Thread: Seller can not pay closing cost, nor he want to sign 'release contract form'

Now the contract closing date has passed which is 4/22/2007. The seller don't have enough money to pay for his own closing cost. And seller ingore our phone calls and not want to sign 'release contract form' .

We have already paid deposit and 20% down payment to title company before 4/22/2007. Without 'release contract form' . the title company won't pay back to us. Now we can not go on to looking for another new house.

My questions are
1. Are there any way we can get our money back? What title company should do ? Does title company want to earn interest from the funds and be on the seller's side?

2. I know seller has financial problems now and still want to sell to us, but we don't want it anymore. If seller keeping on ingoring us and try to get money from bank or relatives, suppose he can, will title company force me to continou to buy?

3. There is no terms 'time is essential' on the contract.

4. Is there any other way than to looking for atterney. We already lost $1000 in this case on inspections, appriaisals...

Thanks for your advise.

How can the seller not have the funds to cover their portion of the closing costs? That would come out of the profits of the sale...

Are the sellers letting the house go for less than is owed?

I'm not a title attorney, but I would guess that the escrow agent cannot release the funds without either a closing or release.

I had a title company release funds to the seller when it was in dispute. The title company ended up paying us the money back out of their personal funds or be sued.

Speak with the attorney for the title company and ask them what they need to get your money released. BE NICE. These people have your money.

The seller has negative amortization loan. And sell price can not cover all of his expense. I feel sorry for them but they can not put us in his hard-to-solve situation. What is the point he don't want to sign the release form.

How you can let title company pay for you by their own funds. Do you write that in sales contract?

GET AN ATTORNEY ASAP!

Yes you may be lucky enough to resolve it without one, but you are really just gambling with your 20%.

Regardless of the fact you deserve your money back the seller could technically hold you up for years if they wanted to.

Get an attorney now!!

it will likely only take a letter from an attorney or his help writing a letter to get this resolved , which shouldn

I honestly have never run into a case where the buyer put the down payment in escrow with the closing company in advance of the closing. Earnest money in escrow with the real estate broker, yes, and possibly some money to the bank/mortgate company to lock in interest rates, pay for appraisals, inspections, etc. But never the whole downpayment. So I'm not quite sure what the law requires for this.

However, if it's anything like we are required with earnest money deposits you would have to file suit. We must place it in a non interest bearing account upon an accepted offer, and cannot release it until closing or until a release is signed by both parties, or unless court ordered. Unfortunately we can't release it on receiving a letter from a lawyer. Instead you would have to file a suit against the other party. I've been told that you can also file suite naming the other party and the brokerage, then the brokerage can turn the money over to the court and be released from the suit.

I'm not sure how it works the same with the title company, but it wouldn't surprise me.

-Tim