If we recently signed a contract agreeing to purchase a house from a private seller, can the seller legally require that they be paid with a conventional loan only?
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If we recently signed a contract agreeing to purchase a house from a private seller, can the seller legally require that they be paid with a conventional loan only?
In the contract is specified that the seller is to be paid with a conventional loan. We were not approved for a conventional loan but were approved for an FHA loan. The seller won’t accept the FHA loan and we must be out of our current house in 2 weeks. If not, should we take legal action? This has all put a huge strain on my family and I. We feel like we are being bullied. The seller is very difficult to communicate with.
Asked on February 10, 2016 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Unfortunately, it doesn't matter if the seller is being stupid or unreasonable: if you signed a contract requiring a conventional loan, you are bound to the agreement you entered into unless the seller voluntarily chooses to accept different payment. If you breach the mortgage terms of your contract, he can refuse to sell and can keep the deposit for your breach.
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