Buying a house and the seller will not sign FHA addendum! What can be done?

I have a VERY difficult real estate transaction I am working on.This is a foreclosed home I might add. Contracts say that I can choose any financing I want. I chose FHA financing. The seller/bank decided they will not accept FHA loans. They are refusing to sign my FHA addendum now!! Can they do that? What if they hold things up and we can鈥檛 get everything done by the closing date? Can they just back out?|||They can refuse. "Any" refers to conventional loans, FHA is not conventional and should have been mentioned on your initial offer.





You cna not force them to sign this, you are going to have to go with a normal loan or walk.





BTW, they are not backing out. Unless you have a contract stating they will accept FHA you are teh one altering the deal, not them.|||Are you STILL contending with this contract?





I thought you had an attorney. Can't he advise you???





You already have a purchase contract. The FHA Addendum is a contract modification, or in layman's language, a different contract with different terms.





My guess is that sellers don't want that term that allows YOU to back out if the property does not appraise for a certain value. (I believe its paragraph 4 in the addendum.)





**The seller is not backing out.** The seller is simply refusing to change the contract which you already have with seller. It's like you having a contract to buy a car from dealership that has a one year warranty. Then, on date of delivery, you walk in with an "addendum" that states the car shall have a five year warranty. Do you believe the dealership is "backing out" if they refuse to sign your addendum?





You still have the opportunity to perform your end of the existing contract, which is to pay the purchase price by closing date.|||Most likely the reason that the bank won't sell the property to you using a FHA loan is because the property will not meet FHA minumum requirement and the bank is not willing to spend the extra money to bring the property up to meet the FHA loan standard.





So, yes they can back out.





Otherwords, you will not be able to purchase that property if you insist purchasing it with a FHA loan. Often banks have to sell a distressed foreclosure property for "cash only" because the property will not meet any lenders miniumum condition requirements.|||If I understand this correctly.


The bank owns the property.


The bank has the property listed for sale.


You made an offer, the bank accepted.


The bank is now refusing to follow through with the sale because they do not like the source of your money.





Unless FHA somehow reduces the amount of money the bank will receive, they can not back out.





You should see an attorney right away and sue for compliance of the written agreement.|||Just because you want FHA financing doesn't mean the bank does. Yes, they can refuse.