Buying or Selling a Home/Breaking a contract

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Expert: - 7/9/2007


Question
I was pre-approved for a home mortgage loan.  I found a house and signed a contract.  I am due to settle Aug 1 this year.  I have just recently found out that I am not going to be able to get the money for the down payment.  Therefore, without that money, I cannot get the loan.  What is going to happen?  What are my options?

Answer
Dear Stacey,

I could not answer this question without knowing all the terms of your contract as there are several possibilities. Do you have a real estate agent representing you? If so, the first step would be to get your agent to outline the potential scenarios that might arise.

The worst case scenario would be that you would forfeit any earnest deposit you put in with your original offer. A best case scenario would be a full refund because you can't get a loan. But you need to check with either your own agent or a local real estate attorney to interpret the terms of your specific contract.

Sorry not to be able to be of more help, but this is a contract specific question that can only be answered by professionals in your area.

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Diann Tonnesen

Expertise

I have over 25 years of experience in real estate in Las Vegas. I can answer almost any specific question about buying or selling homes, condos, high rise properties or land in the State of Nevada as well as general real estate questions that pertain to the industry as a whole. I can also answer questions related to financing on FHA and VA loans, conventional loans, interest only loans, stated income loans, and hard money lending. You can also go to my site at http://www.greatlasvegashomes.com which has lots of information on it as well.

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With my husband I have been helping families call Las Vegas home for over 23 years and I still love it! We developed a strong niche in the Internet industry and had to start a team of agents to respond to the large volume of calls we were getting. Currently we have 18 full time agents, a sales manager, two leads managers and two transaction coordinators assisting us. Last year we helped over 280 families and investors find property in Las Vegas.

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PR Web, Las Vegas Review Journal, and interviewed for numerous magazines as well as a broadcast interview for television by CNN.

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college journalism major

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Top agent in the state of Nevada for sales multiple years when working for Century 21 and last year one of the top 10 agents in the country with Prudential.

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Just too many great clients to mention here, but I can certainly provide a long list of references on request. Or check out our web sites at:

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