Legal Question in Real Estate Law in Texas

Home Loan Rate increase

We have been in the process of buying a home since March 2007. At the time, the interest rate was locked in at 6.25%. The original contract was dated to close on or before April 13, 2007, but it did not happen. Then the realtor made an ammended contract to close on May 25, but it did not happen. We have not signed a new contract, but they are now ready to close. The interest rate has gone up to 6.75% or more. The reason the home could not be closed on the specified dates was due to zoning issues with the city of Fort Worth that the seller/realtor told us that the problem just popped up. After further investigation, we found out that this has been going on for over a year. Is there anything that we can do to make the seller make up for the difference in the interest rate?


Asked on 7/06/07, 1:14 am

1 Answer from Attorneys
Johm Smith tom's

Re: Home Loan Rate increase

If you are no longer under contract or otherwise obligated to go forward, then you can insist that they make up for the difference, unless you have a variable rate, which would mean you would have to deal with the changing rates anyway. If they don't agree, then don't buy. You should be looking elsewhere anyway so you can tell them there are other homes just as appealing.

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Answered on 7/06/07, 9:01 am


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