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I recently signed a contract to buy a house and I have put down $1000 deposit. The closing day is not until May 28th,2010. I acknowlegded that the house was located in a flood zone before I signed the contract. That area has not had a flood in almost 30 years so I do no want to buy flood zone insurance. Because I am getting a mortage loan I am required to to buy flood zone insurance for $460+ a year. I am a family of 5 and I have to support my 3 children. I am still qualified for the mortage loan but I no longer want to buy that home. I have in fact found a different home to my liking. The attorney working with the home I signed the contract with me told me that I may be sued by the seller. Is there any way out without getting sued? And if I do get sued, how much could they possibly sue me for?
I'm confused as to why you would be asking about legal ramifications on here when you have an attorney that is advising you? The attorney certainly would be more qualified than anyone else.
It depends on what your contract says about breach of contract. As Palmcoasting said, the attorney advising you should be more qualified to answer your question, especially since they have the contract.
You should check if there are any contingencies that may allow you to cancel without penalty, like your inspection period.
I'm sure your attorney has tried to explain to you, but you can be sued for specific performance of the terms of the contract - to BUY the house - that's what you agreed to do, it is what the contract says. So the seller CAN force you to meret thr terms of your contract. You really need to discuss this with your attorney further. And don't go signing any more contracts to buy a house without getting this contract squared away. In fact, I wouldn't sign any contracts without speaking to your attorney first, as you don't seem to understand what a contract is or the ramifications of what you are signing.
Don't you think the real estate agent, or the lawyer, should have told the OP that she would HAVE to buy flood insurance if she was going to get a mortgage before she signed the contract?
Don't you think the real estate agent, or the lawyer, should have told the OP that she would HAVE to buy flood insurance if she was going to get a mortgage before she signed the contract?
Yes, I would have hoped so, but it appears that they did not. The folks on this forum can't possibly help you with backing out of a contract. I understand that you might want to expose yourself to other creative ideas, but the fact is that all contracts are different. What your contract says you can do is what matters. Anything we would suggest on here would be irrelevant because we haven't read your contract.
My concern is if you can afford any house? If $460 a year is going to make or break the deal, then you've got a world of trouble in your future when you own.
Don't you think the real estate agent, or the lawyer, should have told the OP that she would HAVE to buy flood insurance if she was going to get a mortgage before she signed the contract?
I have a feeling they did which is why she had to sign a form stating that she knew it was in a flood zone.
Sounds to me like the buyer found something he/she likes better than the property contracted for and now has a bad case of buyer's remorse.
I am speculating the home inspection/attorney review ( if any) period has come and gone and the buyer can qualify for a mortgage.
The buyer is likely able to perform and prefers not to do so.
The annual cost of flood insurance and 3 children in the family is an attempt to rationalize not performing according to the contract. It's meaningless information to the seller
What's the seller's motivation for moving? Have they bought something else? What are the consequences to the seller if the OP does not perform?
Would the seller be open to keeping the escrow and releasing the buyer?
If not, what will the seller accept to release the OP of his/her obligation?
I recently signed a contract to buy a house and I have put down $1000 deposit. The closing day is not until May 28th,2010. I acknowlegded that the house was located in a flood zone before I signed the contract. That area has not had a flood in almost 30 years so I do no want to buy flood zone insurance. Because I am getting a mortage loan I am required to to buy flood zone insurance for $460+ a year. I am a family of 5 and I have to support my 3 children. I am still qualified for the mortage loan but I no longer want to buy that home. I have in fact found a different home to my liking. The attorney working with the home I signed the contract with me told me that I may be sued by the seller. Is there any way out without getting sued? And if I do get sued, how much could they possibly sue me for?
You signed a contract in which you obligated yourself to do something (buy a house). If you back out of the contract you MAY be sued and required to buy the house. Or-the other party may be open to negotiate another settlement with you. This is why you need an attorney and your attorney should be handling it. Either way you will be paying a SUBSTANTIAL amount of money to get out of this contract.
Did you not understand that by signing a contract it was BINDING?
This is not really over flood insurance is it?
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