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  1. #1
    Join Date
    Feb 2008
    Posts
    3

    Default Seller Changing Price After Contract

    We have agreed to purchase a home in Texas for 119900. We where going through "in-house" financing through a builder. We have EMC and purchase agreement. The house was not built by the builder but a forclosure they aquired. We go back as far as October on the contracts. We where going to close tomorrow but the company rep called and said the house was priced wrong to begin with and is now telling us the price is now 159,000 and if we still want to go through in house financing we will have to accept it because the accounting dept. will not allow the sale for $119,900.

    The original rep I was working with left the company tuesday and called to let me know what they where going to do, but the new rep says he did not find out about it until today.

    Can I force the sale at $119,900. He says I cannot do in-house at that price but could do outside financing. Our credit is not good enough for outside financing.

    The appraised value per appraisal district is $127,000 and there is the exact same home one street over listed for $119,00. We really want the house but not for $159,000

    I also have pre-approval letter from in house lender with price listed

  2. #2
    Join Date
    Feb 2008
    Posts
    578

    Default Re: Seller Changing Price After Contract

    A mortgage/finance pre-approval isn't a mortgage/finance commitment, so they are probably not bound contractually to selling you the house with in-house financing if they don't approve the financing/mortgage. If you can come up with cash or other financing you could probably sue and prevail for damages or specific performance(force the sale) in court at the contracted price of $119,900.

    What is the method of conveyance/financing? Is this a contract for deed(land sale contract), deed of trust, or conventional mortgage?

    I'm a little confused over your post.

    Are you saying that the seller insists you must come up with an addtional $40,000 cash or secondary financing at closing, or are you saying that if you agree to pay $40,000 more for the home they will approve the in-house financing for the pre-approved finance plus $40,000 more?

    Either way, something doesn't sound right here...

    I'd be really nervous and cautious at this point. You absolutely need an experienced real estate attorney at this point because something unscrupulous is going on.

  3. #3
    Join Date
    Jul 2006
    Posts
    2,652

    Default Re: Seller Changing Price After Contract

    I'm curious, what is an "EMC"?

  4. #4
    Join Date
    Feb 2008
    Posts
    3

    Default Re: Seller Changing Price After Contract

    An EMC is an Earnest Money Contract

  5. #5
    Join Date
    Feb 2008
    Posts
    3

    Default Re: Seller Changing Price After Contract

    If I agree to the purchase price of $40000 more they will then provide in house financing, but not for only $119,900. They said that the $119.900 does not cover their costs for the home and it was originally listed incorrectly but they supposedly did not learn of this until yesterday although I know for a fact they have been planning raising the price for atleast a week. It is for a conventional mortgage.

    We have been under contract on this house for $119,900 since October.

  6. #6
    Join Date
    Feb 2008
    Posts
    578

    Default Re: Seller Changing Price After Contract

    So they denied your mortgage for a smaller amount, but will approve it for a larger amount if you agree to pay them $40,000 more than the original agreed price in the sales contract. Stunning.

    Their claim of a "mistake" on the listing price is absurd. It doesn't matter anyway. They agreed in writing on the sales price in the sales contract. This is bait and switch, bait and intimidate... It's just plain wrong. They're hoping you're so emotionally motivated to close at this point that you'll agree to all this. DON'T.

    I would try to get their current offer(contract modification, call it what you will) etc in writing.

    I would definitely not sign anything further at this point.

    I would contact a real estate attorney to see if you can enforce the original agreement and/or sue for damages.

    I would start considering that this deal may fall through due to the actions of the seller. There is nothing you could have done to prevent it. These people are simply trying to scam you.

    I would also strongly consider reporting all this to the Texas Real Estate Commission, and the Texas Department of Savings and Mortgage Lending, or other regulating agency in the Finance Commission of Texas.

    Hope this all works out well in the end.

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