Legal Question in Real Estate Law in Illinois

I am wondering what my legal rights are regarding a real estate transaction. I was approved for an FHA loan, and i put in an accepted offer on a condo that is bank owned. The first thing I asked my realtor, as well as everyone involved was whether or not the place was FHA approved. Everyone said yes, and we went under contract. Now the lender comes back from underwriting saying that the association let their FHA status expire 2 years ago! So my loan is no good for the condo purchase. I was suppose to close in 3 weeks. I now have to move with no place to go. Is there anything I can do to make this transaction happen? Or is there any action I can take against the professionals involved to compensate for possible moving, relocation, time, and aggrivation reimbursement?


Asked on 8/10/13, 9:34 am

1 Answer from Attorneys
Stephen Messutta

I hope your contract provides for a financing contingency for an FHA loan, because if it is impossible to get on this building, your only option may be to terminate IF the contract still gives you that out. Apparently you decided to proceed without an attorney; now is NOT too late to get one involved. Closing in 3 weeks sounds highly unlikely even if the building could get a current approval. As to damages for the misrepresentations about whether the building is approved, that is highly unlikely unless you have them in writing.

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Answered on 8/12/13, 12:42 pm


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