Can a home buyer back out of purchase agreement when they get denied on financing when they DO NOT have a financing contingency?

Asked about 3 years ago - Milwaukee, WI

I was pre approved for home loan. I entered a purchase agreement and did not select financial contingency based on bad realtor assistance and my existing pre approval. I have now been denied a loan by the bank. Can I back out of the deal and surrender only my earnest money of $5000? Can I be liable for more damages? What will be the likely outcome of this?

Attorney answers (1)

  1. Pamela Koslyn

    Contributor Level 20

    Answered . 1st of all, get a new realtor. 2nd of all, try another bank - one denial doesn't mean that every lender will say no. 3rd, take your contract to a real estate lawyer.

    As with any question that asks "what does my contract say, what have I agreed to, and what are my rights?" no lawyer can respond in any meaningful way without reviewing the document in question.

    PLEASE READ THIS BEFORE YOU COMMENT, EMAIL ME OR PHONE ME. I'm only licensed in CA. This answer doesn't make me... more

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