OK, I will make this as short as possible. I have been pre-approved for a USDA loan for $50,000. I have tried to buy 2 houses and lost due to people with more money and faster reactions. I just need a house to live in with my kids! That is it, with a budget of $600 a month, I cannot rent in the getto for less then $800!!! Soo, a couple from church were selling their house worth $63,800 to a cash buyer. They are moving to an apartment. At the last minute, 7-23-15 he backed out. They had already put a deposit on an apartment and are set to move in 8-7-15. They freaked and posted on FB they need prayer about the house and that they would sell their 3 bed 1-1/2 bath house for $50000 but would take $48,000. People immediately started notifying me be cause they know what I am looking for. I called owner on 7-24-15, set a time to look at the house on 7-25-15. I looked at the house, felt I could make it work, it was move in ready once they were out. I told them I could offer $47,000 get a loan for $50,000 and they would bring $3,000 to closing, they said ok.
I called my lender and they said I had to call their real estate guy, local, to do all the paperwork. I called, we meet, and he said he had to get paid by someone $2,000. I said I have $50,000 to spend, figure it into that, and yes, otherwise, too bad.
He called the seller, found out payoff was $30,000 and told them he had to get paid and went over all the numbers with them and asked if they were ok only making $11,000. They said yes , draw up contract. He did, I put down earnest money, and they would be in 7-27-15 at 9am to sign contract. I get a call at 1030am the realtor said they cannot sell the house for $50,000! it has to be $55,000! I said yes $55,000 and they bring $3,300 to closing. NOW!!!
I am at the LIMIT on debt/income ratio and have very little room. I am short on cash and have little room in my monthly budget. That being said. I think the deal might fall through at $55,000! I CANNOT lose any money like the earnest money!! I should be able to do $50,000. I have a contract, they said they had 3 other people interested, that is why I rushed to the office to draw up contract. I am sure someone offered them cash, which I don't have!
If I do not get approved, I still have a contract for $55,000. Can I sell that contract for the amount of the earnest money or more??? So, I don't lose VALUABLE money I will need for the next house OR do I duck out before I lose the earnest money which is 10 days after I sign contract, which will be 4pm today 7-27-15
Please help ASAP!!!
Why are you thinking that you will lose the earnest money if they back out? Who is holding the money and did you sign something that says it is non-refundable?