Legal Question in Real Estate Law in Wisconsin
We have an accepted offer to purchase vacant land that was accepted 10 days ago. After doing addt'l research we don't think we can afford this, even though we've been pre-approved. Our financing contingency expires in 15 days. Our fear is that after paying the closing costs/down payment it nearly wipes out our savings to be able to deal w/emergency situations or paying our taxes. Is there any way to get the bank to deny our loan, for example, withdrawing enough from our acct to appear as if we don't have the funds to close? We're waiting to hear if the sellers will agree to terminating the contract and keeping our earnest money, but are trying to figure out our options if they say no. We're afraid that once the financing contingency is satisfied we have no way of getting out. Thanks for your help.
1 Answer from Attorneys
In order to provide legal advice, I would need to read the contract. I also would need more details on the financing situation. Speaking generally, and without giving you any specific recommendation or advice, all contracts in Wisconsin include the requirement of good faith. In other words, a buyer generally has to make a good faith effort to satisfy contingencies. If financing is denied despite good faith efforts, in many cases that provides the buyer with the right to serve notice of financing unavailability after which the seller has to decide whether to provide financing. However, note that, if the contract is cancelled due to the financing contingency, the buyer generally receives a return of earnest money.
Whether any of these generalities might apply to your specific case would, again, depend upon the language of the contract. If you'd like to set up an appointment, please contact us. 608.663.6464
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
