Home seller backing out of contract...experience?

[MommyBryn]

We have been in contract for four weeks, read to close on our first home (patiently waited almost 11 years of marriage! ) on 10/15. Then yesterday we hear that the sellers want to back out. We know they want more for it (they aren't living there, it appraised slightly low but still fair with 9 comps, and the wife has sold FSBO during the bubble so she probably hasn't "adjusted" to the current market), okay, but this has been such a messy experience for the last 6 weeks. Anyway, vent over, but just curious how it has gone for others as the buyers when the seller backs out of contract.

 

[MomToOne]

Well, since there is a contract already, there are only certain conditions under which either party can pull out and they are spelled out in the contract. "I want more money" usually isn't one

What condition exactly are they using to try and get out of the contract? If they don't have a valid one, then I'd tell them tough.

 

[MommyBryn]

Well, since there is a contract already, there are only certain conditions under which either party can pull out and they are spelled out in the contract. "I want more money" usually isn't one

What condition exactly are they using to try and get out of the contract? If they don't have a valid one, then I'd tell them tough.

Well from what we understand, they CAN always pull out, but they just have to face the consequences, like reimbursing us for what we've paid (like appraisal, inspection, etc), not being able to re-sell the house within a year without having to pay the agents from THIS contract on top of it, etc. It doesn't sound worth it to me, but whatever..... as long as we get all of our money back. We do know the sellers (*I* don't know them well, they have been family friends with DH for pretty much forever, and unfortunately this experience has not been great to our relationship) although we didn't buy the house based on that- we fell in love with the listing then found out they owned it after we started pursuing it....I gotta say, it would be easier if they were strangers!

 

[ruadisneyfan2]

Well, since there is a contract already, there are only certain conditions under which either party can pull out and they are spelled out in the contract. "I want more money" usually isn't one

What condition exactly are they using to try and get out of the contract? If they don't have a valid one, then I'd tell them tough.

This is how it is here too. Unless the home inspection shows something not previously known or the buyer can't get final approval for the mortgage.
Otherwise, they have 3 business days after signing the contract to change their mind. After that it's pretty much a done deal. I guess it varies in each state.

 

[supersnoop]

Look over your contract for a section titled "remedies" or something like that. See if it excludes "specific performance." Usually a seller cannot enforce specific performance, but a buyer can. If a buyer backs out, they lose any deposit or earnest money, but a seller can be forced to go through with the contract.

 

[havaneselover]

We have been in contract for four weeks, read to close on our first home (patiently waited almost 11 years of marriage! ) on 10/15. Then yesterday we hear that the sellers want to back out. We know they want more for it (they aren't living there, it appraised slightly low but still fair with 9 comps, and the wife has sold FSBO during the bubble so she probably hasn't "adjusted" to the current market), okay, but this has been such a messy experience for the last 6 weeks. Anyway, vent over, but just curious how it has gone for others as the buyers when the seller backs out of contract.

A letter from a lawyer may be enough to make them realize the financial repercussions of backing out. Not to mention it's unethical

 

[MSLRAC]

I feel your pain. We were supposed to close on a house this past Thursday but we got a call Wednesday night from our agent that the seller had backed out. We met with our agent yesterday and she had a check for our earnest money, inspections, and appraisal. She said that we can't force them to sale us their house even with a signed contract. We can sue if we would like but that will just cost us time and money and we still won't have the house. That worst part for us is that we let a half dozen other houses slip by because we thought we were buying a house and now there is nothing in our school district that we like. So now we're just sitting and waiting for something to come on the market.

It seriously blows OP and I hate that you are going through this too. Good luck finding something else!

 

[eliza61]

My coworker went through this, this summer and if they are ready to pay up, sure.

My coworker signed a contract for a house, they older couple were moving to florida to be nearer the grandkiddies. wife was already down there and hubby was still in De selling the home. well 3 weeks before closing, wife comes back saying daughter in law is the Anti-Christ and no way is she moving down there. She wanted to cancel the deal.

Co worker literally got an extra 30K,after all was said and done. Got a ruthless attorney. Seller had to refund the deposit, reimburse the the inspection & mortgage fees and since my coworker had already sold his home, they charged them 6 months of rent they would need until they found a new house PLUS a few months for them having to put their stuff in storage.

 

[MommyBryn]

That worst part for us is that we let a half dozen other houses slip by because we thought we were buying a house and now there is nothing in our school district that we like. So now we're just sitting and waiting for something to come on the market.

It seriously blows OP and I hate that you are going through this too. Good luck finding something else!

This is what I am dreading. We had been looking for THREE years of looking before finding this house. Because of our situation and how we have to live within a specific distance from DH's work, plus the fact that things get snatched up here so quickly (we're fairly rural but in a NICE area, and so the "city" people an hour away are buying homes here to rent or to live and then they commute), it took us a LONG time to find the home that met our needs. We don't want to jump into homeownership by just "settling" for something, you know? So yeah, I'm really not looking forward to starting over completely.

eta- I guess I'm just curious how this will all go down. For example, one thing I'm really curious about is the timeframe in which our money will be reimbursed. I don't think we would end up getting an attorney or anything, as long as we get all of our money back (considering we have a perfectly fine place to live still and aren't out anything except for all that lost time which we sat in contract assuming we were getting a house!!!! Ugh). But it's just so disappointing. I was really excited to have our own place!

 

[MSLRAC]

This is what I am dreading. We had been looking for THREE years of looking before finding this house. Because of our situation and how we have to live within a specific distance from DH's work, plus the fact that things get snatched up here so quickly (we're fairly rural but in a NICE area, and so the "city" people an hour away are buying homes here to rent or to live and then they commute), it took us a LONG time to find the home that met our needs. We don't want to jump into homeownership by just "settling" for something, you know? So yeah, I'm really not looking forward to starting over completely.

eta- I guess I'm just curious how this will all go down. For example, one thing I'm really curious about is the timeframe in which our money will be reimbursed. I don't think we would end up getting an attorney or anything, as long as we get all of our money back (considering we have a perfectly fine place to live still and aren't out anything except for all that lost time which we sat in contract assuming we were getting a house!!!! Ugh). But it's just so disappointing. I was really excited to have our own place!

Things in our area get snatched up quickly too. One we were supposed to look at Monday is already under contract and it just went on the market yesterday. I'm dreading starting the process all over again and we have only been looking for a few months.

We had no other expenses in our case either so suing really isn't in our best interest. But our relator had our check the next morning. The closing attorney cut us a check for our earnest money and the homeowner had gotten us a cashiers check for everything else. So I'd be calling first thing Monday to find out when you can expect your check and I wouldn't let them drag it out in case you do quickly find something else.

 

[MommyBryn]

Things in our area get snatched up quickly too. One we were supposed to look at Monday is already under contract and it just went on the market yesterday. I'm dreading starting the process all over again and we have only been looking for a few months.

We had no other expenses in our case either so suing really isn't in our best interest. But our relator had our check the next morning. The closing attorney cut us a check for our earnest money and the homeowner had gotten us a cashiers check for everything else. So I'd be calling first thing Monday to find out when you can expect your check and I wouldn't let them drag it out in case you do quickly find something else.

Thanks for the advice! We will have to wait to call because they haven't even ended things yet. As per our contract, first we had to go "back" to the last contract they signed on (the one before appraisal), as they never signed the one after the appraisal (it was lower, but we were paying closing....the previous contract, the SELLERS were paying our closing, so in the end, it is only a $2000 difference for them!! RIDICULOUS to pull for that!!) and they have the option of staying with that or continuing to back out. It would mean more OOP for us since our lender obviously won't lend that full amount, but the difference is low enough that it's not worth us losing the house over, if that makes sense. So that's another thing that's driving me nuts....it's like we have NO idea where we stand right now and NO clue where we might end up (or WHEN we'll be there). There's equal indication both ways- we're still in contract, but we've been told they're pulling back, but no action has taking either way yet. Initially they wanted an extension to from 10/15 to 10/20 (for some construction being done) and wanted to re-appraise after that, but then we were told that they're just ending it now anyway. So we are SO confused. We're not holding our breath (they've been trying to get more and more out of this the whole time), but it would be nice to have a heads up, considering we've done more than our part to make this work since the first day of September!

 

[usnuzuloose]

Things happen for a reason. As long as they reimburse you.