Legal Question in Real Estate Law in Ohio
Seller Breach of Contract
We recently put a contract on a home. The sellers accepted the offer and signed the contract agreeing to the stated price. However, when they checked with their bank, they found out they actually owed more on the home than they were asking for it. Now we are unable to close because the sellers are unable to come up with the difference and have asked us to cover the amount they owe, which is mostly interest and late fees incurred from not making morgage payments. Since they accepted the price we offered, can they legally ask us to pay more? We offered them the full asking price. It is not our fault that they did not do their homework to find out what they owed before listing the house at the asking price. Have they breached contract and do we have any recourse? The house is scheduled to go into foreclosure at the end of this month if not sold and the bank will not do a short sale. Please help, we love the house, but don't feel we should have to cover the sellers' late fees, especially when we agreed to pay them the full asking price.
2 Answers from Attorneys
Re: Seller Breach of Contract
The Sellers are in breach, and you technically have a cause of action for specific performance. Unfortunately, you know you are wasting your money if you sue because the Sellers cannot make up the difference between the contract price and the mortgage balance.
Have you thought about trying to buy in foreclosure, or directly from the bank it it buys the house back?
Re: Seller Breach of Contract
The Sellers are in breach, and you technically have a cause of action for specific performance. Unfortunately, you know you are wasting your money if you sue because the Sellers cannot make up the difference between the contract price and the mortgage balance.
Have you thought about trying to buy in foreclosure, or directly from the bank it it buys the house back?
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