2007-07-30 11:39:42 · 6 answers · asked by belfastang 1 in Business & Finance ➔ Renting & Real Estate
If you did not make your offer contingent upon the sale and successful closing of your existing home, you will be expected to honor your offer to purchase as if you didn't own a home right now.
You may be in for more than loss of earnest money, since you will be in breach of a contract if you fail to close as agreed. The sellers of Home No. 2 can sue for specific performance, along with damages they may suffer due to your failure to close.
If they have made an offer on another home based upon YOUR contingency free offer, you could find yourself eating the costs of THEIR expenses for owning two homes, and possible more.
Do NOT ignore the potential of being thusly sued. It can turn out to be VERY expensive in the long run.
2007-07-30 11:59:38 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Contracts get canceled all the time. Reprocussions depend on how far this has progressed. Any contract can be terminated due to lack of financing, unacceptance of the inspection report.....unconditional contract or whatever - nothing is firm til money changes hands. Earnest money gets returned all the time. The seller has to put out a lot of legal money to hold you to this deal and most aren't going to go through that. Ofcourse everyone will pitch a fit but life goes on. Do what is best for you. The reality is that we are in a tough selling market and one should sell first- sit in a rental somewhere and take their time buying. This is the utlimate buyers market and it may take f-o-r-e-v-e-r to sell yours. Renting out your house - can be a big burden. Good luck and hang tough.
2007-07-30 21:14:45 · answer #2 · answered by Quest 6 · 0⤊ 0⤋
You will lose your earnest money for sure. Otherwise they might press you to close, they could sue you for damages.
Otherwise if you can close you will be responsible for both mortgage payments. Lease your current property out and move into the new one, until you can sell.
Sorry I would be more helpful but you didnt give any of us enough information to even come close to answering that question. You might need to call an attorney.
Good luck.
**** Update ****
Mazzie he said an unconditional offer. That means earnest money is not a condition. Right? He has to close or they sue him. You have great answers, but he did say unconditional. I dont think its as simple as losing your earnest money.
2007-07-30 18:44:24 · answer #3 · answered by financing_loans 6 · 1⤊ 0⤋
Acermill is correct on this one. Although it doesn't happen often, the sellers could sue you for specific performance. Losing your earnest money will be the least of your worries if you entered this contract without contingencies on selling your home and the seller decides to sue.
What is your Realtor saying about all of this? They should have written in a contingency that you be able to sell your home or extend awhile to see if you could sell.
2007-07-30 20:05:12 · answer #4 · answered by godged 7 · 0⤊ 0⤋
I believe you can get a gap loan to help cover the costs until your house is sold. This might be a good question to ask Suze Orman ;)
2007-07-30 18:49:35 · answer #5 · answered by TMH 4 · 0⤊ 0⤋
Your forfeit your Earnest Money deposit
2007-07-30 18:44:50 · answer #6 · answered by mazziatplay 5 · 0⤊ 0⤋