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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28370
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I have a contract on a house. We have secured financing but

Customer Question

I have a contract on a house. We have secured financing but my wife and I have decided to divorce. We want to back out the contract and closing is tomorrow. The seller says he will sue us. We have worked with the lender to secure financing in my name but the seller want accept. Can he sue us? Also what are the consequences if he does? How long would it take to get this in court?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.

Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help with your question and concern

Expert:  RealEstateAnswer replied 1 year ago.

Good morning. Yes, I am sorry to share but if you fail to close, at this point, then you would be in breach of the contract and the seller could sue. Typically, the contract which you signed should have a damages clause and in some situations, liquidated damages, whereby the seller would be able to keep your deposit, to be made whole, if you fail to close and perform under the contract. You also want to read and review the contract, to see if this is the case and it limits your damages or if the seller can proceed and sue you for additional damages as well, such as the lost profits on the home. I understand that you are divorcing but it is not a legal basis to break the contract with the seller, since they have nothing to do with the divorce proceedings. To litigate this matter and sue, if it can not be resolved, based upon if you contest this, could take up to a year or more, depending on the facts and issues which need to be heard and addressed by the court.

Expert:  RealEstateAnswer replied 1 year ago.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service at the top of this page, before exiting the site, so I can receive credit for my help. I hope you found it to be 5 STARS! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.

Customer: replied 1 year ago.
if they win in court and I don't pay this will go on my credit?
Expert:  RealEstateAnswer replied 1 year ago.
Thank you for the reply. If they sue and obtain a judgment they will look to enforce it and try and go after bank accounts, assets and possible garnishment if possible. The judgment would be seen
Expert:  RealEstateAnswer replied 1 year ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!