Commitment letter given & contract of buy is signed, can denial letter make/break?
My parents "were" in the process of selling their home. The buyers had gotten approved for the loan and signed the contract to close on the house. They put down 1/2 of their down payment as one of two. The second payment would be transferred at closing.
The shady buyers decided they don't want the house and for weeks were trying to get a letter of denial from their mortgage company, who at first was telling them no but as of this week, a denial letter was faxed to our realtor.
Now, how can this be possible? They were given the 10-day opportunity to back out of their loan... never did. Then they went on to sign the contract to buy the house... and now they have a denial letter? Could someone be lying? Could they have affected their finances somehow within the past few weeks to have finally received that letter of denial?
My parents would not hurt a fly on the wall and they've already put 1 of two down payments on their prospective new home and now they're in financial limbo! They are being told that they should sue for the $20,000 depreciation of the house for the time it's been off the market... in addition to the $5,000 worth of water/heating that this couple demanded get down before closing... can they win a case here? This is in NJ