I purchased with a new home builder ten months ago. At the time my existing home had not sold and I did not

Asked by Edwardo, Concord, NC Wed Oct 1, 2008

get a contengency. I also signed for arbitration. 10 months later, my new home still has not sold. The builder is saying that my credit score still passes so I'm obligated to close. However (new and old home) would consume 60% of my income each month which I cannot sustain. I asked them about backing out and they keep my 8K escrow on 250K home. They agreed. Then they changed their mind and want to take me to arbitration to force me to close. What are my options? If I close I'm sure to foreclose eventually.

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Glen Mitchell, Agent, Half Moon Bay, CA
Wed Oct 1, 2008
follow advice below about getting legal advice. Did you get anything in writing about them keeping the escrow money? 8k??
Web Reference:  http://www.maui4rent.com
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Bernard Gibb…, Agent, Danville, CA
Wed Oct 1, 2008
The first thing to do is to read your contract carefully. It should spell out what will happen if you fefault on the transaction.

You may well end up going to arbitration but that does not mean you will be forced to close.

Legal advice is definitely advised. If you need the name of a real estate attorney, let me know.

Bernard Gibbons

Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
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Laura Karamb…, Agent, Downers Grove, IL
Wed Oct 1, 2008

This has become a legal matter and your best bet is to contact a real estate attorney ASAP.

I hope it works out well for you!
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