UPDATE: I called the seller's real estate agent and he said that during the pre-approval process, they waved the 15% requirement and we're all set to go with the 10%. What a relief! Nothing like being over caffeinated at midnight on a Saturday and getting that kind of news! Thank you SO MUCH for everyone who responded.
We're trying to buy a co-op on LI. We've signed a contract with the sellers, put down a 10% down payment, and we're in the co-op board and mortgage approval process. We just got a letter from the co-op's managing company stating that the maximum financing is 85%! Which means we'd have to come up with $6500 more With the wedding, I don't have that kind of money!
We've been clear from the beginning that we're financing 90% - the sellers' real estate agent said that it was okay and people can get in to this co-op for that level of financing. Plus we signed the contract with the seller and put the 10% down like 2 months ago now - how did we get this far in the process without someone saying Hey - you need more money!
I emailed the real estate agent becuase he was the source of this bad info from the beginning and because he'll get back ot me on a Sunday but does anyone know what my recourse is here? I don't want to walk away from my down payment but I also don't have the extra $6500. The letter they sent had a bunch of typos in it so I'm hoping that's a mistake but if not, I'm totally screwed.
Sorry this is long - I'm like freaking out here.
KRISTIND
Posted:
Member since
Re: Anyone know about real estate law?
i dont know that much, but most co-ops require 20% down, if they want 15% that's the boards decision and the realtor may not have known....if this true, from what I understand the board is basically declining you and you would get you deposit back. Please note I am not an attorney or a realtor I just helped my friend by I co-op and this is how i understand it to work, I could totally be wrong, but I know the co-op boards are allowed to set requirements for down payments such as 10%, 15%, or 20% and that would affect how much you could finance. Call the co-op directly and see what they say.
MrsSoto
Posted:
Member since
Re: Anyone know about real estate law?
Posted by MrsList09
We're trying to buy a co-op on LI. We've signed a contract with the sellers, put down a 10% down payment, and we're in the co-op board and mortgage approval process. We just got a letter from the co-op's managing company stating that the maximum financing is 85%! Which means we'd have to come up with $6500 more With the wedding, I don't have that kind of money!
We've been clear from the beginning that we're financing 90% - the sellers' real estate agent said that it was okay and people can get in to this co-op for that level of financing. Plus we signed the contract with the seller and put the 10% down like 2 months ago now - how did we get this far in the process without someone saying Hey - you need more money!
I emailed the real estate agent becuase he was the source of this bad info from the beginning and because he'll get back ot me on a Sunday but does anyone know what my recourse is here? I don't want to walk away from my down payment but I also don't have the extra $6500. The letter they sent had a bunch of typos in it so I'm hoping that's a mistake but if not, I'm totally screwed.
Sorry this is long - I'm like freaking out here.
Hi. Im in real estate. I sent you fm (long), sorry
sophisticat13
Posted:
Member since
Re: Anyone know about real estate law?
What a PP said was true about the co-op board (I have a co-op) being able to set the limit for how much you have to put down. I am not in real estate but if I was you, I would call a lawyer and find out what your legal rights are in this case. You were supposed to be told what the mandatory amount down was at the start of the process, not at the end. I would also put in a call directly to the managing company and ask them.
GL!!!!!!!!!!!
EmiNoa628
Posted:
Member since
Re: Anyone know about real estate law?
Usually Co-op boards are that strick!! Also, your realtor should have got all the information before allowing you to sign any paperwork.Call the board and talk SERIOUSLY with your realtor. .This problem can be resolved.. Don't stress.. I bought TWO houses within the last year and half and I have send a lot of people to !Q&%* becuase of the lack of communication and professionalism.. They are who they say they are and should know the ins and outs... FM should you have any questions..
chadjennwedding
Posted:
Member since
Re: Anyone know about real estate law?
you could try going to the the website that give free legal advice. Google it.
Espo22
Posted:
Member since
Re: Anyone know about real estate law?
did you get anything in writing about 90% or was it just something you said to the realtor. Unfortunately a realtor cant tell a co-op board how much you will put down, its the other way around and the co-op board will tell you how much to put down. Basically this is what they expect and what they will want, and you cant really turn to them and say 'no i only want to put down 10%' bc they will just say nope cant do it, trust me i wish i can turn around and tell them how much we'd like to put down lol.
The problem is the real estate agent should've known all this. Did he work with this co-op in the past bc if so im sure he should've known or should've found out either way. This is one of the first things he should've found out for you to let you know. If you specifically told him you ONLY wanted to put down 10% then he should've asked the co-op this before you even considered a place. So i would have a long talk with your realtor bc he screwed you over.
stinenandy2010
Posted:
Member since
Re: Anyone know about real estate law?
to my understanding, it is the co-op board that will state how much you need to put down. if your real estate agent gave you wrong information, then unfortunately it doesn't matter, you will need to come up with that other 5% IF that is the co-op board rule. if you cannot get the other 5% then you will get your 10% downpayment back bc in essence your contract is void bc of the wrong information. - this is what i think is right but i'm not 100%
alli3131
Posted:
Member since
Re: Anyone know about real estate law?
Also most contracts have a clause in them that the contract is void if the party cannot get approved for the financing. So basically if you cannot get the financing you need the contract is void and you get the deposit back.
