So my parents are selling their house. They sold it June 1 and closing was set for July 15 (next week). They went through the inspection process, fixed everything that needed to be done, and were set to close next week. The buyers did a walk through last week and all was well.
Today the buyers decided they wanted to back out. No reason given, but my parents and their agent assume they got cold feet. They are a middle aged couple but have an FHA loan, so I assume this is their first house. My parents and their real estate agent talked to the other people's agent today and she said she advised them against backing out. My parents also sent the buyers a letter from their attorney.
So is this really possible to do? Anyone know the repercussions for backing out of a real estate contract as a buyer this close to closing?
My parents were supposed to close on their new house next week too, but that won't happen if they can't close on their old house. Anyone know the repercussions of that?
Ugh I'm so frustrated for them. They sold their house in the first six hours it was on the market, so I'm sure they could sell it quickly again, but I think the thought of starting this process all over again is overwhelming.
No they can't close on the new house without the money from the old house, unfortunately.
I'm worried that they are going to end up losing $$ on this, even though it wasn't their fault, since they also have a contact signed that they will close on their new house on the 15th. I only talked to my mom briefly tonight but she said she'll keep me updated, so hopefully I hear more tomorrow.
I'm so annoyed with the stupid buyers, who backs out of a house four days before closing??
Do your parents have any contingencies on the new house? When we sold our condo, a buyer had to back out because she couldn't get financing at the last minute, and she did not lose her earnest money because there was a financing contingency.
Do your parents have any contingencies on the new house? When we sold our condo, a buyer had to back out because she couldn't get financing at the last minute, and she did not lose her earnest money because there was a financing contingency.
This is the only reason that I believe they can back out now. (Not just the financing but contingencies in general)
As long as you parents have finances contingencies on the new house they should be fine. (At least in the purchase of the new house.)
It stinks, but unfortunately there probably isn't much they can do to force the buyers to buy the house. They may get to keep the earnest $ depending on contingencies, and they may not lose their own earnest $, again depending on contingencies.
I assume that they have contingencies in the contract on the new house, but I'm not sure. I only talked to my mom briefly this morning. She sounds fairly calm, but I know she is worried. My dad is still pissed and barely slept last night.
The buyers' real estate agent called them this morning and said the husband of the buying couple told her they are still planning to go through with the closing, so no need to contact a lawyer. Lol. Also, I guess they asked the mortgage company yesterday to stop the paperwork on their loan, so the agent was going to check and see if that actually happened. My dad is still having the lawyer send a letter, because they don't trust these people, but hopefully they are being honest and show up to the closing.
Post by thatgirl2478 on Jul 11, 2014 10:55:22 GMT -5
ugh - how frustrating for your parents! I hope that everything goes smoothly for them. As if selling/buying a house wasn't stressful enough, the buyers don't have to be asses about it.
I've seen people sue over backing out of a contract. Even though the buyers say they are going through with the sale, I think it would be wise to have an attorney involved, because they aren't trustworthy at this point.
Post by jillboston on Jul 11, 2014 12:46:46 GMT -5
Your parents can keep the deposit - iron clad at least in MA if all the contingencies have passed. Even in cases where one of the buyers died prior to closing. Had a number of condo buyers lose their deposits when I rep'd the seller - I had to appear at the Registry and page them a few times etc. at the appointed time.
This happened to my parents, although their buyer backed out because it was a long chain of cash buyers.......everyone needed all the transactions to close, and it didn't happen. My parents got an extension to closing on their new house, but when they couldn't get someone to close in time, they ended up borrowing from their 401K and then repaying it at closing. Hope it all works out for your parents!