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getting out of a loan

Posted on: 24th Mar, 2010 07:51 pm
Alright here's the deal. I tried to buy a house for 165,000. I was approved for the loan and went to five different closings on the house. The closing was set for 2/19/10 but we had a verbal agreement that when my loan came in I could move in, and it did so on 2/12/10. I never knew what the problem was everytime I went to try and close. They would always tell me that they couldn't get the pay off number from the seller and everything was alright. Anyways my realitor gave me the keys because he knew that I wanted to go in and fix it up because it was built in 68. I went in and put in about 3000 worth of upgrades. I find out the day before closing that the house had a lien on it and it couldn't sale. So now I'm trying to get out of my contract. I found two things wrong with my contract.

1) I was supposed to get 5.25% rate and mine came in at 5.5% (I didn't realize this until 2/18/10, the day before the official closing)

2) on the seller disclosure of property condition form it asks, "are you aware of any existing or threatened legal action affecting this property?" They answered no. this was filled out on 1/5/10 and I made the offer to purchase 1/6/10

By the way I'm a first time home buyer and I thought that my realitor would have more knowledge and not setting me up for failure and a huge legal mess (he should have never given me those keys). I now know not to go into a house until it's yours but as I said before this is why I was paying him to look out for my best interest.

So can I get out of this contract and second off they said they were going to sue me for the difference in the house price. So if the house sold for 160,000 their lawyer said I'd have to pay 5000. The broker I tried to buy the house through said its no big deal and they're bluffing. He told me to take them to small claims court and get my 1000 dollar deposit back.

I'm wondering what you all think of this?

Thanks!!!!!
Hi Matt_lowry,

I think your broker is right in saying so. You can take them to small claims court and sue them and come out of the contract. However, it is always better to take the advice of an attorney in such cases. He would be the best to help you in taking proper legal steps.
Posted on: 24th Mar, 2010 11:46 pm
Hey thanks for the input!!! I'm trying to get as much as possible. I really like your saying at the bottom of your post too!!! Hahaha that might be the best thing I've heard in a while!!!
Posted on: 25th Mar, 2010 08:26 am
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