Let’s say I am selling my house, and it goes on the market in the standard way most of us are used to (in the US).
Someone puts an offer in and I accept. I move out, buy a new house, and life goes on. But then my realtor calls and says "the people who put the offer down did not qualify for their loan. What they actually have qualified for is about 5% less than we agreed to.
You can take the new offer, or we can put the house back on the market.
Is this scenario possible? Or, when you are selling a house and sign with a real eatate company, are some protections built in?
I know you can buy a house with the contingency that you sell your current house first, but can I be stuck with two mortgages if the accepted offer on my old home proves to be invalid for whatever reason, or would the real estate company have to buy the home at the agreed to price?
I would think that if a person says they are going to buy a home, before the real estate company takes the sign down, the new buyer would have to have a letter from their lender saying they can afford the cost of the home. Once that occurs, as the seller, I should be free and clear of the home, regardless of what happens to the new buyers, correct?