Newbie [already] in a bit of a pickle...Could use some help.

[John Walter]

I'll keep this as brief as possible, but I want to convey my uncertainty. FYI, this is my first purchase, and this would be a house hack (triplex).

My offer on a new construction home was agreed to and signed at the end of August, 2019. Close date was set to be November 30th. Then December. Then January....long story short, it's still not done. Everyone in this transaction has been AWFUL (with the exception of the lender). My realtor disappeared for months without a single update, I had no ability to contact the seller or seller's agent, the lawyer (recommended by my realtor) wasn't returning my calls. Basically, for two months, the supposed close date came and went, and I could not get a hold of anyone.

Finally, I heard from the realtor who advised it was the city's fault (permits, etc.). Point here is this: At the end of this month, I can legally back out of this contract with no penalty. The house is still several weeks (at the earliest) away from being done, and with everything going on with the economy starting to recede, pre-foreclosures in my area are sky-rocketing, I'm wondering if backing out is the best idea?

My biggest fear is I'm about to buy a house that will be worth far less in a year, and I won't be able to find tenants to fill the units (need to fill two). Sure interest rates are low, but if I can't find good tenants this will be for nothing. Also, if the market starts going south foreclosures will rise and deals will be aplenty....but I would have already put all my eggs in this basket.

Am I being paranoid, are these concerns legitimate, or something else? 

I could really use some advice. Thank you!

[JD Martin]

Thoughts:

1. What gives you the idea that foreclosures are skyrocketing in your area?

2. If the fundamental numbers worked when you went under contract, what makes them not work now? What evidence do you have that it is now a bad deal? Was it always a bad deal?

3. If you had a closing date of November, why is it that you can only now walk away? Did you agree to extensions in writing?