BIG PROBLEM!!!!!!!!!
We went through the walkthrough and everything was fine. The house was empty and the sellers did not show up!! (red flag) But something else is another problem!! My buyer's agent tells me that he was contacted late last night by the seller agent. The seller agent said that the sellers will owe $28K on the house if they close on 4/30 with our purchase price. They will be asking suntrust bank to do a short sale!! !@#$$@@!@# My agent then tells me that the sellers are divorcing and the wife has the power of attorney for the house and had no idea that they were going to owe 28K on the house at closing because the husband handled all the finances!! they don't have the money, so now they will seek the short sale route!!! But our contract says that we close on 4/30!! My agent said that we won't be able to close on 4/30 now. If we don't close on 4/30, it will financially impact us in many ways:
A) The home inspection on the house cost $375 that has been paid
B) Home appraisal we had done cost $400 that I paid
C) We will lose the $8k first time home buyer credit, (have to have signed contract by 4/30 which is 7 days from now !!@!!)
D) I have taken 6 days off for vacation from work to move/pack in the first week of may!!!
E) Our home mortgage interest rate is locked for 60 days at 5% on a 30 yr fixed loan, interest rates have risen. So if I don't close on this house by 5/23, I would have to get a new mortgage loan with a higher interest and points which could result in a couple hundred dollars more a month and several thousand dollars that I would need at closing!!!
F) I have put in a 60 day notice on my apartment to vacate!! if we don't close on this house, we won't have anywhere to live after 5/30th!!
G) I have paid the home owner's insurance on this house in full and my car insurance got moved over b/c of the home insurance quote I got was the best for this house!! from 4/30/10-4/30/11!!
H)I may have to move twice since I put in my notice to vacate my apartment!! that's double the moving expenses!!
I) I filed an extension with the IRS thinking I would get a refund and the home buyer credit. but I owe IRS taxes without the buyer credit. I would have to pay penalties and interest now!!!
J) there's more stuff that I am probably forgetting, but my head is about to EXPLODE!!
I told my agent that I was going to get a lawyer, but he discouraged it, saying if the sellers have no money, you can't squeeze blood from a turnip. I'm DEVASTED and my wife was crying at the house.
My options are:
A) Hope the seller comes to their senses and closes this Friday
B) When they file for a short sale, suntrust bank turns them down b/c they are not financially insolvent e.g 401k money. (that could take weeks!!)
C) take a chance on this house, wait for short sale, and suntrust bank honors our purchase price for this house (could take months!!)
D) Start looking for houses again RIGHT NOW, and spend several hundred's of thousand of dollars in 7 days to get the buyer credit.
E) sue the !@#$ out of the sellers.
The thought of being homeless is frightening. not sure if my apartment will let me pay month to month. they could have rented my apartment out already. I'm estimating that this will cost me $20k MINIMUM if we don't close. I'm not sure what I can do if anything. opinions???
