Breaking a Contract

[briccjo]

What is the name of your state? Wisconsin
We are set to close on the purchase of our home in June. We have no contingencies on the offer. Ourpresent house is not sold yet. With the possibility that we will have to bridge or have two loans and the economy crumbling around us, we are changing our minds. Can we not close or secure financing?

What are our options? Is there a way out of the contract?:What is the name of your state?

[LindaP777]

Originally Posted by briccjo

What are our options? Is there a way out of the contract?

You'll lose your deposit and the sellers may be entitled to damages; such as the difference in what they sell the house to their new buyers (when and if they get a buyer) and the offer they accepted from you and possible carrying costs. (Imagine for a moment the bind you will put the sellers in if you don't go through with it - this is what you could be liable for.) You are not in a good position to back out on this purchase. The purchase contract signed by both parties is a legally binding contract. You didn't even have an inspection contingency, or a "I gotta sell my house first" contingency? What did you think would happen if you did not sell your house before you closed on the new one? Try to rent or lease with option your current house.

[HomeGuru]

Originally Posted by briccjo

What is the name of your state? Wisconsin
We are set to close on the purchase of our home in June. We have no contingencies on the offer. Ourpresent house is not sold yet. With the possibility that we will have to bridge or have two loans and the economy crumbling around us, we are changing our minds. Can we not close or secure financing?

What are our options? Is there a way out of the contract?:What is the name of your state?

**A: why are there no financing or subject to the sale of your home contingencies?
That's downright scary and lame.

[briccjo]

Originally Posted by LindaP777

You'll lose your deposit and the sellers may be entitled to damages; such as the difference in what they sell the house to their new buyers (when and if they get a buyer) and the offer they accepted from you and possible carrying costs. (Imagine for a moment the bind you will put the sellers in if you don't go through with it - this is what you could be liable for.) You are not in a good position to back out on this purchase. The purchase contract signed by both parties is a legally binding contract. You didn't even have an inspection contingency, or a "I gotta sell my house first" contingency? What did you think would happen if you did not sell your house before you closed on the new one? Try to rent or lease with option your current house.

We did have contingencies of financing (home sale) and approval of something from the architectural control group however we were bumbed from our primary offer with a secondary non-contingent offer. We had 72 hours to respond to the waiver. We have an accepted offer on our current house and the contract stands through 8/30. Now as the date is closer and the people who have an offer on our house have not sold we are in a panic.

[briccjo]

Originally Posted by HomeGuru

**A: why are there no financing or subject to the sale of your home contingencies?
That's downright scary and lame.

We originally had a financing /home sale contingency on our contract. There was a secondary full price/non-contingent offer that gave us 72 hours to respond and waive our contingency. We do have an accepted (home sale contingent) offer on our present home which was extended until 8/30. With no additional movement on the other peoples offer, we are begining to panic.

Thoughts? Suggestions?

[LindaP777]

It doesn't matter what you had on your original offer. What matters is what was on the signed purchased contract and you say you had no contingencies. Your bad.

I have already given you my thoughts and suggestions. Read it.

[nextwife]

You obviously CHOSE to make your offer primary by removing any continguencies having to do with the sale of your home. And you probably caused them to lose other buyers. COUNT on both losing your earnest money AND getting sued for specific performance. You have no legal basis to back out.

[Cedrus]

You might owe your real estate agent a commission even tho you back out of your contract.