Well it has been one heck of a few months in regards to one horrible deal with a medium sized builder here in Houston (see my last blog for more).  I don't want to name names since my goal here is not to slander someone.

We finally make it to closing on Friday (or so we think).  We were delayed a few hours because title had one last lien to clear.  They called with the good news that we were ready to close. All liens were cleared for closing.  The buyer went and signed, dropped his $8000 off and called the utility companies for connection.  The seller was coming in moments after us to close.  I explained to the buyer that he did not quite own the house yet but the owner of title assured him we were fine. 

As the buyer is on his to his home I get a call.  The sellers bank decided to send over a revised approved HUD.  This new HUD showed the seller owes them $30K.  This particular bank owns all his investments in this subdivision so he was under the impression that he could close with now payment of his debt. 

We were told that this extra $30K is not due to his debt but due to the fact that the bank feels the seller sold the home for less then it was worth.  Funny how that seems like they are trying to inflate the FHA approval to me (if this part of the story is even true).  Apparently the seller is trying to explain to them that these houses are not worth what they would like them to be.  The builder claims they are treating him this way because this bank backs Royce Homes.  We have heard that Royce Homes is filing bankruptcy trying to reorganize.  They have all of their closings on hold.

Here we are on Tuesday waiting to hear from title or the seller about this issue.  The seller says he has the figure down to $10K and is still in negotiations with his bank. My buyer now has the electric on in his name yet the bank would not allow him to move in (which in my opinion is a good thing, I hate lease backs).  He paid for extermination, and also is homeless in 2 weeks (we were suppose to close on this house, that was 90% done when we put in the offer, 2 months ago).  The buyers bank is working with us to try and close before tomorrow. 

What advice does one have for the buyer who now may have to get an attorney?  How long does his give this seller to solve the problem???? The seller and his agent have both told me they have other parties that want this house.  I have never had a deal that was so frustrating and so stressful for my clients.  I have been lied to for months about many things regarding this hoe by the selling parties.  The buyer has been treated poorly.  His needs put on the back burner.  It really has been the worst deal I have ever had.  I am just at a loss for words.  This is a first time home buyer who is just the sweetest guy in the world. 

We all know it is the sellers responsibility to sell this house for the negotiated price once the contract has been executed.  His actions have been very negligent.  At this point I am worried he will try to screw the agents out of their commissions.

I am just trying to get through this one with our heads held high and do the right thing.  Any advice would be great.

 UPDATE (AS MY SOAP OPERA UNFOLDS)

The sellers bank just spoke with me and they never set  HUD.  Title must be covered for the seller who obviously has told some tall tales. The bank did not try to inflate the sales price. They merely want their principal balance paid asap.

The bank stated that they have waived every possible fee known to man for this builder, just so things will progress.  The fact is he owes the balance and if it is not paid they will take the home back into their possession within 45 days, along with the rest of the subdivision.  They are beyond upset with the way this man has conducted business but their hands are tied in terms of my buyer.  The seller must pay now, final decision.

They did also state that the buyer getting an attorney would be pointless since the seller would most likely be forced to file bankruptcy.  They stated the bankruptcy court is only forced to pay secured debts.

Christina Stevens

Realty Associates

Team Stevens

www.Galveston4sale.com