Sun 1 Feb 2009
Chaos in Condo Land
Posted by Marlow Harris under Condominiums, Real Estate, Seattle Real Estate
[5] Comments
Buyer makes an offer on a Paul Allen/Vulcan owned building.
Buyer used Paul Allen/Vulcan site agents and Paul Allen/Vulcan-recommended mortgage broker.
Chaos ensues.
Read the comments. Apparently, the wronged Buyer consulted a independent Realtor and was told not to sign the contract, but Buyer went around Realtor and used site agent to sign Paul Allen/Vulcan/owner/developers contract. Terms of the loan have changed and Buyer cannot complete and close sale and Paul Allen/Vulcan wants to retain the non-refundable earnest money.
Paul Allen & Vulcan are behind the redevelopment of South Lake Union in Seattle and major funders of money-losing brokerage “Redfin”.
#1 Do NOT use site agents to make your real estate purchases. Hire a Realtor or a lawyer, do not use the site agents.
#2 Make sure you have a Financing Contingency in your contract, so you can get your earnest money back if you are unable to get your loan.
#3 You may get a better deal with site mortgage brokers, but you may not. Shop around. Get references from your Realtor or lawyer.
#4 Think twice about buying anything UNBUILT. That’s a risk I would be unwilling to take.
5 Responses to “ Chaos in Condo Land ”
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February 2nd, 2009 at 5:03 pm[...] sure you have a Financing Contingency in your contract, so you can get your earnest money back if you are unable to get your loan.” from the [...]
February 2nd, 2009 at 6:33 am
Actually, they used Vulcan’s preferred mortgage lender–Countrywide. It was not a mortgage broker.
Regardless, I think using a site (or builders) agent or loan originator will typically be a bad idea…they work for the seller.
I had a call from a person who was stuck in a similar situation (it’s not the person in the article) where the lender had them approved for a loan that didn’t make sense (stated income). This was done well before the building was complete and the buyers life had changed dramatically. He had time to think about the proposed mortgage and wanted out… The seller/builder responded “my lender says you’re preapproved…sorry…can’t refund your earnest money”.
February 2nd, 2009 at 6:49 pm
More of a question then a comment. Will the Microsoft layoffs effect the situation?
February 2nd, 2009 at 7:14 pm
I think all the lay-offs in every industry will have a cumulative effect, but one thing to keep in mind is that even though MS is laying off, they’re also still hiring in selected departments.
February 6th, 2009 at 7:38 pm
When will the banks loosen up on the money? The Realtors are working twice as hard for half the pay. =o(