Can we get our deposit back to walk away from the contract? (contingency, mortgage)

[lindtwhite]

I posted my post in the "house" forum, but I think this probably more appropirate for me to post my question.

We signed a contract with a builder with Mortgage is the only contingency. Our loan was approved recently. However my husband was just got laid off by the company. The builder has not even built the foundation yet. Is it possible for us to get out of the contract with deposit back?

I'm still employed, but the loan amount is more than 5 times of my salary. I talked with a rep at the lender, she said we might still be able to qualify but she is not sure.

Thanks for your opinions

[middle-aged mom]

It all depends on what your contracts says.

Why not consult with a real estate attorney who can actually read and interpret the contract and your state laws.

[2bindenver]

Get thee a loan rejection letter asap. Read your contract. Talk to a local (to the property) real estate attorney.

[Tish Thompson]

You can't get a loan reject letter if you still qualify. Talk to your lender about that. Read what's in the contract and if it doesn't make sense, talk to a real estate attorney.