Posted by Mickey on September 19, 2001 at 08:45:24:
It’s nice to know you guys are out there!
How do you back out of a contract? - Posted by Mickey
Posted by Mickey on September 19, 2001 at 08:07:55:
Mickey here, again. I have already signed the contract and the loan app. But my husband has not signed either. He is the bread winner until I get my investing off the ground. If we back out, do you know of the penalties, besides losing the earnest money? I am also working with a buyer’s broker and a mortgage broker. Won’t backing out kill me, as far as reputation, for future investments?
Re: How do you back out of a contract? - Posted by Brandon Ford
Posted by Brandon Ford on September 19, 2001 at 21:32:25:
I suggest asking the legal forum on this site if you even HAVE a contract. But…
If a lender or two will give you a ‘denial of credit’ you can back out and keep your deposit. You could also probably call out repairs through a contractor report that were unexpected and therefore…you want out and your deposit back. Almost worst case you can negotiate a split of the deposit between you and seller. Keep in mind the seller could threaten to just let it all sit in a trust account for the state.
This works in california…don’t know where else.
Re: Not a contract at all - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on September 19, 2001 at 20:46:33:
If your OFFER is based on your husband’s income it is not a contract until he signs it and agrees to the OFFER. If the OFFER is conditioned on his income, and he does not agree (he can just say no) then there is NO CONTRACT.
There are two major parts to a contract, offer and acceptance. If your husband did not sign the offer then there can be no acceptance and there is no contract. So backing out is not necessary. Just say give me back my deposit (if you made one) because my husband said NO. That’s it. If you spent money on a loan application that may be lost.
Re: How do you back out of a contract? - Posted by dewCO
Posted by dewCO on September 19, 2001 at 13:56:05:
It could hurt you. I guess it depends on why you want out. Can’t you get out based on an “out” built into the contract? It would be more graceful. What will it cost you if you don’t? It depends on what is says in your contract.
Re: How do you back out of a contract? - Posted by Edd Lay
Posted by Edd Lay on September 19, 2001 at 08:42:43:
Mickey,
Tell the seller and mortgage broker that your husband lost his job or wants a divorce and that kills the deal. You can ask for a Mutual Recission Of Contract. Most sellers will understand and return some if not all of your earnest money. Email me if you need a copy of one. It won’t ruin you investing reputation because you don’t have one yet. There are other mortgage brokers and realtors to work with who won’t care about this deal. And follow the advice you have received on these threads. Buy smart. You make all of your money in real estate buying the property.
Good Hunting,
Edd Lay
Loan Acquisitions
Pinnacle Capital Resources
Re: How do you back out of a contract? - Posted by Tom – IN
Posted by Tom – IN on September 19, 2001 at 08:18:48:
Just quit showing up at the table. Walk away. Forget about the earnest money. This deal has the potential to put you in bankruptsy.