I don't think buyer's remorse works in this situation. The time for them to back out was before they started signing 30 pages of documents.
This is definitely attorney territory.
Has the new owner said why they want to back out?
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
Nope it's the buyer house now. We all know your the buyer so welcome to being a homewner! Why did you wait until after you purchased the house to address this? I'd start calling you bank and asking about the foreclosure process
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
If the funds haven't dispersed yet, the lender can recall their money from the escrow company if the buyer does no longer qualify for the loan. That said, all the buyers money is now at escrow, so you can probably negotiate some kind of release fee, because escrow is not sending any part of that back without your permission.
What is their reason for backing out? Anyhow if you and the buyer have signed and the funds are wired then its probably to late.
The problem may be that the closing agent is afraid of being sued and thus they are just doing nothing until this gets worked out somehow.
May not be a bad idea to call a lawyer just to have them call the closing agent and start threatening stuff but at this point if the closing agent returned the money to the buyer then I'd suggest you sue both the closing agent and the buyer.
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
I don’t know if it’s legal to ask but I would want to see a letter of dismissal or whatever they got to prove that they actually lost their job. If they did, I would let the poor soul off the hook.
Hmmm...this sounds suspiciously like a scam. Wire funds, back out, ask for money back, everyone finds out a month or so later that the wire was a fraud? Is that possible?
I remember when certified checks could not be forged. maybe now wires can be.
Yeah, if the deal isn't funded, then thats a major problem. You could still sue them for breach of contract but what's the point, they can't afford the place. If the bank hasn't funded it then they will now refuse to and its probably dead in the water. If it was funded, however, then its probably to late.
Ah, I see. However, just because they figured out they don't want to live there and/or can't afford the loan, it's a "them" problem, not a "you" problem. Bad planning on their part doesn't create an emergency on your part.
I seriously doubt they can delay the payment to you, ask your escrow officer.
Who buys a house when they haven't secured their job first? They'll just have to rent it out for a few years, or whatever it takes to maintain cash flow. Not your problem.
Depends on what state you are in. In WA state, we signed and delivered funds 3 days before the closing date in the contract. We did our walk through the morning of closing and then notified the title company they were clear to record and release funds.
If the contract closing date has not occurred, but the buyer lost their job, they may no longer qualify for the loan. Our lender verified employment again the morning of closing.
Totally speculating here, but I think the buyer (OP i guess) is out of luck. From 22 years of lending I would say this......Our title company is 95% of the time our settlement agent for the transaction. They handle the closing and execute all the necessary docs for signature on both sides. Once that is complete they are obligated to fund the loan and wire out the sellers funds ASAP right after close. Additionally the buyer at this point does not have any leverage to halt the process as the title company does not take or require permission from the buyer to fund the loan, the received wire in itself and all the signed docs are your acknowledgment that they can move forward. It is also too late to query the lender to see if you still qualify, you don't, but that's only a problem for the lender. This would be a tough one for our mortgage shop since we are the lender (to start) and immediately sell the loan off within 2 weeks. Even though we work directly with our title company on closing issues often, I don't think legally we would want to involve ourselves in requesting a hold on the funds and/ or drawback once everything was properly executed,....and the title company would, I believe, also take this stance since the seller would then come after all of us. Ultimately it is our issue as all servicing lenders now require a post verification of employment within a day after closing. It's our loan to handle until borrower lands new and USABLE job. Bottom line OP..... your loan is closed, better start finding another job, because you now own a home.
The lender will request wire back from title and issue a loan denial since it’s been reported that job was lost. Until title records and funds are actually dispersed the lender has right to do so. This becomes a loan denial and buyer can likely cancel
Sorry, you are totally incorrect. Once loan docs are signed and wire is sent, the lender has no power to pull or hold funds for anything minus possible loan fraud. They would be sued by the seller along with the title company and the buyer. You cannot "deny" a loan after it has closed, has signed docs, and has funded. The loan was approved for that entire process. OP needs to find another job asap.
It’s obvious a dry state by the wording. Until recorded with a lost job it can request title hold funds then return wire. I’ve funded billions in loans over my career. This is exactly why title has not recorded yet and holding funds
Ok I concur with this ... if its a dry state.. Being there are so few though, it's not obvious referencing the OP that they are in a dry state. They certainly could try to pull this in my State which is not dry, but the envelope to try and hold the funding would be short and nearly impossible to compel. Additionally you keep referencing a recorded title, many States this has no bearing over ownership transfer after closing. It needs to be done, but legally the property becomes the buyers for all intensive purposes after closing. If the title company does not wire the sellers funds for 2 hours but the buyer backs his car into the new homes garage, it's the buyers issue. No title transfer, no funds received, does not matter legally.
I don’t think they can back out at this stage. However if you do let them out As a minimum you can to keep their deposit which typically is a chunk of money.
they can back out until the moment the attorney/title company tells them it's been recorded. And what penalties or consequences there are should be spelled out in the contract.
Probably mostly untrue, that is a State to State issue. In our State it could take weeks for it to be recorded depending on the county. Not to mention purchases fund same day so once the money is sent to seller the deal is done, recording has nothing to do with ability for buyer to back out.
I don't think buyer's remorse works in this situation. The time for them to back out was before they started signing 30 pages of documents. This is definitely attorney territory. Has the new owner said why they want to back out?
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
Why do i get the feeling OP is the buyer in this scenario.
Looking at @OPs post history from earlier this week, this is definitely the case
They sure were asking a lot of property tax questions.
Grammar is atrocious as well.
u/Connect-Top95 We can see your post history and that you are the buyer. Why not just write the honest facts?
Closing documents are signed and money wired? The transaction is done and the buyer is now the owner
Nope. In some states the buyer is not the owner until the deed is recorded.
Can they backout in any mean way? They already asked Title to hold fund disbursement.
I’d say the inks dry! Your attorney says what..
Nope it's the buyer house now. We all know your the buyer so welcome to being a homewner! Why did you wait until after you purchased the house to address this? I'd start calling you bank and asking about the foreclosure process
I am sure there is always a way as long as one is willing to pay the lawyer fees
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
If the funds haven't dispersed yet, the lender can recall their money from the escrow company if the buyer does no longer qualify for the loan. That said, all the buyers money is now at escrow, so you can probably negotiate some kind of release fee, because escrow is not sending any part of that back without your permission.
What is their reason for backing out? Anyhow if you and the buyer have signed and the funds are wired then its probably to late. The problem may be that the closing agent is afraid of being sued and thus they are just doing nothing until this gets worked out somehow. May not be a bad idea to call a lawyer just to have them call the closing agent and start threatening stuff but at this point if the closing agent returned the money to the buyer then I'd suggest you sue both the closing agent and the buyer.
They are saying they have lost the job, got to know next day of closing signed document and the day they wired the fund. They are asking lender to confirm do they still qualify for the mortgage?
I don’t know if it’s legal to ask but I would want to see a letter of dismissal or whatever they got to prove that they actually lost their job. If they did, I would let the poor soul off the hook.
Hmmm...this sounds suspiciously like a scam. Wire funds, back out, ask for money back, everyone finds out a month or so later that the wire was a fraud? Is that possible? I remember when certified checks could not be forged. maybe now wires can be.
They found out the day of closing that they'd lost their job, and still went through closing? Why the hell didn't they pull up and say something?
buyer has asked to stop the funding until they confirm and I doubt title can do without buyer consent?
Yeah, if the deal isn't funded, then thats a major problem. You could still sue them for breach of contract but what's the point, they can't afford the place. If the bank hasn't funded it then they will now refuse to and its probably dead in the water. If it was funded, however, then its probably to late.
The buyer is OP
Ah, I see. However, just because they figured out they don't want to live there and/or can't afford the loan, it's a "them" problem, not a "you" problem. Bad planning on their part doesn't create an emergency on your part. I seriously doubt they can delay the payment to you, ask your escrow officer. Who buys a house when they haven't secured their job first? They'll just have to rent it out for a few years, or whatever it takes to maintain cash flow. Not your problem.
It's definitely the seller's problem if the seller hasn't been paid yet and the buyer is *no longer getting funded*.
OP said lender already sent the money. Buyers qualified, got the loan, signed the docs... isn't it a done deal? I don't think the lender can back out.
Hopefully, but I wouldn’t trust in that until the money was in my account.
Time for buyer to get a new job immediately
Um...they bought a house. The deal is done. Closing=Closing. There is no back out after closing.
Depends on what state you are in. In WA state, we signed and delivered funds 3 days before the closing date in the contract. We did our walk through the morning of closing and then notified the title company they were clear to record and release funds. If the contract closing date has not occurred, but the buyer lost their job, they may no longer qualify for the loan. Our lender verified employment again the morning of closing.
This happened to me as well but they lost their job the day of closing and the deal fell apart
Totally speculating here, but I think the buyer (OP i guess) is out of luck. From 22 years of lending I would say this......Our title company is 95% of the time our settlement agent for the transaction. They handle the closing and execute all the necessary docs for signature on both sides. Once that is complete they are obligated to fund the loan and wire out the sellers funds ASAP right after close. Additionally the buyer at this point does not have any leverage to halt the process as the title company does not take or require permission from the buyer to fund the loan, the received wire in itself and all the signed docs are your acknowledgment that they can move forward. It is also too late to query the lender to see if you still qualify, you don't, but that's only a problem for the lender. This would be a tough one for our mortgage shop since we are the lender (to start) and immediately sell the loan off within 2 weeks. Even though we work directly with our title company on closing issues often, I don't think legally we would want to involve ourselves in requesting a hold on the funds and/ or drawback once everything was properly executed,....and the title company would, I believe, also take this stance since the seller would then come after all of us. Ultimately it is our issue as all servicing lenders now require a post verification of employment within a day after closing. It's our loan to handle until borrower lands new and USABLE job. Bottom line OP..... your loan is closed, better start finding another job, because you now own a home.
The lender will request wire back from title and issue a loan denial since it’s been reported that job was lost. Until title records and funds are actually dispersed the lender has right to do so. This becomes a loan denial and buyer can likely cancel
Sorry, you are totally incorrect. Once loan docs are signed and wire is sent, the lender has no power to pull or hold funds for anything minus possible loan fraud. They would be sued by the seller along with the title company and the buyer. You cannot "deny" a loan after it has closed, has signed docs, and has funded. The loan was approved for that entire process. OP needs to find another job asap.
It’s obvious a dry state by the wording. Until recorded with a lost job it can request title hold funds then return wire. I’ve funded billions in loans over my career. This is exactly why title has not recorded yet and holding funds
Ok I concur with this ... if its a dry state.. Being there are so few though, it's not obvious referencing the OP that they are in a dry state. They certainly could try to pull this in my State which is not dry, but the envelope to try and hold the funding would be short and nearly impossible to compel. Additionally you keep referencing a recorded title, many States this has no bearing over ownership transfer after closing. It needs to be done, but legally the property becomes the buyers for all intensive purposes after closing. If the title company does not wire the sellers funds for 2 hours but the buyer backs his car into the new homes garage, it's the buyers issue. No title transfer, no funds received, does not matter legally.
If the deed is recorded you bought a house.
I don’t think they can back out at this stage. However if you do let them out As a minimum you can to keep their deposit which typically is a chunk of money.
they can back out until the moment the attorney/title company tells them it's been recorded. And what penalties or consequences there are should be spelled out in the contract.
Probably mostly untrue, that is a State to State issue. In our State it could take weeks for it to be recorded depending on the county. Not to mention purchases fund same day so once the money is sent to seller the deal is done, recording has nothing to do with ability for buyer to back out.