Legal Question in Real Estate Law in Pennsylvania

In early January my wife and I contacted Caldwell banker hearthside about a property that was for sale for 189.000. while we were inspecting the property the mortgage broker informed us that this property was a short sale. He explained to us that a short sale meant that the price of the property was what the owner owned on the mortgage. The property was in very bad shape and needed a lot of work the mortgage broker stated that he did not feel it was worth 189.000 and he stated that we could probably get it for a lot less. We returned home and in about one hour received a call from the mortgage broker he stated that he contacted the bank that had the title for the property and they (Lara wells Fargo bank) would accept 140.000 for the property and we had to pay off a loan the present owner had (a lean on the property)of 3800. Of course we agreed with this (getting the property for that price we could afforded to fix it up) we did everything we had to we put down 4.000 we had the property inspected and so forth. We filled out all the necessary paper work at 140.000. We were just waiting for our mortgage to be approved so we could go to settlement. Well after almost three months we received a phone call from the mortgage broker that we were approved he also stated that wells Fargo bank wanted 15.000 more for the property all this after we agreed on 140.000. For three months no one contacted us stating the price could or would go up.

Is this legal for them to raise the price after we agreed on a price.


Asked on 3/14/10, 11:01 pm

1 Answer from Attorneys
Solomon Weinstein Solomon Weinstein, Esquire

I ASSUME YOU HAVE AN AGREEMENT OF SALE SIGNED BY THE SELLER AND THE BUYERS INDICATING A SALE PRICE OF 140,000.00 IF SO IT WOULD APPEAR THAT THE MORTGAGE COMPANY COULD NOT RAISE THE PRICE. hOWEVER SOMETIMES THERE ARE ADDITIONAL CLOSING COSTS WHICH ARE NOT A PART OF THE SALE PRICE. yOU SHOULD FIND OUT WHAT THE $15,000.00 REPRESENTS. i HOPE YOU HAVE LEGAL REPRESENTATION. IF NOT i SUGGEST YOU CONTACT AN ATTORNEY TO REVIEW THE TRANSACTION AS THERE MAY INFORMATION THAT IS NOT SPECIFIED WHICH COULD CHANGE THE SITUATION.

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Answered on 3/20/10, 8:23 am


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