How to get out from this deal??

[Rob Randle]

I have a family member who is in a tough buying situation and I am seeking advice on their behalf.  

To sum it up:

1. He put an offer in at $135,000 on a Fannie Mae home for that was listed for $125,000 and it got accepted (no surprise).  He will be using this home as a primary residence.
2. After home inspection he was able to negotiate the purchase price down to $131,000 due to some issues with the property.
3. Contracts signed.
4. Now family member wants to back out of the deal because he realizes that its not a good deal and doesn't want to spend a lot of money on numerous repairs.
5. He consults RE lawyer who was recommended by RE agent.  Lawyer mentions that seller can sue for "non-performance".

Questions:

1. Whats the best play to get out of this purchase?
2. How much can seller sue for non-performance?  Does anyone have experience on how this works out in court?

[Greg H.]

Fannie Mae will not sue for non-performance.. The maximum consequence for backing out will be loss of earnest money