I own a house in Michigan that I thought was sold and have read the purchase agreement over closely. The box is checked stating the right to arbitration has been waived but, the default section says if buyer defaults, seller has the right to force the sale. I live in North Carolina so the closing documents were sent by Fed ex and an hour later followed by a phone call by my Realtor that the buyer has backed out.The buyers Realtor claims there has been a job loss issue so I asked him for a signed and dated letter to that affect on his letterhead and the buyers and Realtors signatures. he wont return my phone calls and I'm now threatening to sue for the full amount of the contract. If I do that, I'll be out thousands more in legal fee's. is there any other way to handle this?
Need to consult a lawyer to weigh your options: did the buyer really loose their job? if so long shot, then even if not what are the chances of success to force the buyer to actually complete the sales contact esp. when the buyer would be required to obtain a loan |(specific performance|) , then can you get lawyer fee’s,
If the buyer does not have substantial assets, you may spend thousand of dollars on legal representation to only find you have a judgment which you can not collect on
The contract should state that the deposit is yours if the buyer backs out. look at the contract. you can go to the title company that holds the escrow and ask them for help. it will be in their best interest to help you.
Yeah… get the lawyers out and go after the buyer for the price of the home and ALL costs incurring to include but not limited too the legal fees and court costs.
I wish you the best of luck.
I would keep their deposit, move on, and try to sell to another buyer as quickly as possible. Filing a lawsuit against the buyer is likely throwing good money after bad.
This happens.
I hope that you have a large deposit. this is one reason that we take a 25,000 deposit to build a new home (priced in the 400000 range).
A job loss would result in the buyer not getting the mortgage. At settlement, there are docs that the buyer signs that there has been no change in income. However, if they get a new job, paying the same, then there isn't a problem.
I would call your agent and tell him firmly that they need to get to the bottom of this.
At the very least, I would require a letter from the lender stating the loan has been declined and the reason why. If it has been declined, then there isn't much you can do.
If it hasn't been declined but one of the buyer has lost their job then this is NOT a reason to cancel settlement.
I would talk with a lawyer in Michigan.