We just bought a house in oh long story but is there a way to back out of the contract?
2007-02-09 11:01:32 · 6 answers · asked by donna m 1 in Business & Finance ➔ Renting & Real Estate
Gosh -- complicated -- short answer is no. If the property was misrepresented or defective in some way you have an out. But depends upon the State where you live on how much time you have to change your mind. If you back out you may loose any earnest money or down payments you made and if the lender disposes of the house at less than the contract price you would still owe the difference. If you cant back out of the deal you can still -
1 Rent it out for a while then sell it. property appreciates in value quickly in some areas .
2 resell it but ask a slightly higher price -- you will have to pay a realty co a commission to resell it.
Talk with the Lender they may offer some help in terms of time or interest only payments til you find a solution.
2007-02-09 11:19:21 · answer #1 · answered by pilot 5 · 0⤊ 0⤋
The fact that you said "We bought a house" that indicates to me that you have signed loan docs, moved into the house and are about to make your first payment on the house and for some reason you want an excuse to get out of the house.
Your contract you signed to purchase the house no longer is in effect. You signed loan docs that you signed saying that you wanted to purchase "This house" and use of for collateral, of which for X number of years at this interest rate we will pay you this amount each month.
The three day right of recission applies only to refinanced properties. The government figures if you have taken the time to hire an agent, look for a home, sign the contract for the home, pay an appriaser, apply for an get a home mortgage, you have made up your mind so that law does not apply to you.
That is the contract that you are currently working under.
There are ways of getting out from under this contract and all are negative.
Are you having buyer's remorse? Do you now think you have gone too far into debt? Well someone used the various formulas that the government has imposed on them. You came out as a risk for a loan so based on the information you gave them, they approved your home loan.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-02-09 11:12:47 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
Yes. It depends on the terms of the contract. Ultimately, a lender decides if you can afford the home and makes a loan, which will also allow you time to rescind as required by Federal housing law.
2007-02-09 11:05:06 · answer #3 · answered by Joseph H 4 · 0⤊ 0⤋
Yes, if there is conditions on the contract that have not been met yet. For example, if the contract is subject to finance, then get your bank or broker to write a decline finance letter. This brings the contract to an end without penalty. If i could see the contract, i can help you further. brett@realsestatehouse.com.au
2007-02-09 12:49:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Can't say without seeing the contract. Get a lawyer to help you work through it. If there is a loophole, he'll find it.
2007-02-09 11:04:11 · answer #5 · answered by Venin_Noir 3 · 0⤊ 0⤋
law
2007-02-09 11:03:50 · answer #6 · answered by Tia T 1 · 0⤊ 1⤋