Backing out of a Real Estate Contract -- Need Advice ASAP

[NickL30]

What is the name of your state? Connecticut

I signed a contract to purchase a condo and put down 5% in the form of a personal check back on June 12. The check was made out to the sellers attorney. This was for a new construction condo which is still being constructed and the date of occupancy hasn't been determined.

I only had until July 8 to back out without penalty. But I decided I didn't want to go thru with it and realistically thinking, there is no way I can afford the total monthly payment even I did get approved for a mortgage. I only make just under $90,000 a year and the purchase price is over $300,000. The mortgage broker that the RE Agent referred me to gave me misleading info regarding a 'first time buyers' program in CT that I could never qualify for since I have not been a resident for more than 2 years.

I didn't bother telling the RE agent or any of the attornies that I wasn't going thru with the deal. I just called the bank and 'stopped' payment on my check. The stop payment is good for six months. As of today, the check remains uncashed by the other party.

But my question is, am I still legally responsible since myself & the seller signed the contract. I also got preapproval letter with my credit being checked by a mortgage broker who works closely with the RE agent. The contract said only if you cannot get a mortgage can you back out before final closing.

The contract stipulates liquidated damages & termination of purchase agreement if buyer fails to perform given the terms.

Likely, they will go after me for the deposit at most. But, I do not have an attorney and the RE agent went over the contract with me (she was not my agent). What do I do??

If I file for Chapter 13 BK will this at least stall a pending judgement??

What can they do to 'force' the purchase?? Not much

 

[seniorjudge]

What is the name of your state? Connecticut

I signed a contract to purchase a condo and put down 5% in the form of a personal check back on June 12. The check was made out to the sellers attorney. This was for a new construction condo which is still being constructed and the date of occupancy hasn't been determined.

I only had until July 8 to back out without penalty. But I decided I didn't want to go thru with it and realistically thinking, there is no way I can afford the total monthly payment even I did get approved for a mortgage. I only make just under $90,000 a year and the purchase price is over $300,000. The mortgage broker that the RE Agent referred me to gave me misleading info regarding a 'first time buyers' program in CT that I could never qualify for since I have not been a resident for more than 2 years.

I didn't bother telling the RE agent or any of the attornies that I wasn't going thru with the deal. I just called the bank and 'stopped' payment on my check. The stop payment is good for six months. As of today, the check remains uncashed by the other party.

But my question is, am I still legally responsible since myself & the seller signed the contract. I also got preapproval letter with my credit being checked by a mortgage broker who works closely with the RE agent. The contract said only if you cannot get a mortgage can you back out before final closing.

The contract stipulates liquidated damages & termination of purchase agreement if buyer fails to perform given the terms.

Likely, they will go after me for the deposit at most. But, I do not have an attorney and the RE agent went over the contract with me (she was not my agent). What do I do??

If I file for Chapter 13 BK will this at least stall a pending judgement??

What can they do to 'force' the purchase?? Not much

All of this is very interesting...but useless.

We need to know EXACTLY what the contract said.

 

[NickL30]

To summarize: It did have a financing contingency & default to extent of liquidated damages.

I am probably in more trouble because I hastily put a stop payment on the check during the opt out period but didn't inform anyone at the other party.

I am also in the process of filing chapter 13 BK to stay impending judgements.

 

[seniorjudge]

To summarize: It did have a financing contingency & default to extent of liquidated damages.

I am probably in more trouble because I hastily put a stop payment on the check during the opt out period but didn't inform anyone at the other party.

I am also in the process of filing chapter 13 BK to stay impending judgements.

All of this is very interesting...but useless.

We need to know EXACTLY what the contract said.

 

[Caveman]

All of this is very interesting...but useless.

We need to know EXACTLY what the contract said.

I d.o. n.o.t u.n.d.e.r.s.t.a.n.d w.h.a.t. Y.o.u w.a.n.t f.r.o.m t.h.e. O.P.

maybe spell it out?




( golly,that was painful)

 

[lcannister]

I didn't bother telling the RE agent or any of the attornies that I wasn't going thru with the deal. I just called the bank and 'stopped' payment on my check.

Ain't you something else? Ask your bankruptcy Atty these questions but I recently saw a case where the buyer stopped payment on a legitimate contract without a contingency to cover the situation and it cost 3 times the amount of the check. The seller was angry enough to pay an Atty almost 50 Percent just to punish the jerk who stopped payment on the check.

IF you had 15K why didn't you pay off some of those judgments against you before going out and signing a contract on a home you could ill afford?