backing out of purchuse

[estes5030]

What is the name of your state? colorado i need some advice ,i know its not good to back out of our home purchuse , but with the market and all we have no choice , our condo has been on the market for 2 mounths and no one has even looked at it , so we will lose our 8000 dollors ernest money , do we stand to lose anthing else, can we be sued ?? we sighed the contract july 25th they put closing off tell september 14th , and know we are going to back out ...... one more question the bank gave us a loan for 300 thousand that we quilfied for the condo id 400,000 so they gave us a bridge loan for 100,000 . that we should pay off when our condo sells point is we dont qulify for this home loan with both places our loan payments we be 6000 dollors we make 5000 to 6000 . so it was a bad choice we made and know we will lose 8000 ernest is there any action we can take agaisent the bank ?? thankyou estes 5030..

[Ohiogal]

Unless there was a contingency stating you would not close if your condo didn't sell, you are stuck if all other points of the contract have been met. You can be sued for damages resulting in the house being kept off the market for two months plus the idfference between what the house does eventually sell for and what you were offering (if they have to take a lower price) plus the amount of carrying costs between now and then.

[estes5030]

Originally Posted by Ohiogal

Unless there was a contingency stating you would not close if your condo didn't sell, you are stuck if all other points of the contract have been met. You can be sued for damages resulting in the house being kept off the market for two months plus the idfference between what the house does eventually sell for and what you were offering (if they have to take a lower price) plus the amount of carrying costs between now and then.

thanks for your answer it doesent sound good

[scarah]

Does your purchase contract have a financing contingency?

Does your mortgage commitment letter making financing contingent on the sale of your current home?

If you answer both questions as a yes, it shouldn't be that bad. Many people are in this position right now. We had a condo on the market and put in an offer on a home. It had a financing contingency that essentially said that if we couldn't obtain financing, the purchase wouldn't happen and we got our earnest money returned assuming it was through no fault of our own (like not turning in required paperwork). The mortgage commitment letter stated that the mortgage financing was dependant on our condo selling (which it did, thankfully), but if it hadn't we wouldn't qualify for the loan. We were then covered in case the condo didn't sell.

These are typical clauses of purchase contracts. I would look through your contract and your commitment letter to see if yours address this situation too.