Current Events > When's the last minute you can back out of buying a house?

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Im supposed to sign my closing papers on Wednesday but some serious financial circumstances came up. If I walk away now will I just be out my earnest money or will I owe more? Thanks in advance

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You won't automatically be entitled to a return on the earnest money if you're all the way up to closing. But you might be able to appeal to the senses of all parties and show them your financial situation and ask for it back - no guarantee but you never know :\

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You'd lose you entire deposit it you back off before closing.

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As long as its still in escrow

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Probably

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I recently bought my first place and my realtor gave me a list of dates. I think "lose your earnest money" was like 1 week prior to closing

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l0bcity posted...

Im supposed to sign my closing papers on Wednesday but some serious financial circumstances came up. If I walk away now will I just be out my earnest money or will I owe more? Thanks in advance

You will owe much more. You have to pay pretty much all the fees (because the work has been done), and you will also probably owe your agent his commission (check your contract). But this is cheaper than not buying the house, so...

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IdiotMachine posted...

You will owe much more. You have to pay pretty much all the fees (because the work has been done), and you will also probably owe your agent his commission (check your contract). But this is cheaper than not buying the house, so...

Ya I know Im fucked out of my earnest money, but if thats all Im out itd be worth it.

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Actually if its because of your financial situation, contact the bank youre getting a loan from. If they retract the loan, then you can get out of it without paying much of the fees you would pay, since most home purchase contracts have your ability to secure a loan being a condition of the sale.

So if the bank denies you, you can get your earnest money back. Only fees you would have to pay is for services already rendered.

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Well pretty much the deal is I put in an offer on a place and when an inspector came to look at my place and my foundation is fucked. So I dont have the money for two mortgages.

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l0bcity posted...

Well pretty much the deal is I put in an offer on a place and when an inspector came to look at my place and my foundation is fucked. So I dont have the money for two mortgages.

Usually if youre buying and selling a house at the same time, you would have a contingency on the house youre buying which states that you wont buy it unless you successfully sell your current house. If you didnt have that contingency, then you cant back out.

The fact that you have to repair your current house to sell it might not be enough for your lender to cancel the loan on the new house (thereby allowing you to use the mortgage contingency)...

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Perhaps this is best to discuss with your real estate lawyer. I wouldnt talk to your real estate agent about it, until after you speak with your lawyer.

I think the best way is to use the mortgage contingency to your advantage. If that doesnt work, then youd just have to cancel out of the sale. You might want to settle with the sellers as well, so they dont sue you over the sale (which they can, but probably wont win because you did, in your earnest, try to buy the house).

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l0bcity posted...

my foundation is fucked.

:(.
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