This is happening to me as we speak. 1 day prior to the closing on the sale of our house the buyer died in a house fire. What was the outcome of the above. It is getting so messy with the lawyers.

Its not a good idea to piggyback your question on another thread. A 4 year old thread is unlikely to get responses. So your question has been moved to its own thread.

Do you want the house? The death of the seller complicates matters but the estate can go through with the sale. Has an executor been appointed? I'm not sure you can get out of the sale, unless they can't meet closing obligations.

... The death of the seller complicates matters but the estate can go through with the sale. ...

The buyer died.

You are correct. The estate can go through with it, but I suspect the PR ("personal representative" or "executor") may not want to. A probate estate would first have to be created by the appointment of an executor by the probate court.

Whoops, in the original question, it was the seller. In the case of the buyer dying, the contract can be cancelled. Whether any deposits have to be returned is another matter.

The buyer died very unexpectedly in a house fire. Her estate does not want to continue with the purchase of our house and now we are scrambling to secure the funds to continue with our purchase as the seller of that house has threatened to take legal action against us if we don't. It looks like we are going to be the big financial losers in all of this and stuck with 2 houses and 2 mortgages (which we cannot afford).

The buyer died very unexpectedly in a house fire. Her estate does not want to continue with the purchase of our house and now we are scrambling to secure the funds to continue with our purchase as the seller of that house has threatened to take legal action against us if we don't. It looks like we are going to be the big financial losers in all of this and stuck with 2 houses and 2 mortgages (which we cannot afford).

Do you enjoy making riddles, or is it that you just can't help yourself?

The buyer is dead, you say. So what do you mean that you are trying to continue purchasing? If you agreed to purchase together with another purchaser, now dead, the deal is off. If you want to purchase it anyway, you can, but the seller cannot force you to do so.

Tell the seller that he or she can sue if they want to, but they will loose.

I think the OP means that he was planning on selling his current property and using the funds for the down payment on the purchase of a new property. Since the sale of his current property is falling through he can't afford the down payment on the new property.

I suggest you talk to your mortgage lender about obtaining a bridge loan - it's purpose is to cover the down payment for the new house until you get the funds from the sale of the old. I would also suggest in hind sight that the purchase contract you signed for the new house should have had a contingency that lets you out if unable to sell your current home. In today's housing market such a clause is essential if you don't have another source of funds.

That's the way I read the OP's situation, but it took a couple of re-readings to figure it out. I agree with ebaines advice.

Also read the contract for the purchase of your home. It may be possible for you to keep the buyer's earnest money.