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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 41535
Experience:  Texas Attorney for 30 years dealing in real estate
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Can a buyer on a new build home get out of the contract of

Customer Question

Can a buyer on a new build home get out of the contract for lack of funds
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray here to help you .

You can try to resolve this with the builder.They would likely want to keep any funds put down.They would likely want buyer to do a deed in lieu where you deed it back to buyer and they do not attempt a deficiency judgment if more is owed here than house is worth.

Florida has judicial foreclosure through the courts so it is in your interest to seek resolution and deed in lieu here as well to prevent a judgment against you.Your first step is to contact builder and be straight about your problems and need to resolve this.Believe me you are not the first person that has had such problems.

I appreciate the chance to help you today.Thanks again and the best here.

I wish you a Happy Easter too.

Customer: replied 1 year ago.
I have discussed this with the builder at length. We recently moved to FL and only my husband has been lucky enough to obtain a job, therefore we feel it is a large possiblity we won't be able to make payments and go into foreclosure.
Expert:  Ray replied 1 year ago.

Ask them point blank about a deed in lieu here--you deeding it back and they avoid foreclosure.If they foreclose here in Florida through the courts there is always going to be a deficiency if you owe more with legal fees, etc than it sells for .Ask about a deed in lieu here to see if that is an option.

Customer: replied 1 year ago.
We put $1000 down to build the house, we don't care if we lose that, we just want out of the contract. Is that a possibility? My husband doesn't qualify on his own for a mortgage so they suggested our 25 year old daughter go on the loan too. We have to pay off 2 loans and put 15% down which basically cleans out our savings. Nothing to fall back on if I don't get a job soon.
Expert:  Ray replied 1 year ago.

So here you just take your lumps and let it go.The builder here can take it back and they may get a judgment on you if they will not accept say deed in lieu.Thanks again. This would be breach of contract if you don't close on it and they can sue you.I understand why you don't want to go through with it here given your situation.I would stash my funds here in a safety box for awhile so they don't get at them with garnishment.

Expert:  Ray replied 1 year ago.

I appreciate the chance to help you today.I also wish you the best here.Thanks again.

Customer: replied 1 year ago.
Thank you, ***** ***** but we have to figure out what we'll do.
Expert:  Ray replied 1 year ago.

Here's the deal interest is nonexistent, so taking funds out and putting them into a safety box for awhile is a safe play.They would be more likely to accept a deed in lieu here if you do.You look way too prosperous here--although I fully understand you are not at the moment.If you do decide to back out then you want to hide assets from bank levy by the creditor/builder.

Your other option is to pay off the house and flip it, you might take a loss here but you would get something close to what you paid because it is a new property.It leaves you thin for awhile here though.

I wish you the best . I will say a little prayer for you and your family.

Expert:  Ray replied 1 year ago.

If you can positive rate it is much appreciated.