We signed a contract with a builder for a new home with no contigencies. Then, 2 weeks later, our house we were selling didn't close. Now we're stuck with a contract to purchase, which the close date has past, no money to put down, and if we do even find a way to close, TWO mortgages.
How can we get out of this contract legally?
Lisa

LisaB4657

You can always get out of a contract. The question is how much it is going to cost you.

Here are your options:

1. Put your house back up for sale. Sell it and use the money to buy the new house.

2. Cancel the contract and stay in your current home.

Going with either of these options will require that you speak to the builder and the builder's response will dictate which option you choose. The builder can either say they'll wait for you to sell your house (and maybe you'll be responsible for his carrying costs--taxes, insurance, interest payments--while he waits for you) or they'll let you out of the contract. But you can't decide what to do until you've spoken to the builder.

If the builder starts making threatening noises then it will be time for you to speak to an attorney. But don't jump to any conclusions yet. Speak to the builder first.

Good luck!

Fr_Chuck

Yep, I see this on TV every day, on those "sell this house" or other shows, where someone makes a offer or buys another house without selling thier other house first. Basicly you are stuck, If you can't close on the one home, you will have to default and you will owe something, according to the terms of the contract.

So time to talk to the builder and see what your options are.