Real Estate Question

What does the contract say about time delays?

I'm buying a new house myself. It's not without its troubles, that's for sure.

Unfortunately, unless you had any stipulations in the contract that state the builder will be liable for any extra fees incurred due to a delay of closing date, you're probably out of luck in that regard. However, remember that you don't have to stay with the same lender if you don't want to do so. Rates are actually still pretty darn good, so perhaps you can do better with somebody else. At the very least, you can shop around and play another lender's rates against your current lender's offer to see if they will reduce the rate or the points.

Unfortunately I think this is a fairly common problem with new construction. I hope everything works out, though -- good luck!

Dude just stay with mom and pops.

Could be worse, rates could be going up instead of down.

Disappointed wrote:

But was wondering if there's anything else I can do? I've already thought about contacting the local newspapers, tv shows, etc.

Thanks for the laugh man. What are you expecting an expose on A Current Afair or Geraldo coming to your rescue?

Read your contract and see what it says about delays and the time for closing. You're probably SOOL, but rates are still very low so look around a little and tell your current lender you'll get your money somewhere else unless they pass on the quarter point.

if you didn't put some deadlines in there, you've learned a valuable lesson. with a new construction, strict deadlines aren't going to happen (always expect them to need a month, especially when signing so far out) but this seems excessive. i hope your contract has something.

I agree with four eyes.

Walk. The lender is just trying to get your money. Rates haven't gone up. Don't pay any points.

What a bunch of assholes.

Thanks for all your advice. I wish I could switch to a different lender but I'm getting $5000 off of closing cost if I use them. They pretty much jacked up the cost of the house $5000 grand and then sold it back to me in terms of a reduction on closing costs. I'm convinced the whole real estate/banking industry is running a racket.

Anyway, I'm pretty sure there's nothing in the contract that has any hard deadlines so I agree I'm pretty much screwed. I just wondering if there are other ways I can get these people mainly the realtors/builders/developers back (something legal)?

Yes, I've learned a valuable lesson.

bump

It's a stretch, but in Georgia we passed a law called the Predatory Lending law. In a nutshell it cracks down on mortgage lenders, appraisers and the like who engage in practices of fraudulent appraisals in order to make a sale. "Giving" you $5,000, but not really giving you $5,000 because they raised the cost of the home by that much might not pass the smell test if someone were to scrutinize it. I'm an investor myself. I do agree however with shopping the loan to put pressure on them. You might be surprised at terms you can negotiate.

Good luck,

Rob

Learn To Buy Real Estate!

www.RobLett.com