How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask RealEstateAnswer Your Own Question

RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 15922
Experience:  7+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
Type Your Real Estate Law Question Here...
RealEstateAnswer is online now
A new question is answered every 9 seconds

This past Saturday, I saw a home with LGI Homes in Georgia

Customer Question

This past Saturday, I saw a home with LGI Homes in Georgia and signed a purchase agreement. I also gave them 500 dollar earnest money. I think this was a mistake as I scouted the area I would be staying in the evening and the neighborhood is worse than I originally thought, so I no longer want to move there. I have a scheduled first meeting with the mortgage loan officer tonight, so officially I have not been approved for the home loan amount as of yet. This would be our first meeting. I also think that I was stupid to think that it would be easy for me to come up with the 3.5% down for the FHA loan. BotXXXXX XXXXXne: am I now obligated to buy this house, just because of signing the purchase agreement on Saturday?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 11 months ago.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good morning. I certainly understand the situation and your concern. The purchase agreement is a legal binding contract, if agreed to and executed by both parties. As such, you would be expected to proceed with the purchase and act in good faith, pursuant to the terms and conditions stated within. However, the contract likely contains a lot of conditions which have to be met and I am inclined to believe that obtaining finance is one of them. As such, if you are unable to obtain the FHA loan as a result of your credit, income, debt or lack of a down payment, you could have a legal basis to walk away, assuming you can obtain evidence from the loan officer, that you can not qualify. In addition, read the contract and see if it contain a period of time where you have a right to walk away or cancel. Often times, there is an inspection period and time for you to perform your due diligence, which could benefit you in this situation as well. If you fail to perform and advise them you are not going to close, they could proceed and sue you for damages suffered, which also will be stated within the contract. This may be a situation if you read the contract, where their damages are limited to only the deposit you gave, depending on the time frame in which you backed out.

Please let me know if you have any follow up questions or need any clarification on something which I stated above, prior to rating me. Also, please remember to rate my service with 3, 4, or 5 faces/stars, before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two faces/stars on the left, please STOP and reply to me via the "REPLY TO EXPERT or CONTINUE CONVERSATION "button. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.
Customer: replied 11 months ago.

Okay, so even though I have not officially qualified for the loan, I am still obligated to the house because I signed the agreement? Yes, a loan approval is a contingency for the house. Therefore, do you have any advice for the meeting that is scheduled with the loan officer for this evening? If I absolutely do not want the house, should I even bother collecting all the paperwork? Do I just attend the meeting, tell the officer that there's no way I can come up with the down payment, and then do not fill out the loan application? I am very nervous in terms of making this whole thing worse and don't know what my next step should be and i only have 8 more hours until that meeting. Any further advice?

Expert:  RealEstateAnswer replied 11 months ago.
At this point, there is a contract and you have a legal obligation to make a good faith effort to proceed and obtain financing. You still want to meet with the loan officer and obtain all the conditions for the loan. If you can not come up with the down payment of 3.5%, you will not be able to close on the loan, even if you qualify for everything else. As such, you would need to disclose this to the loan officer and try and obtain something in writing from them, saying you can not obtain financing. This way, you have evidence to show the seller. Of course, the issue will remain as to why you signed the contract and were aware of the 3.5 % you would have to come up with that you did not have but proceeded anyway but things often change. It is possible you had the money and ended up having to use it for something else or something else resulted in the inability to obtain it. Talk with the officer, explain your current situation and let him/her be the one who says you can not qualify. This way, you have a basis to walk away, since a condition was obtaining financing and they will not give it to you.
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 15922
Experience: 7+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
RealEstateAnswer and 7 other Real Estate Law Specialists are ready to help you
Customer: replied 11 months ago.

Does a right of rescission law apply to me in the state of Georgia, being that I just signed the Purchase agreement on Saturday? Curious if that law will allow me to get out of this Purchase Agreement contract.

Expert:  RealEstateAnswer replied 11 months ago.
It would not apply in this situation. Here is the reason why.

http://dbf.georgia.gov/right-rescissionright-cancel

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.