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/u/dylandionysius
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Hey everyone, I’m looking for some advice from the real estate community. We’ve been trying to sell our house for a while (220 days on the market) and thought we finally had a solid deal, but things took a weird and frustrating turn. Here’s the situation:
We got an offer from an investor group for a subject-to (sub-to) deal. It was for the full sales price with $38K upfront, and they’d take over our existing mortgage with a balloon payment of $78K due in seven years. The offer seemed great, so we went through contract negotiations and signed the deal.
Fast forward three days later, and the buyer (an agent representing the investor group) called us saying their “investor team” won’t fund the deal unless we lower the upfront payment to $25K. We refused, saying we were sticking to the original agreement. That same day, they canceled the deal.
Here’s where it gets sketchy:
Nowhere in their three-page contract does it say they can cancel for any reason. There are no contingencies. The only line referencing anything like that is under the earnest money clause, which says:
“Escrow to be deposited after 10-day inspection period.”
But here’s the kicker — the contract doesn’t define what the inspection period is for. There’s no language about backing out due to inspection results. It doesn’t even require them to explain what they’re inspecting!
I’m pretty convinced these people are slimy scammers who go after desperate sellers like us, lock up properties, then try to renegotiate after signing to see if they can get better terms. When we didn’t cave, they bailed without justification.
We’re frustrated.
We’ve been trying to sell for months, and this wasted valuable time for us. Now I’m wondering if I have legal recourseto make them pay the $5K earnest money for breaching the contract. I know Arizona is a buyer-friendly state, but I feel like these people abused the process and wasted our time.
What do you guys think?
Any advice would be greatly appreciated!
submitted by /u/dylandionysius
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Sub-To Deal Gone Wrong – Can I Hold the Buyer Accountable for Backing Out? Advice Needed!
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We got an offer from an investor group for a subject-to (sub-to) deal. It was for the full sales price with $38K upfront, and they’d take over our existing mortgage with a balloon payment of $78K due in seven years. The offer seemed great, so we went through contract negotiations and signed the deal.
Fast forward three days later, and the buyer (an agent representing the investor group) called us saying their “investor team” won’t fund the deal unless we lower the upfront payment to $25K. We refused, saying we were sticking to the original agreement. That same day, they canceled the deal.
Here’s where it gets sketchy:
Nowhere in their three-page contract does it say they can cancel for any reason. There are no contingencies. The only line referencing anything like that is under the earnest money clause, which says:
“Escrow to be deposited after 10-day inspection period.”
But here’s the kicker — the contract doesn’t define what the inspection period is for. There’s no language about backing out due to inspection results. It doesn’t even require them to explain what they’re inspecting!
I’m pretty convinced these people are slimy scammers who go after desperate sellers like us, lock up properties, then try to renegotiate after signing to see if they can get better terms. When we didn’t cave, they bailed without justification.
We’re frustrated.
We’ve been trying to sell for months, and this wasted valuable time for us. Now I’m wondering if I have legal recourseto make them pay the $5K earnest money for breaching the contract. I know Arizona is a buyer-friendly state, but I feel like these people abused the process and wasted our time.
What do you guys think?
- Can I go after them for the $5K deposit if they never funded escrow?
- Am I right to think this was a bad-faith negotiation tactic?
- Has anyone had similar experiences with investor buyers?
Any advice would be greatly appreciated!
submitted by /u/dylandionysius
[link] [comments]
Sub-To Deal Gone Wrong – Can I Hold the Buyer Accountable for Backing Out? Advice Needed!
Continue reading...