Legal Question in Real Estate Law in Delaware

Seller selling unmortgagable & uninsurable house
We recently put a down payment on a second home near the beach. The dwelling is a manufactured house (Delaware class c mobile) built in 1969. We have since learned that mortgage companies will not lend money for manufactured homes built prior to 1976 (when federal manufactured home construction and safety standards were established by HUD). We were also unable to obtain homeowner's insurance for the same reason.

For these reasons we are unable to buy the property.

It doesn't seem right that we lose our downpayment on the house as the home is ''unmortgagable'' and uninsurable. Do we have any legal recourse?

Asked on 4/10/07, 5:31 pm

4 Answers from Attorneys

Edward Pankowski Edward Pankowski, Jr. Esq

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Re: Seller selling unmortgagable & uninsurable house

My firm just enrolled in program, if you still need a DELAWARE real estate firm, please contact us. Edward C. Pankowski Jr.

Answered on 12/03/08, 9:12 pm

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Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Seller selling unmortgagable & uninsurable house

It all very likely depends upon what the sale contract says in regards to this issue, and, if it's not directly addressed, then the issue would be what language does the contract contain(if any) that might be interpreted in a way to give you an out without losing your earnest money.

Answered on 4/10/07, 10:26 pm

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Robert Strupp Robert J. Strupp,Attorney at Law, PLC

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Re: Seller selling unmortgagable & uninsurable house

The answer may depend on the terms of the contract-is there a financing contingency clause? Was the age of the home disclosed or otherwise available information?

Answered on 4/10/07, 10:28 pm

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