Anonymous

Spam prevention
Ambassador
4,173,337
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

They are technically in breach of Contract if they change without asking the sellers and changing the Contract to reflect the new loan program.  

Yes, it happens and it's worked out in the end more times than not.

Mar 04, 2017 10:33 PM
Ambassador
4,312,753
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Happened with couple of my buyers - and we did close, on the wire....

Mar 04, 2017 10:23 PM
Rainmaker
4,018,854
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Yes... and it went fine.

Mar 05, 2017 03:31 AM
Ambassador
5,329,275
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Thats when I would start looking for a new buyer.

Mar 04, 2017 10:38 PM
Rainmaker
1,206,044
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

That's breach of contract. Mt counter offer prevents it, but yes it has happened that's why I prevent it. But, we're out of contract should they do so.

Mar 04, 2017 10:09 PM
Rainmaker
5,571,077
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

have had many different scenarios, and we all worked together to keep the deals going... 

Mar 05, 2017 01:49 PM
Rainmaker
1,830,810
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Yes, it was fine.

Thank you for asking Anonymous. 

Mar 05, 2017 05:27 AM
Rainmaker
1,027,335
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I have only had this happen when I was representing the sellers, never when I was representing the buyers.  In all cases, everything went fine and closings went off as scheduled, however, in those cases, any financing contingency does not cover the buyers in the event of default unless the sellers agree to the change of financing type. 

Mar 05, 2017 05:27 AM
Rainmaker
3,069,934
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Yes - fine

Mar 05, 2017 04:06 AM
Rainmaker
103,671
Vickie Teel
RE/MAX PALM REALTY - Port Charlotte, FL
Sharing Florida sunshine one homeowner at a time!

I had one recently where I had the seller and it was a conventional loan per the contract and the FHA appraiser called me to set up the appraisal.  I asked the agent if that was an error on the lenders part and found out they had changed the loan from conventional to FHA since the buyers didn't have enough for the costs associated with the conventional loan.  My sellers went along with it because they wanted to sell but seven days before closing we received a release and cancellation of contract due to buyers not getting financing.  I did  ultimately get the home sold but that wasn't a great situation.

Mar 05, 2017 03:54 AM
Rainmaker
808,797
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes, it happens, and sometimes it works out just fine.  But changing, as in your example from conventional to FHA, is a significant change and should be discussed with the seller and agreed upon in writing.  Some sellers choose a buyer and offer because it is conventioanl instead of FHA/VA or other type of loan program.  In your example, FHA can cost the seller more money, the appraisal has different requirements and the condition of the home could be more in question, so it can definitely cause problems.

I had one many years ago where the lender changed the loan program without telling me OR the buyers.  It was a disaster.  We had made an offer NOT contingent upon the sale of the buyers home and they were qualified for it.  During the process the buyer got an offer on their home and the lender knew it so made some change to the loan program, not sure what it was exactly but they thought they were doing their client, the buyer, a favor by giving them a better program (maybe it was more money down so no MI or lower interest rate or something I can't remember). Well, their home fell out of escrow and then they couldn't buy the home they were trying to buy that was not supposed to be contingent in the first place.  It's a long story, but it was seriously a disaster.  It closed 2 months late and was a nightmare the entire time. -Kasey

Mar 04, 2017 10:45 PM
Rainmaker
1,044,289
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

No not in the middle of one.. had plenty I wanted to use again but they weren't available at that point

Feb 23, 2018 08:20 PM
Ambassador
3,707,032
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

A couple of times.

Mar 05, 2017 02:28 PM
Rainmaker
4,163,344
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I've had it change but only with an Amendment to the contract and signed off by all parties. It's worked out fine..no problems.

Mar 05, 2017 02:13 PM
Rainmaker
1,375,972
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Asking of student questions as Anonymous is against the rules, per Active Rain Staff Bob Stewart.  Reporting.

Mar 05, 2017 10:22 AM
Ambassador
3,030,023
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Yes, and that is why I have an addendum with all offers addressing this very bait and switch tactic. 

Mar 05, 2017 10:05 AM
Rainmaker
3,405,434
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

It occurred once and the transaction fell.

Mar 05, 2017 09:01 AM
Rainmaker
864,258
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

It does happen, however, both parties would be in breach of the contract. That is why open communication is so important.

Mar 05, 2017 07:44 AM
Rainmaker
543,818
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

For us in Oregon, a loan change must be approved by the seller. Typically this will delay the closing.

Mar 05, 2017 06:55 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It has happened.  Some went smoothly, while others had issues.

Mar 05, 2017 05:35 AM
Rainmaker
1,632,842
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Ask your instructor

Mar 05, 2017 05:31 AM
Ambassador
3,986,660
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have got a sale right now where the buyer switched from Conventional to FHA. We just want it to close.

Mar 07, 2017 06:07 PM
Rainmaker
4,849,517
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

If loan programs change, it must be on amend/extend and approved by all parties.

Mar 07, 2017 09:18 AM
Ambassador
1,573,505
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Yep and we closed on time.  

Mar 06, 2017 05:54 AM
Rainmaker
1,512,129
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Yes, it had happened ,  when I worked with investors who offered cash and suddenly switch to financing, or as you said, they could not get FHA and had to go with conventional. It is up to principals to decide if they want to continue and close or cancel and start over. 

Mar 06, 2017 12:34 AM
Rainmaker
5,488,796
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Thomas J. Nelson, Realtor, CRS gave you a great answer.

Mar 05, 2017 08:43 PM
Rainer
318,413
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

Yes and it worked out fine.  Buyers agent was new and actually called me to ask if they could change loan types in mid contract.  All paperwork was completed - did change our closing date slightly, which was good for my client.

Mar 05, 2017 08:28 PM
Ambassador
2,559,890
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Yes.  Everyone lived happily ever after.

Mar 05, 2017 05:55 PM
Rainmaker
1,707,397
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

No. I use ethical quality lenders.

Mar 05, 2017 04:03 PM
Ambassador
4,542,480
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

No, just a change in lenders. Changing the program would be an issue with the contract terms and sellers would have to agree.

Mar 05, 2017 08:14 AM
Rainmaker
3,966,882
Richard Weeks
Dallas, TX
REALTOR®, Broker

Happens all the time. 

Mar 05, 2017 06:53 AM
Rainmaker
4,433,583
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It has happened with an addendum.

Mar 05, 2017 06:43 AM
Rainmaker
1,453,927
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Yes, it did not affect the closing date so it went well.

Mar 05, 2017 06:22 AM
Ambassador
1,616,354
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

not at this time

Mar 05, 2017 06:11 AM