2 years ago I signed a lease puchase on a home valued at $166,000. Within the last 2 yrs the neighborhood has lost value. Many HUD homes, forclosures, etc. The value of the home is no longer. I have decided that it would not be in my best interest to puchase. However, I gave a $5000 deposit and was curious if I had legal rights to obtain that money back, since the value of the home has decreased? Is is possible to get my deposit back?

Cvillecpm

NOPE - if the value had increased, the equity owner would have had to sell it to you at the agreed to price.

You paid your money and you took your chance. You should talk to at lease 3 area Realtors about the prospects for the increase in value of your area before you decide to pass on the purchase.

ScottGem

It sometimes amazes me what people think they can get away with. I have to wonder where you got the idea you had any right, legal, moral or ethical to any portion of your deposit back.

As Cville pointed out, what if the property had increased in value? Would you be willing to apy more than you contracted for? Purchasing ANY real estate is a speculation. Generally, property increases over time. But, short term devaluations can occur.

Fr_Chuck

No, you can go to the owner and try to work out a new deal, but basicly you are stuck with a contract. It is just like ifyou had put 20,000 as a down payment and was making payments to the bank, just because the value goes down, you are just out of luck.

I am sorry this is one of the risks of property investment,