We bid on a house and got a decent price. However, It needs many repairs that have to be done by us before the appraiser will approve the loan. Some of these repairs were going to be done by us, but they want contractors.
We feel that we are in over our heads now since we have to do repairs on a house we do not own. Our contract ran out with both the mortgage company and the realtor. The sellers live in another state and do all of their correspondence by regular mail which slows down the process. They have not even sent the first extension approval back from over a week ago.
Can we walk away without being sued by the current owners? Would we get back our deposit?
2 Answers from Attorneys
That entirely depends on what your contract says. I would highly suggest that you retain an attorney to review this for you.
If you don't have an attorney and would like to retain one, please feel free to contact me.
Justin C. Gearty Jr., Esquire
Owner and Managing Attorney
Gearty Law Offices
Never make repairs on a property you don't own. You take on liability, and you lose whatever you put into it if the transaction doesn't settle. You can't borrow money from a lender to do work on a house you don't own.
Have a lawyer assist you in reviewing your contract and advise you about what options you have. With luck, you are still within the period that permits you to cancel based on condition of the property or failure to get a mortgage, if those are conditions for your closing. If they are not conditions, you may be stuck with, at a minimum, losing your deposit, or worse, being liable for the entire purchase price and possibly the seller's additional losses.
THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.
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