Signed the contract, but now I lost my job

[ashleyz]

What is the name of your state? New jersey

I signed the contract to buy a house, but now I lost my job. We have not closed the house yet. I cannot afford to buy the house as I am living on my savings right now. I informed the mortgage bank about my job loss, but they said they will not give a denial letter because my financial history for the recent years is good. If I do not find a job within a few months, I won't be able to make the mortgage payment, so I do not want to buy the house. Can the seller take any legal action against me?

Thanks

[pojo2]

Have you HONESTLY discussed the issue with the seller or has your Agent? Is the inability to finance the only recourse afforded you in breaking the contract?

Of course if you have messed around until the closing date to inform the seller there are remedies afforded them that could cost you money.

[BelizeBreeze]

Originally Posted by ashleyz

What is the name of your state? New jersey

I signed the contract to buy a house, but now I lost my job. We have not closed the house yet. I cannot afford to buy the house as I am living on my savings right now. I informed the mortgage bank about my job loss, but they said they will not give a denial letter because my financial history for the recent years is good. If I do not find a job within a few months, I won't be able to make the mortgage payment, so I do not want to buy the house. Can the seller take any legal action against me?

Thanks

Yes, they can sue you for 'specific performance'. It's time to talk to your realtor about a conference with the buyer's agent.

[ashleyz]

Yes, I informed the seller as soon as I lost my job and the seller is looking for a new buyer. But the seller has not released me from the contract yet. Can the seller sell the house at a lower price than the appraised value and then claim the difference as damages?

Thanks

[BelizeBreeze]

Originally Posted by ashleyz

Yes, I informed the seller as soon as I lost my job and the seller is looking for a new buyer. But the seller has not released me from the contract yet. Can the seller sell the house at a lower price than the appraised value and then claim the difference as damages?

Thanks

Of course they can. Whether or not they are successful is up to a lot of factors, but that's for a court to decide.

I hope you 'notified' the seller by certified (RRR) mail.