What would you do? We have had our house on the market for 105 days, starting at 649k down to 600k. We have had 16 showings total- very slow. We bought a new house for 540k in April, suppose to settle next week. We did a non contingency. We weren't able to get an 80/10, but got a 90/10 which means we have to borrow money from a few people. Now we are thinking of backing our of the new house and keeping our current house. We've talked to lawyers...we can get our of the commitment and even get our 15k deposit back. The sellers are very upset...are offering us at least 16k cash at settlement to go through with the deal. That would cover us for a few months of double mortgage payments but then what? Any advice? We want to move because we love the new house and have been very unhappy in our current house, but a house is just a house....who knows if we can get the $?

I think you already know the answer to your question.

If you can get out of the transaction with your earnest money it would be a no brainer to me. Tell the seller that when you get your home sold you would love to purchase their home, unfortunately having two mortgage payments for an extended period of time is too scary of a proposition .

In this market it's tough to predict when you will sell your current home , and how much money you will get for it.

Just my .02 of course. Do what you feel comfortable doing. You are going to have to be the one who lives with the decision and pays the mortgage.

Take care.

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Scottsdale Real Estate
McDowell Mountain Ranch Real Estate
DC Ranch Real Estate

I also think that you have made up your mind.

Just as a side note, you over priced your home to start with, a typical home owner error. In the markets around here if you overprice a home by even 3 or 4% you likely will have to do a 10% to 15% price reduction just to get attention back to your home. Total Costly Mistake that it is almost impossible to talk sellers out of making.

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James Boyer
RE/MAX Properties Unlimited
Morristown, NJ 07960
973-647-0253
Serving the Real Estate markets of Morristown, Morris Township, Madison NJ Real Estate, Chatham NJ , Summit, Short Hills, Millburn, Maplewood, South Orange, & West Orange Referals happily given and accepted. For information on home sales in New Jersey please contact. Morristown NJ Real Estate Madison NJ Real Estate Chatham NJ Real Estate

Another thread of this here:
http://www.realestatewebmasters.com/thread17695.html


And another thread here:
http://www.realestatewebmasters.com/thread17697.html

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

Oops, one more thing I didn't see on your original post. I see that the sellers are going to give you 16k at closing. Unless, you have the lenders permission and the money is shown on the hud, that is a big no no. You could restructure the deal so the sellers contribute that money towards your closing costs, loan costs etc and probably be fine depending on the loan program you are in.

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Scottsdale Real Estate
McDowell Mountain Ranch Real Estate
DC Ranch Real Estate

Most definitely if you can get out without consequence, do so. I'm not sure what market you're in but it's likely prices may go down further before the end of the year and even if the lender allows you the $16K towards your closing costs, it won't matter if the home you're buying depreciates by 10%...not to mention the home you're trying to sell!

The market's too risky for such a venture. Stay put and start over when the market recovers a bit. Also, keep in mind, it's better to have your home under contract before you write an offer on another home. There is likely to be plenty of inventory to choose from for quite some time so you're likely to be able to find a great house in short time.

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"It's a Wonderful Life"
Irene Morales Ward

Thanks for all the input. I guess now the seller is trying to get to keep our 15k earnest money saying my husband didn't disclose on the buyers financial disclosure that we had a home equity line of credit on our house (he forgot-not trying to hide it, and our mortgage guy knew this). Do they have an argument?

In addition, our realtor advises we don't do the 16k to buy (9k at the table and 7k cash) because they could just not give it to us (not to mention it is illegal!)

Depends on the language in the contract.

For our contract where we are at, the only financial information disclosed for most situations is:
Purchase price (points, closing costs if any, etc, etc)
Down payment - source of down payment
Balance to be financed - source to finance (if its cash: CDs, savings, etc)
Interest rate

If financing wasn't a contingency in your contract, they may be entitled to the money.

Read your contract.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

Most likely the nondisclosure of the home equity line of credit is an absolute moot point. Confirm with your attorney but I don't think they have a leg to stand on. As for the latter with the closing costs and $7k cash, that is fraud - a FELONY and punishable by time served and/or a hefty fine. Don't even consider it.

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"It's a Wonderful Life"
Irene Morales Ward