Posted by
T Family

We are sellers of the home, close date on our home is in a few days, can we back out?

Hello! We have bought a home but are waiting for approval for our loan. Our close date is March 1 for the home we will move into.

A couple has purchased our home and their close date is this Friday, the 26th.

The problem is I am having a baby (such bad timing) some time this week, and I have a worry we will not get our loan approved in time or at all, and I don’t want to be left homeless if that happens.

If we are not approved by Thursday evening (might before close on our current house) I want to back out of all things.

I cannot risk losing our current home with a 1.5 year old and newborn, during a pandemic.

I understand that we would need to cover all monies buyers of our home have spent.

What are our rights as sellers to back out. (Very aware of his inconvenient this is and unprofessional, but I need to take care of my family)

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We are sellers of the home, close date on our home is in a few days, can we back out?

By T Family   
Posted on Feb 24, 2021 in Topic: Home Selling
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Hello! We have bought a home but are waiting for approval for our loan. Our close date is March 1 for the home we will move into.

A couple has purchased our home and their close date is this Friday, the 26th.

The problem is I am having a baby (such bad timing) some time this week, and I have a worry we will not get our loan approved in time or at all, and I don’t want to be left homeless if that happens.

If we are not approved by Thursday evening (might before close on our current house) I want to back out of all things.

I cannot risk losing our current home with a 1.5 year old and newborn, during a pandemic.

I understand that we would need to cover all monies buyers of our home have spent.

What are our rights as sellers to back out. (Very aware of his inconvenient this is and unprofessional, but I need to take care of my family)
Status: Open
Viewed: 964
Asked by: Consumer
Posted: 2 months ago
Report Abuse: Click Here
Bronze
Priya Kurup
about 2 months ago
My advice to you is to consult your realtor and an attorney for next steps. Best of luck! Hope it all works out for you!!


about 2 months ago
Bronze
Michelle N. Briggs
about 2 months ago
Good morning Tip family, I am so sorry to read that you are so close to closing, did you talk to your Realtor before posting this question? Your Realtor may be able to reach out to the buyers agent and request an extension. However if you do not get approval for your new home then you may want to reach out to a Real Estate Attorney due to the possible impact to your buyer. It may be more then terminating and returning their earnest money. Good luck and congratulations on your upcoming new family member!


about 2 months ago
Gold
James Meador
about 2 months ago
There are several provisions for buyers to back out of buying a home, but there are far less for sellers. You will most likely be in default of your contract if you back out of selling your home. You could potentially be sued for breach of contract and forced to sell anyway. On the buying side, you can walk away easier, but you will forfeit earnest money, option fee, and other costs, such as inspections and appraisal. Have you discussed all options with your agent? I'm sorry you are in this dilemma and wish you and your family the best!


about 2 months ago
Bronze
Richard Ortiz
about 1 month ago
The best way to proceed with any issues that could cause you to be in default of a real estate transaction is to consult a real estate attorney. Keep in mind it should be a REAL ESTATE attorney not just an attorney.


about 1 month ago
Bronze
Kelli Owens
about 1 month ago
Congratulations on the arrival of a new family member. As you can see most of the answers will be contact a Real Estate attorney. As agents, we are not able to provide legal advice. I think communication with all parties at this time is critical, remember cancelling the contract may cause the buyer of your home to be homeless if you cancel the contract. Contact your lender get a better idea of the approval delay and explain your concerns with your agent.


about 1 month ago
Bronze
Cristi Barahona
about 1 month ago
Where is your realtor?? She should calling that lender and double and triple checking that you are clear to close. Not only the lender, but the title company every other day. Everyone should know your situation and all be in sync. You should know that you are approved by now, as long as you followed what your lender laid out for your pre-qual process. No major purchases, haven't ran up your credit card. Have your seasoned money in the bank. No employment changes. All your financial ducks in a row. I've had 1 deal fall through on my listing like 3 days before closing, the buyer lied about having 2 jobs in 2 years, she actually had seven! yikes! So if you don't have anything crazy like that and you are Gold my dear. Hard part is you're about to have a new baby, and nesting, so of course you want to buy things. Just hold off. I know I am answering this late and I hope you got moved in. But bottom line you hired a REALTOR to explain and clarify real estate for you. To hold your hand as much needed and to take the stress off of you. Always remember when purchasing you may not be paying the commission but you still hired him/her to do a job for you. You should know what's going on every step of the way. If I was your Realtor I would be embarrassed that you had to come to a public platform to ask this. Next time you hire a realtor, interview them. Ask referrals or look up their reviews. You hired your realtor to solve a problem for you. Not to leave you questioning yourself especially in your special circumstance. Congrats on your new home and the New baby! And No sellers can not back out unless you have a contingency protecting you. Again Realtor should have done that. Remember this sellers have to sell, buyers don't have to buy. You would have to do a lease back.


Source:


I keep Real Estate easy for all my clients.

about 1 month ago
Bronze
Pauline Clement
about 3 weeks ago
Thanks for allowing HAR agents to provide possible answers to your question. Timing is/was of the essence in this situation. Consult your listing agent and with your permission the listing agent can communicate with the buyer's agent to see if a lease agreement for after closing on the home that you are selling may solve the issue here. If you are utilizing the same agent to purchase your new home, with your permission, have that agent to follow up quickly and consistently with the new construction or new home purchase situation for you. In the event you have just changed your mind due to the potential non-approval and all that is going on around you, consult an attorney on how to proceed. I hope this helps!


about 3 weeks ago
Bronze
Kimberly Nelson
about 3 weeks ago
It’s best to talk to your agent or an attorney. There isn’t a definite answer anyone can give without reviewing your entire file either.

Best of luck!



about 3 weeks ago
Diamond
Cagdas Acar
about 1 week ago
It is not an easy situation. I hope you will or you have already solved it. As mentioned by many, buyers have options to back out from contract. Sellers do not have. Definitely, consult with an attorney. Also try to get opinion from another lender(s), if they can help you incase your loan is not approved with the current lender.
Regards,
Cagdas


about 1 week ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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