Home Buying in 60189>Question Details

Arwen, Home Buyer in Schaumburg, IL

Due to unexpected circumstances, can we still back out and refund our down payment?

Asked by Arwen, Schaumburg, IL Fri Jan 27, 2012

We bought a house and under construction now...we haven't gone our final loan approval yet and unexpected thing happened that my husband lost his job this January 2012. My lender don't know about it yet but if ever we inform our lender, are there any possibilities that we could refund our 10,000 down payment and yet we don't have a closing date for now.

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Roland Vinyard’s answer
If you have a mortgage contingency and if your lender no longer feels you can make the payments and has not already given final approval for the loan, then my guess is that you should be able to get it back. Read your Purchase Contract carefully and consult a lawyer if you have questions or concerns.
1 vote Thank Flag Link Fri Jan 27, 2012
Sorry to hear of your unfortunate circumstances. I suggest consulting your REALTOR and perhaps a Real Estate Attorney. The answer to your question will depend on several things such as, your new construction contract and state law. Good Luck!
1 vote Thank Flag Link Fri Jan 27, 2012
Do you have a copy of your contract? Call your lender ASAP!!! Do you have a realtor? If so you need to also contact them so that they can advise you as to what your next step is.
0 votes Thank Flag Link Sat Jan 28, 2012
Read your contract. Understand your contract. Talk with your lender.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Sat Jan 28, 2012
If the sales contract says that the purchase is contingent upon financing (and you cannot obtain it anymore), you will receive your earnest money back. The most widely used sales contract in this area (Multi-Board Contract 5.0) has the clause about mortgage contingency.
0 votes Thank Flag Link Sat Jan 28, 2012
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