About to close and need some legal advice

[jinster]

Hello folks. Nearly 2 years ago, I put a 5% deposite on a preconstruction condo unit. In my contract it states that I am required to put another 5% down at the time of settlement and if for some reason I can't make settlement, I still owe another 5% to the builder. The problem is that I don't think I can get approved for a loan. Apparently, my debt to equity raitio is too high. I have even tried to get a loan through the builder's recommended lender and I am still having a tough time getting approved. I read the contract and it clearly states that if i can't get approved, that not only does this contract get voided, but I also get my deposite back. I talked to the sales manager about this issue, and she told me that even though I don't get a approved for a loan, the builder can come after me for another 5%. Does anyone have any helpful advice for me?

[TJ2007]

Unfortunately many pre-construction projects have just become huge scams. Builders have started writing all kinds of crazy stuff into the contract.

Hopefully I trust you have a good realtor representing YOU (not the builders agents) or an attorney.

There is usually a tight time frame on when you can pull out do to not being able to get financing - I would assume you have passed this point.

There are many loan programs out there that don´t count on ratios to qualify (ps builders lender works for him not you), so there may still be a program out there for you.

Or I hope that you have built some equity in the property since your deposit in which case perhaps you can assign the contract to a new buyer who will want to take the property and can qualify, perhaps you can make a small assignment fee and get back your deposit.

You must move quickly, I am sure the builder would rather keep your deposit and resell the unit at a higher price than sell it too you.

Get a good RE Attorney ASAP

[REbuyersgroup]

Boy, I wish I had $10.00 for every one of these situations that have come across my desk in the past 6 months. I'd be a zillionaire.

Uneducated investors who got into the HOT market without reading the contract or listening to a quick talking agent are getting burned.

I always told my buyers, If you can't afford to close, don't buy it. Understood, many buyers circumstances can change in 2 years since they signed that monster document.

You may be able to claim hardship and attempt to void the contract and receive your deposit back.

Very tricky. Builders are suing buyers to perform, since many have left their deposits behind.

READ the contract and look for an exit strategy.

[jinster]

When I signed the contract nearly 2 years ago, I was single and was planning to sell my current home to finance my new property. HOwever, since then, I have gotton married and my wife is pregant so there is no way a 1 bedroom condo will accomadate our needs. Maybe I can point this out to the judge and he will be sympathetic and void the contract? Is there any good lawyers out there you guys would recommend?

[TJ2007]

what state are you and the subject property in?

[jinster]

what state are you and the subject property in?

I'm in Virginia and the Condo I purchased is also in Virginia

[JChristin]

If you need legal assistance, contact the State Bar Association in your state.