Getting out of a house contract before closing - Posted by NewYork

Posted by New Yorker on March 22, 2006 at 08:20:20:

I can send over a copy of the contract if anyone there could review it. This morning, my fiance sends it to me stating he wants me to review it before sending over to mortgage broker. I think there may be a way to get out of this before the mortgage gets approved. We already had been preapproved but that was based on his income being doubled. He knows how i feel and is acting like i never said anything. I am very uncomfortable here.

Getting out of a house contract before closing - Posted by NewYork

Posted by NewYork on March 20, 2006 at 16:41:41:

my fiance and i just went into contract to buy a home. I want to get out of the home and the relationship now. We have not gone to closing yet and i put 50% of the downpayment down. Was told i am going to be on the deed and title but not the mortgage. Also, mortgage was taken using both of our incomes (they doubled his) but my name is not on it. I desperately want to get out of this entire ordeal but need some advise on what legal recourse i have as far as getting out before closing. What penalties can i be looking at? Do i need to hire an attorney? Also, i had advise attny not to send my money out to seller’s atty and take my name off the contract but he sent it out anyway. Also, since i didn’t authorize them using my income to get the mtg, isn’t that fraud? Can i potentially lose all my money i put down if i get out now? Or am i better off going to closing then getting a quitclaim deed done and have him buy me out?
Please help!

Re: Getting out of a house contract - Posted by John Merchant

Posted by John Merchant on March 22, 2006 at 10:45:08:

It’s way too expensive for any S these days to try to force a B to buy…so back out now, don’t sign any docs on this deal and walk away…NOW.

If your lawyer (was it your lawyer or your boyfriend’s ?) got your clear message NOT to send your money, but did it anyway, he/she owes your money back to you, as he/she had no authorization to send your funds without your permission).

But even if you lose your earnest money, your refusal to do or sign anything more will terminate your involvement in the deal.

Re: Getting out of a house contract before closing - Posted by River City

Posted by River City on March 21, 2006 at 09:48:56:

If your name is on the contract, and the deal is contingent on financing, the mortgage lender has a business purpose to pull your credit. There was probably something “wrong” with either your credit or source of income or both and that is the reason the lender decided to not use you on the loan, as you could have killed the deal. If your name is on the contract and the loan cannot be done with you on the loan, then this might be your out.

If the contract states that the deal is contingent on loan approval, and the other party does not qualify alone, he also may be released from the contract.

As far as retrieving your earnest money deposit, you need someone to review the contract for you.

First, find out why the lender deleted you from the loan application. Then, take your contract to an attorney and ask if there is any way YOU can be removed from the contract based on the lender’s reasoning for removing you from the loan application.

One question, did you have all of these objections to the way the loan application was being handled before your relationship went sour?

Dealmaker was giving you some good advice. Get out of this before going through closing. If you think you are miserable now, you will be even more miserable if you close. And, never, NEVER purchase a home with someone you are not married to. Someone most always gets burned.

Re: Getting out of a house contract - Posted by dealmaker

Posted by dealmaker on March 21, 2006 at 06:37:26:

Get out NOW. Do NOT go to closing. The further into this you go the harder it will be to clear yourself out later.

Buying with anyone you’re NOT MARRIED to is always a mistake IMO. Go find your own attorney TODAY, do not rely on the attorney who put this deal together. Even if you lose your side of the down payment it’ll be a cheap price to pay to not be in a deal that you’re uncomfortable with.