Can one withdraw from a sale of a real estate property if one can no longer pay the monthly amortization?

amortization
freak asked:


I lost my job and I would like to withdraw from buying a property for which I have already paid the down-payment. Do I have the right to demand for at least some of the monies I have put in?

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3 Responses to Can one withdraw from a sale of a real estate property if one can no longer pay the monthly amortization?

  1. Don E
    July 8, 2009 at 5:40 am

    Document in a file income,loss of job date,reason you lost job,Write your lender a hardship letter.Call the lender tomorrow and consult a attorney.Things are getting real tough out their.If you end up fileing bankruptcy include the house.

  2. philospher77
    July 10, 2009 at 8:39 pm

    Can you clarify whether you have actually entered into a contract, or have you just put down “earnest money”? If it’s the later, you may be able to get some of it back if you can prove that your backing out of the deal did not damage the seller. If they can show that they had to take a lower offer, or had additional fees for advertising, etc., because you backed out, then most likely you can’t get the earnest money back. It also will depend on whether you made your offer contingent on getting the mortgage, and what the contract says happens to the earnest money in that case.

  3. Rush is a band
    July 11, 2009 at 11:16 pm

    Most contracts to buy have a financing clause – stating that the buyer must be able to get financing in the amount of $x at y% interest. If you can no longer secure financing (because you are unemployed through no fault of your own – layoff, not getting fired), then I believe you can exit that contract without financial penalty and you will due all of your earnest money back.

    If your contract doesn’t have that clause, you can pull out and only lose your earnest money.

    good luck!

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