cancelling a contract w/builder after lost job

What is the name of your state?What is the name of your state? CA

We signed a new home purchase agreement a month ago. However, my husband lost his job and now we cannot qualify. The house is not to be finished until end of December. Can the builder take liquidated damages as stated in the contract for reasons out of our control? If so, if we chose to go to arbitration as the contract stipulates will the builder be able to sell the home during the dispute? Do you know how arbitration usually views cases like these? Thanks for your help.

[HomeGuru]

Originally Posted by daynle

What is the name of your state?What is the name of your state? CA

We signed a new home purchase agreement a month ago. However, my husband lost his job and now we cannot qualify. The house is not to be finished until end of December. Can the builder take liquidated damages as stated in the contract for reasons out of our control?

**A: yes, if the contract allows it. And I bet it does.
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If so, if we chose to go to arbitration as the contract stipulates will the builder be able to sell the home during the dispute?

**A: no, but they will be free to take back-up offers.
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Do you know how arbitration usually views cases like these? Thanks for your help.

**A: yes, the arbitrator goes by the evidence that being the contract to purchase.