Under Contract

I'm under contract for a condo I was planning on keeping for awhile and renting out...Now I found out the condo development is 20k in debt and 208/388 units are owned by investors. The banks I've went to won't finance the deal, and I'm not sure I even want it anymore. Originally it looked good because the purchase price was 103k for a totally renovated, top of the line place...and in the same development about 7 more properties are selling, all higher priced, 2 of them at 125k...rents keep rising and prices as well...is the budget deficit enough to scare away investors, or could I flip this. I dont have much time, and I don't have an assignable contract. What options might I have? Thanks alot.

Comments(5)

  • SmileyFace5th November, 2004

    If you have a clause in your contract saying you can be out of contract, if you cannot get financing, then you don't have to buy it and you can get earnest money back. It depends on what your contract says.

  • nib455th November, 2004

    Right, I know I can cancel the contract...But I'm trying to make up for the time/money I've put into this deal, any suggestions?

  • SmileyFace5th November, 2004

    If the seller lie to you abou this prop, I guess you can take him or her to court. Talk to your lawyer. I think you can even sue listing agent and selling agent too, if you want.

  • joefm265th November, 2004

    why not flip it over to another investor?
    [addsig]

  • nib459th November, 2004

    if the contract is not assignable, and im not getting a mortgage commitment, how? I've heard of double closing, but if I cant close, how can I turn it over?

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