Lending fell through... need help

[Andy Connelly]

Hey BP - I need some thoughts from a real estate agent's perspective...

My wife and I were going to close on our first investment property in 3 weeks. In order to fund the down payment for the mortgage, we planned to get a home equity loan on our residence. 

However, life has become nuts. We found out about some foundation damage to our residence which may need to be addressed. There are also some serious things going on with our church family which take up the most mental space. We have 2 kids under two and I love them to death but it's a hard parenting season. We would not be good investment property owners or landlords in this season. I say all this because something had to give... so we pulled the plug on the home equity loan in order to give up the investment property.

My question --- am I able to say all of this to my real estate agent? Or am I legally required to indicate that "we tried our hardest, but lending fell through"? The reality is that WE pulled the plug on the lending due to life circumstances. Will that be heard?

I don't want to be misleading, but also I don't want there to be any legal issues.

Thank you!

[Ryan Muska]

Your RE Agent works for you - tell them the situation. They will be able to determine how to get the EMD back.