backing out and not losing deposit

If I have to back out of a contract after both parties have signed how do you think I would go about doing this so I dont lose my deposit( which is only 5k but still I dont want to lose it) Im in a really Sh*tty situation right now-

Re: backing out and not losing deposit

It's really up to the seller. They have the right to keep the deposit. I think the only thing you can do is ask your attorney to contact theirs and see what happens.

Re: backing out and not losing deposit

you can check with both of your attorneys, but the sellers have the legal right to keep it. I'm so sorry things didn't work out though.

Re: backing out and not losing deposit

both posts are correct, the seller is entitled to keep the down payment. that's actually why they require a downpayment, so that the buyers dont back out. usually, the only way you would get your deposit back would be if you didnt get a mortgage commitment. have your attorney talk to their attorney and explain your situation. maybe write the seller's a "sad" letter explaining, that way they hear it from you...but have your attorney bring it to them!

Message edited 10/15/2006 10:39:33 PM.

Re: backing out and not losing deposit

You can also get a declination letter from a mortgage co.

Re: backing out and not losing deposit

I would talk to your attorney. When we were selling DH's townhouse the buyer almost backed out, and we were told it would be a legal nightmare to try and get the deposit out of escrow and into our account. So you may not be out of luck.

Re: backing out and not losing deposit

Is there any way you could talk to your lawyer and the mortgage broker to see if they can have the mortgage declined? I'm not sure if that's the answer but I'm wondering if you don't secure a mortgage if the deal is considered broken and you get your deposit back. I hope that makes sense...might be worth looking into but maybe someone here knows if what I am saying can't be done.

Re: backing out and not losing deposit

ok so basically I talked to the mortgage guy and he is willing to write a letter saying that we were declined because we simply cannot afford to have 2 mortgages for any amount of time. It does say on our contract that we can get our deposit because if we are declined a mortgage so we should be good. However we are first going to talk to our lawyer and see if he could possibly get an ammendment to the the contract and have the sellers agree to wait until we are in contract on our co op to close. They may agree because a) they dont have any other offers b) they have a really high mortgage supposedly still left and need to sell and c) market conditions are only supposed to get worse and the holidays are coming up. Hopefully they will agree to that and everything will work for us- keeping our fingers and toes crossed

Re: backing out and not losing deposit

good luck- I hope they will agree to wait till you sell or give you your money back

in the future I would make sure that in the contract it is that you have to sell your house first

I know my Dad did that with his buyers-

Re: backing out and not losing deposit

fingers crossed for ya!

Re: backing out and not losing deposit

I hope it works out for you!!!

Message edited 10/16/2006 6:27:08 PM.

Re: backing out and not losing deposit

Re: backing out and not losing deposit

good luck. i'm really sorry to hear that you have to back out. do what's best for you - regardless don't stay in something for 5K - I did and should have backed out. Now two years later we are trying to move and sell a home in a bad market.