Q: I'm on the process of closing Escrow however, I do not wish to continue with purchase onthe house. My finances have chng
A:
Your situation is completely understandable - financial circumstances can change unexpectedly during the escrow period, and it's crucial to make decisions that protect your financial wellbeing.
In California, you might be able to cancel the purchase agreement, but the specific terms will depend on your contract's contingencies. Review your purchase agreement carefully, paying particular attention to any financing contingencies, which often allow buyers to back out if they can no longer qualify for or afford the loan. However, be prepared that you may forfeit your earnest money deposit if you cancel without meeting the criteria of valid contingencies.
Contact your real estate agent and escrow officer immediately to discuss your situation. Time is critical in these matters, and delayed action could limit your options. You should also reach out to your real estate attorney, if you have one, to understand the legal implications and help navigate the cancellation process. Remember to get all communications and decisions in writing to protect yourself during this process.
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