Buyer Considering Breach of Contract

My fiancee and I have entered into a contract to buy a home in NY.
We've signed a contract and have given a deposit of $25,000 (5%) with the rest of the down payment (another 5%) to be paid upon closing 7/31.

Our mortgage has been approved but the paperwork is now expiring and we will have to lock in again because of a 30 day closing delay.

We are reconsidering the purchase for future monetary reasons. We have the resources now but worry about future hardship and are willing to forego the initial $25,000 deposit by breaching the contract.

The seller himself is closing on a condominium he is having built and may have troubles closing if we do not ultimately buy his home.

What costs would we be liable for? Just the $25,000 or would damages from his own failed purchase be added?

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by rneelson:
My fiancee and I have entered into a contract to buy a home in NY.
We've signed a contract and have given a deposit of $25,000 (5%) with the rest of the down payment (another 5%) to be paid upon closing 7/31.

Our mortgage has been approved but the paperwork is now expiring and we will have to lock in again because of a 30 day closing delay.

We are reconsidering the purchase for future monetary reasons. We have the resources now but worry about future hardship and are willing to forego the initial $25,000 deposit by breaching the contract.

The seller himself is closing on a condominium he is having built and may have troubles closing if we do not ultimately buy his home.

What costs would we be liable for? Just the $25,000 or would damages from his own failed purchase be added?<HR></BLOCKQUOTE>

That is a lot of money to put down as earnest money. Read your sales contract for default provisions and Sellers remedies due to default by Buyer. Upon your default, the Seller may go after you for specific performance since you reneged on the deal. You will be liable for the deposit, all related Buyer and Seller expenses such as title search, escrow fee, document preparation etc. and damages due to the Sellers inability to buy their new place.
One option would be to find another Buyer to take over your position via an assignment of your sales contract. You need a real estate attorney to advise you on such matters and a Realtor to list the property immediately for a fast closing.
Still another option would to be go through with the purchase, then turn around and put it right back on the market. If you have a hard time selling, consider renting or selling via a lease option. $25K is a lot to lose without first considering all options available. That is why you need to consult with both a real estate attorney and a Realtor. Professional and experienced consultants may help save your money. If you have not waived all contingencies, you may have an out.