Escrow about to close, and then...

[Ithildriel]

What is the name of your state?What is the name of your state? California

I am currently in escrow on a house with the buyers from hell (isn't everyone?). The buyers have signed the loan docs, and the loan is supposed to fund next Wednesday per the loan company.

The buyer has now made a verbal request that I pay them $245.00 out of the escrow. They want me to write up and adendum giving them this money. They have not made a formal request. This was a dollar amount that I had offered them for repairs at one point, but they declined. For some reason they are "claiming" that they thought it was part of the final contract which it was not.

They are basically saying that they will hold up funding if I do not create this adendum. I have countered them verbally that I will not consider their request unless I get it in writing.

My question is, since they have already signed the loan docs, and the loan is set to record on Wednesday, can they still back out of this, or are they just trying to squeeze the estate for a little last blood?

 

[HomeGuru]

What is the name of your state?What is the name of your state? California

I am currently in escrow on a house with the buyers from hell (isn't everyone?). The buyers have signed the loan docs, and the loan is supposed to fund next Wednesday per the loan company.

The buyer has now made a verbal request that I pay them $245.00 out of the escrow. They want me to write up and adendum giving them this money. They have not made a formal request. This was a dollar amount that I had offered them for repairs at one point, but they declined. For some reason they are "claiming" that they thought it was part of the final contract which it was not.

They are basically saying that they will hold up funding if I do not create this adendum. I have countered them verbally that I will not consider their request unless I get it in writing.

My question is, since they have already signed the loan docs, and the loan is set to record on Wednesday, can they still back out of this, or are they just trying to squeeze the estate for a little last blood?

**A: of course they can back out.

 

[Ithildriel]

**A: of course they can back out.

Here is an excerpt from the e-mail that my RE agent sent me. Are you saying she is lying to me?

"I told my broker about this request and he suggested that you do nothing. It is too late for them to ask for more. He would just not respond at all because once this starts to fund they can't stop it. And that should already be happening according to what the lender told me. Lets wait it out. Okay?"

 

[HomeGuru]

Here is an excerpt from the e-mail that my RE agent sent me. Are you saying she is lying to me?

"I told my broker about this request and he suggested that you do nothing. It is too late for them to ask for more. He would just not respond at all because once this starts to fund they can't stop it. And that should already be happening according to what the lender told me. Lets wait it out. Okay?"

**A: no she is not lying.

 

[Ithildriel]

**A: no she is not lying.

Sorry, so I just want to make sure I am clear.

If funding has started, they cannot back out of the deal. Sorry if I am being dense, but this is the first time I have sold a house.

 

[HomeGuru]

Sorry, so I just want to make sure I am clear.

If funding has started, they cannot back out of the deal. Sorry if I am being dense, but this is the first time I have sold a house.

**A: please state the exact status of the transaction.

 

[Ithildriel]

**A: please state the exact status of the transaction.

That is what I hope to find out sure today, since my RE agent is not being clear on that. I do know that they signed the loan docs last week (Tuesday I believe).

She stated that she "believed" that funding started on Friday, however part of the issue may be that they are getting the Funding for the second on another investment property, which they are using for the down payment on this one, and then rolling that over into the funding for the loan on this house. After speaking to her again this weekend, I was still unclear, so I asked her to find out for sure this morning and get back to me.

She also stated that the buyers did a "final walkthrough" on Saturday, and their agent wanted to know if I was planning on giving them the 245.00 before he told me what they wanted from this final walk through. She stated that since we already reached a contractual agreement, they don't seem to have a leg to stand on in making more requests, negotiations are over. (During the actually negotiations I had to give them 2 notices to perform, at which time they signed a paper removing all contingencies so that I would not cancel the escrow.)

Basically I am at my ropes end with these buyers. My agent's broker is suggesting that I just sit on this, since we have a contract. If they can somehow back out of it, I guess I can sue them for 3% of the purchase price of the house. I have never sued anyone, and thst isn't really my style, but if it comes to that I am ready to with these folks. They have gotten on my last good nerve.

I will post more after I hear from my agent today.

 

[HomeGuru]

ok, thanks for the update.

 

[Ithildriel]

The latest two e-mails from my agent today state

The latest two e-mails from my agent today state

"No word yet. The escrow company said your house loan did not fund yet, as of yesterday afternoon. The lender has not returned my calls. I am meeting with my manager this morning to see what are options are. I will let you know."

"I talked to my broker about the problems we are having with the lopez's. He said you should sign the request for repairs #3 and check the box 2B Seller does not agree with any of buyer's requests. It does not obligate you in any way because they have already removed all of their contingencies. They can keep asking if they want but it does not affect the contract.

If they do not fund the loan by 11/30 we can give them a notice to cancel escrow(the notice to perform is just for contingencies) Then we have to wait 7 days for them to respond to the Notice to cancel escrow. If they do not then we can cancel escrow unilaterally. And if you want you can go after the liquidated damages of 3% of the purchase price which includes their deposit, which will be held in limbo."

I have a back up offer, on the property, which is a better deal than the one that I am in. I understand the "bird in the hand" theory, but I have no gaurantees that if I agree to their current request for repairs number 3 (which was made after we had reached a contractual agreement) that they wont turn around with request for repairs 4, 5, 6 etc. I have faxed over the request, signed it stating Seller does not agree to any of the buyers requests.

 

[mob1lejoe]

all this for 245.00????????????????/

 

[Ithildriel]

all this for 245.00????????????????/

I know, it sounds stupid, without hearing the entire history. If I had an inkling that I could give them the 245.00 and that would be the end I would probably do it. However the history of the transaction has been that they ask for something, I give it, then they ask for more.

Their first request for repairs requested 3K for future needed repairs. I declined it. They then asked me to pay for replacement of 1/2 the roof, water heater, and wall heater (which amazling came to 3K). I had already agreed to pay for their home warranty, which would cover fixing and / or repairing these items(other than the roof). I offered the them 245.00. 200 to make some electrical repairs not covered by the warranty, and 45 to pay for the repairs on the water heater which came back missing parts (45 would be their deductable if done under warranty). They declined it, and again asked for 3 K in repairs. I then served them with notice to perform, and they came back with wanting 500.00. Knowing that would not be the end, I served them a second notice to perform, at which point they released all contingencies.

Then after they signed the loan docs, agreement reached, they claim that they didn't know that the release of all contingencies included my offer of the 245.00, and wanted me to give them an addendum giving it to them. At this point I found out that their agent was already giving them 600 of his commision, and mine was giving them 100. My feeling is that this more than covered the 245.00 of my original offer, which is why the agents did this to begin with. Also their agent wanted to know if I would give them the 245.00 before he told me their further demands after the final walk through.

I paid for their home inspection, which was not required I do. I paid for their home warranty, again not required. I paid for all required pest work 2K. I came down 10K on the asking price, because the deal was supposed to be "as is" and they were investors. They had 20% down, so a roof cert was not going to be required, again part of the reason I took the 10K hit up front.

I have a back up offer for the same amount, which is not requiring the home warranty from me, and have not asked for any repairs other than the pest work, so I end up getting more money for the estate for the second offer. At this point I have no motivation to give in to them. They can either let go of this 245.00, or their agent can give them more from his commission if he wants the deal to go through and they wont budge.

 

[HomeGuru]

a measly $245

 

[Ithildriel]

a measly $245

Yup...to them.

To me it is an open door to even more demands. I'm done, balls in their court.

 

[HomeGuru]

go get em Tiger.

 

[Ithildriel]

lol, still no word. I'm sure due to the Holiday though. I will keep you guys posted on what transpires.

Hope everyone had a great Thanksgiving!