I signed a contract to buy a home but my house sold for a 30k less then expected can i get out of the contract

Question

then expected. now i can not afford the home. can i get out of the contract for financial reasons?

Answer 1

Are you past your committment date?  Were you getting financing for the remainder?  Or were you paying for the home with the proceeds of your sale?  If you are not past the loan committment date on your contract, you can claim lack of financing and cancel to get your earnest money back.  If you are past that date, you can cancel the contract, but will not receive your earnest money deposit back.

Answer 2

Did you have a contigency agreement stating your would by your new house only if you got whatever amount you needed and not less?

Answer 3

Assumedly your contract is contingent on bank financing.  If this is the case you just call the bank and explain this all to them.  Once they realize you can't afford the new home they will turn down your loan and voila, no bank financing.  The bank isn't going to lend you money on a home you can't afford to buy anyhow (like they want yet another foreclosure), so not really much chance of you getting bank financing as things stand.  

Really you're not in any danger of getting the loan and therefore meeting your financing contingency (assuming you have a bank financing contingency) but you may want to call the bank anyhow to get them to turn you down faster so you can get out of the contract faster - just hurrys things along.

Answer 4

Just get a denial letter from your mortgage company on the house you were going to purchase.  You can get out of it as long as you are with in your financing time frame.