We close in two weeks and still haven't even been able to sell our present home. I would give up the money we have in it to this point, but don't want a court battle.
2006-10-15 11:38:04 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Your lender can't sue you, but the seller of the home you have contracted to buy can sue you and force you to either perform (buy the house) or pay damages.
It depends on the laws in your state.
You need to contact an attorney.
2006-10-15 12:34:13 · answer #1 · answered by ascendency2003 2 · 1⤊ 0⤋
I assume you have an attorney handling your closing...
You should have purchased your new house with a contingency clause in the contract - it would let you out of the purchase if you didn't sell your current home.
Even a REALTOR should have advised you on this.
The seller of your home-to-be will be REALLY pissed-justifiably. It's a domino effect - if you back out at the last minute- they don't have the money to buy the house they're moving to, etc.
GET A LAWYER NOW. Here we OFTEN do extentions. These folks don't want to start from scratch. No matter what people tell you, there are times you really must pay for a lawyer. Like when you're arrested and when you buy a house.
We're not ALL bad!! If worse comes to worse - you can probably work out a settlement which would result in just what you've suggested - you forfeit your downpayment.
2006-10-15 11:52:27 · answer #2 · answered by 34th B.G. - USAAF 7 · 0⤊ 0⤋
If the sale of your house is conditional to your purchase of another property, the fact is spelled out in your offer to purchase that property.
Reread your offer. Real estate laws require your realtor to look out for you on problems like this one, It happens quite often.
As for your lender, the realtor also looks after that problem and the whole deal can fall through and they will not lose any money, so WHY are you worried?
The lender has no legal ground to sue you if you used the right documents to borrow the money.
2006-10-15 11:55:19 · answer #3 · answered by QuiteNewHere 7 · 0⤊ 0⤋
The lender is not going to sue you, but the seller might. Have a Title Attorney or your Real Estate Agent review your contract with you.
2006-10-15 13:07:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The seller can sue. Not the lender. Did you not make your contract contingent on the successful sell and closing of your current home? If you did, they can't. If you didn't, they can.
2006-10-15 13:15:26 · answer #5 · answered by Karen R 3 · 0⤊ 0⤋
If you can't close on the house the seller gets to keep your deposit. There will be no court battle, I'm not sure that there will even be any additional expenses owed.
2006-10-15 11:46:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Not for what they would have made, but they can if you agreed to pay the cost incured, ie.. credit, appraisal or other fees they're out of pocket. They would have to take you to small claims and for that amount of money, few will waste the time.
2006-10-15 16:09:35 · answer #7 · answered by Dave C 2 · 0⤊ 0⤋