What are the most likely consequences to a buyer who defaults on a contract?
Question Details: We purchased home gave 10% down payment then for personal, medical and financial reasons decided not to close. We spoke to developer and they allowed us to list with them for resale with out closing first but they took house off market 4 days ago for "legal issues"; I'm not sure what those would be. Our deadline closing date is in about 3 weeks. We made clear we do not want to close and are prepared to default. What is the likely consequence we will face?
At a minimum, you will lose any deposits or earnest money if you default--when a buyer defaults, they do not get their deposit(s) back. If your default causes the seller to incur provable losses or costs which exceed the deposit (e.g. from "carrying costs," like taxes, insurance, interest on loans, etc. during any prolonged period they end up holding onto the home before finding someone else to buy it), they could potentially sue you for the excess or surplus, unless the terms of the contract limit them to only keeping your deposit.