OfflineHi, I just had my offer on a foreclosed property accepted by the bank, on it before i signed, and they signed, I quite clearly put in writing, Seller Pays ALL closing costs, to which afterward they signed, now someone at the bank is saying they didn't realize i wanted them to pay all closing costs and they want me to pay half, surely if they already signed the contract they have to abide by it don't they as isnt the contract legal and binding? or does this mean they can now make me pay half the closing costs?, please help if any of you have legal knowledge of this, thanks.
Yours faithfully
Benedict McGowan
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While not being a lawyer: the general rule is that signed and accepted contract are to be followed unless an Act of God interferes with the performance of a specific item or an agreed item is an obvious mistake (1.4% interest instead of 4.1%). In this case, while he may think of himself as a god, he does not get to unilaterally change the terms of the agreement. They are hoping you want it so much you will be willing to budge. However, you may have to weigh the compromise against doing business with them in the future.
My first residence that I bought new from a builder contained very favorable terms to me and they wanted to change them 3 months later due to an increase in building materials. The cost differential was such that they were on the hook for more than $11,000 more costs. They indicated they were going to cancel my contract, etc if I didn't renegotiate with them. The short answer is that I did negotiate to take some of the pressure off them for non-monetary items that benefited me. I renegotiated the deal because they were going to be the ones to build it and I didn't want a poor job, substandard materials, etc on the job. Everything worked out well and I only ended up paying $30 +/- per month more.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Hi Bill
Thank you so much for the input, the reason I asked them to pay closing costs in the first place is, I have little to no money other than the cash offer I made, I contacted the title agent about this discrepancy and she contacted the bank on my behalf but they have not got back to her yet, as for dealing with them again, I am not worried about that, as they are not a bank I would normally use, I just had to go through them with the agent as they own this property, really i feel this is for the agent to sort out in the first place, but he is representing the bank as well, so i guess he would rather me or the title agent sort it out so he doesn't fall favor from the bank for future BO's to represent because of this human error, if i had the money available, like you said, i would rather just give them half the money to avoid this hassle to make sure i get this property, as although it needs a ton of work which i can do my self, the investment potential on it is huge, I guess i will just have to keep my fingers crossed, and hope they give in putting it down to one of their mistakes, thanks again for your help.
Yours faithfully
Benedict McGowan