Purchase agreement real estate law FHA and foreclosures?

About 2 months ago I signed a purchase agreement (offer accepted) for a property. The property is a foreclosure I might add. On the original purchase agreement it stated I would be going in-house for my loan. I later found ou that I could go FHA and save on my down payment and rate. It took some time for the seller to locate a POA but they eventually did (we had to write an extension 2 times while they did this). After their delays were out of the way I was able to move forward on my end of the deal. I was approved FHA and an appraisal was the next step. NOW the sellers say they will not accept FHA funds for the home for whatever reason. The home is only 7-8 years old and in excellent condition, but I bought it far under its value…about 80K less than it is worth. I said fine if you won’t take the FHA I will just put the 20% down and go in-house…they refuse to extend the purchase agreement to give me time to do that!!! Anyone ever hear of such a thing???

2 Answers

  • 1 decade ago
    Best Answer

    You'll need to take your contract to an attorney to see what your obligations are.

    I've never heard of any boilerplate POA contract that *requires* a purchaser to use a particular source of funds. Usually the source of funds is stated as a *contingency* which is waivable by the purchaser. That's why I suggest taking your agreement to an attorney, because you, or the seller, are probably misinterpreting the terms.

  • 1 decade ago

    Sounds like they got a better offer. They have no obligation to allow another extension.

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