What happens when the contingency is not met
I am wondering what happens if i try to sell my primary residence house and get another primary residence (Let's say a duplex) while i have a mortgage on the first one.
From what i understand, i can have a contingency clause while buying, which says that i will only be able to complete the transaction if my first house sells. What happens if the first house sells and some reason, the financing falls through before closing on the one i was trying to buy(the duplex)?
How to make sure that we don't lose the house we currently have in the process and not be able to get the new one for some reason.
Thank you
#2 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
You can have a financing contingency on the new purchase to avoid having to buy the 2nd home. That’s all your current contingency does< prevents you from HAVING to buy home #2. It does not guarantee you can purchase home #2.
If you are looking for an out after selling home #1 if you can’t get a loan for home #2 you simply add a financing contingency to home #2 purchase contract. If you’re trying to avoid being homeless after selling home #1 there’s nothing you can do about that torte than make sure you qualify.