Does a FHA amendatory clause act as a counter offer to the real estate purchase agreement?
This is a bank owned home and they don’t want to sell it for the agreed upon price as they have other higher offers. They want out any way they can get out. ….
I submitted an offer for a house with a standard PA. My agent said I would be going with conventional financing in the offer (offer accepted). The seller then had me sign a counter proposal to the agreement. Both the seller and I signed it the counter. After that I decided to go with an FHA loan as it seemed like the best option. In their counter it never said I couldn’t go FHA. I submitted a FHA Amendatory clause to the seller. The seller denied it and called it a counteroffer and said “counteroffer is hereby rejected, and thus there is no agreement”. I am still able to close on the stated closing date with the original conventional loan… and don’t have to go FHA. Do they have to accept it or does the FHA Amendatory clause stand as the final purchase agreement.
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September 2nd, 2010 at 11:18 am
Both you and the seller signed the counterproposal to your offer. That is the FINAL agreement. The sellers are under NO obligation to agree to any amendment to the original contract. You can ASK for amendments, but the seller has the freedom to reject your request.
September 2nd, 2010 at 11:31 am
Wow! This is really turning into a soap opera! I do hope you let us all know how it ends.
The FHA Amendment is a proposal for contract modification. It is NOT a counteroffer. There is no such thing as a counteroffer once a contract has been formed. The sellers denied your proposal for modification. Your original contract that you had with the sellers before this whole melodrama began is still in effect, and enforceable.
To put it in simple terms, here is your sequence of events:
1. You make an offer w/conventional financing.
2. Seller sent you a counter proposal.
3. Both you & seller signed the counter proposal. **** STOP HERE **** Ignore everything that occurred after this point. Your contract is what is in the counter proposal & all of the documents that the counter proposal incorporates.