Legal Question in Real Estate Law in Michigan

Buyer Defaults on Signed Contract

We accepted on offer on our home on 9/16/03. We were suppose to close on 11/7/03. We have given the buyers an extension to get their mortgage problems corrected. As of today their mortgage is denied. We have a pre-approval letter from the mortgage company stating that they were approved. Now they are being denied. We have moved out of our home and made several costly modification because of their request. We now have a late house payment and an upcoming payment, plus moving expenses, plus the costs of the repairs to the home. Our realtor is advising that we only get their security deposit. Are we entitled to pursue any legal action above the security deposit, to recoup lost money?


Asked on 11/26/03, 11:06 am

1 Answer from Attorneys
Gary Weingarden Gary D. Weingarden

Re: Buyer Defaults on Signed Contract

You may not even get the entire deposit. If it comes down to it, you will have to show a court that you have been damaged in the amount of the deposit. And depending on how the documents were drafted, the buyer may be able to get the entire deposit back.

You should encourage the buyer to try to find financing somewhere. If you need help, I can suggest a good mortgage broker that you can refer them to.

You may contact me at 248.594.2718 x103

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Answered on 11/26/03, 2:12 pm


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