My sister put money down on a home that she might not even get, any ideas?
My sister put money down on a home that was listed as residential property, it was infact a duplex that she planned on moving into both halves and eventually making it into one home. She got approved for the loan, sent the check to the insurance company, and put the money down, and when she got it appraised, the guy told her that it was commercial property and couldn’t get the house unless she put 20% down. She cannot do that, and the insurance company and real estate places have already cashed their checks. She is very interested in owning this home, what can she do?
The house is listed as residential-multifamily, and the appraiser came in and said it was commercial. It is located in eau claire, so is there anything that she can do?
And will she be able to get the money back from the insurance company and real estate place, i told her yes, be she thinks that they wont do it. What do you think? And what do you think she should do?
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5 comments
P J on August 20, 2009 at 4:42 pm
She should be talking to her agent and if she does not have one this is exactly why one should use an agent.
All she has to do is contact the insurance agent and talk with them.
IF her sales contract has a financing contingency she can possibly get her earnest money back. She may have to go to court to do so.
Has anyone spoken to the appraiser about his/her decision? Has the zoning changed recently?
She might need to see a real estate Lawyer on this one.
Craig T on August 20, 2009 at 4:42 pm
She probably needs a lawyer
The insurance co will refund her money as there is nothing to insure. Any money she put down has to be returned as the contract/sale wasn’t completed.
sortaclarksville on August 20, 2009 at 4:42 pm
Yes, she should be able to get the money back. But, she may want to contact the property tax office to see what they have it zoned for. If it’s zoned commercial, she can’t live in it even if she can afford to buy it. If it’s zoned duplex, then she can make it into one residence and have it rezoned.
Steve Ski on August 20, 2009 at 4:42 pm
What she can do depends. In her purchse offer did it say she would put down 20%? Was the money given earnest money or actually a down payment? What kind of insurance did she pay for at this stage of the game? Is the appraiser correct? There is not enough info to answer the question. However, instead of seeking advice here, what she should do is get advice from a real estate attorney….now!!! Next time make any offer contingent on her attornies approval.
kemperk on August 20, 2009 at 4:42 pm
MY associates/peers are correct.
And, a 2nd bit of data for you.
While a property may be a house
or a duplex, either when built or
now, the ZONING could have been
changed. [from residential to commercial]
YOU can confirm that [if you wish to]
by checking with your county recorder.
Sorry about your hassles.
IN the future, if you live in a state
that has title companies, [aka
escrow firms] ask if they hold
money for real estate purchases.
99% of them will. Also, as mentioned,
use a BUYER"s AGENT to help you
in real estate purchases [make sure
you sign a contract that says your agent will be an exclusive buyer's agent for you.]
thanks for asking