Closing Postponed Due 2 Negligent Buyer

[sjs415]

GEORGIA

Buyer failed to provide requested documentation to mortgage co. and was denied the loan 29 hrs prior to closing! Our contract states "Buyer shall not intentionally make any material changes in Buyer's financial condition which would adversely affect Buyer's ability to obtain the loan." It also states, “In the event the loan is denied, Seller shall be provided with a letter from the lender denying the loan detailing all of the reasons for the denial.” (We have this that proves negligence on Buyer's part)

We have since received a new contract to close this Friday. We plan to file a civil suit against the Buyer after closing; however, the new contract states “This contract replaces any and all previous contracts between the parties.”

If we sign this, will we have a leg to stand on in small claims court? The price has changed (by $100) along w/ terms of the loan – how can we agree to the new terms in order to close, but still be able to file action against the buyer?
What is the name of your state?

[BelizeBreeze]

Originally Posted by sjs415

GEORGIA

We have since received a new contract to close this Friday. We plan to file a civil suit against the Buyer after closing; however, the new contract states “This contract replaces any and all previous contracts between the parties.”

If we sign this, will we have a leg to stand on in small claims court? The price has changed (by $100) along w/ terms of the loan – how can we agree to the new terms in order to close, but still be able to file action against the buyer?
What is the name of your state?

If you sign this then there was no previous contract.

You can't

[PghREA]

2 choices - sign the new contract and close or don't sign the new contract, put your home back on the market, wait for a new buyer and sue the old buyer.

For $100 difference, I know what I would do.

[sjs415]

Do you have any suggestions as to how we might could word it?