back it. Well, they are still having soon-to-be-buyer's-remorse. They signed the original bid/purchase contract. Can they get out of this and how much will it cost them?

BTW, they were unaware until after the bid was accepted there was a driveway easement on the property and it was a Modular home. After the bid was signed the realtor still performed an Open House. We were at the Open House and there was a couple there that after they left, the realtor told us they made a "Cash Offer." Don't know if it is true or not, but can the seller make them pay damages because of a lost sale?
 

jwstewar

Active member
Oh, to make matters worse. They got anxious and packed everything up and had gotten a garage remote and moved most of their stuff to the new house other than their furniture. So Friday evening, I was there with a horse trailer loading things back up. It is now sitting in my driveway waiting to see what happens.:hammer:
 

REDDOGTWO

Unemployed Veg. Peddler
SUPER Site Supporter
If one puts an offer in on a piece of real estate and then backs out, the seller at their option may sue for specific performance of the contract.
 

ddrane2115

Charter Member
SUPER Site Supporter
seems to me if they had an accepted offer they then own the house, on paper, so what was the 'cash' offer and if your inlaws own it on paper can they sell it on paper, make any money and get another?
 

XeVfTEUtaAqJHTqq

Master of Distraction
Staff member
SUPER Site Supporter
If they didn't load their offer with tons of "subject to" clauses then they will be in trouble. I always like the subject to a satisfactory home inspection clause. Find a home inspector that will find major problems and then use that to back out of the deal.

Always make offers with tons of exit points.
 

Av8r3400

Gone Flyin'
I have used a similar clause, that said the sale is subject to "MY" inspector's approval. (I used my FIL as an inspector, he's built housed for 40+ yearsand could find something if needed.) That leaves sufficient leeway to find anything by anyone that will open an exit from the deal.

Unless there is such a clause in this contract, they are at the mercy of the seller to get out or they just bought a house.
 

Cityboy

Banned
State real estate laws governs in any case, and all states are not the same. Go to the agency that oversees real estate transactions in your state for the correct answer to their question.

Remember, the advice you are getting in this thread is worth exactly what you paid for it, and that is zip, zero, nada. Everybody loves to tell other folks what "they would have done", but that's worth didly squat right now.They need to ask someone who actually handles these situations in their state.

However, they can simply back out, and the seller may decide to do nothing. The sellers will have to persue legal action and it will cost them money up front because the burden of proof is theirs.

Good luck to your folks.
 

jwstewar

Active member
Thanks guys. You are pretty much saying what I'm saying. They are screwed. Their ex-son-in-law says, that contract means nothing and they can get out of it. Well, for their sake, I hope he is right. But I don't think he is. The way they jumped into this, I bet there wasn't a single exit clause in it. I've signed contracts before and gotten out of them - because of a specific exit clause that I had written into the contract. I.E. - not able to get approved for septic or able to get a curb cut.
 

jwstewar

Active member
There is a something like a 3 day buyer's remorse law (at least in Ohio). Does anyone know how that works?
 

BigAl

Gone But Not Forgotten
SUPER Site Supporter
BTW, they were unaware until after the bid was accepted there was a driveway easement on the property and it was a Modular home.
__________________

Seems to me this would give them some wiggle room to back away . The buyer/agent was not forthcoming with all the restrictions .I would fight it based on this alone .
 

Doc

Bottoms Up
Staff member
GOLD Site Supporter
There is a something like a 3 day buyer's remorse law (at least in Ohio). Does anyone know how that works?
As I understand it the buyers remorse law allows you a 3 day back out period for sales where a salesman comes into your house. I've never heard of it working on real estate, but that does not mean it does not apply.

Good luck to them getting out of this one.
 

Cowboyjg

Country Club Member
Site Supporter
Jim....I aint tryin to be rude here but the issue is not with Fannie. it's between the lenders underwriter and the appraiser.

I (acually the wife) would be happy to help sort this out for you.

PM me a phone # and such.

There is more to this than you realize and are stating.
 

jwstewar

Active member
Not disagreeing with you one bit Cowboy. The problem is I'm a 3rd Party and Monica's Dad is too stubborn to let someone help him and figure out what is going on. He "knows all," but yet got himself into this mess. He wouldn't let me (or anyone else for that matter) see the paperwork. So who knows what it states. They just say they are cancelling it and be done with it. For their sake I hope they are right, but I've done what I can do. He told Monica that he "talked to the people and they said OK." Well, yeah, they aren't going to get into a fight over the phone. They are just going to handle it via the legal system.

BTW, I was trying to find some info out this morning before we went down there today to take their stuff back they had already moved into the house. He was being stubborn and wouldn't even talk about it because I think he knows he is screwed and doesn't want to hear what we were saying because he knows it is the truth.
 

California

Charter Member
Site Supporter
Already moved in????

Is there any chance you are looking at early Alzheimer's here?

My inlaws got themselves into countless similar messes (but not as serious) before my wife volunteered to 'help' (control) their finances. For example they were being victimized by fence and roof contractors who repaired their home weekly (imaginary repairs) before we stepped in.
 

jwstewar

Active member
Already moved in????

Is there any chance you are looking at early Alzheimer's here?

My inlaws got themselves into countless similar messes (but not as serious) before my wife volunteered to 'help' (control) their finances. For example they were being victimized by fence and roof contractors who repaired their home weekly (imaginary repairs) before we stepped in.

No, not Alzheimer's, just stupidity. Can't wait for anything. They get mad at Monica because we don't help them do stuff. Well, they are both retired/disabled so they want to do things during the week. I work M-Th from 6:30 to 5:00 with an hour+ commute. There house is another 45 minutes from us. With 3 kids, it is a little hard to go help them out during the week. If they'll wait till Sat or Sunday we are more than glad to help them, but they have to do it on our schedule.

Monica is so pissed at them right now, she doesn't know what to do. Frustrated they won't listen, but yet her hands are tied. All the work and aggrevation they have caused for themselves and everyone else. We've now lost 2 weekends because of it. Lost one because they were taking one of their carports and I had to go down and take it down 2 days after the offer was accepted and now this weekend moving stuff out and taking it back. And guess what, I still will have to take the carport back and put it back up.:hammer::sad:
 

Cowboyjg

Country Club Member
Site Supporter
Wow....Sorry there Jim. I guess it's just another Forrest Gump Moment.

We have family like that. Then I guess most folks do somewhere.

Your 3 day law only applies to home equity lines/loans. The three day "Right of Recission" does not aply to basic real estate transactions.

Like Al mentioned, "IF" they didn't know about the easement they may have an issue. If they just didn't listen or read it may be something different.

Could be the lenders underwriter found the right of way when they did the title search and that's what all the hub-bub is about. Lenders are not too fond of right of ways. They just create title headaches. Have to wonder if the appraiser picked up on it or just didn't think anyting of it. Different places take a different view of those things. Local lenders usually don't make a big deal of local anomolies.

Wife did a loan for a guy who bought a house with a garage built straddling the property line. Nobody thought to mention it up front. She found out when she got the appraisel. The seller and his neighbor, some years back, built it to share. They each needed one, couldn't afford it on their own, so they pooled their funds and built one half on one side and the other half on the other side. Neighbors property sold twice like this since they built it. Local banks, local money, local rules. Fannie rules say you can't do that if you want a loan from them. Ended up keeping it in the baks portfolio to make the deal.

Good luck there buddy. Sounds like a good set of ear plugs are in order. Get the carport put back together and get the hell out...
 

jwstewar

Active member
Thank Cowboy. I just reread what I wrote last night. I know I sounded harsh, but this is just rediculous the mess they've gotten themselves into - all because they won't stop and think about something. The worst part is, this isn't the first time they've done something like this - though the others were small things - truck & car.:whistling: He had a 4wd truck. We went to a Monster truck display at the local Dodge dealership. He started looking at a truck. It was a 2wd. Monica warned him that he wouldn't make it up the driveway because the truck she used to have wouldn't. He swore he didn't need 4wd. Monica told him not to buy it. That was in August. Guess what? He got another new truck in January because he couldn't make it up the driveway. His logic was "They gave me what I paid for it." Yeah, less your deposit and trade-in.:hammer: I think they had given him $7500 for his '97 Dodge. Not sure how much cash he put down. Doesn't sound like to bad of loss to me for 4 months, what about you?:doh:
 

jwstewar

Active member
Well, haven't gotten all the details yet, because Monica's mom is acting really strange toward us all of sudden like this was our fault.:glare: Anyway, not quite sure how they lucked out of this, but it looks like they are going to get out of this by just paying for the appraisal and the survey. I say they got damn lucky.
 

Cowboyjg

Country Club Member
Site Supporter
Well, that's an easy $600-$1000.

Given the potential magnatude of their troubles, I would agree with you Jim.

Let them know you have a friend that could save them a few dollars. Iwould be happy to pretend sell them a house for for $500 a pop. They can have a choice of the farm or the green "Hattie" house
 

California

Charter Member
Site Supporter
Monica's mom is acting really strange toward us all of sudden like this was our fault.:glare:
Jim, I'll say it again: These are classic symptoms indicating the leading edge of Alzheimer's or elder dementia. You are going to have your hands full with your new responsibility.

We went through a lot of that with my inlaws. I didn't recognise what was going on and compounded the mess when FIL complained of increased bank fees, and I suggested he switch his accounts to a hometown bank. He (degreed in statistics) didn't have enough wits to switch over his automatic deposits of pension, SS, etc so his whole financial picture fell apart. Then every time he would lose his checkbook or credit card, he would go open another account. Soon he had many, that were soon generating overdraft fees and bill collector calls. etc etc. This guy had never been late paying a bill in his life. Probably his greatest mistake was transfering much of his savings from a reasonable brokerage account over to a 'high income' investment manager based on one telephone solicitation. He finally recognized he was over his head, and had no objection when my wife stepped in and started sorting out the mess. It took her one morning every week for several years, and most of those mornings were spent unsnarling whatever they had screwed up in the preceding week. Two almost-competent people with a lot of time on their hands can make more messes than one competent person can stay on top of.

You are in for years and years spent moving furniture and carports, balancing more bank accounts than you knew existed, arranging medical care and providing the transportation, reprogramming the VCR etc as this responsibility consumes your own life. Or preferably hire caregivers, tradesmen, other specialists to carry most of the burden so you have your evenings and weekends for your own kids.

BTDT
 

jwstewar

Active member
Still don't think it is Alzeimer's since she is only 52. I think it is just she is strange. Monica says she has always been this way. She doesn't remember the fight she and Monica had when Monica was 16 and she kicked her out of the house. Yet, Monica and her sister both do and other than a very short period after a car wreck (right before I met her) she hasn't lived with them since she was 16. Her Dad does have some issues, but the papers that prove it don't mention Alzeimer's.:whistling:
 

BigAl

Gone But Not Forgotten
SUPER Site Supporter
Still don't think it is Alzeimer's since she is only 52. I think it is just she is strange. Monica says she has always been this way. She doesn't remember the fight she and Monica had when Monica was 16 and she kicked her out of the house. Yet, Monica and her sister both do and other than a very short period after a car wreck (right before I met her) she hasn't lived with them since she was 16. Her Dad does have some issues, but the papers that prove it don't mention Alzeimer's.:whistling:


If it is Alzeimers .... get some help!!!! . I thought I was a big tough guy that could handle anything .....but that diease just about did me and my Sister in . Thank God my wife had been down that road with her Grandmother because otherwise I do not think I could have lasted .
 
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