Seller get cold feet- Can they back out?
Here’s the situation
Buyers agree to purchase house at 127K in March 06 to close deal in June 07.
They put $5,000. non-refundable down payment, & get agreement to occupy / rent at $500. per month until closing. No contingencies, conventional finacing.
Loan application timeframe was initialed as Not Applicable on contract. Buyers represented they had cash or means to close in June of 07
Fast forward to Feb 07 Buyers call sellers & seller’s agent to say we found another place to buy we are not going to buy this place.
Seller asks buyer in written letter to prove they cannot get financing. Buyers do not provide proof.
Buyers are close to or already have closed on new $110K house. Realtors handling that deal are aware of the prior contract.
Prior contract has not been nullified.
Sue for damage’s? Anybody been here done that? Seems like fraud on there application for financing for new house?
All input appreciated even if it hurts