Can the seller sue me?

Question

I was in the process of purchasing a home. We were supposed to close on a scheduled date in which we sign a contract extension to do so. After taking so long with the lender we decided not to purchase the home due to over hauling circumstances. We were no longer under contract with the sellers company our contract expired the same day the closing was scheduled and they closing did not go through because of the bank. The seller is now saying that they are going to take legal actions against me. Do they have grounds to suit even though we were no longer under contract.

Answer 1

It doesn't sound like it.  Until the home is actually purchased, sales of homes fall through all the time.  It's frustrating, but common.  It depends on the terms of the contract and the laws in your state, though.

Answer 2

did the contract have a mortgage out. (if bank mortgage not approved on this date,contract void)

Answer 3

The seller is just trying to scare you. I would laugh at him. If you're not under contract, there's nothing he can do!

Answer 4

It depends on what contract you are talking about. Are you talking about a buyer's agency agreement? Are you talking about the extension agreement? There are ways to get out of this contract if you take a good look at it. But, it really depends and without knowing more information its hard for me to say. But, the seller's can sue you for damages if you didn't hold up your end of the agreement. If it was the lender's fault you're not purchasing your contract should have a contingency for financing which can get you out. Where is your real estate agent? That person should be taking care of this for you. If you don't have an agent - where is your real estate attorney? This is why we hire these people - so that when problems like this come up they can handle it for us. I'd contact your attorney and see what's going on. Have the attorney look at the contract. Good Luck.