Quote:
Originally Posted by bossku69
Yeah, I've made some pretty bad decisions, I appreciate the help 
With this house, I am only leasing it, have not moved in. The reason being is that if I didn't I would be out of contract with the sellers and loose the $8k tax credit, as well they would be able to renegotiate the deal. Since they now know the appraised price, I feared they would raise the asking price.
It was a gamble, but after speaking with my attorney this was the best solution to keep them from renegotiating or starting a new contract.
Thanks for the input, greatly appreciated.
I am only leasing their home based on their current mortgage which I get back any principle back at closing, so I only loose interest payments between now and closing.
The lease deal is set per diem based on first available closing date. We've moved the closing date now 3 times and just recently per the brokers request until the end of June. Our agent is only representing us and I hired a real estate attorney; mainly so he would be doing the title search and not someone from the bank.
The major concern was being out of contract with the buyer. If that was the case then I would loose the $8k tax credit. And in that event, then I would have told them either to sit and wait until I can close or you can walk away.
Spending a few hundred now to get back the $8k is worth the gamble from my end, otherwise I agree, it would have been a stupid decision but its based on risk vs reward. |
More information is always helpful, which is what you provided here.
So you didn't move out of your current apartment, thats good.
You can't be upset with the delays, it happens. Which is why it is important to get it all worked out before hand. In your case now it is too late because of the tax credit, so you have no choice but deal with it. How long do you have left on your contract before it expires? How much are you buying it for, how much was it appraised for. How long was it on the market? Would be helpful to know if you have leverage or not. If the sellers have had other interest they could let your contract expire and sell it to someone else. On the flip side if it has been on the market a long time, you paying a fair price, they haven't had much interest, and they can't afford to pay two mortgages if you back out, then you have a lot of leverage. In that case I would ask for an extention in writing for another 60 days to give the bank time to work it out.
You "leasing" is basically just paying them more for a purchase price. Depending on their situation you could have probably negotiated that part out and just got them to accept giving you more time for free. Getting the tax credit would be nice, but you need to be 100% sure you got a deal in the first place with the bank or your get no house, no tax credit and you are out more than a couple hundred bucks.