Question regarding pulling depost from New Home Community (2014, loan)

[rimmi2002]

Hi We placed a deposit for a new house in community that started development in May 2014. We have started the loan process which is expected to close Sept 19th. The issue is that the community is not selling homes. They offered us a $50K discount on the house we purchased because the house was ready to go and no buyers. Now they are offering another house in the community with the same floor plan even 10K cheaper than what we paid.

I like our lot so I don't mind paying the 10K extra for it, but my question is that if prices continue to fall lower in the community over the next few weeks, I'll be uncomfortable moving forward. What are my options at that point?

I figure if I pull out I'd loose my deposit. What other financial charges might apply? Any insight and advice would be great. Is just doesn't feel good when you buying something and within weeks others are buying it much cheaper than you. Thanks.

[NinaN]

Read the contract, that has the builder recourse if you cancel. And yes, you are most likely to lose your deposit. Talk to a lawyer before cancelling. There might be terms in the contract with which you can cancel without recourse.