It would seem to me that you should be able to get your 247k back if you couldn't get the loan... though everything depends on the specifics of your contract of course...If your attny doesn't work out for you - I know of several that are very good that get results fairly quickly that I could always pass along to you...

I'd get your EM money back & then kill the first contract. Hopefully - your initial contract wasn't so screwed up
that TB had a right to keep the EM even if their in-house lender denied funding - for whatever reason.

Then - make an offer for 900k (as I assume you meant 1.5 million list before) :-)

That kills my thought, then. It may not have applied in your case due to the loan size.

The issue I had in mind relates to C-to-P loans when it's time to convert to permanent - secondary market typically requires a warrant form the lender stating that the value hasn't dropped since originating the loan. Many folks have been stranded by that little issue since the market tanked, and the lenders don't divulge the problem; instead they try to beat a huge cash infusion out of the buyer to make up the difference.

Unfortunately, outside the lending realm I'm not qualified to offer suggestions. It sounds like much will depend on your contracts with Toll Bros and if your attorney is able to link the purchase contract with the mortgage commitment. Partial performance and consideration might be the keys to conditioning one promise upon the other.

Knowing builders, I'll bet your attorney finds a way. Buildersof all sizes seem to be sloppy in keeping a clear separation of relationship between the sales and mortgage divisions.

Good luck to you. And keep us posted.

It was built on TB's dime. They currently have the home listed as a spec. home in the local MLS.

Lending question

Did Toll Bros Mortgage provide your with a construction-to-permanent loan, or are they building the home on their dime?