With the current coronavirus pandemic sending people all over the world into lockdown, many people are losing their jobs as restaurants, stores and schools close. Businesses are no longer racking in the same number of bills as they used to be, and because of this they are having to lay off a lot of their employees.
People who were making changes to their lives before the pandemic are being affected the most – if you were in the process of buying a house, and just got laid off your job, you are probably trying to adjust to the reality as well as find a solution to your problems.
If you were someone who put your deposit down for a real estate property before the epidemic, and now cannot go through with the transaction and want the money back – read on, and we will tell you some of the best ways to do so!
1) Use a Condition as Your Way Out
One way out of this situation is to not act rashly and request for a refund – instead, try and get out of the deal with a technicality. Let the seller or co-op board know of your financial situation, which will lead to them writing up a new contract, perhaps with one that requests a guarantor. Then, you can back out and say that the condition does not suit you.
2) Funding Contingency
A funding contingency is a part of the contract that allows the buyer to cancel the transaction if they are not able to buy the house in the process, due to a reason like the bank pulling out of the loan agreement, etc. So if you are unable to pull out of the buy, ask your lawyer to negotiate a funding contingency on your behalf.
3) Portion of the Deposit
If your seller is avoiding any attempts made by you to get your full deposit back, perhaps you could consider settling for a portion of it. Sometimes, this is an easier option as opposed to going through a whole legal process to get your full loan back, and your seller is more likely to agree to this.
4) Renegotiation of the Price
If you cannot get out of the buy completely, consider talking to your seller and find a way to renegotiate the price. Remember – a majority of people are facing job loss during this pandemic, and they may be sympathetic to your situation. Not only this, but if they need the money quickly, they may be willing to lower the price.
You could even set up a pay plan and give credit to cover.
If you are in a situation where you cannot pay for the house, but have a deposit you cannot walk away from, it is important to know – there are options and ways out! Do not spend all your time worrying, and jump on the first out you see. Instead, take your time to consider your options and what is best for you.
