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I've been preapproved for a loan for 175,000 , through a lending company. I've found a house and put in an offer of 115,000 and it was accepted, we've been working through a realtor and we've signed the buyers contract, but after looking at the interest rate and all of the other things that the lending company gave us we've decided we can't afford the house. We have not been officially approved for the loan it's still processing. If we do not get approved we can get our earnest money back from the realtor. But i'm not sure if i should wait to see if we're approved for sure or go ahead and tell the realtor that we need to back out of the deal. Is it even possible to back out now? What about renegotiating he price of the house can we still do that after the papers have been signed by both parties involved?
This may not make a lot of sense. I've got a lot on my mind, If anyone can help please do so i'm desperate.

smithsussane · Posted: Sun Oct 19, 2008 7:45 pm Post subject:

Hi modme!

Welcome to forums!

You may go in for rescission. This is a process in contract law which helps in the unmaking of a contract between the parties. It is actually the unwinding of a transaction. You will get 3 working days after the signing of the contract to cancel the deed. I don't think you will be able to re-negotiate the deed.

Feel free to ask if you have further queries.

Sussane

gmakerley · Posted: Mon Oct 20, 2008 8:12 am Post subject:

my assumption is that rescission does not apply in this case. you are attempting to purchase a piece of real estate. the right to rescind, as it relates to real estate, applies to refinance transactions only.

renegotiation of a contract would only make sense if something that was contained in the original contract could not be made to happen. once you've signed your name, you've signed your name and you are obligated to live up to the terms you've agreed to upfront.

brian1 · Posted: Mon Oct 20, 2008 11:56 am Post subject:

Any good contract is going to provide an out however you are obligated to try to perform. Most RE contacts offer contingencies (appraisal, inspections, financing etc ) but they usually have a time frame connected to them. Look at the contract and see what "outs" there are. Dont string it along though if you have made up your mind do it sooner rather than later. No promises they wont try to keep your deposit - I probably would had you gone into contract with me and then backed out...

Good Luck
Brian

kpatrick · Posted: Mon Oct 20, 2008 6:35 pm Post subject:

Hi Modme,

GM & Brian's recommendations are spot on. I would focus on the inspection contingency...it will probably be your best option to back out. And like Brian said, I wouldn't count on getting my earnest money back. Sorry.

Kim

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