backing out of purchase agreement before closing?

[question4u]

My husband and I entered into an agreement to purchase bare land in 6 months ago. We agreed to pay a small amount as earnest money and then monthly payments for 7 months as a down payment. After the seven months we would close and the seller would carry the rest of the contract. We have had some health issues and can no longer afford the payments. We are wanting to back out before we close. According to the contract in the case of buyer default we lose the earnest money. But is there anyway we can get back the 5 monthly down payments we have already made? Any thoughts/advice would be appreciated.

 

[army judge]

My husband and I entered into an agreement to purchase bare land in 6 months ago. We agreed to pay a small amount as earnest money and then monthly payments for 7 months as a down payment. After the seven months we would close and the seller would carry the rest of the contract. We have had some health issues and can no longer afford the payments. We are wanting to back out before we close. According to the contract in the case of buyer default we lose the earnest money. But is there anyway we can get back the 5 monthly down payments we have already made? Any thoughts/advice would be appreciated.

Legally the contract YOU signed governs this.
That said, in many cases, talk with the seller.
Explain your personal and health issues.
Sometimes you and the seller can reach a side agreement that lessens the penalty.
You have to offer something to get something.
Have that chat, and ask what would make the seller happy, other than the entire default of the down payment.

If the seller balks, you're stuck with the agreement you signed.
That doesn't mean you have to keep paying.
That means that IF you stop paying, the seller will have to SUE you.
Usually sellers don't want to go to that trouble, and you get out it just the same.
Ask, and ye shall know, brethren!

 

[question4u]

further confusion

Thank you for your reply. Right now we are dealing with the realtor who is a dual agent, he was very understanding so far. The reason we are confused is that the paperwork just doesn't address down payments. According to the "default" section in the paperwork, "in the event buyer defaults, without legal excuse to complete the purchase of the property, then the following shall apply: Forfeiture of earnest money. That portion of the earnest money that does not exceed five percent of the purchase price shall be forfeited to the seller as the sole and exclusive remedy available to seller for such failure"
The confusion comes in because no where in the paperwork does it address a down payment other than the earnest money. It does specify the amount of the earnest money which is the first payment we made, but it just doesn't talk of the financed down payments.
Thank you for your time.