All Forum Posts by: Greg D.

@Greg D. In Ca as long as you have not release contingencies you do not need a "big reason" to withdraw your offer. Also, make that you hire your own independent inspector. You also probably have a finance contingency which should allow you to withdraw your offer without penalty within a certain time period. Is there anything that would prevent you from qualifying for the loan, job change, car purchase etc???

I've reached out via email Thanks for the advice.

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Originally posted by @James Lloyd:

Contracts for real estate fail all the time, especially in NJ, and buyers get their deposit back (typically).

Going through inspection is a pretty good idea. If something is in the report, then demand seller fix it at seller's expense. If they refuse to fix it, then have your attorney send a cancellation letter saying that the inspection clause failed. (Read the contract on inspection to make sure what your rights are as Buyer in this regard). Typically there is haggling on inspection items, but not in your case and make that clear to your attorney. You will be out the $$$ for the inspection.

Go back to your agent and tell him/her how you feel about the deal. Don't necessarily accuse them of pushing you into it (at least not at first), but definitely let them know that this is not what you want. If he/she gives you any garbage about "you signed a contract!!!", tell the agent you want to talk to his/her broker. The last thing a realty agency wants is a dissatisfied customer. See what the realtor/broker can do for you.

Have you received final approval for your mortgage? If the numbers are so bad, I wonder if you'll ultimately get the mortgage anyway, in which case the contract should fail on financing (and you'd get your deposit back). Talk to your mortgage company about the numbers and why they don't look good. You have to make a good faith effort to try to secure financing, which means providing documentation upon request, but the numbers are the numbers. The mortgage company doesn't want to make a bad loan. I would stress to the mortgage company that you are a first time buyer and you didn't know what you were doing with the numbers. The financial crisis made lenders pretty skittish about allegations of pushing bad mortgages onto people that couldn't afford them.

If the seller knew better, he/she would let you out of the deal. Seller is going to waste more time and money trying to lock you down, which Seller could have spent putting the property back on the market.

Thanks for the good information. I appreciate the response.

If the inspection comes back fairly clean would I be screwed?

The realtor (a friend of my mother's) did give me the "you signed a contract" speach.

I pre qualified at a much lower rate then what I was finally approved for (I haven't locked into a rate yet). The mortgage I was approved for is roughly 50% of my net income.

The seller is a LLC who is owned by a man from the same town as me. The property is also in a flood zone, I was aware of this during attorney review but was provided a slightly misleading quote (did not include contents coverage) from my realtor.

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Originally posted by @Christopher Meis:

Do you have an inspection contingency in your purchase agreement?

"Buyer and seller acknowledge and agree that, because the purchase of home is one of the most significant investments a person will make in a lifetime, all aspects of this transaction require considerable analysis and investigation by Buyer before closing title to the Property. While Brokers and salesperson who are involved in this transaction are trained as licenses under the New Jersey Licensing Act they readily acknowledge that they have no special training or experience with respect to the complexities pertaining to the multitude of structural, topographical, and environmental components of this Property. For example, and not by way of limitation, Brokers and salespersons have no special training, knowledge or experience with regard to discovering and/or evaluating physical defects, including structural defects, roof, basement, mechanical equipment, such as heating, air conditioning and electrical systems, sewage, plumbing, exterior drainage, termite, and other types of insect infestation or damage caused by such infestation. Moreover, Brokers and salespersons similarly have no special training, knowledge or experience with regard to evaluation of possible environmental conditions which might affect the Property pertaining to the dwelling, such as the existence of radon gas, formaldehyde gas, airborne asbestos libers, toxic chemicals, underground storage tanks, lead, mold or other pollutants in the soil, air, or water."

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I'm a first time home buyer (in NJ), and shortly after attorney's review I had buyer's remorse. I made a poor decision and rushed to put in an offer due to pressure from my agent. I met with a bank's mortgage specialist and realized that financially the deal does not make sense for me. I want to back out of the contract, but the seller is not willing to let me.

My attorney has suggested I proceed with a home inspection, in hope that gives me an out. I'm not confident this will provide an out because the house is a flip and has been re-done. If I breach the contract I can be sued for broker costs (which at that cost I might as well complete the deal)

I am considering writing a letter to the seller, explaining it was an honest mistake and that I'm willing to concede the deposit at the least. Is this a good idea or could potentially cause legal problems? Do I have any outs aside from hoping something comes up in the home inspection? Any words of advice would be greatly appreciated.

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All Forum Posts by: Greg D.

Greg D. has started 2 posts and replied 14 times.

Post: Buyer Looking to Back Out

Post: Buyer Looking to Back Out

Post: Buyer Looking to Back Out

Post: Buyer Looking to Back Out