Q: Can we get out of home purchase after signing a NO contingency purchase agreement? I know...what were we thinking!?
In early June we signed purchase agreement with our landlord to buy the duplex we have lived in for last 6 yrs. FSBO deal.No realtor involved. We know the property and know him; (great guy.) Quite honestly, didn't even think of the contingency issue. We were "pre-approved" with the lender, or so we thought! After much wrangling with them, then absolutely NO communication from them for 3 weeks (after repeated emails, calls and texts!) We threatened to stop the mortgage process if they didn't respond. They didn't so we stopped the process. Come to find out...we were not approved for the loan! (We did receive a letter from them dated before we stopped the process.) We attempted another lender who was requiring 10% more down which we don't have, unless...we liquidate 401K account and then receive penalties. Seller has suggested that we keep trying, there are lenders out there that would be willing to do the deal. We say we've tried twice, that's enough for us. Where do we stand legally?
A:
Without seeing the offer you submitted and which was accepted it is impossible to answer this question specifically. You need to consult with and HIRE a licensed attorney ASAP -- as you SHOULD have done before signing an offer.
There may be some way out, but if there are absolutely NO contingencies (eg -0- I'm applying for a mortgage …) then chances are you're either going to have to pay a penalty, or will be forced to buy the home. Of course, if you can't afford the home, things get dicey, and there may be litigation in your future, so please -- consult with a local real estate attorney ASAP to avoid more unpleasant surprises!
--This answer is provided for general information only and does not constitute legal advice. This does not create and attorney/client relationship. Please seek local licensed legal help.
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