Comments on: How much will I have to finance on a new home after the price dropped?

By: bianca

bianca — Tue, 29 Jan 2008 23:48:07 +0000

if the appraised value will be less,then you agree to pay for this house- you have 2 options: renegotiate the price with the builder or walk out from the contract, because lender will not lend you more money then the house is worth. you have check your contract, because i don’t know how this work in your state, but those are general rules .

By: mswanda01

mswanda01 — Sun, 27 Jan 2008 16:37:32 +0000

the sad thing is your lender will not give you a loan on the purchase price if the appraised value is less. I believe it will be the lessor of the two so if your property appraises for 650000 you loan to value will be based on that not your purchase price so you will have to come up with more money to get the deal closed

By: Drew

Drew — Sat, 26 Jan 2008 12:39:41 +0000

Ha Ha
Your are so screwed

By: optionnumber8

optionnumber8 — Thu, 24 Jan 2008 00:47:00 +0000

it is like a marraige for better or worse it is your now your hooked and only legal agreement will change it

By: open4one

open4one — Mon, 21 Jan 2008 21:03:09 +0000

It depends on whether you signed a binding agreement or something less than a contract.

If it’s an enforceable contract, the basic price is set and won’t change, and the answer would be Yes, you pay the 700k even if the bottom falls out of the market.

If you can hold the seller to the price even if the market doubles, or if material costs go up so much they lose money on the house, it’s binding and you have to pay the price even if the market tanks.

By: Julie F

Julie F — Sat, 19 Jan 2008 02:08:48 +0000

Since you signed paperwork for $7000,000 you will probably be stuck with that price.