Legal Question in Real Estate Law in Kentucky

I put up 3000 on an Option to purchase agreement on the Condo I am in before the time came to execute the agreement I received a letter stating that the developer was going out of business that I would now need to send the rent payments to the bank. After talking with the developer he stated that I could still buy the condo at a reduced price on a short sale with the bank but I would need to use the bank that held the loans and get a portfolio on the property because it would no longer be FHA approved since he was dissolving the HOA and the Condo residence would be starting a new one. After writing a contract for the purchase of the condo and the bank accepting the offer for the new sale price the bank has refused to make a loan without a lager sum of money down (35% of the purchase price) do to the amount of association fees and back taxes that are owed on the property that the developer owes. I am able to put over 20% down but not able to come up with a 35% down payment. Will I be able to get my $3000 option fee back do to the developer causing the harsh conditions to get a loan?


Asked on 10/18/11, 8:11 am

2 Answer from Attorneys
Andrea Welker Welker Law Office

Possibly, it depends on what your contract says. You should take all your documents to an attorney for review. Many attorneys offer free consults.

I'd also look for a solution concerning the terms of the bank loan. Even in today's economy, even for a short sale, those are rather ridiculous terms. Perhaps you can get additional financing from another source as well? Keep negotiating. It sounds like if they sold the place at auction, they wouldn't recoup their money because of the back taxes/unpaid assessments. They'd do better to sell to you.

Read more
Answered on 10/20/11, 9:06 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Kentucky