Q: Our buyers decided to walk after loan was approved and going to docs. Do we have any kind of legal right to sue.
We have a buyer who was in the process of getting their loan. The loan was approved and ready to move to get the docs. The wife decided to cancel. We needed this sale for a home we put a offer on now we will loose the home we put the offer on and the earnest money that we gave.
Do we have any legal rights to pursue legal action on these people since their loan was approved and they just decided not to go through with it. We were told that when they checked where the deposit was coming from there was not enough money and they needed to know where the deposit money of coming from and the wife was upset that they were asking for this information.
Can we do anything about this?
Thanks for your time
A: Generally, most Arizona real estate contracts state that a buyer's failure to close escrow after loan approval can be a breach of the contract. A seller in this situation usually is entitled to retain the buyer's earnest money deposit or pursue the buyer for its actual damages. A buyer is probably not liable for damages arising from the seller's inability to close on the seller's new home.
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