Tulsa Mortgage : Podcast 139 – Part 1
Speaker 1: This Stevecurrington.com and the Steve and Tyler show episode number 139.
Speaker 2: Welcome to the Stephen and Tyler show, with Stevecurrington.com and Tyler Webber.
Speaker 1: Who negotiated the contract for you?
Speaker 3: A realtor.
Speaker 1: Oh, you’re pretty smart.
Speaker 3: Yeah
Tulsa Mortgage Speaker 1: Well good for you man.
Speaker 2: They’re talking about everything you need to know about mortgages, home loans, and more. Nobody knows mortgages like these two. Get ready because here is Steve, and Tyler
Speaker 1: Sup Tyler?
Speaker 3: Yo
Speaker 1: Hey so I decided today on the Steve and Tyler show, welcome folks if you’re listening on iTunes or watching total living. People ask all of the time, “Can a seller just back out a contract?” We talked about it in previous podcasts about dealing with a crazy seller, so we kind of talked about this a little bit, but specifically Tyler, because you were a realtor right?
Speaker 3: Mm-hmm (affirmative).
Tulsa Mortgage Speaker 1: So, do you remember? With your vast knowledge of the mortgage industry? What’s a reason a seller can just not sell a house to you.
Speaker 3: I didn’t really deal with listings personally. I don’t know, I really don’t.
Speaker 1: What if they just decide to ? What if they just say “I’m not selling my house.”
Speaker 3: They cannot just decide to.
Speaker 1: Well they can, what are you gonna do drag them to closing?
Speaker 3: No, but you can drag them to court.
Speaker 1: You try to fight the seller … well right, you can drag them to court.
Speaker 3: Yeah.
Speaker 1: What else can happen?
Speaker 3: I mean the appraisal value, at that point, either one of them walk out of the contract, buyer or seller.
Speaker 1: Yeah if it came in low. This is on a side note, but what is the biggest reason we don’t share the appraisal with the seller?
Speaker 3: Because they don’t need to see if it appraised for more. Because, then they can be like “Oh”
Speaker 1: Can you imagine if you listed your house, listen to this, for two hundred grand and you get an offer for two hundred grand, I mean you sell it for two hundred grand. So you sell it. And then that person is getting a loan and then they get an appraise value that comes in at 225.
Tulsa Mortgage Speaker 3: Whoa.
Speaker 1: And then the lender sends the seller that appraisal.
Speaker 3: No.
Speaker 1: What would you do?
Speaker 3: Start right in pros and cons and backing out and selling it for over 225.
Speaker 1: Yeah you would, its 25,000 dollars, you’re talking about. I did that in my head, that’s like a 12 and a half percent … no? … yeah I don’t know its something like that like 15 percent difference. But seriously, 25,000 bucks, so the seller might be like “Forget this man, I’m walking, I’m out of here bro, I ain’t doing this, I’m not doing it. I’m just gonna back out.” SO Tyler is right, so you can take them to court, but you cannot force them to come to closing and sign right?
Speaker 3: Right.
Tulsa Mortgage Speaker 1: They might be not very smart by doing that but you cannot literally force them to come to closing right. So as Tyler mentioned the appraise value can come in low, and the seller could say, “Hey I’m selling the house for two hundred grand, I don’t care if it is only appraised for 190, that’s not my problem, you agreed to buy it for two hundred thousand” and there is a stipulation in the contract that says that the buyer doesn’t have to buy it. And the buyer says “ill buy it from you but I’m only paying you 190″ the seller could say ” jump in a lake I’m not selling it to you for 190″ That’s how a seller could back out. So really, I think the answer to this question is that the seller can back out for any reasons that they feel like they need to back out, they can, you just have to be prepared for that. And get over it because they can, because it doesn’t really matter what the reason is, if there grandma got sick or they stubbed their toe, or whatever happened it doesn’t matter. Because, you cannot force them to come to closing.
It doesn’t mean that you don’t have legal ramifications that you can take them to court or do whatever. You know, most people don’t engage in that, they just don’t, you have to hire an attorney, all that happens, you just move on and go find another house. That’s what happens, all again, I’ve said this in other podcasts, the reason why that transaction of buying a house should be less emotional. Because the less attached you are to the house the less likely … its like buying a car, you go into the dealership, and you find that perfect car and what they’re trying to do is get you to buy it right then, even though you don’t need to buy it right then. Because you’re sided, ever heard of buyers remorse? Where do you think it comes from. Because you’re caught up in the moment, and you bought the car and then you drove the car home. This happened to me , no kidding , do you remember Stan the joke man on the radio.
Speaker 3: Yes.
Tulsa Mortgage Speaker 1: Do you remember that Sam, Stan the joke man? So in Tulsa there is a radio show and it was like 106.9 or whatever, it was Stan the joke man. So, I went this dealership and I found this, I don’t even honestly remember what it was, what kind of car it was. But they told me this is Stan the joke mans car, like he just traded it in. And I was like “Really?” Because he’s like famous, and I was like …Its like the Seinfeld episode where he buys John Voight’s car, you know where George Costanza buys John Voight’s car, but its like not John Voight it’s like his name is spelled differently or whatever.
Speaker 3: Yeah.