sabotage financing to use contingency?

[David J.]

I am under contract to buy a single commercial office unit with an existing tenant.

The closing is scheduled for eight days from now. My financing contingency expires in five days. The offer way made and accepted two months ago, feels like a lifetime. The numbers are fine, not spectacular but I felt good at the time.

The financing is not yet final as I haven't yet gotten insurance. I have a quote in hand but haven't paid for it yet.

I am having major second thoughts about this property considering the current state of the economy.

Cities are passing laws that tenants can't be evicted for non-payment of rents. Businesses are losing money with no business.

Will the existing tenant be able to continue doing business? Will the real estate market crash over the next six months? Am I overpaying? Do I want to tie up the 25% down payment and commit to a loan at 5.25% for the foreseeable future when I might want that money for better investments? Or to live on if I lose my day job?

The only way I can see backing out without losing my 10% earnest money is to use the financing contingency. If I don't buy the insurance then the lender won't approve.if I don't pursue the insurance, i.e. pay for it, could i use the lender's denial?

Will this strategy work? Should I pull the plug?

[Ronald Rohde]

I also think posting on a public forum is never a good idea. Talk to the tenant, get a feel for his or her concerns.